All Forum Posts by: Account Closed

I'm looking to network and built a small group of experienced investors located in the Bay Area.  If you're an investor with more than 10 years of experience located in the San Francisco Bay, please post a note here and/or contact me.

I'd be interested to hear about your investment strategy.  Please be as specific as possible.

I'm a buy and hold residential investor (SFR, multi, mobile home parks), have invested in several markets nationwide and I'm currently raising a fund to scale and acquire properties nationwide.

Thanks in advance for your posting.

@Tony Baczynski 

Can you post a photo of your 59 caddys?

Thanks for the great post.

My BP blog is: http://www.biggerpockets.com/blogs/5742-building-w...

Also, please free to checkout my other RE groups. You'll find links on my profile.

@Jonathan Cope 

Thanks for the post.

The answer is, "you don't". You take action when you feel you're ready...to take action.  The variables that going into deciding if someone is willing to take action are...

(1) Thoughts:  Do you have the information necessary to understand what to do and actually visualize yourself doing it?  Have you made definite, time based, plans?  Do you have enough information to take the first step (you'll never have all info)?

(2) Emotion: Thoughts are not enough.  You must feel that you can succeed because it is emotion mixed with thoughts that drives people to action.  The world is full of smart people who never do anything...thoughts mixed with feeling drives people to action.  Are you emotionally driven and feel that you can actually do what you thing?  Have you surrounded yourself with other supportive people so you feel more comfortable taking action?  It will help to write out your goals and visualize yourself DOING IT every day. 

(3) Faith: Success comes to those who BELIEVE, who KNOW they will succeed.  How strong is your faith in the plan you have set forth for yourself?  Do you believe you are capable of achieving what your planning?  To get faith, tour investment properties, see the million dollar homes, surround yourself with others who are already DOING IT.

Whenever people try new things they go through these phases.  They might deal with them in different ways, but virtually all people use these techniques, consciously or unconsciously to accomplish challenging goals.

@Account Closed

Assumption 1: 401k is extremely fast. 

I'm not understanding how an average return of 5% (if you're lucky) is a FAST way to built wealth.  I believe that you CANNOT get wealthy by working for your money.  You get wealthy by having your money work for you, (ie. OWNERSHIP). 

Assumption 2: you're going to cash out your 401k when you retire.  If you do not hold it until retirement, you're tax free status and 32% return you quote above will be significantly less.

If you're money is tied up in a 401k, you cannot get access to it unless you remove it. Even with a self-directed IRA, you cannot access the money. All profits go back into your retirement account.

Most newbies aren't able to generate 32% returns.  It's unlikely that you will be able to as well consistently by investing in a 401k. 

FYI: at age 25, I was generating consistent 20% returns from real estate with the money I could have put in my 401k.  So it is POSSIBLE if you are a continuous learning and are driven to generate very high returns in real estate.

Are these "turnkey" businesses a way for unethical investors to get inexperienced, non-accredited investors into money losing investments?  If so, I'm shocked there isn't more regulation in the space.

If you are un-accredited and are reviewing this board, please do yourself a favor and PROTECT/KEEP your money until you are 100% confident you are able to grow it wisely.  Your financial future depends on it.

I agree 100% with Jay Hinrich's comments.  There is never a substitute for doing you're own research and getting your own experience in real estate investing.   You either get your own experience or you trust others.  If you trust others, you better make absolutely sure they are trust worthy.

Another thing: protecting money is often more difficult than making it.  So make sure you develop ways of protecting it.  One of the best ways is investing only with those who can prove they are able to protect and grow it.

@Mike Hurney 

I forgot to mention.  Cable is "all or nothing", when you negotiate rates with the cable company, they're going to provide cable for all of your units.  So, if you have prospective tenants that don't want cable it's tough luck and they may not see this as a benefit...just a higher price. 

With all these upgrades, I would be sure to take a look at the OVERALL value you are providing to ensure the TOTAL VALUE is above the TOTAL COST from the prospective tenants view.  That way, you'll keep you'll keep your occupancy rates high.

@Mike Hurney 

Cable is a good one.  Many cable companies are willing to negotiate lower cable rates when you're offering cable to many tenants.  You can charge your tenant $10 more and pocket the difference.  But beware...you also have to consider the market and what other competing properties are offering.

Most prospective tenants are EXTREMELY cost conscious; rental rate is most critical variable...so you don't want to price your units higher than the market and increase your vacancy rates.

@Patricia Hinojos 

These extras are much more likely to pay off with large multifamily properties than smaller fourplex, duplex, or SFRs because the cost spread.  I would suggest asking your prospective tenants directly, "will you pay $XX extra in rent for Y benefit".  More often than not the answer is "no" on smaller properties.  For example, I thought of adding storage sheds to SFRs I own, but decided against it when prospective tenants didn't want to pay a higher enough rent for me to get payback within 24-36 months. 

As has been suggested, coin-op laundry, vending machines, extra storage, etc. tends to work on larger 30+ unit multifamily because the per unit cost for the extra amenity is lower.