All Forum Posts by: Eric James

Quote from @Lucas Thomas:

Quote from @Jay Hinrichs:

Quote from @Lucas Thomas:

Quote from @Stuart Udis:

There’s no such thing as a passive investment in a “D” neighborhood if you’re the owner. I also don’t believe anyone suggested in this thread that cash flow is not important. Cash flow is important to the extent it covers expenses and provides reserves in order to obtain favorable debt.

An investor who understands market fundamentals and invests in the correct markets will outperform the investor who purchases real estate in stagnant D neighborhoods.Thats the reality.

 Another factor not discussed is the disposition process of lower tier real estate. These transactions are disproportionately impacted by transaction fees as well and the only “natural buyer” is another investor often in markets with endless supply of similar product which impacts pricing dynamics. Usually these are properties with paper equity that never translates at time of sale. But I doubt I’ll get someone who can’t seem to acknowledge lower value real estate is disproportionately more expensive to operate to buy into this either….

 Silly Stuart. 

You operate in a state that doesn't inflate like mine do. 

My "D" properties are worth way more than your "A+" Townhomes. :)

And I bought them for nothing (Meth Dens) over the last 15 years.  

And the operational costs are cheaper because I don't have to make anything pretty. 

You just want to die on this hill don't you? 

But seriously... I'm out. 

Toodeloo. 

P.S. 

Don't be mad that people like me exist and make passive income on "D" areas. 

Toodles!

Dude,  your experience posted on your wall is quite amazing.. everything is  1mil with 250k down and 10k a month or 100k purchase with 20k down and 2k a month.. also you say you are realtor a lender a note buyer etc etc.. pretty amazing 

And the markets you say you own or work in D class are basically less valuable than Stuarts D class dollar wise.. I think folks need to take a grain of salt with the things you post myself I am suspect .. Stuart has been a benefical member of BP for years and I know he knows his market and what he describes is true. Myself I rent our funds out to BRRR folks and flippers in all the markets you describe in your bio. And have done over 4k transactions including Philly.. Now to be fair I have not done anything in NM .  But I do track some of the RE there as folks come to me to fund deals there so not a market I am interested in these days. 

But we are entitled to our opinions.. I personally drank the D class coolaid as a landlord and bought about 300 of them in many of the markets you are in. I exited them within 24 months.. Management was just too intense and there are better things to do with our capital like renting our money or building new homes and selling them to home owners.. But I realize BP has a lot of starter investors that just want to buy a rental or a few for long term investments.. And I think personally all the markets your in this can be done but I do recommend buying at the median home price and above for the out of area small investor to have the greatest chance of long term success.. 

 You have a weak stomach and just because you bought a bunch of properties wrong and hired the wrong people just goes to show you don't know how to buy in the asset class. Thanks expert. 

The whole point of this thread was to talk trash on Class D.  So I'm talking about the downsides of Class B+ and you primadonnas got all butt hurt cause you can't take the heat. If you can't operate in the "meat grinder", keep your opinions to yourself.

Anyway.. 

I'm done on this thread cause apparently going to someones profile and using personal attacks on people is tolerated. As I've been nothing but kind in my responses. I haven't called anyone the "S" word. I didn't go to anyone's profile and start making personal attacks. All I did was show that Stuarts properties don't make sense on paper, has a bad opinion on an asset class he doesn't own or understand, and he made a comment about if you just "build" them, you can win. Cause that's available for 99% of us. Lol

And yeah,  my profile is bare because I operate in an ugly asset class and people aren't very nice. Present company included. You keep trying to hurt my lil ol' feelings because I make money off something you can't.  sad :( face.  

I am not talking trash about D class heck I make a great living funding those that are in the D class buy hold model.. Many of my clients own 200 or more doors and I help them buy more  each and every week in cities  like Baltimore and Cleveland and KC  Toledo St. Lu Bham   etc etc.. The point of this thread though is its not for everyone and certainly very risky for folks that are not local and cant scale.. In fact I personally will not loan to anyone who is not local. I will consider those that have a local partner though.. I have clients like CA based tech folks that partner with a local and are building larger portfolios.. But one off no way.. 

