All Forum Posts by: Wendy Patton

@Dw Chalmers  DW,I think you are making more then you stated -  unless there are terms I don't know you have with your buyer.  Example: i assume you are not giving option credits from their $700 per month rent payment?   I recommend you never give those so i will assume the $700 is pure profit.   I see it as this:   you are making the difference $30,000 and $17,200 = $12,800 less your closing costs and fees when you close on it - PLUS the $700 each month they stay there before they exercise.  What am I missing or what are you missing in that profit calculation? If they stay there the full 2 years you would have another 24 months X $700 = $16,800!

@Jay Lee I also live in AZ 6 months a year and am here now - i find contractors by asking on Nextdoor.com and from local Realtors -  which cities are you looking in ?   i am west valley but might be able to ask some of my colleges if you don't have lots of luck looking - i have found they are more reasonable and available in AZ then in MI 

We should chat about the MREI and if you can help other investors - reach out

@Angelo Darin welcome to investing - everyone on this forum is great to help you - we can also be your Michigan source of help.  

@Joe S. I pretty much am retired now :-)  but I still love real estate - I am down to very part time now and i love it.  AZ in the winters and MI in the summers.  

@JD Martin Appreciate your thoughts and opinions.  I guess we will see how things do unfold.  And you do have to know who to invest with for syndications and also who to loan to...... Will I still buy real estate?  Of course, I just bought and flipped a house last month.  Hopefully, you and others reading this are not hearing me say to not buy and hold.  I would never say that. I just think buying and refinancing and pulling all your cash out at this time could be a risky move.  Doing that at any time can be a risky move. That's really what I am saying - the indicators are there.  I missed the indicators in 2006 and lost a ton, however it also provided the best opportunity on the back side.   I am just sharing from my 36 years of experience and 700-800 deals (including multi-family, fix and flip, lease options, buy and holds, and subject tos)  - it's worth something for sure :-)   

@Jeff Mauerman Sounds like a great idea to me!  Hey where ever you can bring in more to help offset those expenses that is great.  Hopefully you wont' have to give 1/2 of that income? :-)

@JD Martin  Sit around on money?  Never!  No my money isn't sitting around it's invested with hard money and syndications for 15-20% return.  With those types of returns I will double my money in 3-5 years.  I will bet a lot of money that the real estate market is not going to do that with my equity in next 3-5 years.  Yes you are right on recapture and capital gains (20%) but I didn't want to 1031 exchange them as I don't feel there were enough true deals when we sold them.   Also the current administration is talking about changing long term gains to ordinary income.  For me that would be double the % of my tax bill on any sales.  I know, I know I can 1031 exchange and my kids can benefit later with a step up in basis. Yes I know all that, however no one else in my family has the passion or interest in real estate (especially my hubby).  So time will reveal what the best solution was, but for us it was great to sell at the peak.  With the returns we are getting now it will take about 12-18 months to pay the fees to sell them.  We are already there on some them.   AND... most rentals don't pay 15% return with no tenants or toilets or roofs or furnaces or vacancies.  So, just sharing my perspective, AND I agree with the other R - reserves - but I don't agree with pulling out all the equity.  That is a recipe for disaster unless you have a lot of reserves.  Times are going to change in the near future and those investors who still have the ability to purchase will crush it!   My opinion!  Love to hear the discussion on these topics ........

Okay, I am hearing some fairly experienced (but maybe experienced since the last downturn) saying that they are loading up right now on BRRRR deals. Sorry, but I don't get it right now. So i would love some explanation or insight from those doing this right now. I sold most of my single family rentals in the last 2 years. I am holding cash and waiting for an opportunity. Yes, I am still buying if the deal is right (ie great for subject tos right now with old 2-3% interest rates - great holds) but to buy at the top of the market, top of interest rates in the last 20 years, layoffs happening everywhere (especially high tech and mortgage/title companies), the market starting to turn down, plus i am sure I am forgetting a few more items. What am I missing, or why are some of you doing this and pursing this right now? Again, subject tos with old interest rates I understand, but to refinance them to higher rates, I don't. A drop in the market values (which are coming now), or a decline in rental values (which are happening now), or tenants that can't pay or won't pay (will happen if unemployed). Would love some thoughts on this.

I have lived in MI for 36 years - i haven't heard of those cities but maybe..... if they are near a ski resort for winter that is the best and i am not sure there is much skiing in the UP -  closer to Traverse City and anything on a lake will be a huge benefit.   If it is in the UP for the winter it might get some hunters but would likely be vacant most of the year.