All Forum Posts by: Derek Petersen

Al Williamson

Creating Long-Term Profits with Short-Term Rentals

The concept of investing in short-term rental properties has gained considerable momentum in recent years, and for good reason: high cash flows and strong consumer demand. Companies like AirBnB, VRBO, HomeAway, and to a lesser extent, TripAdvisor, have revolutionized the rental market, and pretty much created the private accommodation sector of real estate investing. Done correctly, there is no reason the right short-term rental can’t result in lucrative paydays for years to come. However, to get to that point, you must become proficient in the process and learn from those who are already doing it. Join the NSDREI and short-term rental expert Al Williamson when he covers:

•How Real Estate Investing Has Changed Since Short-Term Rentals Went Mainstream.

•The Two Most Important Elements of Creating Wildly Profitable Deals

•How to Properly Use AirBnB to Make You a Lot of Money!

•Three Ways to Use Short-Term Rentals to Improve Your Current and Future Lifestyle.

•Leveraging Short-Term Rentals for Your Retirement

•How to Create $10,000 of Cash Flow Per Month Within Two Years.

•The Secret Segment of the Hospitality Industry That if Targeted, Yields the Highest Profits for Investors.

About The Speaker: Al Williamson is a professional engineer, active real estate investor, and the author of several real estate books. He’s best known for publicly documenting strategies to generate enough ancillary income to cover the 1st mortgage of an eight-unit apartment building. Using five super-profitable short-term rentals, Al has been able to obtain financial freedom and now teaches others how to do the same. Al Williamson is a proud family man, philanthropist, and landlord who lives in Sacramento, CA.

SDCFI

Join Us For Our Next Meetup, Where We’ll Be Discussing…

“5 Compelling Reasons Why Investing in Apartments is a Smart Move!”…and How to Start Owning Some Commercial Multifamily Properties – with As Little As a $50k Investment!

We’ll be covering topics like the following:

Should you … or should you not be investing in apartments?

How to be a passive “armchair” investor and still earn whopping DOUBLE-DIGIT returns on your money – without having to qualify for a loan, with no liability… and with minimal risk.

9 ways to quickly ramp up an apartments market value,

The magic of “Forced Appreciation”… and how one simple move is increasing the value on one of our buildings by up to $1.2 Million!

How to create an additional passive income stream… and not have to pay any taxes on it.

Ex. One of our buildings last year had a Net Profit of over $60,000.How much in taxes did we have to pay on that?ZERO.The depreciation expense we got to claim… zero’d out our net profit!

The single, most important hire that will make or break your commercial multifamily venture

Understanding Property Cycles and what you should be doing in the current real estate climate.

How commercial multifamily properties stack up against the stock market over the next 20 years.

The major demographic drivers that are turning us into a “Renter Nation”… and how the right apartment purchases can help you create significant wealth over the next several decades.

Discover amazing cash flow opportunities in other states.

The obstacles that keep most people out of commercial multifamily… and how to leapfrog over them.

How to develop your own “dream team” that will help you build your millionaire investment business

The #1 way to build wealth in real estate … STILL!

Here are the details:

Presenting: Bill Guting

WHAT: SDCFI- San Diego Cash Flow Investors Meetup

TOPIC: 5 Compelling Reasons Why Investing in Apartments is a Smart Move

DATE: Thursday-April 12, 2018

TIME: 6:30pm -9:00pm

LOCATION: Shadowridge Country Club

1980 Gateway Drive,

Vista, CA 92081

COST: $20

SDCFI is a club dedicating to providing educational materials to real estate investors. We provide a venue for learning and sharing trade information in a safe and casual environment. We have a great mix of beginning and seasoned investors, it's an excellent place to mix and share your real estate and note investing experiences and learn from others.

You will get early e-mail notification of meetings when you sign up as a member of this meetup group. Just go to http://www.meetup.com and search for San Diego Cash Flow Investors or Click here: (https://www.meetup.com/San-Diego-CashFlow-Investors-Meetup). We look forward to seeing you!

Meetup Note: The San Diego Cash Flow Investors club invite experienced real estate and note industry professionals to discuss all areas of the real estate business. Our goal is to facilitate education and networking between real estate cash flow investors, new and experienced. If you've been a real estate investor, the world of notes and other cash flow investment is a natural progression for you. Learn why other strategic real estate investors are adding cash flow investments into their portfolio.

Contact: Kathleen Nguyen/ [email protected] for more info. Please include Subject Heading: SDCFI.

