All Forum Posts by: Steve Vu

Sorry guys, I would have loved to join you today, but it was too short of a notice and I am busy today. I will try to make it for the next one! Hope you guys have a great time.

Welcome to BP Patrick. Yet another member from the bay area... looks like we are slowly taking over BP ;)

I agree with ANISH TOLIA. Buying several cheaper properties, rather than one very expensive property is a good way to spread your risk of ruin.

To simplify the example, let's assume that you are only allowed to choose between buying 1 expensive property or 10 cheaper ones.
If something goes wrong in one of your cheaper properties, the 9 other ones will act as a cushion to weather the mishap. However, if something goes wrong in your only expensive property, you will be in trouble until the issue is resolved.

The concept is somewhat similar to the Kelly criterion from probability theory, which defines the % of your total bankroll you should be investing/gambling in a given proposition to optimize your profit and minimize your risk of ruin.

Cliff Note: Don't put all your eggs in one basket

Welcome to Bp Tina. I am actually from San Jose but the market I am targeting is Sacramento. I am also starting out but feel free to contact me if you have any questions.

Kwesi, that might be a good idea. I didn't think of that when I bought my first property.
The owners had assured me the current tenants were very good and they just showed me copies of rent receipts that were signed and dated for every month.
When I took over the property, the tenants never paid rent and I ended up taking 4 months to have them evicted. I suspect the previous owners may have faked the receipts, but I am not sure...
I think looking at their schedule E would have been a good way to check that.

Looking good! Would you mind sharing some of your numbers for this project?

Just ordered both versions and I'm really anxious to start reading. I am sure it has great content!

Great video, very instructive and straight to the point. Be sure to produce more of these, I will definitely be watching!

Welcome Aaron, I'm also from the Bay Area but am investing in Sacramento. I find the Bay Area too expensive to find good deals with decent cash flow. Feel free to contact me if you have any questions.

Beautiful transformation, you did a really nice job there.
J Scott Your blog's name sound very familiar to me, wouldn't you happen to post on 2p2 as well?