All Forum Posts by: Daniil Kleyman

Ditto. Seeing same thing here in central VA. Last year, I exclusively bought REO's - literally stole about 5 properties from the banks, and a few more well under 70% ARV after all my rehab costs.

This year, not seeing squat. Going back to marketing directly to sellers because there's nothing on MLS to look at.

Looks like I've created a moster with this thread. But despite some animosity, this has been a great discussion. I deal with a ton of residential investors in my business and very very few people understand these concepts - forget fully - not even remotely.

Now everyone here needs to hug it out and move on :)

Hey Bryan - everybody and their uncle rags on being a landlord and I gotta admit, at times it really does suck and is frustrating as hell.

But you know what doesn't suck? Getting a six-figure (net) passive cashflow every year from your portfolio. ;)

Shane: partnering with people has to be for good reasons. Being good friends with someone is not reason alone to partner up. In an ideal partnership, everyone brings something unique to the table.

For example: you are a hustler (go-getter) and have free time and enthusiasm. Partner with someone who has no time but cash to invest. You find and close deals, use the partner's money and split the cashflow and equity according to your agreement.

It sounds like all 3 of you guys are in a similar situation: decent income, spotty credit (read: tough to get financing) and little cash. Don't rush to get into business with good friends - unless you each have something unique to contribute that the other ones don't. Just my take on things.

There was a post about syndication books, but I am looking for a recommendation for a really good real estate syndication home study course, if there is such a thing?

I've reviewed one last month by a pretty well known name and let's just say it was fluff-central!

Anybody have a good recommendation?

Doesn't sound like a great deal - if you put 20% down, your cash-on-cash return probably won't be that sexy - I am guessing below 12%. I rent to a lot of students and while the apartments are always in demand, you have a very limited lease-up period (may through august at best) and if you miss it, you'll have extended vacancies. Turnover is also a big pain - students move every year so you have to re-lease to new tenants every year. Property wear and tear is also usually higher than other rentals. I'd be carefuly - take your time, look for a better deal with better numbers.

Here are my top sources for deals over the last 18 months:

1) MLS-listed REOs. Best deals, cheapest deals I've bought. Often times much cheaper than what I would have had to negotiate from the owner before they got foreclosed on.

2) Bandit Signs. I got a few awesome deals from this marketing method, but stopped putting signs up about 6 months ago. Got tired of dealing with code enforcement and the uniforms calling me.

3) Mailing to absentee landlords. Good response rate, but tough to negotiate a good deal - most want market value or a bit less.

Rank yours below!

The answer is simple. Don't buy anything with negative cashflow. I don't care where you are, there are absolutely no guarantees of rent growth (nothing is ever guaranteed) so you can't be sure when the bleeding will stop.

If you are putting 20% down, you need to have a rule of thumb as far as what rate of return you'll be looking for on that money. Negative cashflow = negative return = bad.

And as far as tax shelter - yes, you'll get one, but financially you're still better off putting that money into a profitable investment instead.

Good article. Just got a freddie property under contract. They are doing $100 per diem now not $50, and are actually making me go 30 days to close - I wanted to close quickly (14 days). Always something new dealing with these guys.

I stopped putting up bandit signs in my area. Last few times I put them up, I got twice as many calls from code enforcement and cops than sellers.

Last time, I actually got calls from 2 different city council people! Really tells you they got their priorities straight - focusing on real important issues :)