All Forum Posts by: Jason Curtis

I moved all of my capital in 2015 from USAA to Marcus Bank (Goldman Sachs). It was a solid move as USAA pays a pittance in comparison to other options. Marcus is an online only savings account (no atm or checking) that currently offers 2.05% savings. They also offer a higher rate (2.15%), CD with no penalty for early withdrawal.  It’s been very rewarding to me and I have done well by letting it compound every month. No issues moving money in or out quickly and they’re always on time with interest payments. Excellent bank, highly recommend. 

https://www.marcus.com/us/en

Price is one thing, cost is another. You made a decision based upon what works for you. Use this deal as momentum. The better deal opportunities most oftentimes are acquired off market through networking, wholesalers, direct mail, and driving for dollars for example. The cost of doing business is a bit higher these days in many markets. 

There's a lot of competition out there. If one were to analyze for too long, the opportunity may vanish before you can say Cap Rate. I missed out on a deal just last week doing the very same thing. It listed and within 24 hours, was already under contract. I would've gladly paid a bit more than the asking price because the property/location were premo and the numbers worked. I defined my investment criteria ahead of time and then overthought it. I don't advise doing that before or after the deal as long as it meets your criteria. 

The first tax lien I ever purchased was directly from the county for $750. Interestingly enough, I purchased it after the annual tax lien auction as not all liens are sold at the auction itself. You can get the list to see what each county has left on their books and buy them outright. Some lists are free and others I’ve had to pay $50 to the county assessors office. I foreclosed on the first tax lien I purchased after approx 90 days as it was ripe for that action. I retained a real estate attorney and followed the laws carefully. After that, I owned a house that appraised for $125k that a former coworker now owns and resides in.

Just make sure you know your state tax lien statutes well, do your due diligence carefully on each and every property and be prepared to go to battle with banks, hedge funds, (as @Chris Seveney stated) and other large entities at the auctions. However, even 10% is a nice return on a fairly low capital investment with the chance of owning the property as I did. 

Best of luck to you!

My old friend won approximately $10 mil playing the lotto back in the mid 90’s. He played the same numbers twice a week for almost 15 years before it finally hit. He was in his late 60’s and took the 20 year payout option. He lived it up, travelled, and experienced life as he never had the chance to before. He had worked challenging manual labor jobs all his life while seldom ever taking a day off. He gave me $500 right after he won for “Fun Money” as he called it. He’s still around today, long after the money stopped coming in from the lotto division. I asked him a couple years ago what he did with all the money and jokingly he replied “Mostly I spent it on fast cars, hard liquor, and wild women, the rest I just threw away.” 

@Aarron Light Excellent example of creative RE problem solving. I’ve always wondered about doing a project such as this. Thanks for sharing and congratulations! 

@Kevin Roberts Yes, that’s what I was told by the broker as well. 

Hello BP,

I have an apartment opportunity that I’m carefully considering. This is my very first apartment/commercial property deal and I would greatly appreciate any help with the deal/analysis as I definitely do not want to make critical mistakes with any of it and in trying to decide a price to offer that makes sense with all the variables considered. I’ve also read many forum posts/articles and videos in preparation. The breakdown is as follows:

Commercial Loan Terms: 5.5%, 25 yr amortization with 25% down.

Asking Price: $399,000

Location: Great Midwest downtown area within biking distance to a very large university.

10 units - All 1 bedroom (5 units in each of the two identical 2 story, side by side buildings) and 9 are currently occupied. 10th unit requires reno before being rent ready. It’s currently used for owner’s storage. 

Rent Breakdown: 2 x $525, 1 x $450, 2 x $475, 2 x $495, 1 x $500, 1 x $600, (last unit is vacant). Median rent for this area is $600 for 1 bedroom apts. So rents can obviously be raised to market level. There are currently 3 long-term tenants. 

Building Info: Great condition 5,440 sq ft on 6,970 sq ft lot, built in 1916, new roofs 2017, new gutters, soffits, and windows on both buildings, one building has a new water heater & boiler, the other has new electrical panels. Both buildings have one set of new coin operated washer/dryers but more can be added to accommodate the amount of tenants, thus increasing laundry revenue. All units have 2 A/C window units each and screened in porches. Separate electric meters for all units. However, gas and water are currently not sub-metered. Current owner pays for water, trash, and gas with general rental proceeds. Here are the other metrics from the broker (that I will definitely verify myself during due diligence) as follows:

Ahh the 2008 crash, RE buying opportunity of a lifetime! Unfortunately, I was only in a position back then to buy one sfh foreclosure for about 20% of it’s market value. It was a very profitable acquisition and if I only knew then what I know now, I would be far more ahead of the game at this point. In my opinion, we’re not currently in a bubble. However a market correction (even modest) in some overheated areas is fairly likely. Conditions such as supply/demand, rising interest rates, market uncertainty/speculation, politics, world trade, income rates, job growth, and availability all play roles in it.  I simply use those as indicators only but cash flow of my investments is the ultimate predictor. Make sure your assets can weather any financial storm before investing. Be in the game and know how to play! Sitting on the sidelines is for second stringers and no fun! 

Find value and know your market. According to UBS Global Real Estate Bubble Index, markets like SF, LA and NY are currently considered to be the most overvalued in the country but even those markets are nowhere close to being in a bubble. I myself specifically look at housing prices as compared to income rates, and jobs/industry. Single industry locations aka “Boom Towns” mostly reliant upon one industry like Oil in Odessa, TX for example) are indicative of areas I usually will not invest in no matter what the current market conditions are. I tend to stay away from single points of failure as a habit. I want lots of thriving economic attributes that support areas I invest in specifically. Instead of trying to predict a crash or time the market, I suggest perhaps searching in other areas that are currently fairly valued and not single industry reliant like Boston or even better yet, undervalued like Chicago. If nothing else just remember, investing is like flying in an airplane. As a precaution, you still keep your seatbelt fastened at all times (even in ideal weather conditions) in case of unexpected turbulence and ride it out. Don’t panic and jump out of the plane expecting it to crash when it’s only a temporary inconvenience along your journey.

I spend a lot of time every day in the forums absorbing the knowledge of RE Rockstars like Master Yoda @Jay Hinrichs. I’m extremely grateful for all the mastermind contributors that continue to take the time to post even though they may perhaps be heavily involved in their own day-to-day business. Let me be but one of countless others to express my endless gratitude for all of your vast wisdom and time tested, no non-sense guidance. Cheers!

Very inspired by this episode. This was not just a RE Investing focused podcast, it was also an extremely valuable “Life Lesson” that is dripping with motivation and higher-level knowledge for those ready to receive it. Success will most assuredly follow in multiple ways for those ready to apply these timeless principles. Thank you Brandon, David, and BP for this gem.