All Forum Posts by: Tim Stuart

Kuriakos,

Don't forget about the 1031 exchange option if your capital gain is >$250K! 45 days to identify and 180 days to close.

Tim

Hey Chris,

Congrats on establishing a new cash flowing business. What systems did you develop that helped with the double booking?

Thanks,

Tim

Patrick,

Just a heads up, no lender that I have found will let you do a HELOC on a rental property. (BP community, correct me if I am wrong, please).That leaves you with only 2 ways to access that mountain of cash disguised as equity: Cash out REFI or sell. I'm a buy and HODL investor, which eliminates selling 99.8% of the time. Which leads me to the other option: cash out REFI. If your interest rate increases 75 basis points, who cares? As long as your interest rate is lower than inflation (check out the Chapwood Index for real life inflation numbers) you are getting "free" cash and an infinite ROI. My investing thesis is leverage long to take my equity and put it to work! Please DM anytime if you want to jump on a call and talk specifics.

I hope this helps, 

Tim

Mike,

Lots of great advice in this post so far. I would echo a lot of investors that are taking advantage of historically low refinance rates and pull as much cash out as possible while maintaining it as a rental. Keep in mind you can get a better rate if you refinance as your primary residence and I work with a lender that will extend the LTV up to 90% for a HELOC second mortgage. Looking at the macroeconomic picture, we are setting up for a mid term inflationary run which includes property values AND rents (and taxes).You are going to benefit more over the long term as an asset holder, short term as an asset seller.

Hope this helps,

Tim

Hi Boomie,

A general contractor has the licensure and insurance required to see a project from start to finish. They can perform all the work or use specialists (subcontractors) to do some portions of the work. An example would be a general contractor that handles the pouring of a concrete foundation and framing the home, installing the windows and doors but contracts with a subcontractor for the roof, drywall, insulation, plumbing and electrical and paint. The reason they do this is to speed up their work so they can get paid and move on to the next job. You can be your own "contractor" by pulling owner-builder permits from the city and contract out all the work to subcontractors. You will be managing a construction project and managing your subcontractors as well as communicating with the city inspectors to ensure you hit your timelines for inspections. The time to use a general contractor is if you don't want to or can't manage a construction project. 

Hope this helps,

Tim

Hello BP community,

Curious what you macro experts out there make of what's occurring in China right now. Evergrande has defaulted on its payments as their debt crossed $600B USD. I'm curious how that may impact real estate in the US and what signal that is to the global macro picture.

Thanks,

Tim

Adrian,

The bottom line is we need more housing in Ca. This bill is a way to grease the skids on a monumental housing problem the state faces. I am bullish on the ADU conversions anywhere in a major metro area. As a SoCal investor/agent, I think the intention of the bills will make it easier to add value to traditional single family residences that were previously hindered by local zoning/code. My goal is to find those properties, keep the integrity of the neighborhood intact, and contribute to the increasing demand for housing. Solving problems by adding value is what will provide the return on investment. [Solicitation Removed by Moderators]

Hope this helps,

Tim

Samuel,

Glad to see new investors taking the initiative and getting out of their comfort zone! One thing I did to help identify my investment thesis was using the BP Insights to identify Metro areas that were going in population and job demand. A few areas come to mind: NW Indiana, Huntsville/Birmingham, Phoenix, Jacksonville/SW Florida, Dallas/Austin/Brownsville, Little Rock, Boise. These metros have some of the nations highest growth/demand currently. I think Phoenix and Little Rock are some of the fastest going metros in the nation currently. Although Dallas/Austin market not far behind. 

Hope this helps,

Tim

Jim,

Looks like the parameters for FNMA and FHLMC may be changing their requirements in the near future. Check out my go to lender's YouTube video below.

Hope this helps,

Tim

Triastan,

That's the best way to get experience while you are reading, saving, and listening to increase your knowledge base. One idea that came to mind is to start your REI meetup and have the first several meetings loosely structured around one of the most influential real estate books you have read. That will spur discussion, give some structure for the night, and stimulate experiences from other investors that have read it or similar books. This will promote growth organically. The key is adding value somehow, and it might just look like setting up a well organized, entertaining and insightful night for everyone. The one thing I learned about most seasoned real estate investors is they love teaching new investors.

Hope this helps,

Tim