All Forum Posts by: Kyle Alexander

unless you have extensive experience in renovations, i would recommend using a GC. without one, you'll very likely make enough mistakes in the project management department to cost you way more than the 15%, plus you'll have invested lots of time and headaches into it that you can never get back. the tricky thing is finding a GC that you can really trust. you'll want to get lots of suggestions from people who have used GCs locally in the past, maybe even ask the building inspector for the town who they'd suggest, and make sure your written agreement is airtight. deadlines, fees for missed deadlines, payment schedule..

Hey Kyle, 

Do you have time to manage the construction yourself? If you have detailed steps from the contractors then I would suggest to schedule time to visit the property every other day to make sure the work is being completed. Also I believe you should first, gather multiple quotes from different contractors to gain a clear understanding of the average cost for the desired project. Then, research each contractor’s reputation and previous work through online reviews and references. When meeting contractors, ask detailed questions about their methods, materials, and projected timelines. A written contract that outlines all expectations, costs, and project specifics is crucial. I would make sure to carefully read and understand it before signing. Regular communication throughout the project helps maintain transparency and address any concerns promptly. 

80% VT (Vanguard total world stock market index), 20% AGG (bond index).  Withdraw 300K per year from the portfolio with no danger of running out of money ever.

If you have 0-3M then maybe need to get more creative.

@Karl B. cap rates do not equal return or yield. We bought a deal at the end of 2020 for a 4.75% cap rate, it cash flowed 13% in 2021 (this year). This was a class A 2018 built asset, one of those that when one would look at it you would assume no cash flow, but one would be incorrect.

Cap rates reflect market sentiment, nothing else. 

What many are missing is that there is a $150-250 (10%-35%) spread between effective and market rents depending on your market. With inflation still rising that delta is likely to increase. 

If you are still operating out of the same playbook that you were in 2019, you will be left behind. 

That being said, in this environment it's easy to over speculate, and may groups are. In my mind when I see we are going to fall short a few hundred thousands units of supply this year when we are already millions of units short, there are good reasons for modest speculation on future growth. 

I look at commercial cap rates and laugh. There are well-established, safe stocks that have been around for 100 years that offer more in dividend payouts than a paltry 3.5%-4% cap rate. It's a joke.

I bought some value-add properties in November that are 20%-35% below market rents. There are deals out there - but they go quickly. I was contacting the seller two hours after he posted the rental portfolio on the MLS.

I don't factor nor consider appreciation when I buy. I'm all about cash flow. 

There will be a point when interest rates rise (to combat inflation) and banks tighten. At that time those of us who have cash will be growing our portfolios with deals that will vary in degree according to market.

High fuel prices will affect everything , it is already happening . Food is up , materials are up , etc . A lot has to do with transportation costs .  I can see people staying closer to home or having staycations . 

It cost me $100 to fill my truck now , it was $65 . ( I fill up 3 times a week I run 3 trucks ) I pass that cost to my customers .  Now the 9 to 5 person cant do that . My wife showed me how much food has gone up .  For the average person , that money has to come from somewhere , and thats discretionary spending . The vacation money may be gone before vacation time 

@Kyle Alexander hey there! Have you connected with any local wholesalers or investors? Being top-of-mind with is not a bad way to find a deal. If you develop a relationship with different types of people in the investment game, they may think of you if they come across something that works for you, but not for them. The key to success in real estate is relationships!