All Forum Posts by: Account Closed

You've grown your business to 10 or 20 houses and it's time to take your business to the next level...What are the options of scaling your SFR investment business?

Should you raise a fund? Buy with a single HNW money partner? Develop a partnership with other types of capital partners? Raise both the debt and equity yourself?

Let's discuss the options available.

Thanks for your input. 

@David Wurzel I agree. You're preaching to the choir. The gov't doesn't do their job efficiently, effectively and sometimes not at all.   This rewards unethical behaviors...those taking advantage of the lack of regulation.

Yes. I agree...but

No. But there lots of lawsuits. The SEC has initiated lawsuits against all of the major banks.

Here's an excerpt from a book I'm reading by Dr Peter Linneman explaining the reasons for the subprime meltdown:

Here's a revision...any market evaluation should include an examination of market cycle analysis.

First of all, it depends on your goals.  Are you looking to generate cash flow, appreciation/capital gains or both?  If both, my response is as follows:

In order of priority:

1. Population Growth (determines appreciation potential)

2. Job Growth (determines appreciation potential)

(1 and 2 work together)

3. Price to Rent Ratios (determines cash flow potential)

4. Property tax rates (high taxes will lower your cash flow rendering the market unattractive)

5. Market is in EXPANSION Phase of the market cycle

6. Unique culture (determines appreciation potential)

Other considerations:

At the city level...

Quality of Masterplan (determines quality of development/walkability/quality of life)

Crime rates

Path of Growth

Neighborhood quality (Are there Starbucks and nail salons or Mexican Grocery markets? What kind of cars do neighbors drive? Where do they work?)

You got it @Josiah Cooper

Best of luck!

@Brett Blough

You're late to the party in most good markets (most are PEAKING).  Send me a message and I'll send you a market cycle analysis mapping all the major markets.  To lower your risk, I would suggest picking a market and waiting for the market to hit a bottom and expand before acquiring.

I'd like to add to my list...a city with a diverse job base with a large percentage of jobs in services, particularly technology.

Yes @Jay Hinrichs

I agree 100%. Section 8 doesn't help anybody.  It just encourages the living poor. 

It's better off to do away with such a program and raise the minimum wage, so these folks can make enough to pay rent without gov't assistance.  That way the government won't be inefficiently administering the program.