All Forum Posts by: Ivan Barratt

big deals and little deals both take the same amount of time and energy. these days I enjoy sticking to the big deals.

House hacked a duplex. Started from the bottom baby!

@Todd Dexheimer is spot on. @John Pickowicz; a fool and his money are soon parted. Get educated before proceeding. Good news: you're on the right platform.

@Victor Saumarez there's still lots of markets and operating niches to find value and cash flow. You heard it here first: Long term: rates continue to fall, pick the right markets and rent will continue to rise. Result: CRE will outperform many asset classes. My favorite: workforce housing where I can utilize long term, fixed rate debt.

CRE of course is hyperlocal. That being said. As rates continue to drop (they have to due to what's going globally) cap rates will drop further. For example; prime cre in Europe trades at a 3.5 cap vs 4.5 cap in US. Their rates are zero and ours are 2.25 respectively. US CRE should perform well overall. My preferred niche... workforce multifamily in emerging midwest submarkets where we have a higher likelihood of outperforming the average.

@Travis Watts welcome to BP? You work for Joe Fairless at Ashcroft right?

100k/month

Thx @Jay Hinrichs

@Carole G.; Praxis is a great operator/sponsor.  Happy to chat anytime.

You'll nearly always make a much higher return investing in yourself and becoming an operator.  What many people discover is that they're already really good at something else (business, medicine, sales, etc).  Read Cash Flow Quadrant by Kiyosaki. The truly wealth funnel income from the S, E, or B quadrants into the I quadrant to accelerate the process of becoming financially free.  

For example my 80 employee real estate private equity / management company is my B quadrant business.  I use it as a vehicle to acquire more income property.  Our partners however do the same thing from all manner of income as mentioned above.

IF you can devote all your time and energy to learning the active real estate operator game you should definitely go for it.  If you already have a good thing going elsewhere focus on making that thing produce more income!

Down the road you can start looking to be a passive partner.

All the best!

Are you an accredited investor?

Even if you want to be passive in real estate (which is a great option) you'll still need to get educated on what a good passive deal looks like.

A fool and his money are soon parted! :)

I second @David Thompson 's perspective.  When I started my company in 2010 I was the "2nd Property Manager" to many investors who had purchased turnkey homes.  It typically didn't work out for them due to the turnover cost even when the tenant was a good one.  Add 1.50 to 2.50per sf in turnover costs every 1 to 3 years and the model typically falls apart.

In almost every case the only one making money was the turn key provider! 

Wealth and cash flow in real estate is all about adding value. Study up on passive investing with partners who are experts in doing so. Learn about forced appreciation in larger properties.

Bottom line: keep your money in the bank and get more education and perspective. Don't be in a hurry!

All the best!