All Forum Posts by: Kai Van Leuven

@Erin Dorsey Robinson

The only way to be different from the average person is to make different choices. I have been lucky enough to bet on a lot of good investments over the years. At any point I could have sold out, traveled the world, bought a nice truck, or anything else most people would do.

Instead my wife and I lived way way way below our means and went “double or nothing” back to back to back.

When we were newly weds we were making great money and banked over 5k a month. 11 years later that money just keeps growing.

@Carl West

Most people are just dreamers and tire kickers. I have had probably 100 people reach out to me over the years. They see the results but they don’t want to put in the work.

Maybe I should take a video in front of a Maserati and tell everyone how “easy” it is. All you need is a computer. NO Money and No Credit. Sorry dude but that is all garbage.

These are the facts. Real estate is competitive, there are no secrets.

My mentoring to you:

Driving for dollars works. Simple strategy.

1. Know the area

2. Find the crappiest house

3. Talk to who owns it

4. Buy

Anyone can do ^^^. I am a person of average intellect and I have made a lot of money with that process.

@Mark Freeman

I hope that works out for you on your flip.

I say the same thing all the time. The “singles” and “doubles” that got away would have been nice. I am an ultra conservative investor and really only take the “once in a lifetime” deals. I skip over a lot of good stuff in the process.

@Jack Fernandes

I am not one to “kiss and tell” but why not...

I used to have an old strategy called the "dogs of the MLS". I would look at a low price point and put in over 365 days on the market. These homes were the worst of the worst in the worst time to sell (09-12).

Anyways, I was watching a house that was on and off the multiple for a few years. It started at 250k. Was actually a nice little place but had a foundation that was totally destroyed by anolid beetles. I kept watching it. The price was down to 185k, I put in an offer for 160k cash.

They were definitely looking to unload it. I bought it from a super scammy HML. I had no problem negotiating super hard. There was tons of back and forth. I ended up getting it for 127k. I was pushing for 100k but I will take what I can get.

The reno was like 20k with the foundation and cosmetic remodel. I did all the labor so that was pretty much my material cost. Last appraisal was around 350 or so, probably higher now.

What I prided myself the most in was the stack of agent cards. I put them in a large ziplock bag and counted them after I listed the property for rent. 75+ agents had shown the property!

@Scott Trench

I like your post and your style. I have never been one to suck up to people but... nope can’t do it, lol.

It is a good point that wages may not creep up that much past inflation. I wish that were not the case because I feel like a thriving middle class should have more room in their pocketbook than just covering the cost of things getting more expensive.

Education, healthcare and housing have been running over the last few years. There should be a huge incentive for folks getting out and being productive in society. Those three expenses are covered if you don’t make enough by our government (education grants, Medicaid, section 8/projects).

Yes Seattle is a mess, I do love it for the Hawks, Dawgs and Mariners but the city itself has become less than desirable.

If you are ever north of Seattle hit me up, McDonalds on me!

I looked at the chart attached it looks like wages have increased .62% since this data was taken in the early 80s. Not “through the roof” as you may suggest. If you are looking at the most recent 5 years you could say they are climbing at a high rate (5%) but there are 3 periods that have shown growth similar to now, followed by a decline. Not buying anything other than stagnant, even with the chart. You made the mistake of zooming in too far on the chart...

2) Virtual Work - I disagree for exactly the opposite reason. Denver is more expensive than Cleveland. Nothing against Cleveland, but if I could work remote, I'd rather pay more and live in Denver. The best locations because of their geography, culture, climate, etc. will win with virtual work. Not the cheapest place.

It is cool and trendy to live in a downtown area. After the glitter leaves it will just be an overpriced area that has a slew of problems, homelessness to name one. I can’t speak for Denver but Seattle has transformed into a city I don’t want to visit. 

3) Universal Basic income will simply redistribute wealth. If we allow capitalism in any form similar to it's current one to continue with respect to rental real estate, all that will happen is that prices will, within a few years, climb to reflect the current distribution of wealth. This is a complex mathematical/economical point that I do my best to explain in this article. The cost for food, water, transportation, entertainment, clothing, etc. is basically the same in every city in the country. But San Francisco has much higher median INCOME and median HOUSING Costs than a city like St. Louis. Basically, all of the incremental after-tax take home pay in a higher priced market goes to housing. Increase that income with UBI, and the free market will quickly absorb that into housing prices. It will, however, immediately translate to higher taxes and higher home prices and rents - all good things for the leveraged real estate investor (the taxes are really a non-factor because the tax advantages - but not a positive).

Maybe it will add to buyers base for affordability, maybe. I am all for inflation. I  carry a lot of long term fixed debt. The opposite side to that is that folks will feel disincentivized to work and will create higher unemployment, underemployment, and  folks living off the system. There has always been a high correlation between government safety nets and unemployment. UBI is just a government entitlement.

4) If the commute goes away, that gives people more free cash flow to spend on rent.

Uh, all my properties are tied to communities And places to work. I would see those as important.

@Jose Castillo

Your post is good and insightful. What is the most interesting part of this thread is those who feel like real estate is so “fool-proof” that there is no way you can fail investing in it.

Even my idea that their could be threats, makes me some extremist, lol. Most of these folks peddle real estate products all day and have to have the ABC (always-b-closing) mindset. Does that make anyone else look at the industry any differently? You have people who will blindly invest based off of data and ideas that have been held for decades and have not changed.

The last recession gave me tons of opportunities. I have bought property every year from 2011. Most of those properties were from “investors” who probably shared the same feelings as the “real-estate-forever” crowd on this thread.

@John Barrett

We have about the same size portfolio and you seem to take a pretty conservative approach towards investing, I do the same.

I was mostly trying to open a discussion where folks would bring up the “threats” to real estate investing in general.

In our area, the biggest threat would be a Boeing move. No doubt.

@Joe Villeneuve and @Michael P.

Sorry forgot, Real Estate is a foolproof industry that can not fail. Got it for next time.

Joe, lead still has uses. The value is just diminished. The local news paper still makes thousands of dollars per year, lol.

Any of those things happening would greatly decrease my returns

If you want a value add opportunity, I see a lead mine in your future.

@Ross Webb

I did the same thing up in Everett for my first flip. Looks good man. We lived in one bedroom with a mini fridge and gutted the entire house. Turned out real nice. Congrats!