All Forum Posts by: J. Martin

@Moe C. , just curious, what is your main reason behind this, or what has happened in the past that made you say this? Make mistake on recording? Not trust-worthy/screwed? Other..?

Thanks for jumping in @Account Closed . I was interested to hear your perspective, having had a good year in 2013. It sounds like allocating time is a common theme among BP members .. along with sometimes being more firm about your opinion with your partner(s)

Maybe another lesson here is to try to have a backup team of people you can trust that you can outsource jobs too when your main people are too busy. Sort of like a back-up / succession plan. I identified the most key people in my real estate business. Right now, they are my handyman and my main investor. So I'm working on finding some others to keep in the loop and do work with to diversify those key people..

@Don Konipol ,

I target 6-9% cash flow ROE on new purchases, although this is in the Bay Area where it's hard to find any cash flow. This return is also with 30yr fixed financing, lots of maintenance and reserves factored in, and relatively low-headache tenants. My prior purchases are higher and FHA ROE can't really be calculated because it was all borrowed. But the numerator is great! There's another 2-3% ROE "accrual" returns in principal paydown. And 3-4X leverage on any appreciation returns. At a long-term rate of 2%, that would add 6-8% ROE in appreciation returns.. No guarantee, but I also have to look at the reasonable upside and downside in assessing my purchases.

6-9% in CF
2-3% principal paydown
6-8% appreciation

= 8-12% ROE before appreciation,
14-20% after appreciation, over longer-term

I might add that buildings are in good condition and rents/ft are about $1.50/month (or $12/ft/yr), so a fluctuation in vacancy or expenses won't change my income too much. I noticed that in many low-income areas BP investors are in, the REO appears high (20-30%!), but a single new AC unit or wood rot job can take the profit negative for a year or more! Yikes!

Welcome Rodney . There are a lot of super helpful people and great advice on this site! I’m a ‘fix and hold’ investor from the Bay Area in CA, and loving it! A lot of others doing flips, wholesaling, notes, everything.. A few tips..

You can tag people by typing @ before you type their name, then clicking their name when it pops up at the bottom of the message box. You can click on the ‘vote’ button if you like someone's post or is helpful, and there are ‘awards’ to earn on your profile. The "Learn" link across the top navigation bar has lots of great info, and most importantly, the BP members! Welcome to BP, and good luck on your investments!

Hi Daniel, and welcome to BP! I’m a ‘fix and hold’ investor from the Bay Area in CA, and loving it! But you’ll find a variety of every type of investor on the site, and everyone is amazingly helpful. Some pointers for you: The "Learn" link across the top navigation bar has lots of great info, and so do BP members! You can click on the ‘vote’ button if you like someone's post or is helpful, and there are ‘awards’ to earn on your profile. And you can tag people by typing @ before you type their name, then clicking their name at the bottom of the message box. Welcome to the site, and good luck in everything!

Welcome John. There are a lot of super helpful people and great advice on this site! I’m a ‘fix and hold’ investor from the Bay Area in CA, and loving it! A lot of others doing flips, wholesaling, notes, everything.. A few tips..

You can tag people by typing @ before you type their name, then clicking their name when it pops up at the bottom of the message box. You can click on the ‘vote’ button if you like someone's post or is helpful, and there are ‘awards’ to earn on your profile. The "Learn" link across the top navigation bar has lots of great info, and most importantly, the BP members! Welcome to BP, and good luck on your investments!

Hi Michael, and welcome to BP! I’m a ‘fix and hold’ investor from the Bay Area in CA, and loving it! But you’ll find a variety of every type of investor on the site, and everyone is amazingly helpful. Some pointers for you: The "Learn" link across the top navigation bar has lots of great info, and so do BP members! You can click on the ‘vote’ button if you like someone's post or is helpful, and there are ‘awards’ to earn on your profile. And you can tag people by typing @ before you type their name, then clicking their name at the bottom of the message box. Welcome to the site, and good luck in everything!

Welcome Paul . There are a lot of super helpful people and great advice on this site! I’m a ‘fix and hold’ investor from the Bay Area in CA, and loving it! A lot of others doing flips, wholesaling, notes, everything.. A few tips..

You can tag people by typing @ before you type their name, then clicking their name when it pops up at the bottom of the message box. You can click on the ‘vote’ button if you like someone's post or is helpful, and there are ‘awards’ to earn on your profile. The "Learn" link across the top navigation bar has lots of great info, and most importantly, the BP members! Welcome to BP, and good luck on your investments!

Hi Dana , and welcome to BP! I’m a ‘fix and hold’ investor from the Bay Area in CA, and loving it! But you’ll find a variety of every type of investor on the site, and everyone is amazingly helpful. Some pointers for you: The "Learn" link across the top navigation bar has lots of great info, and so do BP members! You can click on the ‘vote’ button if you like someone's post or is helpful, and there are ‘awards’ to earn on your profile. And you can tag people by typing @ before you type their name, then clicking their name at the bottom of the message box. Welcome to the site, and good luck in everything!

I started a lease for one of my SFH's with no pets on the lease. Tenants are good tenants, take care of everything, including lawn and landscaping. Looks nice outside and in. They called and asked if they could get a dog for their daughter, to keep any stray cats away from the house, and as a little barking alarm (small, outside dog.) It is a lower-income area, and a lot of people like having a little dog to bark in case anyone thinks about slumming around the area.. Just enough to alert..

I said yes because:
- They are good tenants, hands-off, and paying healthy rents
- They want to keep it outside, so I didn't charge an extra deposit
- I figure it will tie them to the house longer because they will have the right size yard for their dog at this house, and somewhat limit their ability to move by those who do not accept pets (what parent wants to get rid of their child's favorite pet?)
- No aggressive breeds