All Forum Posts by: Frankie Woods

I've been able to acquire $250k in credit over the last two years [mix of credit cards and HELOCs].  It's really really easy.

Upon the intial hard inquiry, you will have about 45 days to shop around other banks without the additional inquiries reflecting on your report and thus they do not hurt your score.  

If I were you, I would continue to buy one SFH per year as a primary residence. If you buy right, you can take out primary residence HELOCs. Use the trapped equity to buy MFRs. Rinse and repeat.

Honestly, I would rather be in an appreciating market than one that is based solely on cash flow.  But why not be in both?  Nevertheless, to each his/her own.  

Consider, buying with 5% down within a market appreciating at 2-5% equates to a fantastic ROI. I find this to be a good strategy to diversify and capture the best aspects of RE. Deploy equity / savings into ETFs or large multi's.

@Noah Krietsch good break down.  Bad debt / credit loss is ultimately  related to management.  The thought is that better management can improve the efficiency of the building.  I stick to vacancy to account for all of this.  I.E., if I provide 1 month free rent, that will be included in the "vacancy" line item.  It's all accounting jargon and a way to sound smart. 

Find a better lender.  The advice from @Stephanie Medellin and @Chris Mason is spot on.  Take that knowledge and school a lender.  Then ask to talk to their manager and you should be good to go.  You'll seem "sophisticated".  Good luck!

@Zachary C. math is one of the rarest rules without exception (so far).  Also bump your assumptions against that in any decision.  And then, weigh your personal beliefs against it and determine what you can manage on each decision.

Mathematically, paying off the highest interest rate first is the most efficient method, regardless of the timeframe.  When talking about emotions and human nature, the math gets thrown out of the window...

The seller will pay capital gains on the difference between his cost basis [purchase price + expenses - 25% of depreciation recapture tax] and the amount received from the bank and income from the interest on the seller financing.  From what you've described, the property is likely free and clear.  Thus the $8000k+ will put the seller in the highest tax bracket. 

Why don't you get 80% seller financing and find a bank / personal lender that will be in second position for the 200k?  That will lower the seller's tax hit.

Congrats @Johnny Situ.  Thanks for sharing your inspiring story!  Keep up the good fight!

Currently on active duty and have used the VA twice (i.e. ,maxed out the benefit). I have 28 units, and the VA has by FAR been the best lending vehicle I've come across.

I honestly think the biggest problem is education. These GIs don't completely understand the nuances of REI, and thus suffer from it. We, as experienced REI, need to change this.

IMHO, I believe we as a community should provide a resource to military members that explains, in plain english, strategies that would best help them in acquiring RE in a way that helps them on their path to FIRE.  I don't think that resource currently exists (well biggerpockets obviously, but I'm thinking specific to military members).  Think onesource.com.  

This game isn't rocket science, but it definitely can be overwhelming to newbies.  Let's help our family!