All Forum Posts by: Eric Gerakos

The “everyone” who talks about scaling quickly are typically new investors and agents. Experienced investors don’t worry about scaling quickly. We want fewer but better properties. Collect money, not properties….

6 Votes

Zoe, when new investors talk about, “scaling as quickly as possible” that is often a recipe for financial disaster. Buy quality properties in quality areas. Save your money. The goal is to make money, not to see how many cheap (undesirable) money losing properties you can own. Best of luck to you.

5 Votes

Milwaukee, Wisconsin

Tenets are a waste of time. It’s tenants that you should be concerned about.

2 Votes

Boston, Massachusetts

The best way to attract quality tenants is to buy quality properties. Quality tenants aren’t going to live in D properties.

1 Vote

Mark, since you're an inexperienced investor, I would be very cautious about borrowing against the roof over your head. If your first investment goes South you run the risk of putting your home in jeopardy. Take your time and look for other financing strategies with less risk.

1 Vote

Saint Petersburg, Florida

I have been preaching this on BP for years. Fewer but better properties. Unfortunately, many new investors drool over how many crapboxes they can buy and brag to their friends about owning. After ignoring advice, their next post is often, “How do I evict my non paying tenant?” Or the always popular, “My tenant moved out and stole my washer, dryer, water heater and light fixtures!!!”

21 Votes

Philadelphia, Pennsylvania

Michael, why would you invest in UNSECURED note funds when you can buy notes SECURED by real estate that are currently paying 10% for 2 or 3 year interest only terms? I don’t sell anything on BP. I’m just an investor.

1 Vote

Denver, Colorado

Quote from @Bill B.:

It would be the markets with the worst appreciation or even depreciating values. That’s why they are the best cash flowing markets. You can still buy houses in small farm towns in MN for $25k. They will cash flow like crazy. Until you have to do a major repair like a roof. Then you might as well level it and buy another one. Of course all your cash flow is gone. So you have to sell just before that point.

The reason other markets don’t cash flow is because the values have doubled, triple, or quadrupled in the last 10 years.

I really suggest you change your goal from making a tiny taxable cash flow (anything less than $1,000/mo per door.) until capex eats it up. To markets where you’ll gain long term tax free wealth.

Imagine having 10 cheap homes that cash flow $2,000/mo or $24k per year. VS one or 2 break even homes that appreciate just 4-5% ($24k/yr each). It starts with doing 10-20% of the work and paying much lower taxes. To eventually also cash flowing as rents increase.

I think $10k/mo is good money, other people live in expensive areas or have higher taxes and need $20k. There’s no chance I would trade my 10 well performing homes for 50 or 100 homes to get the same income before the increased taxes and repairs/vacancies, etc etc.

Time makes everyone in real estate look like a genius. Just get started in a decent appreciating market. Good luck.

This. Fewer but better properties….

0 Votes

All Forum Posts by: Eric Gerakos

Eric Gerakos has started 0 posts and replied 618 times.

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