All Forum Posts by: Edward Yao

@Llewelyn A.

Yes, your comment makes sense. I agree totally. 

@Llewelyn A.

Thanks for the clarification. This makes more sense to me. Sorry, I didn't look into the numbers too closely. The reason RoR is lower than CoCR is that the return on the investment from the net proceeds of selling the property in ten years after mortgage is actually negative, so the investor loses money on price return so to speak. 

The way the CD works to yield this 6.43% return has no cash flow within ten years, so if you consider the cash flow used else where can generate value, then 6.43% in RE is probably better than 6.43% in CD, on the other hand, even 100k selling price in 10 years is much less guaranteed than a deposit, so you could end up losing money on selling the property. The weighing among different types of investment should not be just expected return but also the risk of the returns. 

@Llewelyn A.

Good post. What you articulate here is the difference of so called income return versus total return which include income return and price return. Both have their roles in the evaluation of investment. Total return has assumption of reinvestment return there. For CDs, you have all interests reinvested in CDs and earn interest. But not so for a RE. For some investors, they just want to get passive income and cash flows and want to hold the property indefinitely, Plus it is relatively difficult to predict the future proceeds from selling the property, which would make the total return estimate questionable, while cash flow or income return every period is much more predictable more like interest. In reality, you wouldn't be able to put you monthly rental income back into the property and earn interest on that. So I think both metrics are important to look at, depending on what the investor wants to get from the property, they need to focus more on one metric versus the other.

@Filipe Pereira @Rick Santasiere

Thank you Filipe. 

Rick, I would like to chat with you certainly. What is the best time to call you? Thanks.

Edward

@David Thompson

Hi, David. Thank you very much for the advice. Passive income is certainly my ultimate goal. I am also all for partnering with experts and participating syndicate deals. But as a novice, I have a lot to learn. I don't know if I am qualified to partner and if any expert can sort of show me the way in. Would you be willing to help me with that? I think I am at the border of being accredited. How do I get validated? 

Thanks.

Donna Genovese Donna, thanks for offering your help. Like I have posted, I need to find a good tenant first for my apartment. I also need a good attorney to work with. My last one is not very responsive even though I have given him quite a bit of business. I am also looking for an accountant who is good at working with RE investors.

Ed Matson Thanks Ed. I will check it out and hopefully I can meet you there.

Steve Lima Sure, I am looking forward to the meeting. I will check it out.

Filipe Pereira Thank you, Filipe. The apartment is in a complex near downtown, across from Mark Twin house. It has furnitures because I used to have a close friend live there. It is in a very nice conditions and all furnitures are new. The rent includes everything include utilities and a parking space. My agent told me he has posted ads and has had some showing but has not found tenants with good credit. He has been working on renting it since September. My agent is experienced and has quite a few rental properties himself. But for some reason, he couldn't make good progress on this one. If you have other good realtors to work with, please introduce for me. Thanks

Hi,

This is Edward Yao from Hartford area in Connecticut. I am an actuary currently working in an institutional investment management company. Although I have been working in financial services industry many years, I am a beginner in real estate investment. 

I got interested in this business quite a while ago but never really started. Due to a personal situation, I started to think seriously last year. I have accumulated some cash that has been sitting in the bank, so I used it to buy two apartments as rental properties. I have an agent helping me but so far there has not been much progress. That is the immediate problem I want to solve. 

A few weeks ago, I got a post card from my mail for a real estate investment seminar. I went to the seminar, which raised my interest tremendously. I am a single dad with three kids. I have always wanted to spend more time with my family. So I have an idea of using real estate investment to retire myself from my current job. I came across BiggerPockets from online research and so here I am.

 Certainly I  want to network and find good partners, leads to good deals, knowledge and advice for me to avoid mistakes, and so on. Lastly but not least, I would like to get more friends as well who have common interest.

Thanks.

Ed