All Forum Posts by: James Barry

@Kalen Jordan

In most markets values have increased so rapidly in the last 5 years its triggered return requirements. Many times you’ll hear a group say “they made us an offer we couldn’t turn down”.

@Kyle Fadness

Kyle, you can handle this.

The beauty of starting small is your mistakes are also small. Sure, this deal won’t cash flow well but no ones RE dreams are achieved in their first deal.

In my opinion 2K rent is very high. Someone can rent a luxury apartment for that much. Get a stable tenant and keep them there. No turnover, keep them happy and in the unit until you can sell and do your next deal.

@Brandon Coleman

Hi Brandon, congrats on where you currently are. Here’s my 2 cents; develop your game.

Something I’ve learned is that there’s a spectrum of RE skill with RE Capital. Someone may have $100million invest but they can still lose their shirt in RE. On the flip side you may know how to physically rehab an apartment but that knowledge is not enough to become an investor by itself.

There’s plenty of suckers with money, and there’s plenty of dreamers.

If you’re serious about real estate you need to

develop all your skills on the spectrum, then you’re a 5 tool player (to use a baseball analogy).

I’m not much older than you so I know a bit what you’re going through, feel free to PM me to chat.

-James

@Jason Barnes I would recommend getting in touch with a mortgage broker, they can shop the deal with multiple lenders, they’ll shoot you straight on your options.

@David Abbate

David,

My statement of the economy and asset prices is a critique of Capitalism’s current short comings.

For example the 30 Million Americans unemployed are not being reflected by the prices of the DOW/SP500.

You’re welcome to be confrontational if you wish but my post was asking about material you’ve consumed that have shaped your education.

Its awkward, but it needs to be said....

The FACTS about our economy (GDP, unemployment, workforce participation, etc...) have no bearing on asset prices! 

I'm not an economist, I'm just a curious young man. There will always be money to be made in the world and I placed a premium on understanding our world if I am going to invest my money in it. It seems intimidating to learn new things for some of us, I found it is much easier to learn by listening and reading people smarter than me. 

Here is a list of influential books & people that have shaped my education. I would love to hear about yours, be safe out there!

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Jim Rickards- (The Road to Ruin, Aftermath)

Jim Bianco- (Bianco Research) 

Danielle DeMartino Booth- (Fed Up, Quill Intelligence)

The Zero Interest Trap   

Daniel Kahneman- (Thinking Fast and Slow) 

Jason Burack- (Wallstreet for Mainstreet)

George Gammon- (The Rebel Capitalist Show)

Krassimir Petrov

Macrovoices- (Erik Townsend)

Eurodollar University- (Jeff Snider)

Peter Schiff

Brent Johnson- (Santiago Capital)

Robert Kiyosaki!

B areas may have "better" tenants but it is the OPERATOR that makes a deal cash-flow well! I don't own any properties yet but I have seen many operators take their foot off the gas so to speak because they are moving up in tenant profile. B>C for example.

With a higher tenant profile comes more scrutiny from your tenants, your customers! Once purchased, operating a deal is about adopting a customer service mindset! if you don't take care of your tenants you'll find out when they leave the place trashed and your turnover is higher than others in your immediate market. In sum, I wouldn't say B class tenants don't give headaches, they just give different ones than C/D properties!   

@Pinny Lubinsky

When a property is going to need considerable Cap Ex upon purchase the buyer will typically seek a loan to coast loan. This kind of loan will cover a % of the total cost of the deal, including the rehab budget.

@Nathan G.

Nathan I don’t think you really read the OP.

What was mentioned was investing in syndication, not becoming a syndicator...

@Ty Doke

All I can say is; I’m not surprised.