As to the information on your Wall .  A lot of Folks on BP look at those not to dissect or criticizes but to sum up the veracity of the person giving advice on BP.. So no way to really know what you have or dont have etc etc.. I will let others also have thier own conclusion about that.. If you make D class work for you.. Good for you.. Its sorely needed.. I know in Baltimore for instance I am super proud of what I do there in the D class area with my two clients that each own well over 200 row houses as I stated.. I funding a 23 home package for one next week.. they are all shells al blighted on one block each will take at least 100k for the full gut rehab.. so there we are pumping 2.5 million in cash into the hood.. that is something that my client can be proud of and I am proud to be his capital partner.. 

then on the flip side you go to my 90 home new build Project in Oregon 750 to 1 mil each that I own and have been selling to owner occ and a lot of those folks are paying cash  U know empty nesters down sizing to very nice Single levels.. So its pretty wild  fund a home that can be bought for 10k then build 750k plus and we do some 2 mil plus builds in charleston SC. Kind of all over the map.. But I still go back to my roots at D class C class funding..

And just because I dont care to own them  like I said I had 300 at one time.. does not mean its bad for others to own that class.. The exception is the out of area going to buy one or two.. those folks I think take on more risk than they realize and would generally be better buying in a better neighborhood and asset class.. 

Quote from @Lucas Thomas:

Quote from @Stuart Udis:

There’s no such thing as a passive investment in a “D” neighborhood if you’re the owner. I also don’t believe anyone suggested in this thread that cash flow is not important. Cash flow is important to the extent it covers expenses and provides reserves in order to obtain favorable debt.

An investor who understands market fundamentals and invests in the correct markets will outperform the investor who purchases real estate in stagnant D neighborhoods.Thats the reality.

 Another factor not discussed is the disposition process of lower tier real estate. These transactions are disproportionately impacted by transaction fees as well and the only “natural buyer” is another investor often in markets with endless supply of similar product which impacts pricing dynamics. Usually these are properties with paper equity that never translates at time of sale. But I doubt I’ll get someone who can’t seem to acknowledge lower value real estate is disproportionately more expensive to operate to buy into this either….

 Silly Stuart. 

You operate in a state that doesn't inflate like mine do. 

My "D" properties are worth way more than your "A+" Townhomes. :)

And I bought them for nothing (Meth Dens) over the last 15 years.  

And the operational costs are cheaper because I don't have to make anything pretty. 

You just want to die on this hill don't you? 

But seriously... I'm out. 

Toodeloo. 

P.S. 

Don't be mad that people like me exist and make passive income on "D" areas. 

Toodles!

Dude,  your experience posted on your wall is quite amazing.. everything is  1mil with 250k down and 10k a month or 100k purchase with 20k down and 2k a month.. also you say you are realtor a lender a note buyer etc etc.. pretty amazing 

And the markets you say you own or work in D class are basically less valuable than Stuarts D class dollar wise.. I think folks need to take a grain of salt with the things you post myself I am suspect .. Stuart has been a benefical member of BP for years and I know he knows his market and what he describes is true. Myself I rent our funds out to BRRR folks and flippers in all the markets you describe in your bio. And have done over 4k transactions including Philly.. Now to be fair I have not done anything in NM .  But I do track some of the RE there as folks come to me to fund deals there so not a market I am interested in these days. 

But we are entitled to our opinions.. I personally drank the D class coolaid as a landlord and bought about 300 of them in many of the markets you are in. I exited them within 24 months.. Management was just too intense and there are better things to do with our capital like renting our money or building new homes and selling them to home owners.. But I realize BP has a lot of starter investors that just want to buy a rental or a few for long term investments.. And I think personally all the markets your in this can be done but I do recommend buying at the median home price and above for the out of area small investor to have the greatest chance of long term success..