Answers to some questions about prework I did before buying a tax lien auction property:

1) Important to note, rules vary by county. You’ll need to know your county specifics.
2) This thread is some of the risks I faced in Philadelphia county: “Even if you win a bid on a Tax Sale prop, within 9 months of the acknowledgment of the deed, the owner of record can go to court & get permission to recover the property by paying all back taxes & the money paid by the winning bidder. This is called the Right of Redemption.”

The deadest of all asses. This is how you landlord. Own some sh*t 👊🏾 h/t: @RaquelEvita 💕

before y’all eat all the billionaires, dig into these gems.

A worthy quick thread for entrepreneurs from Mahdi

This is a guest post from a twitter friend of mine @talktohenryj

Janice Bryant Howroyd is the first black woman to own a BILLION dollar business and it all started with a small $900 loan.

This story is insane!

A Thread... 1/ Janice was born in September 1952 as the 4th of 11 children in her family.

She grew up in segregated Tarboro, NC and was one of the first black students to desegregate her town's high school.

I’ve evolved on this thought.

All Black people who work a traditional 9-5 need side-hustle income. I used to regurgitate the notion that nOt EvErYoNe WaNtS tO bE a BuSiNeSs OwNeR.

Today, the need for us to own businesses is a hill I will die on.

(A lil thread) 1. Stats show that Black Americans pay, even with same education, is still lower.

2. A recent Harvard study showed that “Blackness” on resumes makes one less likely to get called for an interview—so less likely to be hired.

hbswk.hbs.edu/item/minoritie…

How late do you arrive to the airport?

I’m a “my flight is in 4 hours and I haven’t packed but on my way to Home Depot rn” kinda girl... I am seriously at Home Depot rn. Tf is wrong with me 😂

Take a second to read every last one of these. Hands down one of the best threads I’ve ever seen for early entrepreneurs.

I tweet for the folk who didn’t know that “shorting” a stock means you’re betting against a stock rising. Example:

1st: borrow 1k shares of Twitter @ sell them @ $38/share = $38k

*TWTR stock drops to $7/sh*

2nd: buy 1k shares of TWTR for $7, give lender back shares

Gain: $31k The risk of shorting, however, is high. You borrowed those shares from a lender (usually a brokerage company) and then sold them for $38/share. Your worst case is that the stock takes off like Tesla and goes straight up and you’re responsible to give the lender back their stock.

Building assets without tax efficiency is like building a house and installing drafty ass windows. So here’s a Roth IRA 101 thread. Primary bene of a Roth: investment gains can be used TAX-FREE in retirement (after age 59 1/2 provided account has been open for 5 years) Contributions are made with after tax money. Annual limit of $6k for folks under 50 (add an extra $1k if over 50) if you don’t hit IRS income limits. Single filers with a modified AGI of more than $139k can’t contribute to a Roth IRA. Married filers cap out at $206k.

At 10:38 a.m. I made a $6k contribution to a Traditional IRA.

At 10:41 a.m. I converted that $6k to a Roth IRA (tax-free)

Why not just put the $6k straight into the Roth? If you’re single & make > $139k the IRS doesn’t allow Roth contribution.

This is called a Back Door Roth The feeling of pulling a fast one on the feds via a loophole in their own tax code

Take under 5 mins and get into these 5 clips.

Just had an appraisal done on my last Philly rehab that I went wayyyy over budget on bc city inspector nailed me.

Hood: Brewerytown
Purchase Price + closing: 85k
Rehab: $127k
Total: $212k
Appraisal: $365k

Inspector required sprinklers on this single fam rehab smfh. Still a win And y’all already know I’m keeping it 🦍. Rented already.

I guess I’d have to be an appreciation gambler to understand why someone would invest in a 3.5% to 6% cap market. Given the historical rate of appreciation, not sure why anyone would do that. My theory, largely based on content heard on Bigger Pockets, is that most fear the hood. Having been a landlord for 17 years, I’ve been in eviction court 3 or 4 times max—one of which was not in the hood. Pre-Covid, I was at 100% rents paid. 3 months into Rona, I’m at 100% rents paid & already had 3 tenants pay July rent. And I have no subsidized rent tenants.

Somebody said don’t flex without saying how I did it. Respect. Here’s my recipe. Your stove may burn hotter or colder...so adjust as needed.

My rental portfolio:
31 occupied units: $34,755/month
1 vacancy: $1,795/month
Mortgages: $5,505/month
12 units left in inventory to rehab Here’s what worked for me
1) I have never used a property manager—that 10% was money I used to pay down mortgages aggressively.

2) I started GC’ing my own jobs. Those savings helped me borrow less. And no, I’m not borrowing money to “pay myself”. That’s called a loan not income.

Peep. So someone asked today, how could a property purchased in 2008, as a residence, be underwater in value today. Easy. And it’s a lesson on why several things matter if you’re buying for appreciation (ie buying a primary residence that doesn’t generate income). Note that this chart is adjusted for inflation, which is why the 2019 values look lower than last peak levels. What I want to illustrate in this chart is why buying at the right price is so important and how timing can play a large role in how well an investment does.

I own millions worth of the real estate but will never (I say never but who tf knows 😂) own where I lay my head. I prefer renting my primary for a number of reasons. (The get ya panties in a bunch thread...)

https://twitter.com/mr4am_/status/1211793584711708672

I don’t like assets that cost me money. If I ain’t getting that (cash) flow, I don’t want it. I NEVER bet on appreciation in real estate largely bc if you look at the historical rate of real estate appreciation it is trash. Let’s talk about that.

I get this question a lot so I’m going to break this down #30DaysofThreads

1) The first place to start is with reality. One of the best ways to build wealth is by using your “discretionary income” and piling it on both sides of your “personal finance balance sheet”. A thread...

https://twitter.com/LeArielleSimone/status/1202251361334812676

Your balance sheet aka your net worth is comprised of 2 sides: assets & debts. Your NW increases as you add to your assets and pay down your debts. Your discretionary income is what tips that ⚖️. So 1st things 1st: you must identify what that discretionary income number is.

Worked 11 hours today and didn’t really have time to dig into this sh*t but let me clear up a few things bc I prefer transparency. A thread... 1) Yup, my college tuition was free bc my Mom works @ Temple as an amazing labor & delivery nurse.

2) I would not, under any circumstances, have gone into massive student loan debt for college. I wanted an MBA from Wharton. I looked at the price and said not worth it.

A person approved for an $870k loan asked me if they should buy a 4 unit in DC or if they should look at cheaper markets like Bmore or Philly. They wanted to know if we could realistically expect more appreciation from the DC market after 2019. (A thread...) Today, I wouldn’t make long term rental acq decisions based on hopes of rapid appreciation. We get caught up hearing stories of folk who bought for $50k in 2009...that’s now worth $. We all want those stories but that may not be realistic over the next 10 years.