All Forum Posts by: Ian Fisher

Let me know when you guys are next meeting...I'm based in Hong Kong but might just have to make my way to Seoul for this! Looks like great stuff you have going on.

Thanks everyone - certainly hearing positive things about @William Robison is great. @Sean T. , your suggestion is spot on as well and is certainly my intention once I reach sufficient scale. From what I can tell this is probably 50-60 properties...

Hi Richmond

Just wanted to suggest in as friendly a way as possible that it would be useful to give investors a summary of the expected returns as well - appreciation may well happen, but speaking personally cash flow (i.e. net rental return) is generally the most important factor in getting me interested in an investment to start with. Also, is there any ability for foreigners to finance a portion of these purchases with a mortgage?

Cheers

Ian

Thanks Curt. Agree that there are certain basics we expect, and of course those are being taken care of. What we're struggling with is finding someone who looks at property management as being oriented towards maximizing our ROI rather than simply being a functionary / administrator. Specifically, in a model where we leverage with debt, the difference between a 50% NOI:gross rent ratio and a 40% or 60% ratio is enormous when translated into our actual ROI. So we want our property manager to understand this and work to maximize ROI. Typically every property manager gets tenants in, collects security deposits, collects monthly rent, pays taxes and insurance, and handles repairs. What seems to be lacking is a business sense that looks for the least expensive options for repairs, that proactively identifies situations where a tenant is leaving a home damaged, that gets aggressive in evicting tenants promptly who don't pay, increasing rents as much as possible, etc.. In simple terms, someone who understands that this is our business which we are trusting them to manage for as high an ROI as possible.

That is easily able to make the difference between 50% and 60%, etc., and for us that is a huge lever in the profitability of our business, even more so since 80/20 leverage will amplify this difference significantly.

Thanks @Bill Gulley , I understand, this is legally / regulatorily complex and doing it requires investing in proper advisors. I'm prepared to do that. How / where would one seek a lender in this space?

Hi all

I'm a remote investor and have built a small buy-and-hold portfolio of SFRs in Kansas City (Missouri, not inner city, but generally C type neighborhoods: $700-1000 monthly rent) and am in process of leveraging and expanding (currently 7 units, can see this becoming 50-100+ in the next 12-24 months). One area where I think there will be room for improvement in my model moving forward and especially as I grow is going to be property management. The firm I currently use is professional and fairly thorough, but I have really struggled to get them to see eye to eye with me that this is really an asset management / investment management job - and with a leveraged model it is clear that small differences in the NOI:gross rent ratio will make a big difference to the cash on cash / overall profitability of my operation. In other words, the key success factor for me is that my PM maximizes my NOI, NOT my gross rents or anything else. So my questions are:

- are there any investors reading this who use professional property managers in Kansas City (generally suburbs, all in MO not KS), are building significant portfolios, and are pleased with the results? I'd love to talk to you if so, both to learn how you are managing the manager and also who you're using

- are there any property managers in Kansas City reading this who read my comments above and think, "YES, this is exactly my attitude and I'd love to team up with you as you grow"?

Many thanks!

Ian

Hi all

I'd also be very interested to learn more about whether there are lenders out there willing to finance this strategy. I've been an SFR investor so far, and am leveraging after purchase / rehab / tenant in place - so the lender in this case is relying primarily on the cash flow stream generated by the tenant, backed up by the underlying value of the property and finally my other personal assets / income. In my mind this should be a similar concept for notes: I purchase and build track record of performance, and a bank then lends to me, relying primarily on the cash flow stream generated by the property owner / mortgagee, backed up by the underlying value of the property and finally my other personal assets / income.

To my way of thinking, one of the biggest reasons I invest in SFRs rather than in notes is lack of ability (so far!) to leverage my own equity on notes. But I would think that a creative banker would be a very good partner for a notes buy-and-hold strategy. Does such a unicorn exist? @Michael L. @Jon Holdman @Marc Faulkner @Bill Worsley @Dion DePaoli @Bill Gulley 

Ian

Hi Bob, I'd be interested to receive some more details on terms etc. if you can send to me in a private message?

Looks quite familiar, is this your own product or are you brokering for B2R or another like them?

Hi Brett, where in Asia are you based?