All Forum Posts by: Brandon C.

Quote from @Brandon C.:

Cash flow is king in business! 

Cash is King

Cashflow is Queen

Leverage is a Peasant 

Jokes lol

Leverage is a good Peasant if you know how to put it to work 🤓

Quote from @Brandon C.:

Cash flow is king in business! 

 King if your goal is only to pay the bills. 

I question whether there is any RE investors who have made at least $1m in RE that did not make the majority via appreciation.  I double question if there is any RE investor that has made $10m in RE that has not made the majority via appreciation.  

 I do not know what king means to RE but Appreciation is where the real wealth is created.  For proof, try to find a residential syndication that does not have an appreciation play.  If you find one (which I doubt), see how long it takes to obtain their LP funding goal.  Cash flow without appreciation cannot meet the LP profit expectations.  This is because appreciation is the process source.  

My lowest appreciating property has appreciated $2700/month over its hold.  My lowest appreciating unit has appreciated over $1400/month over its hold.  I have 3 properties that have appreciated over $10k/month over the hold and one of those is over $20k/month ($5k unit per month).  No way to obtain these returns this via cash flow alone.  

Best wishes

Good morning everyone,

I invested in a syndication deal back in late 2021 through Simple Passive Cashflow and Truepoint Capital, with Lane Kawaoka and Kyle Jones respectively as GP's. The deal has produced 1 single distribution in that time and now they have both stopped updating the LP's on the deal and have not had an updates this year. They have now stopped responding and corresponding to emails and the only phone numbers they provide go to a medical facility in Florida and a full VM box that never gets responded to.

Am I just f'd out of my money here with no recourse or do I have any leg to stand on to try and sue them for poor due diligence and not fulfilling the promises made? I've received 2 K1's so if this is fraud then i'd imagine they've committed a federal offence by issuing false documents to the federal authorities. Yes, I am getting desperate but I'm throwing myself to this crowd to see if any one else has gone through something similar or can give me some advice or even to laugh at me and say what an idiot I was, which I know already so save yourself the time!

Regards

Giles Dalrymple

Quote from @Marcus Auerbach:

The MilwaukeeREIA offers a split profit coaching. You can also find coaching at the Brew City REI Club. And if you ever get into buy & hold check out the RPA Rental Property Association. And for monthly Milwaukee real estate market updates check YouTube.

Hi Marcus, thanks for the reply. Would the Milwaukee REIA or the Brewcity REI be a better fit for me? 

Hi there! I'm looking to connect with other investors in the Milwaukee, WI market. I have a SFH near the Brewer's Stadium that's doing great as a STR, but looking to grow my network with other investors this year. I am also dabbing a bit into wholesaling in the area and will be purchasing off market deals within the next year. Let's connect!

Quote from @Henry Clark:

If this discussion was even close I could understand the give and take, but it's not even a close comparison. REI is hands down the best investment for the majority of investors.

How close is the comparison?  
Two runners start at the same time.  One is running 100 meters and the other is running 1,600 meters.  Who will finish first?  No comparison.

1.  Risk Reward-  as I stated earlier the S&P 500 P/E ratio is almost twice as high as real estate at a 7 cap.  For a 100% return on the S&P it would need to go from 33,000 to 66,000.   A 200,000 or 2mm house would need to go to $400k or $4mm.  Houses at this moment have a far greater chance of doubling than the S&P.  On the Risk side, again at this moment in reference to the OPs question.  The S&P has a greater chance of losing 1/2 its value than homes do.  I don’t think any of us own &2billion dollar buildings downtown NY, SF, etc, so I will leave that out of the discussion.

2.  Tax free gains-  primary 2/5 years up to $250k per spouse versus 2% tax free munis.  

3. Leverage- as mentioned over and over again REI wins. I can take $100,000 and do $1mm deal and make $500,000 in 2 years in REI. In the stock market I can take $100,000 and in 2 years let's say make 30% or $30,000. REI wins. You might say crypto or the next google and I would tell you your gambling. I can rinse and repeat all day long and get the same returns. Can't do that with stock picking. If someone says investing with Margin calls on stocks is comparable, you shouldn't be in this forum with us little guys. You need to be with the
 $50 billion plus crowd.

4.  Unfair advantage-  homeowners and investors have unfair advantages over Financial investments.  Both from  finance standpoint, deductions, rent for equity, etc.  The US government intentionally made it that way.

5. Liquidity- normally Financial investment liquidity versus REI would be a good thing on the Financial investment side. Unfortunately people tend to follow the cowherd. They buy high and sell low. It's harder to get in and out of REI so it is better

For the average investor.

REI is hands down the better investment from both a Risk Reward standpoint. Even more so to the OPs question about at this time.

If you have been unsuccessful or dissatisfied with your REI strategy let’s discuss your specific examples.    

Yes today's REI market is harder. We get to see who has swimming trunks or is naked at this point.

Arguing that you feel like the stock market can't double but your 2M house can is not an argument based on facts. It's a feeling.

And I'm surprised that you think the RE market can't crash 50% when it crashed 50%  between 2007-2012. Huge discounts in San Diego. The condo I purchased in 2012 for 140k was a short sale previously sold for 375k and that was the story of the entire city. Since then, RE has doubled and trippled but the market has quadrupled. Real estate is barely hitting it's 2007 peak just now 15 years later in San Diego.

The difference between Real Estate and something like the S&P500/401k matching is that the market is the same for everyone who's passively invested yet with Real Estate, you can buy a two houses in in different zip codes and you can have two completely different outcomes. Buying a house is like picking an individual stock. It could beat the market or it could just be a liability. 

So I'll say it again, we only hear people talking about their 2012 success stories but we never hear about all the underperforming homes creating a sort of survivorship bias.

Quote from @Brandon C.:

 I have a 620 credit score, also, as a result of being disabled. 

Disability has no impact on your credit score.

You appear to be all over the place in regards to strategy - Rental Arbitrage, BRRR, Wholesale, Tax Liens, Rentals, etc. You had another post talking about asssited living and mobile home parks.
You should focus on one strategy when starting out. Master it and then expand.

You appear to have little experience, no capital and a bad credit. You do appear to have time. However, it seems pretty hard for a person to want to partner with you.
You may need to do some deals on your own first, build a track record and then seek help from a partner.