All Forum Posts by: Levi F.

@David A.

Colleague request sent

@Benjamin Z.

Have you considered following your real estate dream while working on an online degree that will compliment your goals. You would be saving the massive cost of college and still improving your resume while learning viable tools in your field of choice. Knowledge is power if its the right knowledge. Plus, your parents might approve of your compromise. At this point in your life having any support is an advantage.

Good Luck

@Justin Escajeda

Have you considered leveraging and buying 4 similiar properties on short term (10-15 year) loans to hedge against neighborhood degradation?

@Jacob Villalobos

If 72k is your target and you are looking long term, consider the 100k a start in the right diection. Do some research and find out where you can SAFELY get the %ROI return you want. Once you get a better understanding of ROI then you will know how much capitol it will take to realistically get a 72K/year return.

for example:

10% ROI on $1,000,000 investment is 100k

@AC Cooley

I love hearing sucess stories! It's a movivator for me. Be proud of doing what you want. Continual impovement in 2014.

For outside asset protection our law team recommended an S-corp be formed to stand as general partner and investor(s) as limited parteners. GP manages and assumes 100% liability while LP(s) only risk initial capitol and are not involved in day-to-day operation. We have a thirty + page operating agreement outlining all roles and company/partnership by-laws. I also carry PULP insurance of $3,000,000 for inside assest protection.

You are absolutely correct. If we get 40%, and we have, great. On that particular triplex we would have settled for 20% or so. The seller took our first offer and that was it. That magical range of ROI is determined by the investor or team of investors making the decision. It is simply a self set guideline to help achieve your goals. By setting a minimum return you can prevent emotional buying or eliminate deal candidates. Limits can also help you think outside the box to maximum income, and we use them to make our offers. We make offers that put properties into our ROI zone.

Hope that helps man.

For my strategy ROI has to be evaluated every single deal. Most of the properties I have interest in are in a low or zero appreciation, high cash flow market. There, depending on the school district, we look for 15-30% ROI. In the other area, a high end lake community, I am happy with 10-15% ROI. The stability of the market and the quality of the properties are often worth the sacrificed return. Our plan is to capture the cash flow from market "A" and invest it in a newer, stable, growing community. So my point is too look at percentages instead of hard numbers and also at risk, stability, growth potential, and property condition.

@Ronda McCormick Welcome to the site. You will find answers to every imaginable question here. I love your local area and I invest there. Good luck staring out. I own two places near Lake Conroe as rentals.

I've been looking at Galveston Island for my next purchase but I need to meet/select a property manager first. I would be an out-of-state investor but I do make it there occasionally. That being said, if you have experience with a Galveston area manager, good or bad, I would appreciate any information.

Thanks BP

Levi