All Forum Posts by: Steve Vaughan

Quote from @Joey Wilson:

@Chris Seveney enticed by all the marketing, promoting, and the sounds of amazing returns while the leader lives a great life in Hawaii as a worship leader When does it get considered a scam? Hope his other investors are doing ok. Can't imagine that's the case. 

Yeah their sweet life and adventure vanning posts make me throw up.
What about your investors, bros? Are you taking the haircut along with everybody else?
What are you doing about it and why does it not upset you???

Exactly. I sold a community of quads in '22. Most held in an LLC, but 1 owned personally.

The LLC never got/gets bothered but the 1 does. List buyers look like they exclude owned in an entity. Fun fact.

We all evolve and pivot to our specialty, so congrats Scott.

You were and are a hands on leader that pulls people, in flannel!

So glad you'll still be around!

@Rafael Gonzalez please message me some details if it's still available.  Thanks! 

Quote from @Greg De Ment:

Quote from @Steve Vaughan:

Technically central WA is Inland NW, not PNW🤔.  But thanks for the mention @Jay Hinrichs 

I'd invest in my backyard, outside the city of Seattle. Too many pro-tenant RCWs. 

The key for me wasn't to invest in the 'best place' but to know a market so well that a deal jumps off the page when it appears. You will recognize it because you will know relative value.  

While a western WA deal might not meet some Midwest cf metric like 1%, it will be above the market cap rate or below FMV of comparibles and give you options.

We best do that in our backyard or own sandbox. 

Hello, backyard is what we did. My two sons and I bought a building lot in Tacoma with the intention of building a rental portfolio or possibly sales on the affordable side of the spectrum. The new density regulations will allow up to 10 units on the 10,000 sq ft (100x100) lot.We have added value by clearing and clean-up, and have done almost all of the due diligence on the development questions, but need a lendable partner to get it to the next level. I am a building, plumbing, mechanical, and utility contractor with 35 years experience, and they are tradesmen as well. Any ideas would be appreciated.

Thanks

Greg De Ment

If you own the lot free and clear or have other RE you can use as collateral a local community bank / CU would be my first choice. Need a business plan. 

2nd choice would be BDC lenders. These often pay 10%+ divs to their equity/stock investors though so you know their rates are up there.

Sounds like a great project to undertake with your boys! 

Often the best risk, hassle and tax-free approach is to pay down debt.

If you have a car note, credit cards, etc pay those off first. 

Thank you @Natalie Kolodij . The deadline has moved and been in question so much I just knew I'd miss it😩

Welcome @Melinda Dore ! At NCNB you re-fi'd a rental for me spectacularly. 

I'm mostly retired now but wanted to say hi and welcome you. 

Quote from @Nathan Gesner:

In a really good market, an investor can achieve 1% of the money invested. So $4 million invested would produce $40,000 monthly cash flow.

But there are many variables along the way.

"In a really good market, an investor can achieve 1% of the money invested. So $4 million invested would produce $40,000 monthly cash flow."

 We're getting our $40,000 a month and $40,000 a year mixed up.  Or maybe our 1%/mo vs 1%/yr. 🤔

For me, each $800k of mortgages carried generates $3500/mo or $41,000/yr as an example. These avg 5.8% and truly effort-free.  You can adjust the amounts as needed. If you want $40k/mo, X $800k by 10 basically.  

My managed b&h b-class assets generated about 6% in net cf my past couple years. Self-managed but outsourcing repairs and maintenance 8%, self-managed DIY repairs and maintenance 10%. Per year.  

Your return will largely depend on how you operate it. Having management in place always costed me 12% even with a '7.75%' fee.  So $40,000/mo divided by 6% x 12 would be $8,000,000. 

Technically central WA is Inland NW, not PNW🤔.  But thanks for the mention @Jay Hinrichs 

I'd invest in my backyard, outside the city of Seattle. Too many pro-tenant RCWs. 

The key for me wasn't to invest in the 'best place' but to know a market so well that a deal jumps off the page when it appears. You will recognize it because you will know relative value.  

While a western WA deal might not meet some Midwest cf metric like 1%, it will be above the market cap rate or below FMV of comparibles and give you options.

We best do that in our backyard or own sandbox.