All Forum Posts by: Tim Watson
Tim Watson has started 3 posts and replied 12 times.
Post: Short term rentals in Greece
- Posts 12
- Votes 3
We are looking into buying a property in Greece (Kalabaka) to use as a short term rental, and wondered if anyone has any experience with this. I have a contact with someone that can manage the property for us, but I dont know anything about financing internationally (or property management agreements in Greece). Any help or advice is very appreciated.
Quote from @Jose Garcia:
Quote from @Tim Watson:
Hey folks. I am looking for an advisor, and I have a standard question that I ask every one that I have spoken to. I have yet to get a creative answer (pay down debt, max out your retirement, etc... is the almost universal advice). I thought this might be a good place to pose the question:
I have $50,000 equity in my home on a fixed 6% HELOC. What would be the best use of that money so that I am able to develop a cash flow portfolio that I can continue to grow?
Thank you Jose, I appreciate the input.
Quote from @Chad Ackerman:
Quote from @Tim Watson:
Quote from @Chad Ackerman:
@Tim Watson - great topic that I think a lot of people have on their mind. One avenue that you may not run into a lot would be to look at passively investing as an LP in a syndication deal. These deals range in multiple asset classes and can focus on cash flow, value add equity or both. There are a lot of options but it would give you yet another arena to look into to diversify your portfolio. There are also a lot of options to get in for $50k or less.
There are different communities and podcasts out there that help you get started. I think BP does a great job in most topics of real estate investing but the syndication topic doesn't get a lot of focus it seems. But there are a few other communities that have popped up that have built a network of like-minded individuals that are sharing their experiences in this space.
The best book I've read is by Brian Burke called the Hands Off Investor. It's a good tactical book that will teach you a lot about the language and metrics of a deal and gives you ranges of what they should be. There are some others as well.
Quote from @Chad Ackerman:
@Tim Watson - great topic that I think a lot of people have on their mind. One avenue that you may not run into a lot would be to look at passively investing as an LP in a syndication deal. These deals range in multiple asset classes and can focus on cash flow, value add equity or both. There are a lot of options but it would give you yet another arena to look into to diversify your portfolio. There are also a lot of options to get in for $50k or less.
Quote from @Chad Ackerman:
@Tim Watson - great topic that I think a lot of people have on their mind. One avenue that you may not run into a lot would be to look at passively investing as an LP in a syndication deal. These deals range in multiple asset classes and can focus on cash flow, value add equity or both. There are a lot of options but it would give you yet another arena to look into to diversify your portfolio. There are also a lot of options to get in for $50k or less.
Quote from @Dylan Speer:
Have you considered investing in a gas and mineral rights royalty fund that pays 10-15% annualized CF?
Quote from @Chris Seveney:
@Tim Watson
I am not sure there are any licensed financial advisors on BP - a lot of people who may have stayed at a holiday inn last night playing one.
Without knowing your full financial and personal picture, any advice is not worth much since no one knows anything about you
Thanks Chris. Im not so much looking for a financial advisor to sort me out via response to my post as much as I am looking for what might be even basic theories of investing in the current climate using equity or a line of credit. Like BRRRR. Just trying to get some input.
Quote from @Randall Alan:
The short and obvious answer is that if you are going to try and make money on borrowed money, you have to exceed the cost of the money. 6% interest on a loan isn't great. With the stock market doing poorly right now, and real estate prices relatively high, and borrowed money relatively expensive, there isn't an investment category that looks all that great to justify the expense you would incur to create the income you seek. I personally like the "Pay down any high interest debts" answer. If you have an 18%-24% credit card debt and you pay it off with 6% - you are saving 12%-18% in interest. That's a good use for 6% money. Then work on paying off your HELOC again.
My back-up plan would be to sit tight and wait for mortgage and house prices to settle and when an investment real estate rate equals your HELOC rate - presuming you can find a good cash-flowing property - then pull the trigger. For me - a "Good cash flowing property" would mean at least $300/month free cash flow after principle, interest, taxes, insurance, and a maintenance reserve on a small to medium size single family house; or $300/door free cash flow on a multi-family per month after PITI & a reserve.
Probably not that creative of an answer... but sometimes there is no good answer to a question like you pose. I'll be curious what others have to say.
All the best!
Randy
I appreciate the thought you put into the answer Randy. High interest rates and high property prices are what has made me wary of using any of this equity to buy another property. Interest free capital is obviously the best to use for an investment, but because of the low interest rates I have on my real estate and the high interest rates I would be stuck with if I refinanced them, it seems smarter to try to use a line of credit rather than refinance and pull out the equity for another down payment. Maybe Im thinking about that wrong. I was hoping to explore thoughts like that.
It seems like the situation I am in is not that unusual: relatively new investor, equity in his home, cash flow in a first rental and a little equity there too, trying to figure out how to continue to invest. Maybe there is a better resource that posting on the forum?
Hey folks. I am looking for an advisor, and I have a standard question that I ask every one that I have spoken to. I have yet to get a creative answer (pay down debt, max out your retirement, etc... is the almost universal advice). I thought this might be a good place to pose the question:
I have $50,000 equity in my home on a fixed 6% HELOC. What would be the best use of that money so that I am able to develop a cash flow portfolio that I can continue to grow?
Thanks all for the comments and insights, I am brand new to bigger pockets and this was my first post. I can immediately see why it is so popular.