All Forum Posts by: AP Horvath

@Nik Moushon

I don't want to replace my full-time job. I know tech entrepreneurship and I do it well. I want to take my windfalls from tech (which were paper up to now, and diversify my net worth) via real estate. Not scared of work or people or doing unfun stuff -- such is life. :) 

Hard money lending seems interesting --- what's the downside risk to that? 

@Whitney Hutten

My goals are increase my net-worth and diversify from my day-to-day income (which I will continue to do) and be more financial independent. Less interested in following passion stuff. 

@Michael Ealy

1) Increase my net-worth to $10m in 10 years. 

2) Yes, great credit. +$1m net worth. Extremely entrepreneurial in tech. That's where I make my daily bread + windfalls. Hate doing big renovating/carpentry stuff. 

3) Yes, would happily devote 15-20 hours per week. 

4) Want control. 

5) High risk tolerance -- but growing smaller as I age and as my children get older. :) Could do out of state and let money ride. Would play the mortgage/financing game as long as I understand my downside scenario backwards and forwards. 

I eat a lot of risk in tech -- and would like to diversify my net worth with less risk but strong growth. 

@Jenny Roman

Thanks Jenny -- I have heard the same. 

@Randall Weatherall -- on those 20-30 door deals you describe, how does the math work typically? Which markets? 

Hi @Manny Cirino -- I appreciate your responses but I think you are underestimating the main risk in a single-tenant NNN deal -- for example, that property is 33k SF --- if they don't renew and the economy isn't super great in three years, the owner could be stuck with a zero vacancy white elephant, struggling for a new tenant for an idiosyncratic piece of real estate.

@Manny Cirino -- (or anyone else - feel free to chime in) this might be a dumb question on my part -- but in single-tenant NNN cases, can the would-be buyer arrange a new lease (contingent upon him closing the deal with seller) with tenant before the purchase is consummated?

Just for fun --- let's say I was interested in this deal here:  

https://www.matthews.com/prope...

But I didn't love the lease terms in place now -- could I renegotiate a lower rental rate but longer term lease? Again, >>before and contingent upon<< I actually buy the property?

"Hey, I want to 7-year lease and I will give you X% better terms." 

Or is that frowned upon? Or disallowed? How do these work? I imagine the seller doesn't want the buyer talking to much to the tenant -- but the tenant is critical to deal value. 

Hi @Manny Cirino -- funny that you mention Dollar General, Walgreens and the ilk --

I was just perusing https://www.matthews.com/ and saw that one-tenant NNN deals like that had extremely high cap rates, which seems enticing, of course -- the danger is that you cannot renew them for a long-term lease and you get stuck on a property custom built for their use.

 

@NaDean Bowles -- what kind? 

Thanks @Mary M. --- what did you like about that best? Why that vs commercial? 

@Michael Magno, prob more on the appreciation side vs cash in my pocket. When you say a lot of damage -- what do you mean specifically?

If you had a few hundred thousand in cash, ready to invest in RE -- what would your RE investment strategy be?

Spread it around? land, multifamily, SFR, commercial or simply concentrate on one specific type of RE investment?

How much debt/leverage would you take on? And how would you prevent a downside scenario? 

Context: I am married. Zero debt other than personal residence. Married with 4 young kids. Make money in tech.  

@Todd Powell,

Did you ever get underwater on any of your multifamily deals or you couldn't cashflow? If so, what did you do?