All Forum Posts by: Taylor L.

Replacing window a/c and baseboard heaters with mini splits can be a massive improvement in the comfort and general appeal of a rental. Look around at comparable properties to see what kind of a rent bump you'll expect.

Regarding flow meters, I'm not sure how you'd collect on that. I've never seen someone do their own submetering of water. Normally when someone wants to do something like that they'll implement a RUBS setup. It will probably be difficult to collect on unofficial meters, let alone evict based on nonpayment.

First thought is no way is that place actually netting $7k out of $9k gross while being properly maintained. The price has to factor in its condition, which is probably not fantastic.

It's critical to remember that the Federal Reserve is different from the Federal Government. The Federal Reserve is expressly not supposed to consider Federal Government debt burden when making interest rate determinations. That's called monetizing debt and it leads to instability, more inflation, and all around bad times. Here's an interesting (but old) article on the topic of debt monetization: https://files.stlouisfed.org/f...

As long as the USD is the prettiest ugly duckling, we'll be okay. When that changes we're in for a rough time. Expect spending cuts & tax increases. It is highly unlikely the Federal Government will default on its debt. Not impossible, but unlikely.

Rising rates, deficit spending, and maturing debt is going to make the interest on the US's debt higher than military spending within the next few years.

If Volcker taught us anything it's that the Fed can absolutely go higher with rates if it wants to. 

A few things I haven't liked about lending include the concentration of risk and the high tax rate. Both strategies have risks, but with syndication my feel is that there's much more opportunity to diversify your money and optimize for taxes. 1031s, for example, are possible with syndications if structured properly. You'll also hear people talk about cost segregation & depreciation, which are great, but not everyone is in a position where they can maximize the benefits of depreciation.

Also bear in mind that it doesn't need to be either-or. You can do both.

Rates have been going up quite a bit this year, so what he's been quoted isn't totally out of the park. It feels a bit high, but that may be because rates are much higher now than they have been for a few years. 

I would absolutely shop around. We did that earlier this year and saved about 30 bps. The worst quote we got was from a popular online lender, but the best was from a referral through our broker. 

There's some confusion of terms here. LLCs are corporate entities. 506b & 506c are exemptions to registration that we use to raise capital for deals. Most of the time we use LLCs as holding companies, and investors are actually purchasing membership units in LLCs. 

If you have passive investors then you need to either qualify for an exemption to registration (i.e. syndication) or register the securities (which you'd never do for something like this). It doesn't matter if the investors are friends and family. That is because you're selling a security.

 Look up the Howey Test - it's how the courts & regulators determine if the investment is a security. It sounds like your original deal should have been offered under an exemption (like 506b). The structure of the holding entity isn't a consideration in the Howey Test. 

I'd recommend just talking with some syndication attorneys and shopping around. Just do the next one as a 506b or c. It'll make life easier and can help protect you if things go wrong. 

High risk. If an investor told me that's how they were planning to fund an investment in one of our deals I would be unlikely to accept.

Either one of those has got to be an incredibly low dB level. The fan tenant doesn't seem to be making unreasonable or excessive amounts of noise.

High risk that a condo association will not see a distinction between a MTR and STR, and will implement 1 year minimum lease requirements. Condo neighbors tend to be even more aware of the comings and goings of their neighbors.

Quote from @Eric Hufham:

Quote from @Taylor L.:

I host monthly events which you're welcome to attend. We have one tonight which can be found in the BP events section.

Where do you find it on BP? How do you join?

Here's the event on BP's forums https://www.biggerpockets.com/... hopefully that's ok with the mods.