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All Forum Posts by: Christian Klaus

Christian Klaus has started 3 posts and replied 6 times.

Quote from @Greg Scott:
Quote from @Chris Seveney:

@Greg Scott


Chris:

Here is a chart I created to get some friends interested in investing. 

Thank you. I knew their deals had achieved similar gains as the chart you posted but that was when interest rates were about 300% lower. I imagine that capitalization rates must be significantly lower now, with the exception of more infrequent types of financing deals. But that infrequency poses a problem, especially with how LSU structures their opportunities. That being a waiting list. So I can’t help but wonder if some investors are shelling out $30k and not even getting an opportunity at a good investment.
Quote from @Greg Scott:

For an investment that takes 3-5 years to mature, that question is not something that can be answered unless you have perfect knowledge of the future.  An equivalent question would be "how much will the Dow be up in 5 years vs the same question 12 months ago".  I don't know anyone that can answer that.

Also, Lifestyles Unlimited has no direct involvement in the investments which are put together by individuals, so nobody has data on total aggregate returns.  That said, I am willing to share some of my returns.

- This week I am a passive investor in a deal in which we voted to sell.  Over about a 7 year period, we will make a 55% annualized average return or a total profit of 383%

- My historical returns have averaged around 45% annualized

- Looking forward, I just got into two deals projected to make about 100% profit within 3 years. From the business plans I have seen, that looks highly likely.  Of course, the returns will depend on the execution of the Syndicator as well as external market factors.  They may be higher or lower.


Thanks for sharing. I realize there are factors in the future that can affect profitability, but they should have a pretty good idea based on the financing terms of the contracts they have been signing. And that is what I’m wanting to know. How much return on investment is being lost on average with the current financing options, and equally as important is what is the approximate percentage reduction in profitable deals available. Because again, $30k is a lot to throw away if you aren’t going to get a profitable deal in return.

Quote from @Greg Scott:

There are thousands of Preferred members in Lifestyles. Most of them are not on BiggerPockets.  I happen to be one though.  I've been a Preferred member of Lifestyles since 2012.  It was one of the best decisions we ever made.

What are your questions?

I want to know the average percentage decrease on return on investment for projects started within the last 7 months compared to the preceding year. 

The second question is what is the approximate percentage decrease of available opportunities over the last 7 months as compared to the preceding year.


$30K is a lot to throw away if there is no guarantee of a profitable deal being available.

If you have been an active member in the Preferred Investor Group within the last year please let me know. I have a couple of questions

I’m looking for a passive investing company (OTHER than lifestyles unlimited) for preferably apartment deals. If any of you have recommendations, I’d love to hear them. Colorado or Texas locations preferred.