All Forum Posts by: Brian Wilson

Goals, business model/knowledge, financial situation, and preference. Of course location plays a factor but the items I just listed are (as others have stated) the reasons why we choose the asset types we do. I really want to get into large multifamily properties one day, but I have neither the knowledge nor the financial situation to break into that portion of the market. So SFR it is, for now.

I'd say do whatever makes you the most money, with the least headache/effort possible. 

It honestly depends on your goals. In the short term; next 5-10 years, I'm focusing on single family while learning about large MF. After I stabilize the small portfolio I'm going head first into large MF syndication. Of course I'm networking and learning about both along the way. You can't just show up one day and expect to buy larger MF deals unless you have large amounts of capital on hand, experience, or a mix of both. So focus on your long term and short term goals and work back from there. RE is just a vehicle you put money into based off of goals, risk tolerance, and current/future market conditions.

Good luck!

@Andrew Pettit

DO NOT FINISH YOUR DEGREE USING YOUR GI BILL WHILE ON ACTIVE DUTY. Use your annual Tuition Assistance allowance. It may take longer so you don't exceed the annual threshold, but that GI Bill is easy money (The BAH) if you ever need to go back to school when you get out as one other BP member stated. TA is supposed to be renewable every year so long as you maintain good grades. I would get your Masters in finance if you like the subject. You can do a lot with the education should you decide to transition to the civilian world. 

@Nolan Payne

I'd put it on 30 year terms and reinvest the cash flow it puts off into other deals. Terms right now are great. Lock in your 8-10 conventional mortgages on solid properties and let time do the rest. After numbers 8-10 you can still get financing you're just forced into less favorable lending terms. 

Just my two cents.

Sell it. We're currently in a sellers market and you stand to make 20k profit on a deal that is now (by your own statement and criteria) not a deal. 20k in your pocket toward the next deal. Don't allow history to dictate future decisions.

Good luck!

@Anthony M Schlitt

I would say make a decision dependent upon other factors like if you plan to put your 20 years in and get a pension from the military. The stock market may or may not continue to yield those returns. With REI if you are getting a 7% COC you're also capitalizing on debt pay-down, potential appreciation, and tax benefits.

I'm in a similar position and have decided to double down on REI but also contribute something to my Roth. It is possible for you to make a reduced contribution and still save for your first property.

@Joe Villeneuve

Valid point. 

@Account Closed

I agree that a JV may be the right way for me to go on the first couple of deals. I'll have to consider it for sure.

I read the thread you linked, interesting post. I'm curious how you've avoided having the banks calling the note, once they realize that the original lendee is no longer in possession of the property?

I work as a construction manager and during the estimating phase for a new project we determine desired margin for the project on a case by case basis. As someone starting out in REI is this a reasonable approach to utilize? Or is it essential to develop a standard ROI/COC criteria and stick to it no matter what?

I'm curious because many getting into REI having not done a deal can't get a true feel for what they can actually expect in terms of ROI/COC without having metrics to run off of. While you could talk to other investors, many vary in resources and philosophy so results from investor to investor will vary.

Thanks in advance BP!

One of the easiest ways to run your contractor's is to ensure they are licensed and insured (this varies a little by location). Also set up a pay application process so that they are motivated to come back and finish work. If you're only looking at a few properties a year I would consider shipping all the materials to the site and providing the contractor with a scope of work agreement. Be very specific on inclusions and exclusions for each scope.

Good luck!