All Forum Posts by: Emily And Eric Erickson

@Ryan Moyer

Which software do you recommend? 

Is Air DNA baseline one worth tracking or how much higher can you get if self managing? 

Checked our first year numbers and factoring in Evolve's 10%, we are pretty close to what Air DNA predicts we should be at, especially for being a new property but I am intrigued to see if it is really just 20 minutes a month to self manage

Just met Leslie at SNL Realty and they are building out their STR portfolio.

They charge 25% for full service and are willing to customize to level of service you need

I have not used them yet personally but sounds like they are at least worth a call

SNL Realty - 520-222-7994

What kind of property / model is it for? 

Long term 

Short term

Type of property?

@David Rutledge

Check out my post below that describes what to expect in Tucson. Happy hunting!

https://www.biggerpockets.com/...

This weekend I sat through a Tony Robbins event and got to hear from his personal financial planner, Ajay Gupta. Really fascinating perspective coming from the world of dealing with UHNW (Ultra High Net Worth) individuals and trusts and to realize that his 4 primary rules to investing did not differ all that much from mine.

Here they are:

1. Don’t mess up!
2. Cash flow
3. Illiquidity premium
4. Keep up with inflation

I do feel like the 4th one was thrown in to be timely to current news cycles because honestly, if you do the first 3 right, number 4 is a natural consequence.

But I digress.

Two parts really shocked me. Since he came from the traditional world of Wall Street, I was ready to hear a full lecture on the in’s and out’s of small cap vs S&P 500 and the like. And there was some of that but I was super impressed when he shared his actual, current portfolio allocation. He gained tons of credibility by not talking theory and “if I were you” but rather just laid out what he was doing now and why.

Shock number #1: His largest holding – drum roll – NOT stocks. His stock holdings only made up 26% of his entire portfolio and he was a 25 year Merrill Lynch / UBS / Private wealth management stock broker! And not a single bond in any of his holdings. The traditional 60/40 stock/bond split has been thrown out the window!

His number #1 position? You can probably guess it since I am so intrigued. That’s right, real estate! Clocking in at 40% of his total portfolio which was almost double his stock position. And almost all of it was some variation of a cash flowing properties. He is the master of diversification so it was spread out over commercial and residential asset classes but they all cash flowed. A thing of beauty.

It’s a theme I wholeheartedly agree – real estate shouldn’t be all of your portfolio but if you don’t have any, you are missing the boat.

Taking it one step further, if you have any bonds or more bonds that real estate, maybe now is a good time to do some re-balancing.

Shock number #2: His alternative bucket was 13% of his total and had stuff in there I had never heard of, including MLP’s and Life Settlements along with a much larger stake in cryptocurrency than I would have imagined and made me wonder if my portfolio could use some out of the box thinking on some of that.

Well worth the listen and important enough for me to share it with you. 

 Congrats, welcome. I hope it goes well. Will be a bit slow through the summer so be patient on that front

 First, to be clear there is a whole spectrum of active to passive investing options within real estate, just like there are with stocks. 

In most cases, stock investing is passive because you are not helping run the company, you are just making a bet on its future sales and growth. 

The main difference between the two is in the buying and selling. As you mentioned, to make money in stocks, you have to buy low and then sell high to realize any gains that you can spend. 

In real estate, the rental income is generated WITHOUT selling the asset, therefore generating money with only a buy. Truly great cash flowing properties should NEVER be sold (in my humble opinion) and there is an exception to every rule. 

Because you aren't selling, your tax burden is much lower AND you aren't constantly looking for the next deal because you just sold your last good deal

In the end, both are great vehicles for long term wealth, just depends on your interest level, time frame and ultimate goals. I chose real estate but still own stocks too. 

Hope that helps

Basic arbitrage. Living in a high cost area stops many from investing locally and that is why there are so many posts on BP about investing remotely. 

And why buy if you are going to move anyway? 

Time to stop thinking and start acting on your sound, good idea

@Robert Wilson Great advise, it is the path I went down 6 years ago and haven't looked back yet.

@Lauren Kennedy Keller Williams now offers free licensing classes with the hope you will join them to get your start so that lowers the barrier even more. There are lots of ways to make money in real estate and within the world of realtors, there are lots of ways to get started. You can join an established team and work their leads as you learn, you can start as a solo agent or you can go the new build route. All are matters of preference and skill fit and all are worth looking into. 

Let me know if you want to connect with some successful agents in Charleston, SC. I would be happy to make the introduction

@Chad McMahan Those are great rules of thumb that separate the Phoenix and Tucson market well. I would be happy to field any specific Tucson questions that people may have.