Fri, 16 July 2021
1713 FBF: Client Case Study: Vernon Grant on Highest & Best Use of Equity, Maximizing ROI, Retirement Planning
Today's Flash Back Friday comes from Episode 809, originally published in March 2017.
During this case study, client Vernon Grant offers up a classic example of a situation you or your parents may be in right now. Vernon asks Jason for investment guidance on the two properties his parents own that are in vastly different markets. It’s all about the numbers, as Jason breaks down each property by its rent-to-value-ratio (RTV) and the existing debt structures of each. Jason reminds investors to consider depreciation offsets, refi-til-ya-die options and the beauty of renting.
[2:15] If your property doesn’t have good RTV ratios consider selling or refinancing.
[10:43] Vernon has been around property investing his entire life.
[12:00] Vernon needs Jason’s advice about how to handle his parent’s properties.
[14:23] It doesn’t matter where your property is, RTV ratios are almost always the same.
[17:51] The New York market is a cyclical market and may be on the verge of being overvalued.
[25:12] Jason offers the Refi-til-ya-die as an alternative to selling.
[28:35] Why do we trust the advice of strangers more than we trust the advice of our friends and family?
[32:33] It’s important to examine the existing debt structure of the properties.
[34:09] A 1031 exchange may help offset depreciation taxes.
[36:37] How does an investor know when it’s time to 1031 exchange or to refinance?