All Forum Posts by: Bob Smith

@Tommy Kerwick Jr. I've helped quite a few BP clients purchase STRs in Scottsdale, and all are doing very well. Estimated gross annual revenue for a 4/2 house + pool in South Scottsdale is upwards of $100k. You can bank on the yearly events here that draw hundreds of thousands of visitors (WM Phoenix Open golf tournament, multiple MLB teams for Spring Training, Barrett Jackson auto show, Arabian horse shows, etc). These are just the events that are held year after year, and there are many more that Phoenix hosts often as well (Super Bowl, NCAA tournaments, Bowl Games, All Star games, etc). I've seen many of the best houses renting for above $1000/NIGHT for the Phoenix Open week alone.

Bookings do drop off during the summer months (roughly June through September), but I was just talking to my STR rental manager and he pointed out that most of my clients' properties are still booked every weekend + some odd days throughout the summer. Or come enjoy your own house during the summer - it's really not bad here with a good air conditioner and a diving pool!

To gross $100k a year what type of value of house is that? Luxury home I assume? Maybe $750k?

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I realize the rules could change but does anybody know which Scottsdale/Phoenix neighborhoods, with community pools, allow short term rentals?

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I have had good luck buying brand new homes in a few cities as single family rentals. Sort of the ultimate turnkey property as it's "perfect" and comes with a builders warranty of some kind. Looking to dump some cash into a couple new properties. Anybody have any leads on incredible new home deals out there? Ideally close to 1% rents without significant HOA dues. I'd love to hear what you got in your area in terms of actual selling price, if any additional work is needed to make it rentable (i.e. window coverings, light fixtures, backyard landscape), and what anticipated rent would be. Would love to hear what you got. Thanks in advance.

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I was merely giving you a suggestion. I am sorry for ruffling your feathers. Maybe one day you'll look back and thank the little people who try to help you during your journey. Best wishes.

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I would not be investing money with anybody that doesn't even do basic punctuation properly. This isn't Twitter. Things like capitalizing the letter i and stuff like that.

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I have multiple business entities owning real estate as many of you do. LLC 1 owns 5 properties, LLC 2 owns 3 properties, etc.... I can't get a straight answer from my CPA so curious what you guys do. I am looking to hire a bookkeeper and they tend to charge more, a lot more, for additional entities. My feeling is one QB file or account is fine since it can be sorted by classes and the class sort would represent the properties which happen to be owned by different entities. Thus when the info is presented to the CPA he will receive a report for each property and grouped by class or each entity. Curious how many of you have different QB accounts for each entity or if you just sort it by class? Appreciate your thoughts in advance. Happy Monday my friends.

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Interesting post. I have looked for such an advisor and can't find one. I just want to pay them by the hour, like a lawyer or accountant, to advise me on things like what my 401k is invested in AND help deciphering various real estate investments (especially syndicated deals) that I look at. While I trust myself I would prefer an outside smart person to weigh in.

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Denver, Colorado

Originally posted by @JD Martin:

Originally posted by @Account Closed:

I have personally known Cardone for over 2 years, have you? I question your motives with your post.

Originally posted by @JD Martin:

Originally posted by @Account Closed:

GC is legit. He was a guest on the Bigger Pockets podcast 3 years ago.

Originally posted by @Calvin Thomas:

My office received a call from one of his reps today. I thought the pitch was a pie in the sky type of deal. Anyone hear of this guy on Youtube, Grant Cardone? He boasts a half a billion dollar real estate empire in Florida and Texas. I believe he get's around 90% financing, plus he also takes in money from investors. Something doesn't seem 100%. He also does these seminars and other marketing stuff. He seems all over the place and also trying to raise capital from others. Just some basic math, if he's financing 90%, paying out at least 6% to investors, and locking in a 3.5% mortgage from Fannie Mae; because he's a preferred client, there doesn't seem much leeway for him to make money. I understand the cash flow portion of it, as that is what we do. We just do not raise capital or borrow money that much anymore. However, my concern is that when the recession hits and the evictions start, that cash flow will dry up. He seems to be working on extremely thin margins. He's also in very lofty areas of Miami; which were the first to go in the last recession. He reminds me of the Polka King (https://en.wikipedia.org/wiki/Jan_Lewan).

Am I reading into the numbers incorrectly?

I don't want to comment on Cardone one way or the other but I wanted to note this post - everyone always needs to make sure they do their own research and due diligence. BP works hard to have good podcast guests but one should never assume that just because someone was on the radio they're real or worthwhile. Question everything - make no assumptions. Cardone is famous, but Bernie Madoff was famous too.

If you think my motives are to hope everyone thinks for themselves and does their own investigation, you're right. Otherwise, I have no idea what you are talking about. What difference does it make that you know Grant Cardone for 2 years? That's like one of my friends coming by here and saying "Hey, JD's a great guy." How does that influence the price of tea in China? Cardone may be a great guy, and his advice might be spot on - but no one should assume that because he's been on a podcast or written a book. They should come to that conclusion based on their own research and dissemination of his actions and material.

I appreciate your thoughts JD. I was talking to a friend, last week, who is looking at a syndication deal with a well known syndicator. My point to him was how do you know who the next Bernie Madoff will be? Ok, so that's an unlikely risk but how do you know the syndicator you invest with won't turn rogue? My feeling is there is no way to know. It seems to me length of track record is a good thing to look at. Curious what else would be good factors to look at when evaluating syndicators!?

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Originally posted by @Sebastian Tellez:

@Bob Smith. I am a recent transplant to KC but I am getting more familiar with it everyday. Anything North of the river (Northland) is pretty good there are a couple of spots that are rougher but for the schools you can use zillow to double check. Then there is eastern Jackson county (Blue springs, Lee Summit) and the southern part of Johnson county is pretty good for the Kansas side, but that is usually very pricey.

Thanks for the info. I know nothing so just gathering as many data points as I can. Any reason to prefer Kansas side v. Missouri side that you know of?

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All over the map but looking at KC among other places. I like B areas, homes built since 1990 or so, good schools, maybe $100-125k, renting for $1,100-1,400!? What areas you like in KC for single family rentals as I describe?

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All Forum Posts by: Bob Smith

Bob Smith has started 10 posts and replied 40 times.

Post: Vacation/short term rentals

Post: Looking to buy a property in Scottsdale, Arizona

Post: New Homes as rentals - SFR - any leads on deals out there?

Post: How commom is real estate syndications?

Post: How commom is real estate syndications?

Post: Bookkeeping Set-up Help with separate entities

Post: Financial Planners w/ Real Estate Saavy in Denver?

Post: Grant Cardone / Cardone Capital

Post: Kansas City suburbs - good areas? - how much to spend on SFR?

Post: Kansas City suburbs - good areas? - how much to spend on SFR?