Come join us to learn more about Self-Storage and how to invest in them!
Next month, we welcome Alia Ott and Terri Garner, Self-Storage Experts:
“Self-Storage Investments- No Tenants, No Toilets, and No Evictions!!”

Since 2007, Alia and Terri (along with their partner, Al) have collectively managed 16 storage and mixed-use commercial properties totaling more than 4200 storage units, 180 vehicle spaces, 12 onsite offices, 10 apartments, and 8 retail rental spaces in 8 states around the country. In addition to the management of the storage and mixed-use properties, their team has over 40 years of combined experience in real estate investing. This includes owning and operating a 125-lot mobile home park, 41-unit apartment building, over 60 single family and multi-unit rentals. Additionally they have collectively worked with investors to rehab, originate or purchase performing and non-performing notes on more than 90 properties. They have established proven systems for handling all aspects of self-storage investing, and their extensive backgrounds and relationships help them identify properties that minimize investment risk and maximize cash on cash returns.

Alia is a master connector and holds a Bachelor’s degree in Communications from Chapman University and a Certification for Advanced Project Management from Stanford University. She is a licensed real estate broker and best-selling co-author of the book “Initiative”. Alia has actively been investing in real estate since 2002.

Terri holds a Mechanical Engineering degree from Texas A&M University and a Masters of Business Administration from the University of California, Irvine, with exchange certificates from the University of Paris, Sorbonne, and the University of New South Wales Graduate School of Management, Sydney. She graduated with honors from Texas A&M and is a member of the Tau Beta Pi Engineering Honor Society. Terri left Corporate America in 2007 to focus on her real estate endeavors full-time.

Since this is a club with a great mix of beginning and seasoned investors, it's an excellent place to mix and share your real estate and note investing experience and learn from others. You can join us this coming March, 8 2018 at 6:00 PM at Shadowridge Country Club in Vista, CA. .

BONUS: We will have a drawing for a free 15 – 30 minute private telephone consultation with the speaker on any subject you want.

6:00 - 7:00 pm Check-in, Networking, Refreshments
7:00 - 7:15 pm Intro, News and Deal Profile
7:15 - 9:00 pm Featured Speaker

You will get early e-mail notification of meetings when you sign up as a member of this meetup group. Just go to http://www.meetup.com and search for San Diego Cash Flow Investors (https://www.meetup.com/San-Diego-CashFlow-Investors-Meetup).

We look forward to seeing you at the San Diego Cash Flow Investors Meetup!
Meetup Note: The San Diego Cash Flow Investors club invite experienced real estate and note industry professionals to discuss all areas of the real estate business. Our goal is to facilitate education and networking between real estate cash flow investors, new and experienced. If you've been a real estate investor, the world of notes and other cash flow investment is a natural progression for you. Learn why other strategic real estate investors are adding cash flow investments into their portfolio.

Don't miss out!!

DATE:Tuesday, February 20, 2018

TIME:6 p.m. Networking, 7 p.m. Presentation

PLACE:El Camino Country Club, Oceanside CA

Omar Ruiz & Jeffrey Spindler

How to Invest in Apartment Buildings

Many investors think that starting small is starting smart. That’s understandable. The idea of acquiring one single-family unit at a time is something that’s comfortable to wrap your head around. But is it the best use of your money, and more importantly, your time? Perhaps the most efficient way to maximize your time and profit in real estate is to invest in multi-unit properties, such as apartment buildings. When compared to its single-family counterpart, purchasing and operating an apartment building can often require the same amount of work, yet be more cost effective and offer much higher upside. Join the NSDREI this month where apartment investing experts Omar Ruiz and Jeffrey Spindler go in depth and cover:

•Why Investing in Apartment Buildings Makes Sense

•How to Quickly Get Started

•Due Diligence - Both Physical & Financial

•Team Building - Who to Surround Yourself With to Be Successful

•Pitfalls to Avoid

•Tips & Tricks to be Successful … Only Learned From Experience

About The Speaker: Omar Ruiz and Jeffrey Spindler are the co-founders of LeRu Investments, LLC, a private for-profit investment company focusing on acquiring value-added multi-family properties; as well as LeRu Management Services, a property management company with over 157 units in the portfolio from Texas to California. Omar has a degree in business from California State University Long Beach and has been a real estate investor for more than 10 years with experience in property/asset management and residential/commercial short sales. Jeffrey is an active property/asset manager and currently oversees a portfolio of Southern California properties for their own company (LeRu Investments, LLC) and other investors/business partners. Prior to entering the real estate industry Jeffrey earned his Bachelor’s degree from California State University, Fullerton. He is also a licensed California Real Estate Broker and since 2006 has performed more than 100 real estate related transactions including sales, purchases, leases, and 3rd party short sale approvals with lien holders.

