All Forum Posts by: Lukasz K.

I encourage criticism to my post and the metrics within - so feel free to chime in. I'm here to play nice make contacts and learn from the community.

don't be a cowboy and play it safe - moving too fast is what destroyed many investors years prior - personally I'm a huge advocate of buy and hold. What you are attempting falls into my metrics for the current project I am working on.

Buy houses @ 125-185k tops, either get them from auction but there you have to be careful. A MUCH better way to get them is tight realtor relationships in aggressive rental markets. Find people that can supply you insider type deals - where you're not dealing with everyone in your area. They'll be able to supply you with pre-negotiated short sale listings you may have 24-48 hours to get a contract on before they list - if you can get these they are gold.

Aim for 8-13% CAP, buy in nice areas that are appreciating and rent to young professionals, don't be greedy with your rent. If you run these numbers, lets say 150k is your avg, when comped out to rents in the area try to hit 1200-1300 that puts you at 8-8.6% roughly which is nice. You're not hitting nice juicy 10-14% rates, but you also have appreciation/low risk/low rehab costs potential problems, because you're buying shorts that were willingly let go to cut a deal with the bank. Yea.. this process is tedious, yea you're not hunting juicy flips and getting immediate satisfaction. You are however getting 8-12% on your money fairly safely though - really depends how much value you put on that.

Also - whether you agree with my strategy or not, the MOST important thing is find metrics that suit your style, and do NOT deviate no matter how good the deal seems. You need to run a consistent strategy.

I'm not sure what other property managers do /say they'll charge however my firm will be taking 10% and first months rent some people like it some don't - you get what you pay for, and of course you can handle it yourself.

You will need 19-22 homes bought within these metrics WITH CASH to achieve your 25k with little room for error. Remember, the key is to move slow - and patience will save you.

Is there better ways to get returns on 3MM? You bet there is - if you have that kind of cash, or even slightly less - just become a hard money guy and bridge transactions for people - stay outa the market yourself...

I've been browsing these forums for a few weeks now lately educating myself on wholesale and other interesting topics. Personally I come from a hard money, VC/PE background and am in the process of restructuring my organization to get involved in all aspects of real estate as I see tremendous opportunity for the future, anyhow with that said.

I recently relocated to Vegas 6 months ago and have been trying to soak in all the information about the current real estate climate out here. The metrics that I'll be targeting for my buy-and hold investors out here are going to be 125k-185k properties with 8-13% cash-flows. This is very realistic based on my initial research and experience out here. I've been in talks with the group that I'm actually renting my home from and just as an example since its kinda real world because its my personal rental. They picked this up for 150k or so at a foreclosure auction and I'm paying 1350 rent puts them at 9% or so... This is probably not totally accurate but Zillow puts a zestimate @ 185k. There have been recent sales in the area supporting those numbers also. A home a few doors down the road recently about a month ago went up for rent @ 1500 and rented in a few weeks from what I see.

I've always operated in an out of the box fashion and I try to identify a niche and play within its limits.

I'm in the process of obtaining a RE license out here and I'll tell you the key to this market (in my eyes) is law firm relationships for pre-MLS listed properties and auctions so you can get them before they hit MLS, because once they hit MLS out here - from talking with local realtors it turns into a huge mess. Again this is boots on the ground in Vegas, from someone that is not terribly experienced in its market so far these are just my initial observations so please... just take it as information. You have to stay in the good areas and be patient for the right deals to come along to hit these marks.

- Luke