All Forum Posts by: Eran Greenburg

James,

Which 20% returns the 80% of your business (or maybe even 90-10), assuming you are tracking your marketing channels?

Im sure weve all seen signs around like "we buy houses fast, cash" or "we buy ugly houses," preferably the small cheap throwaway signs on freeway off-ramps etc 

How well does this work?

What are some other lesser know yet effective methods or capturing leads before they go to the MLS/auction? Sure contracting FSBO, or mailers (how to target), but seems like poor ROI

Opinion question here.

How much savings do you need, or how much passive income, before you quit working and do something more meaningful than simply trying to make a buck?

And just as importantly, what do you do next? Sure, helping others do what you do is obvious, but what about beyond that?

I guess I dont identify with people that feel they need 10's of millions or more, unless they are doing something useful with that money, like helping others. Beyond the minimal amount needed for long term living security, I personally find it distasteful that people buy so much junk. 

Of course in addition to the wealth aspect, some people like the fame of it. 

So, what about you?

E.g. You buy a $100k house that has cap rate of 10%, so $10k cash flow.

Since you adjust 3% per year for inflation, after 15 years your income is doubled to $20k, yet the asset price is still only $100K, so now you have a cap rate of 20%. In 30 years it doubles again.

Considering alternatives for other investments where the ROI is fixed, this would make real estate seem a lot more lucrative.

What am I doing wrong here?

"Our experience is that we don't file evictions, we offer keys for cash." How much? Can you detail a bit?  Obviously it might be cheaper to pay someone to move out than to evict.

 What are "documentation signs"?

So for 50k down, you are getting $12k annual returns? or in other words 24% ROI even after paying property managers? That sounds really high return.

Also, where do you find these "trunkey company"s?

 What is your average returns or cap rate then on your properties?

One more thing. I calculated that their "cap rate" would be at around 4% (and probably much less with financing)  

Core net operating income     $ 232,319

 Single-family properties, net    $5,710,671

It just doesnt sound very profitable. Considering how many properties these big companies are constantly buying in my area, its hard to compete and try to get 10-20% cap rates.  Even they do rehab as well as I, so no difference there on looking for the good deals to start with

So I should eliminate depreciation to see how profitable they are?

I guess the same would be true for my own properties too then right?