All Forum Posts by: Ken Scarbrough

Thank you 

@Ian Ippolito and @Larry Fried for you responses!  I have been considering this as another investment tool to add to my "toolbox", but want to do some research before diving in.  Thank again!

THANK YOU EVERYONE for such thorough responses.  I feel better about my current situation and more knowledgable on the dynamics of a market crash in general.  Keep the good advice coming!!

I have an interest in crowd funding as a source of investing in bigger commercial deals and as a way to get a view of the inner workings of how these deals work.  I wanted to know if any of you had any experiences or advice concerning crowd funding or syndications (Im assuming they are the same?).  

What are some trustworthy companies to look into?

Would you recommend this as an investment strategy? Pro/Cons?

Any stories from those whom have experience in this area would be greatly appreciated!  Thanks in advance.

Kenneth Scarbrough

@Denelle Kaufman It really depends on what your investment strategy is. If you are looking for B or better neighborhoods then I would, generally speaking, look outside of 465 or (if looking inside of 465) I would stay north of 56th street.  You'll find mostly A and B type neighborhoods in these areas. 

Feel free to message me with more questions!

Kenneth Scarbrough 

@Ryan D. 

1) All fixed rate

2) It depends on the percentage of tenants lost and for how long, but I think I could weather it with reserve cash.

3) I could cover roughly 50% vacancy per unit (in general one side pays most of the mortgage and the other is profit.)

4) No need to refinance

5) I would lose cashflow but still make my mortgage payment and be in the positive

6) I would weather it with 6 month emergency found, no rent payment due to house hacking, and cash flow from my properties. 

I could ride them out, never comfortable losing money but I would be ok.  It would depend on the severity and length of time of the conditions listed above.  

@Marisa R. I put down %25 on the majority of my investment properties.  That in a sense is managing debt and building equity simultaneously correct?  Also, I'm favorable to buy and hold properties to build cash flow as opposed to selling, would you say that is an inefficient investing strategy? 

@Sam Shueh Thank you for the response.  I do have 6 months reserve, and I think I have a decent amount of equity built up.  However, I do plan on scaling up as quickly as I safely can (looking into commercial) hence why I am doing research and trying to prepare for the eventuality of another crash. Would what you say differ for someone who owns 30-40 units?

@Russell Brazil wouldn't lower housing prices and higher rents cause more people to want to purchase a home instead of renting? Therefore Lessing the pool of renters

I didn't have time to read your whole post, but here is my two sense:

1) It IS NOT the realtors responsibility to vet your properties for you.  Do you want someone else spending your money?? You look at the properties that come in from the search.  You run the numbers.  You let him/her know if its something you're interested in.  You need to get a feel for what kind of properties you wish to invest in, if you want someone to find the properties for you your looking in the wrong profession. 

2) If you get bad service from someone, don't get referrals from them.  Let them go.

3) Consider getting a Realtors license.  You'd learn a lot, its not too expensive, doesn't take to long and if you start to sell homes you can really expand your network.  

@Russell Brazil I understand your sentiment completely and thank you for responding.  Aren't there other affects though? If housing prices come down, so do rents.  Also, if its bad enough, less people are able to pay there rent due to job loss etc.  I don't presume to understand all of the mechanics behind a crash like that, its just hard to believe that weathering a crash would be that easy.  Your thoughts?