All Forum Posts by: Chris Thomas

Maybe I look at all this too simplistically, but to me......if I put down 25k on a property and renters are paying off the remaining 75 or 100k, plus I earn the appreciation, plus it eventually cashflows 80-90%, plus the tax benefit, then I am making money. Yes, I will have to make repairs etc..... but in the end thats small potatoes compared to what I get on the other side.....cashflow and ownership of something there will never be more of....land. 

I understand everyone's arguments here, and if you can devote every penny you earn to RE, your life to BRRR, and/or are comfortable with being in debt up to your eyeballs, then great! But if you have reservations or a busy life......(spouse, kids, maybe elderly parents, etc) you can't spend 24/7 working on rentals unless you are making it your business.....

Like many I do hope to someday make it my profession, but as far as I'm concerned, as long as you're in the for the long game, you're going to come out just fine.

@Chris Bell. Are you paying market rate for the house?

Yes you can truly get ahead here, but not in the short term...... If you're buying turnkey, let's say new builds, then you are buying for the long haul. These aren't anything you'll be making much off of anytime soon so treat them like you just invested in your IRA. Buy them, take care of them, let them do their thing, and in 30 years you will reap a solid reward.....

I debate this in my head quite a bit as I want to invest in multi-fam.... Prob is there's not much around me at the moment and whats being built is awful from the standpoint of design, land usage, etc etc. So the the question is, do I invest elsewhere or help create the market where I am at???? It's a tough call....

I'd move on... as this can get a bit sketchy. Remember, especially in real estate, word travels fast. I'd personally rather lose a few bucks or break even than have my name tied to a dispute with a deceased person's family over the house they'd hoped to inherit. Million bucks? Yep, fight it out. 60k.... Nope.

I too would love to join any opportunity to network here. One in E-town, one in Lou.....lookin good. Sign me up!

So before this thread gets too political, I just have to say I really wish there was such thing as the Center in politics...... Anyway, every measure created thusfar has been a knee jerk reaction to the recession caused by the "necessary" halt of business. Any bills need to account for the needs of everyone involved from the renter up to the lender. If evictions are banned and rents forgiven, then so too should be foreclosures and mortgage payments..... if one group gets screwed, then everyone does. Now we all know politicians as a whole are far too invested in their bases to ever think about the "big picture" so this will never happen, but to me this is a short term issue and as I save to purchase new property, I'm looking forward to the changing landscape of the real estate market. As remote work becomes more mainstream, there will be a contraction in the commercial/office market. This space may then be redeveloped into large scale residential by those companies looking to recoup their losses. The resulting influx of square footage on the housing market will cause values to drop for the short term and create a buyer's market. This is what I am looking for and hope to be in a position to pounce when it happens. Now for everyone worried about collecting rent, I've been there too, so good luck. I hope your renters are of the character you thought they were when they signed their lease.

The next great "How to Get Rich Through Real Estate" book coming at you! I hope it includes stories of fighting through adversity and nearly losing it all just to come out on top as a millionaire......all while being 97% leveraged....

All of that said, I know my local market is in need of a reboot.... People are paying astronomical prices for meh properties due to a lack of housing. I am hoping, see I said hoping not forecasting, that a consequence of all of this will be a permanent shift to more work at home careers which will lessen the need for commercial property and hopefully open up space for further residential development.  

I think I'm inclined to agree here. I've been out of the rental game for a few years but look to jump back in in the near future. At this point I'm just trying to decide whether or not to buy props or use my knowledge and contacts to develop multi-fam. Either way, I do not want a ton of debt. I'm hoping to be able to put down 40% and leverage the rest. Thats a figure I am comfortable with and one that should protect me when things inevitably hit the fan like now. As you said, I'd rather own fewer cash flowing properties than 500, and let's be real......a ton of rei lose their shirts due to leverage.....they just do.....its a fact. The key here is to have a real goal in mind, not just "i want as many properties as possible!". I mean thats great, but it isn't a defined goal..... So everyone think to themselves.....what do you WANT?.....and what do you NEED? Sure you may want 5000 units in manhattan, but you may need to create a portfolio that puts 300k (after all bills/hold backs) into your pocket. Those are two very different things.

And yes, while small debt for rei makes sense, I refuse to do it in any other part of life, it is honestly just foolish at best. 

@Stephanie Simmons

Thank you Stephanie.... looks like you’re like me, a happy medium kind of person. I appreciate your insight.

Honestly I’d love to get together with a group of other Architects and engineers and invest away. Throw in a finance guy or two for giggles. This may actually be a wonderful idea 🤔