@Jacob Marble,@Rochelle Flowers,

I have a rehabbed 4plex for sale in Dutchtown. It's located at 4242 Dewey. I'm planning on listing it soon. I am looking for a good agent if anyone can recommend one.

Derek

@David Greene

I also want to applaud you for writing a book on OOS investing and sharing your procedures and best practices. I learned the hard way and could have used a guide book before jumping in.

@Jay Hinrichs

I think you nailed it in your recommendation to stay in the better neighborhoods with OOS investments. I didn't invest in any D markets, but I did invest in B and C markets. Most of my headaches have been the multi unit C neighborhoods with units that rent between $500-$700. I do believe this can be mitigated by having an ownership partner local who is self managing, but relying on a PM has not been successful in my experience.

I am still looking at multi family here in San Diego and feel the pain expressed by investors that live in hot markets. The cap rates are well below the cost of financing. Maybe this will be the next opportunity to purchase on discount when they default in the next downturn? 

@David Greene

A few questions for those following the thread:

1. I pay way, way, WAAAAAY less for my turns out of state than I do in CA. Wages are lower and workers need work more.

I also negotiate the price of the work long before I ever pay a dime so I never overpay.

I can understand you may be having unscrupulous contractors taking advantage, but are you sure that's because the properties are out of state and not because you didn't get a rockstar contractor referral from someone dependable?

DP- I self manage in San Diego, and I'm using contractors that I know personally, or using referrals from other investors that frequent local REIA meetings. I negotiate directly with them, on the phone or in person; if they do poor work or dupe me in any way their reputation is at stake.

With my out OOS repairs, the PM's are soliciting bids. They receive bids and forward them to me for approval. Some do a better job of negotiating on my behalf than others. In many cases I've called the contractor directly, and negotiated over the phone. If they do poor work, I may never see it or hear about it from the PM. In my experience, the OOS owner has far less control over the quality of work or the price for said work.

2. I'm not sure this is an apples to apples comparison. Few areas in the country are going to have the demand San Diego has.

Also, this could very well be a matter of not having a great property manager in your out of state places than in your SoCal places. Either way, I don't see the logic in the argument that your vacancies are a function of the properties being out of state.

Would a landlord in Maine who owns out of state properties in San Diego have the same problem as you getting them rented as quickly as they are able to get their maine properties rented?

I don't manage any of my own properties. Property managers do it all. but of course my SF bay area properties have less vacancy. It's a stronger market.

that's actually one of the key points of the book. You should be investing in markets that are stronger for the goals and needs of your investing strategy rather than just where you live.

DP- Again, I self manage in San Diego, and have much more control over vacancy loss than my OOS rentals. With a PM, you never know why your unit is taking so long to rent. They may have units that have been vacant longer than yours and funneling prospects to other properties. You inquire with them on the phone and they talk a good talk about showings, interest, but it's just a lower priority to them when it's not their income loss. Vacancy, and the costs associated with that vacancy (utils, unit turn) will kill profitability.

3. I agree that choosing the wrong property manager can break you. I talk in the book about how to find a good one and the types I go for myself, but, how is this problem different out of state investing than in state investing? I don't see why one is riskier than the other here.

DP- See #1 above. The same holds true for PM's as it does for contractors. Reputation in this business is everything, and if I have a bad experience with an OOS PM it likely does not impact their business much.

The ideal buyer for this fourplex is someone experienced from out of state, with a local team with aligned interests of making profit on cash flow, or a local investor that can provide the necessary oversight to a PM or can self manage. I don't have any urgency to sell so please only contact me if you're serious.

Legal Description: C.B. 2644 Dewey 42ft x 127 Ft Bingham Est Addition pt lots 5&6 Bnd S-50 Ft 0 7/8 In N NL Bingham

Located at Dewey/Bingham; safe and up in coming neighborhood

Low Maintenance, Extensive renovation (Roof, Mechanical, Plumbing, Electrical, Units) in 2013. All brick exterior, new exterior windows.

Large open spacious units rent themselves. Low turnover.

Strong Upside Potential! Market is $550-$600 per unit.

Exceeds the 1% rule by 50% with current rents. Raise rents and have a 2% property!