All Forum Posts by: James Paine

 Scott most of us would like to make 16%-20% on our money as well consistently.  That is a pretty big ask depending on the debt. 

@Kenyon Lemon

So Cal is a competitive market. I would for sure go to a few REI clubs and take guys to lunch that have actually done wholesale deals in the last year. Specifically seek out guys who have sourced these deals off the MLS.

I know it is a few days late but this is the first work day back.  Below are my new years resolutions.  I have a few others that are personal but all of the below are 100% quantifiable.  Let's kick some @%$ in 2016!

• Read minimum 40 books this year and a goal of 52
• Keep my 1k status with United (Fly at least 100k miles)
• Increase my net daily cash flow from $403/day to $500/day
• Buy an ocean front primary residence
• Earn $500k from my active business activities 

Great debate starter. 

I wasn't able to read all the posts as there were tons.  Again great topic starter.  

My arguments are simple:

1. Your sample size is tiny, ask any quant or statistician and you need a much larger sample.

2. Apartments have had compressing cap rates for the last 35 years and are at the highest level they have ever been at.  The reason this puts a little fear in my heart is that what happened 35 years ago is institutional investors started buying into apartment complexes directly.  The asset class became institutional.  Investors now more than ever are chasing yield.  If anything changes from an interest rate stand point, with treasuries, or anything else the very tightly compressed cap rates seen in the multifamily sector may become less attractive to institutional investors.  

3. Your definition of wealth differs from mine. Yours: High ROI, lots of cash, etc. Mine: Having your ideal lifestyle paid for, for life.

Not knocking you.  I like the thought.  Keep doing deals but I'd suggest grabbing a few books and learn from the past and other great investors. 

Welcome to BP.

I have done all of the above and if you have a full time job Wholesaling is going to be a difficult route.  

@Ben Harris

Read Rich Dad, Poor Dad. 

Welcome to BP! 

@Adam Mcclellan

Welcome to BP.  Congrats on the decision to buy a property!  Welcome to the club.

@Account Closed

In every market there are motivated sellers.  In every market where buyers of any kind are buying homes there is demand for wholesale properties.  

Market 1: Flip Market

Wholesaler locks up beat up deals from motivated sellers then wholesales them to flippers. 

Market 2: Cash Flow

Wholesaler locks up properties with tenants in place from motivated landlord that no longer want a property.  Wholesaler then sells it to local investor that wants more rental properties. 

Market 3:  Retail Market

Wholesaler locks up properties from motivated sellers.  Many times with carry back terms.  Wholesale sells the deals to less than qualified deals 

 Brie - 

I agree with you on almost everything.  One thing I'd add is that even if you do partner with a turnkey company you want to still try to get some scale.  You might not need to get it over night but you should try for sure to get a handful of deals within 1-3 years. 

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Aaron - 

My opinion is that a "lower end" market is one that you can tell is lower end by spending a few hours there.  I'll use Chicago as an example.  There is an area called Dalton which is pretty close to an area called Lansing.  If you drive down many Dalton streets you will see unkept lawns, beat up cars, trash on the streets.  Some pockets are ok but spend 2 hours there any you will feel like it is low end.  If you drive around Lansing you might see an unkept yard every 50 houses, which is just a single low end neighbor, not reflective of the entire neighborhood.    Personally I like areas that not "lower end".  I don't know that price is the real measure.  I think you spend time in an area and that will tell you if it is "low end".  Los Angelas, CA has markets where the average 3/2 house is $500k but they are low end, I promise! 

Good luck investing!