All Forum Posts by: Chris Levarek

Sounds like you have a good understanding of the options. Keep it simple.

Do you really have the time or experience to actively manage a BRRRR. If so, do it.

Otherwise...

Do you really have the time or experience and know a solid Turnkey operator with track record and have the capital, if so do it.

Otherwise...

Do you know a solid syndicator with track record and have the capital, if so do it.

I mean you can weigh a thousand indicators. Investment styles, asset types, group track records, returns, tax benefits, markets, etc.

Each will vary Turnkey, Syndication and BRRRR investing options.

My suggestion, is start simple. 

Do you want to work and learn real estate actively? 

Then make your decision and ask the next question. Do you want to invest in SFH or apartments?

Then ask the next question. Just keep going down until it's clear. You'll know from there.

Different audience in the end. Yes there is some overlap between hotel and STR but a ...

STR will not accommodate the conference attending professional (who doesn't want a car rental)

STR will not accommodate the working consultants flown in for the night. (Think of the HR nightmares with mixed gender stays)

STR will not accommodate the large wedding venues

etc.

However the STR will be good for

Vacationers

Families looking to gather in one place

Small parties

Couple getaways

etc.

And yes, there are always exceptions with certain properties, but there you go...

Regardless what anyone says, people will still go on vacation. Demand has risen for STR near 20% a year, save for 2020 since 2019.

Supply has thus also increased 19% since 2019. 

Take of that what you will, but I'd say demand isn't going to shrink whereas supply will slow due to inexperience, rates and home prices.

Plummet?  I mean, I live here. Home prices have increased over 40% in last 5 years...

I would say it's more a returning to realistic. Buy low sell high isn't it?

That being said, Phoenix is in high demand and will be for the foreseeable years. Thank you California :)

Also, the infrastructure, apartments and businesses here now, make it a different environment then 2008.

It is competitive, so I wouldn't buy now unless you have a clear plan.

@Matthew Spiers Like many suggested, self management or quality partnerships. You are just another # in many cases with the national property management teams.

@Travis Mullenix No. I would recommend speaking with a real estate entity(LLC) focused attorney. Your cost for setting up a partnership is around 500-1200 which will be far cheaper then $10-15k to set up a fund.

Do not try and use rocket lawyer or some such service if you want any protection on the partnership. 

I have about 25 some partnership entities, and all I have paid at least $500 to setup. Well worth the cost.

Joining us this month of January is James Lascara of Lascara Real Estate

James Lascara is an active real estate investor in the Tampa Bay area and the owner of four real estate businesses covering residential multifamily long-term rentals, residential 1-4 unit developments, capital placement in 506(b) and 506(c) real estate syndications, and holding a Florida real estate license specializing in working with investors. He is also a partner in a fix & flip business focused on the central Florida market.

James conducted more than $15M of sales volume in 2022, his first full year as a licensed real estate agent, and maintains more than $6M of real estate Assets Under Management (AUM). James holds a Bachelor's Degree in Ocean Engineering from the US Naval Academy.

Connect with James Lascara

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@Jake S. Depends why you need an LLC?

Yes if you want liability protection. 

An LLC is either foreign or domestic in the state. It depends on the state on how they tax, regulate such entities.

Both will still need a registered agent local to the state.

Always comes down to liability and the amount you are willing to risk losing in case of a lawsuit.

This also comes into play when you start adding properties to same LLC. As your value or networth or equity increases, the more LLC's per property you will want.

Rule of thumb I have used, equity under $500k, keep to 1 llc. 

Example. 2 duplexes = $200k in equity, keep to 1 llc

Example 5 duplexes = $600k in equity, perhaps 2 LLC's.

@Garrett Brown Alway start with 

#1 Friends & Family 

#2 Hobbies & Meetups 

#3 Talk about What you do or have done (No pitches).

That is the best way to get started.

From there 

#4 Build a Brand 

#5 Focus on a Specific Audience 

#6 Talk about What you do or have done #7 Pitches as needed.

@Brian Paula 500 hours. If you put 3 hours a week, 156 hours. Add in some reno days, furnishing upgrades, visits to the property, etc. Again do your own due diligence.  I can share a video from our CPA's on the subject, just shoot me a dm.