All Forum Posts by: Mark H.

Back in 2009 I wasted a number of months trying to buy foreclosures from banks in LV region (NLV, Summerlin, etc.). The "asset managers" never ever replied to any questions nor applications I submitted. Local agents told me they gave up trying to buy foreclosures, there was nobody to talk to. I'm wondering if it's going to be this way again this time around. Anyway, I bought SFR's in Texas suburbs and solds most of them last year, it was an awesome ride!

I never ever imagined a pandemic would hit the US this hard ... however, I did notice in 2018 that the RE market started slowing down in the DFW area, so I sold most of my properties in 2019. I'm so relieved to have the cash to survive a few years even if my remaining renters stop paying. I plan to sell my remaining properties this summer and be done. If they don't sell, I'll rent them out again.

Whatever you do, always remain calm, know that this situation is temporary and you do have options to improve your situation. Never perceive it as the end of the world, because in reality it's not, most of the time the worst case scenarios do not happen except in our imagination. Think clearly and creatively and you'll succeed. Good luck.

@Glen Gallo

Thank you for your insightful input. I get that renovation is not a big item in CRE for landlords. I'm considering renovation because it could dramatically lower my taxable earned income, which doesn't show on the property cashflow itself. I'll be looking further into historical properties before I decide whether heavy renovation is worth pursuing. Thanks.

Thank you to all who replied. I'm still studying the basics of CRE so need to look at a few case studies to get a better idea which way to go. Over time, I'll post more questions on BP.

I haven't rolled it over yet, but I will do it this summer. From I understand, it's not too complex, just a little bit of paperwork.

Location limited to Texas, in or around cities like Victoria or Corpus Christi (not expensive MSAs like DFW, Houston, Austin).

No particular asset type in mind, could be anything from retail to MF to warehouse or other.

Renovation mostly non-structural, although upto 20% structural should be fine.

Is there any particular asset type that typically requires major renovation? Obviously it implies upgrading to class B+/A. I was thinking maybe historic districts in smaller cities. Any opinions?

I'm an SFR investor interested in buying NNN property in bad shape for 500k and to renovate it for 600k-1mil (to take advantage of the tax reform benefits). Are those numbers realistic at all for investment in NNN or should I be looking at residential MF instead?

Amica.  Good prices, excellent service. 10 years with them.

In my 20's I hired a "financial adviser" who never made money for me, only for himself. It made me resent anything to do with stocks and "advisers". I also dislike the very quick fluctuation in stock prices compared to RE, and I prefer owning "brick and mortar" rather than "paper". So in my 30's I took charge, learned REI in depth, and actively invested outside my regular job. I invested about 90% in REI and 10% in stocks. I believed I could make more money in REI thanks to leverage, rigorous tax planning, market timing (2009) and BRRR style. Also, my goal is to retire early, so retirement accounts don't help my goal as much because they lock my funds for an older age, and they don't offer as many financing options and benefits for REI inside them (been there, done that). Bottom line - REI worked out really well for me. Nowadays I'm debating whether to learn stock investing and be ready for the next stock market crash, or to stick with REI. People in REI (banks, agents, contractors) look at me more seriously as a seasoned investor, but in stocks I'd be a total rookie.

This! I also looked for a year and a half for a deal. I started in early 2009 looking in Vegas, but banks were unresponsive to offers I placed for their foreclosures. Later, I switched to Phoenix and same story. Later I looked in cities in my region, but banks insisted to sell foreclosures to primary occupants. In the summer of 2010 I was tired, discouraged and about to give up, and as I was taking a walk outside my house in the evening, I noticed just around the corner from my house a big new sign that said "For sale in public auction" - that's the first one I bought! How ironic that after trying so hard out of state, I ended up buying a great deal just a few hundred feet from my own home... that was the beginning of my journey, but persistence really paid off.