All Forum Posts by: Jim Schock

@Rebecca K. Good luck hope it all works out.  Keep us updated.

I spoke with Morris invest about three weeks ago, and asked for a list of properties in Jax specifically. As of yet they haven't sent me any deals in Jax. They did initially follow up with deals in Indy and Detroit. When I responded that I wasn't interested in those areas I haven't heard from them since. I may send them another email this week.

@Chris Ruud So I need to admit I've been trading stocks for over 20 years, and I use real estate to produce a negatively  correlated asset.  I'm not sure I would say that either stocks or real estate are more solid.  To me they are all investments, and real estate is just one other asset class.

@Jim D. If you invest 500k in a property, and in 30 years it's still worth 500k that 500k has less value due to inflation.  As I stated the reality is it won't stay flat for 30 years which is why it's best to know what the growth rate in your area is.  

@Chris Ruud I just did some quick math, and have another thought.  The average return on S&P 500 from 1987 through 2016 is just over 10% (see table below).  If you had invested that 100k in  a S&P 500 index fund your total would now be approx 1.7mill.  You would also reduce your overall risk by buying diversified across 500 companies, and have zero holding cost outside of the OER of the index, which is around .003% today.  In your example your investment would lose money even if the value of the property never changed.  The reality is however your property will appreciate at some rate of return.  I would do my homework to see what the long term growth rate is in LA, and even more the growth rate of the area you plan to purchase.  If you don't have that information I would pass on any investment.

Performance of the S&P 500 Index over various time periods	Average Annualized Return
3-Year (2014-2016)	8.87%
5-Year (2012-2016)	14.66%
10-Year (2007-2016)	6.95%
15-Year (2002-2016)	6.69%
20-Year (1997-2016)	7.68%
25-Year (1992-2016)	9.15%
30-Year (1987-2016)	10.16%
35-Year (1982-2016)	11.50%
40-Year (1977-2016)	11.07%
47-Year (1970-2016)	10.31%

Read more: What is the average annual return for the S&P 500? | Investopedia http://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp#ixzz4p0FByO1Q
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If you move the property into your LLC, and the bank did call the loan, what would stop you from doing a quick claim deed back into your name?

Looks awesome.  Good job.  

@Rebecca K. thanks for this update.  Sorry about the issues your having with JWB.  I have looked at JWB myself as I thought they may be a good option for me as I'm getting started.  When speaking with Greg Cohen he made a comment that since I live in Jax would I ever want to visit the property, which I found to be an odd question.  I mentioned that the only time I would want to visit was when the property was vacant, and he quickly said that wouldn't  work for them.  He basically said the owner would slow down the process of turning the property over if they showed up at the property.  Really strange comment, and I actually thought I miss understood what he said.  I explained that all I would want to do is simply walk the property, and he said that really doesn't work for them.  He was very nice, and professional on the phone so I was very surprised with this statement. I was ready to do something with them until he made that comment, and now seeing your post kinda makes me glad I passed with them.

Good luck with your property, and I hope everything works out for you.

@Kenyon Meadows I'm in the Jacksonville are, and listened to you on the podcast.  Would you be able to share who you work with for your turnkey properties?  Being new to buy and hold investing I feel this may be a better way to get started.  Thanks 

@Joey Hamaoui yes.  I have had a hard time even finding 6% 59 or 57.  I've been spending most of my time looking in 44 and 10.

@Sastry Srini I'm actually looking at a SFR in 10 tomorrow. That is an old Jacksonville community. I would consider it a C area. I would love to buy in 59, 57, 46 (Southside of Jax and northern St. Johns), but have found the numbers very hard to work.

@Joey Hamaoui did a good job listing the rougher parts of Jax. 06, 09, 08 and 54.

Hope this helps.  Good luck.