What is the point of having an LLC if it doesn’t do what it is intended to do? And yet so many people mess this up… In today’s article I will outline for you the key rules and concepts to live by relative to your LLC in order to ensure your asset protection plan is […]
Functional Obsolescence
There are subjects and talking points in real estate that are easy, such as talking about how much money we can make, or how we are so good at negotiating that we get a steal on every property we buy. Those are easy and engaging topics, but sometimes I feel as though in the heat […]
LLC or C-Corp – This is NOT the most important question!
*Consult legal and tax advice before acting New real estate investors get a ton of different answers – all of the place, when trying to decide which entity structure to use. The problem is that while the vast majority of investors are able to make a choice, they FAIL miserably at observing the formalities which […]
Group Investing to Build Bigger Faster and Make More Money!
I am excited to feature a guest writer to JustAskBenWhy. Douglas Dowell is an accomplished real estate guy, a fellow writer on BiggerPockets.com, and an all around nice guy! *Consult legal counsel before acting. You’ve got the basics of real estate investing down. You know how to spot a great deal. Now what? Real estate […]
Was it Worth It to Buy Rental Property?
I am not sure if we are the only ones doing this, but in the Leybovich household we have monthly board meetings. My wife Patrisha is the president of the board. Our white lab by the name of Sladky is the secretary. While kids and I just raise our hands to ask questions, which Patrisha […]
Why would they sell so cheap? The lesson of the Vending Machine…
Conceptually, this is one of questions on the minds of a lot of beginners. If you are indeed a newbie in this sport, you must be wondering why people would ever sell for 60 cents on the dollar, and at times for less. I know I struggled with this. It was truly difficult for me […]
Focus Investing
Suppose that you own 10 buildings in your portfolio and you have 10 mortgages of $80,000 each for a total mortgage debt of $800,000. Further, suppose your portfolio generates a total of $3,000/month of cash flow. If you decide that it’s time to start paying off your mortgages by reinvesting $2,000/month of your cash flow, […]
Too many options – I am stuck!
This sounds like an oxymoron, doesn’t it? Typically we think of being stuck due to being at a dead end with a lack of options. But, in fact too many options can and does often cause confusion and a sort of intellectual paralysis for new real estate investors. Earlier today I had a conversation with […]
250% Return On Investment – Oh Yeah…
Investing is about numbers, and when measuring return on investment (ROI), most of us focus on the math. However, not all math was created equal – some things are less apparent than other. Allow me to illustrate: I purchased a 10-unit apartment building in February of 2013. Without getting into too many specifics, let me […]
Why Flipping Houses is Hard.
Unfortunately for us, so many people today rely on television as their guiding light, their beacon of truth – so to speak. If it looks easy on TV, well then it must be easy. Relative to real estate investing, this couldn’t be any more so with regard to a technique we refer to as Flipping. […]
Student Loan Debt Tops 1 $Trillion – and you are a fool for going along
On Friday, October 12, 2012, CNBC aired a segment entitled: College Costs – the Next Fiscal Cliff?, in which the hosts interviewed Derek Thomson of the Atlantic on the issue of the rising college tuition costs. MSNBC’s The Morning Joe Show aired a similar segment entitled Time’s Focus on Higher Education from their latest issue, in which Time […]
To Lowball or Not to Lowball – that is the Question
What I have learned through experience, and what I teach, is that purchase price is only one of many negotiable terms which establish the validity of the investment and the magnitude of the investment returns in real estate. What is a real estate deal? It is a meeting of the minds – an agreement which […]
Financial Security through Multiple Income Streams
Question – when going into battle, would you rather have one soldier on your side or a thousand? Hopefully you didn’t answer one. Income streams are your soldiers in the battle against the cost of living. Wouldn’t it be better to have several, so that if one soldier goes down, the others will keep your […]
Why Would Anyone Want To Be Middle Class?
I do not have television in my house which helps with being able to get away from the news cycle, but not entirely. Every time I log onto the internet or turn the radio on in my car I am privy to the clichés of current politics, and one thing is for sure – people […]
1.3%: Annualized real return on real estate, 2000 to 2012 – I Think Not.
On August 2, 2012 a tweet from Money Magazine came across my tweeter page @JustAskBen which read as follows: 1.3%: Annualized real return on real estate, 2000 to 2012. I feel compelled to elaborate on this tweet since while Money’s assessment is likely statistically true in terms of an inflation-adjusted growth in equity over the […]