All Forum Posts by: Henry Clark

OP

I wouldn’t say a conflict of interest.  But what they are used to and comfortable with.   And yes, where they make their money from.

If you asked me what REI strategy I would tell you what we do. Self storage and country subdivision lots. Are these better than MFH, Retail centers, SFH, I have my opinion, but I don't know.

To me the most frequent issue I see in posts and discussions is not discussing how to scale and also Risk adjusted returns.  Which I think is part of your concerns also. 

Just had my right hip replaced.  From start to finish, everyone I talked with I told them I didn’t want to use narcotics.  From start to finish every person said OxyContin.  I actually had your underlying question in mind.  How are they profiting.  Actually the surgery area didn’t hurt.   It was my back being out of alignment favoring that leg.  They were stuck in their solution. Or they are making money.  

Quote from @Waylon Smith:

I know this is likely an ignorant question. What constitutes a "C" Market? I am familiar with class A, B, or C properties but not markets. @Henry Clark

Using a 10x20.  C. $70 or less; B 100 or less.  A. $130 and more.   

If you’re doing surface parking your market will be up to 30 miles away.  

Quote from @Waylon Smith:

What a great thread. @Henry Clark you and I chatted 2 years ago. I was not ready due to limited capital. I have now saved $200k (liquid) that is ready to be deployed. I am reading everything I can get my hands on that you have posted. Started working on the exercise above as well this morning. I just did my first town and the units available per headcount seems really low. Like too good to be true low. I live approx 60 miles north of Atlanta. When getting a total population count for a town, how big of an area do you limit your headcount to? For instance, my first town I researched was 30107. 30107 has 18k population. However there are a few other zip codes that are within 10-15 miles. When I add all of them together the total population is approximately 22k. Is 10-15 miles too big of an area when determining the unit count per person? Hope that makes sense. 

In small towns it is the town plus any immediate rural population.  Example where I’m at.  Has 5,000 in town and 5,000 just outside of town.  Bedroom community. Sometimes you can get the school district population.

Right now the cost to build is to high for C markets.   Say 10x 20 for $70 per month.   There is a profit but not worth the risk.  In a C market if zoning allowed I would do cargo containers since their price is really down. 

Quote from @Venice Victory:

Quote from @Henry Clark:

Quote from @Venice Victory:

Quote from @Henry Clark:

OP posters ask similar questions frequently.  Do you have $4mm to $20mm you can access?  Let’s say your 25% of that so you personally have to come up with$1mm to $5mm.  If you have that much great.  If you don’t you should choose a different question.  Based on your response I can give you some paths.  Whether your at $0 or $10mm of personal cash to start with.  

 I like to ask questions to better understand other perspectives. I appreciate learning from others. 

I'm currently underwriting a deal that seemed too good to be true. I'm here to help gather the data  to evaluate if it in fact is a good deal. 

I need only $1M to get access to that monthly $40K. Any ideas on how to get access to the $1M? My resources and skin in the game is being allocated to the remaining balance of X purchase price.

What path do you recommend in this scenario?

 Problem is there are to many investment types.  For example we do self storage.  With $1mm cash we can do 3 locations netting $40,000 before income tax per month.   “BUT” up to 60% occupancy all of the cash flow goes to the bank for PI which is good.   

But your question what do you mean by $40,000 per month.   Are you trying to replace your salary then you can’t do it.  Unless the $1mm is 100% of the investment possibly.

No one can give you a good answer without more details.  

The $1M is the remaining balance of the purchase price. Do you have a list of recommended lenders?

I'm not even sure how salary got introduced into this scenario but I'd prefer to discuss solutions and explore ways to get to the objective. 

You don’t know what you don’t know.  You’re giving very limited information which forces people responding to cover unnecessary points. 

You’re a Project leader. The same skillsets apply to your question. You will waste both your effort and others without a clear post.  

 You do not need to give out the address or contacts.  

But you do need to give the deal items for worthwhile info.  

You just added another crumb of information which can mean anything.  $1mm is the remainder of the investment.  You want to know a lender.  Everyone will give you wrong information wasting their time and yours.  

Is it a restaurant. SFH. Bowling alley. 15 unit MFH. Etc.

Why are you giving crumbs of information out versus detailing the deal?  

Quote from @Venice Victory:

Quote from @Henry Clark:

OP posters ask similar questions frequently.  Do you have $4mm to $20mm you can access?  Let’s say your 25% of that so you personally have to come up with$1mm to $5mm.  If you have that much great.  If you don’t you should choose a different question.  Based on your response I can give you some paths.  Whether your at $0 or $10mm of personal cash to start with.  

 I like to ask questions to better understand other perspectives. I appreciate learning from others. 

I'm currently underwriting a deal that seemed too good to be true. I'm here to help gather the data  to evaluate if it in fact is a good deal. 

I need only $1M to get access to that monthly $40K. Any ideas on how to get access to the $1M? My resources and skin in the game is being allocated to the remaining balance of X purchase price.

What path do you recommend in this scenario?

 Problem is there are to many investment types.  For example we do self storage.  With $1mm cash we can do 3 locations netting $40,000 before income tax per month.   “BUT” up to 60% occupancy all of the cash flow goes to the bank for PI which is good.   

But your question what do you mean by $40,000 per month.   Are you trying to replace your salary then you can’t do it.  Unless the $1mm is 100% of the investment possibly.

No one can give you a good answer without more details.  

OP posters ask similar questions frequently.  Do you have $4mm to $20mm you can access?  Let’s say your 25% of that so you personally have to come up with$1mm to $5mm.  If you have that much great.  If you don’t you should choose a different question.  Based on your response I can give you some paths.  Whether your at $0 or $10mm of personal cash to start with.  

OP

First.    
First. 
Work on your cash snowball.  Sale your first unit or two.   Or do a househack and use the $250k 2year capital gain reduction.  

Otherwise you will quickly run into scaling issues.  

Yep.  When they run out of Canadian SPF the prices will escalate on locally produced lumber.  Just a one week shortage will cause a price ripple that will last for months going into building season.  Won’t go down till next fall.  Plus East coast hurricane and West coast fires although a small percentage will spike prices.  

Definitely buy your panel boxes.  

BP would be a great podcast.  China, East Coast and West Coast impact to 2025 building costs but also impact in housing completions.  Put @Jay Hinrichs and others on.  

All the bad spelling above.  Must be the drugs.  Doing great after right hip replacement.