All Forum Posts by: Ellis Hammond

$10k vs $81k! Woah! That would have sunk most ships. Great job @Matt Popilek

@Cassidy Burns whats your exit on this property? How will you get the return of your initial capital? Can it come through a refinance? Will you be able to sell this property once stabilized? 

I like the cash flow as well which makes this property appealing but in a small town like this you may have trouble exiting. 

@Kaydn Jensen You either find the deals or you find the money if you want To be in charge of your RE business. Other skills that are helpful in RE is analyzing spreadsheets and working with #s. U can develop this skill simply by looking at new deals each week.

@Owen Dashner Great thoughts. Your “what” questions are really key and a great takeaway I use from the book never split the difference. I’ve found that the best negotiators are those who first listen well and second aren’t afraid to start with an uncomfortably low offer at first. The book above calls this an “extreme anchor.” I’ve used it, it works!

@Vasundhara Ranjani people invest a lot more than that into the San Diego market for a lot less return believe it or not. For many, its not about the returns. Like us here on BP, they think real estate is a secure investment and instead of having it in the market, they rather have it in real estate and can take advantage of the tax benefits of this asset class. In an A class area you can also count on rent appreciation over the long term so that 3-4% return will increase as you pay down your debt and rents go up. Sorry all that to answer your last question.

As far as risks go, A class properties do have risks. The main risk I see, when the economy is in a downturn, A class properties are the first places people will leave. Its a luxury lifestyle but people don't need to live there. It's why most syndicators are targeting the B and C class property types. Most can still afford to live there and in this market cycle you can't afford to build them. Its why across all of the U.S., C class apartment complexes have less than a 4.5% vacancy rate. 

@Irwin Dominguez I am a San Diego investor as well looking to place equity in our local market in 2019. Im having lunch with @Jeremy Cisneros next week. The best way to get started is to sit down with other investors and make a gameplan, see what others are doing. Love to have you join us. Reach out to me directly and we can coordinate. 

@Steven Smith it seems like from your responses the reason it doesn't cash flow is bc you are using a VA loan with very little down. A four unit in CA that doesn't cash flow with zero down is well pretty common haha. Seems like its could be good deal as you build equity in the property and there are lots of room to increase rents.

Only thing I would add is just have a 5-7 year plan. Can you get to a place ever where you don't have to come out of pocket each month? And how can you get there? Honestly, i don't even mean make a ton of cash each month, but at least break even. This could be a property you own for a long time and just use as something to borrow against for future properties and enjoy the tax benefits. 

Most ppl on here prob have spent $24k on a course and still haven't bought anything. Not recommending you buy bc i don't know enough but sure would be a great course in RE education!

@Charley C. I think you just have to be the go to guy in your community so you are first of mind when those things happen. 

You could also focus on building relationships with probate and estate lawyers. 

Reonomy provides a great list. Its not cheap though. @Ryan Beasley @Archana Rath.

Im also interested @Andrew LeBaron what you use and if it includes apartment owners as well. Dont hold out on us like that man! haha

@Zevi Arem it is my understanding that if you don't have a deal that you are specifically raising money for currently it is ok to market yourself. Post pics of old properties and let your friends know you are in the real estate investing business and garner up leads that way. 

If you do have a specific deal you are raising money for then yes that matters how your LLC is registered and the SEC laws that follow.

If you are just getting into this, focus on building relationship and adding value to ppl. Dont be sliding into the DM's the first time asking for money haha. 

Cheers 

EllisHammond.com