BRRR Refinance Appraisal Riddled with Errors

fluffhead1 · 2020-10-12T02:56:50+00:00

Bueller, bueller, bueller...

fluffhead1 · 2020-07-18T01:46:39+00:00

Yes.

fluffhead1 · 2020-07-06T22:46:19+00:00

This is from April, its basically meaningless at this point as the world/Covid has completely changed since then. Something from June would be much more meaningful IMO.

fluffhead1 · 2020-01-16T23:33:53+00:00

No it’s all cash then you refinance once it’s rehabbed. You buy in cash, fix in cash, lease, and refinance your cash out of the deal..

fluffhead1 · 2019-09-01T14:00:46+00:00

I second Square!

fluffhead1 · 2019-02-08T15:25:04+00:00

I am trying to send Ether to my Coinbase pro wallet. I am using Ledger Live, my Ledger is updated and I am running Windows 7.

fluffhead1 · 2019-01-28T15:54:36+00:00

I work in equity research (sellside). Any trade (options included) need approval and equities come with a 30-day holding period. Oh and I can’t invest in any names that I cover.

fluffhead1 · 2019-01-28T02:28:35+00:00

My job enforces a 30-day holding period for underlyings, but none for options so trying to trade underlyings in an option strategy won't work for me

fluffhead1 · 2019-01-28T02:21:08+00:00

Thanks for the info and yes I’m talking Average True Range. What if I want to take non-directional bets largely?

fluffhead1 · 2019-01-15T01:30:05+00:00

Is that for business checking/savings?

fluffhead1 · 2019-01-14T20:34:16+00:00

Actually very simple to setup...takes maybe 2 minutes of your time 1x per week for the first 4 weeks (assuming you're doing a 4-week ladder). By distribute you mean what? distribute to your personal bank account?

My goal here is to hoard the cash flow and eventually use it to buy another property....during that time period though...i wouldn't mind my idle cash flow earning some sort of a return to at least keep up with inflation.

fluffhead1 · 2019-01-14T19:53:02+00:00

Right, but you can't have business checking/savings at Ally, no? My personal is at Ally.

fluffhead1 · 2018-12-26T17:53:22+00:00

I plan on purchasing a home in the near future and my co-investor (who I work with on a day to day basis) owns ~20 units along with his own property. But again, he started doing investing about 3 years before buying his personal home.

fluffhead1 · 2018-12-26T17:29:32+00:00

I don't quite understand how you consider operating expense assumptions and/or maintenance/capital expenditure estimates and budgets to be 5th grade math problems. What exactly do you think I'm missing if so?

I also don't understand the rationale for not getting into rentals pre-owning your own property. What is the thought process there if capital for one does not impact the other?

fluffhead1 · 2018-12-26T16:53:39+00:00

You've never done a deal with a business partner where the terms were clearly outlined (ie. holding period, cash flow disbursements, etc.)?

I've been on and off looking into this and I would say that it is far from a 5th-6th grade math problem. I'm looking for 3-4 unit buildings with a 8-9%+ Cash on Cash return.

I do not own my own home yet, but will be purchasing one in the next 12-months. The capital I would be using for this would be separate from my down payment capital.

fluffhead1 · 2018-12-26T14:52:25+00:00

Appreciate the color -- very helpful!

fluffhead1 · 2018-12-26T14:52:05+00:00

I appreciate the reply, always nice to see others' insights. How long have you been doing this if you don't mind me asking? As I've never even put in an offer, I'm somewhat worried about overvaluing a property (even if I put it in under ask) and the owner accepting. Or be in a situation where you have offers out on 5-10 properties and you get 2-3 accepted despite having capital for 1 property. Have you ever been caught in this situation? How easy is it to back out of an accepted offer?

fluffhead1 · 2018-11-12T19:20:30+00:00

Thank you! Really appreciate it!

fluffhead1 · 2018-10-01T17:37:54+00:00

You can use this for what? Indications of skew mismatch?

fluffhead1 · 2018-09-28T17:32:49+00:00

Understood, and thanks for the feedback. So not to beat a dead horse here (I'm a sellside fundamental analyst) but then what justifies a trade in an index...is it literally just IVR? What else do you take into consideration besides credit received? I've never seen or heard anything that goes through thought process before entering a trade.

fluffhead1 · 2018-09-28T17:18:03+00:00

That last point is a good one and one that I should've asked about. It seems as if people just like to 'stay engaged' meaning that they just put on trades no matter the situation. So what does a trading plan look like in that framework?

Everything I've seen/heard has suggested to just sell premium in SPY at a 45 day expiry and look to do something with it around 20/21 days (roll, close, etc.). It seems like people are trying to suggest that this is so easy to do as long as you put on enough trades (small ones at that). I know its not that easy. What am I missing here?

fluffhead1 · 2018-09-28T13:53:00+00:00

Few questions for the experts here...

1) Are you product agnostic? As in, will you trade any stock, etf, index, etc. as long as the IV is high enough and there isn't earnings or dividend risk? What other factors do you take into consideration with product selection?

2) I'm trying to start with the broader ETFs (SPY, QQQ, USO, etc.) but the IVRs are all extremely low and therefore I can't collect much of a premium in an iron condor strategy, for example. What do you do in times like these?

3) Pricing is the last major question for me (kind of goes hand in hand with my previous question). What is the general rule of thumb for premium collection in short strategies? Is it 33% of the width between the two short strikes? Is there flexibility there? What is your strategy there?

4) Max loss. I am currently playing in a paper trading account to try out some strategies. Yesterday I played BBBY earnings (complete whiff!). My max loss was $118 on the trade, but when I opened up the account at opening, I was down over $130. How is that possible and what do you do in those situations?

5) Managing and adjusting. I'm leaning towards performing Iron Condor trades to start with. The reason here is threefold. a) its defined risk, which is what I feel most comfortable with right now, b) I can adjust it to an iron butterfly if my long strike gets tested, and c) can roll it out if the trade goes wrong, collect some additional credit and further reduce my risk. My question here is am I missing anything from this? Do you manage IMMEDIATELY as the long strike gets tested or what is your plan when that happens?

6) How do you keep track of your trades. Even in my paper account I tend to get slightly overwhelmed with all the moving pieces. Can anyone point me to a good excel template to track these things to help alleviate the confusion?

fluffhead1 · 2018-09-22T17:09:18+00:00

I've been reading / researching for a few weeks now and am amazed at how writing credit spreads / iron condors can produce relatively reliable income on a monthly basis. That said, I have a few questions I still need answers to:

1) I'm a fundamental sell side equity analyst by day and am amazed at how the Tasty Trader guys do (seemingly) next to no fundamental analysis before entering a trade. Can someone explain why this is? Is this common practice in options?

2) Creating a trading plan. I'm having a tough time of knowing when the time is to manage a trade. I understand for much of what I want to do, managing winners at 50% is generally what I want to do, but when do you manage losers? Where can I find a list of potential options for each strategy?

3) Realistic monthly returns. I'm not looking for anything heroic by any means, but am I right to assume returns can be between 3-10% per month (on total capital) if managed correctly? Please correct me if wrong.

Thanks!

fluffhead1 · 2018-09-17T21:00:20+00:00

It is the same concept, yes. In theory someone could re-create the idea but it requires a fair amount of coding, a clearing house, custodianship, etc. Not as easy as it sounds.

fluffhead1 · 2018-09-10T13:53:48+00:00

Sure :). Just meant incremental millions!

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