All Forum Posts by: Chris Thomas

Great point here. People try to get too sophisticated. KEEP IT SIMPLE STUPIDS! 

I love to watch the antics of Ben Mallah on YT....he's crass as can be but perfect because he keeps it simple. He invest in things he knows and nothing that requires the aforementioned HGTV rebuild. Its mostly carpet, paint, cabinets.... or maybe a commercial buildout. I have yet to see a foundation wall extended, wall blown out, etc.... on that show.

And debt can definitely be of benefit when working in REI, but I think everyone needs to ask themselves "what is my pain tolerance?" Would you rather be in debt up to your eyeballs just waiting for the day you can cash out or would you rather be debt free and add on an additional property as funds allow to supplement your lifestyle? THIS IS HUGE! I've been on both sides of that fence and I can definitely say not having debt is well......great.

Its not always about being a millionaire as quickly as possible...just focus on simply trying to make your life better first...

Well this is obviously a complex issue, but I believe we will see a mixed situation as time goes on. Many people have realized life is better when they aren't in an office and thus wfh will become a mainstay as will home upgrades and movement to places outside of the city center. However, it will slow some and prices should drop a bit. For me, I think people need to be looking beyond the normal stick, brick, and asphalt shingles. There are so many materials to use to construct a new building. As I said in another thread, if you want to bypass some of the high cost of lumber etc right now, jump to steel or CMU.... 

While I appreciate the desire to do it yourself, I would hire a GC and just get it done sans for maybe the interior paint and landscape. I would also look into hiring an independent Architect to come up with a design that fits the product you want to offer. A few other things you may want to consider.....

Using steel instead of wood or, depending on location, using block.....You may save yourself a boatload of future headache (ie mold/mildew/termites don't harm steel)

Building a non-traditional structure.....ie think loft in duplex form.....

etc

There are a million ways to skin a cat.  

Whelp there are two options here since it seems you are outside of the area....

1. Sell the property to someone willing to pay-up and keep it in the same condition (maybe the city needs soccer fields or a great new park?)

2. Hire a local developer to turn that acreage into.......tract homes (?)

Your issue isn't really just one of how to develop the land but if you should. Pristine land near a city is getting more and more rare these days, and therefore seeing increasing value for just being what it is.....pristine land. I am a budding developer myself, but I like to focus on redevelopment. Maybe I sound like a putz but I'm wondering what the prior owner would've wanted done with this property.... Anyway, once the land has been destroyed it can never be truly restored, so think long and hard about the real value of whatever you are going to do..... put up a big box store? Thumbs down. Turn it into a revenue generating equestrian center/park of some sort (google KY Horse Park)? Maybe something along those lines is the ticket.......

The real question now for me is who here is still buying or brrrring. Seems unwise at the moment. In a year, when all of these people currently overpaying for homes all across the country get bitten, it will be time to buy for sure.

Funny how these tables have turned. I'd expect this bill to reemerge on a federal level within the next year. This will put pressure on Rep leaders in KY to show who they really side with.... farmers/economy/reality (considering KY is a perfect place to grow this stuff) or generally unfounded claims centered around morality etc. A "no" will be hard to justify considering the state is known for producing a type of substance that leads to the devastation of more people and families than marijuana ever could PLUS someone will have to explain to many people why a natural pain reliever is illegal while the insanely addictive 'codones of the world funded by big pharma are merely a prescription away.... It will be interesting to say the least....

Did this actually happen??

Well Nashville is insanely high and I'm assuming won't cashflow for anything at the moment. I used to have a prop just outside of town that did well before the recent boom, though i can't imagine it producing much now.... but maybe I am wrong(??????) Anyway if they simply stuck it in a mediocre mutual fund (9% growth) and never touched it again they'd have about $2MM in 30yrs, $4.5MM @ 12% growth, and $5.2MM with the 12% + adding 3k per year...... Exponentially more with additional capital and a better fund... So whatever they do, they need to beat that. Everything here is pretty simple though every source out there tries to make things seem difficult. You can get burned badly in the market OR REI. I've had doors kicked in, drug trafficking, a beaten tenant, $400 leaky faucet repair bills, etc etc..... and that was with a good property, in a good area, with a good property manager....

No matter what is said on any forums, for now, I've narrowed my view down to this......

My wealth needs to come from about 50% stocks and 50% REI.

Stocks are not hard unless you want to play market cowboy. Like Ramsey says, find a solid mutual fund, put in the cash and take a nap. You will most likely gain between 9% & 14% per year depending on the fund. Maybe throw a little into Apple or the like to see a big jump for giggles if you want, but stick to the KISS method. For this method to work best, be debt free.

With REI, I like to remind myself of MY true goals.... not anyone else's or the "dreams" (1000 doors and monthly vacations to Tahiti or redeveloping an entire city)... At minimum, I simply want a few income generating (ie high cashflow) properties to supplement my life and to hand to my kids to supplement their income when I am gone. I'd also like to develop some modern (midcenturyesque) homes.

Simple enough right?

Also, regardless of the BRRR method, etc, debt means YOU are beholden to another entity, period. No matter how you spin it. So be conservative there to cover your own butt.

I don't really know why, but I think this post just affirmed my desire to buy cashflow over "potential" appreciation. A bird in the hand as they say........

Always do your retirement accounts first. Period. At least match your employers x% plus 6k in a Roth. Better yet, put 18.5 in your 401k plus 6k in a Roth. In recent years the market has beat RE all to pieces, you want those gains! Not to mention the entry into REI is a bit high at the moment. Right now every prop I see is either going to appreciate (nice prop, nice area) or cash flow (less nice in less nice places) but rarely do both. So come up with a strategy regarding your goals and hit the gas!