All Forum Posts by: Paul B.

Fair point. However, I think any college degree is better than none.

Having said that, if someone can't more than offset the cost of a basic four-year college education over 40 years of working, then perhaps that person shouldn't go to college after all.

A college education is in no way, shape, or form obsolete.

Anyone who thinks he has it all figured out when he's 18 -- and this comes from someone who had it all figured out when he was 18 -- is a fool.

Even if you think you're going to be an entrepreneur who will never apply for a job in his life (and good luck with that), you will still need a resume to impress lenders, investors, partners, etc. And that resume has to show that you didn't stop your formal education after the 12th grade.

I think if I had it to do over again, I would have pursued a liberal arts undergraduate degree, using those years to learn more about history, the arts, literature, language, etc. I'd take a few business courses, for sure, but in my view the "good stuff" doesn't really come until graduate school.

And then, I'd send myself to the absolute best school I could borrow my way into, damn the cost.

I once looked into going to Wharton for an MBA as an adult (the regular program, though, for two years full-time), and I came to learn that, at least at the time, PNC Bank would loan you 100% of the tuition cost, and they qualified you for the loan solely based on the fact that you got into Wharton. Paraphrasing the PNC brochure, "When you leave Wharton, you won't have any problem paying back our loan."

I think there's something to be said for that.

Plus, as has been stated, the networking opportunities that going to college creates can be priceless, especially if you go to a school that is known to generate business leaders. I have a couple friends who went to Top 5 Ivy League schools, and there's no doubt that the "clubby" nature of these institutions is a gift for those who know how to use it.

So, in my opinion, college is an absolute must. If not for the education, then at least for the girls and the beer.

It's almost as if the contractor wrote it for her, isn't it?

(Follow the money...)

Agreed. It's the exact same thing as having a 1% or 2% "rule." It might let you know if you're even remotely in the ballpark, but that's about it.

Chuck,

The Gross Rent Multiplier is going to vary from one part of town to the other.

Properties that are in less desirable neighborhoods -- or older properties that require more maintenance -- are going to sell for smaller multipliers.

Generally speaking, real estate "nirvana" (at least based on what the majority of people on this forum seem to think) is when you find a decent property that will rent for 2% of your total cost (cost plus rehab, if any). (That's the same as a 50 GRM.) The idea is that expenses will eat up half of your rent, leaving you with a 12% return on your investment, even with zero appreciation.

In some areas, that's just not possible, and in some areas, it's possible, but you might decide that these kind of neighborhoods just aren't for you. Like me, for example, I was showing a friend a nearby neighborhood that is what I'd call sketchy, but certainly not unsafe, and he felt like he needed a bulletproof vest. He's overreacting, of course, but he scares easier than I do. He sees an old tire in a front yard, he loses interest. Me, I just know that that is how some people live. Doesn't make them bad people, doesn't make my investment unsafe.

So, point being, you really need to decide (1) what kind of return on your investment are you looking to get, and (2) is that return possible in your market while taking a risk that you're comfortable with.

Although things like GRM are great for SWAG estimates, they are not as useful for real detailed "should I buy?" analysis.

I think as you start to look at properties, you should feel comfortable posting certain details here, and then let the good people here give you their feedback. You should also look to see if there's a local REIA that can help you network and meet other like-minded investors. I'm sure there are a few people in your area who are wiling to show you the ropes.

Good luck!

I'm going to call The White House. Clearly, President Obama needs to schedule a Beer Summit.

Josh, if you have a conference, this might be one of the events.

Or, we could just delete the thread and pretend the whole thing never happened.

There's three minutes of my life I'm never getting back...

Presumably she saw the place before she signed a lease, and presumably she is doing a walk-through (which apparently she has already done, hence the list).

Now it's up to you to decide what you're willing to fix and what you need to leave as-is.

I think your tenant is right to expect certain things to be repaired (leaks), but some things (like nicked countertops) were there when she first saw the place. She can't expect you to change them now.

Sounds to me like she's throwing everything at you, knowing she is not going to get it all.

I'd simply come back to her with the things you're willing to do and see how it plays out. Sounds like some of these things you're going to have to do regardless of who moves in.

You need to get them under contract or, at the very least, tie them up with option.

You should not be showing any buyers your inventory until it's truly in YOUR inventory. Otherwise you are just providing free marketing for the current seller.

I assume you've been here:

IRS Link on Depreciating Coops