All Forum Posts by: Uwe G.

Hi there BP folks.

I am sending out my first mailer and wanted to get some advice from whoever is so willing.  I am looking for some high level things NOT TO DO as I start sending out my mailers.  

@Haley B.,

Where will you be working?  Will you be a remote employee or finding a job and commuting?  Based on that answer I will have some recommendations for you.

Hi @Lani Eversage,

Looks like I most likely missed you and hope you visit was good.  I focus on Clark County, WA and can offer whatever advice you may need.  Let me know if you want to talk over the phone and I can give you as much advice as you want and have a free flowing conversation.

Hi @Shaidah K.,

Congrats on the appreciation in your property.  I don't have a specific answer for you but I would focus on what your ultimate goal is.  Do you like your job and want to continue working or are you looking for freedom from a day job?  Based on that answer I would then decide what would get you closer to your ultimate goal.  Your goal may actually be to live on the oceanfront.  Focus on the ultimate goal and work backwards would be my advice.  For me personally, I am most interested in picking the exact job I wish to do.  I like working but am very happy I have flexibility to control how, where, and when I work.  I hope this vague bit of advice helps.

Hi Blake,

I am currently having a tough time finding cap rates at 5.5% right now so I would imagine that your focus in the middle of the US is going to be much more fruitful based on pure cash-flow.  In my opinion, the Vancouver, WA market is a blend of appreciation and cash flow long-term.  I like that we have Seattle to the north and the Bay Area to the south.  And of course we are a suburb of Portland, OR too.  That is what is primarily putting pressure on our area as job creation has been strong and we are tax friendly when compared to our friends in Oregon.

@Chris Shepard

Thanks for reaching out!  Definitely would like to meet up soon.  I'll get an email going to set something up.

Hi @Blake Milliken,

I would love to leave you some breadcrumbs.  What kind of return are you looking for?   A certain cap rate and something that will appreciate?  My market might work for you but it depends on what you are looking for.  Fill me in on a little more detail and I can make some high level recommendations.

Hi @Guy Yoes,

I may have this backwards but I would stay away from MFs and go with SFR as long as you buy them right. I feel the SFRs are more liquid then MFs. But that could be in my market. I agree with others that are focusing on replacement costs when targeting properties to buy. With the real estate boom centered around 5+ years of building apartments I feel that is where I don't want to be. So if you can find SFR that are close in to urban centers I feel that is a safer investment. I might be the only person that thinks that way though. I also like SFRs because I can sell one whereas it is hard to sell 25% of a MF property. BUT, I am a small fish and learning to get scale.

Your question regarding what to do with the dollar dropping and the fed raising rates. If you buy things that are real and at or near replacement cost, inflation will be your friend. If you can buy some cash flowing assets and allow for liquidity when needed that would be ideal. Examples would be another property leveraged properly and possible room for a HELOC. Another idea if you have the expertise is to buy cash flowing stocks (i.e. dividend) and open up a security based lending account against the portfolio for liquidity. Just make sure that in all cases the assets are cash flowing (cap rate) at a higher rate then the borrowing costs. If the rates are floating then target a 3% spread. Also, it requires a lot of research because of the risks relative to the returns.

I am not a big fish at all but hope to be so in 20 to 30 years.  I do all of the above strategies.

I agree with @Michael Rutkowski on being flexible.  Also, go with what you know, feel comfortable with, and understand.  Sounds basic but I remind myself all the time to do that because there will always be good deals to come.