All Forum Posts by: Uzi Pablo

@Uzi Pablo, I've been having fun watching the responses to your post here because... well, not a lot of people of your financial means ask something like this in the forums. Pretty entertaining!

I posted this once before, but it sounds like you fit the profile for Tiger 21 perhaps. A friend of mine turned me onto it. I'm not actually a member myself, but he seems to get a lot of value from the network (he's a retired hedge fund guy in his early 40's). I like to follow their quarterly reports, though, which tell you how the members allocate their wealth. Right now, it seems like about 25%-30% of assets get allocated to real estate. You may want to take a closer look so you can ask your peers directly (going along with that theme of talking to people more successful than you). Good luck!

You're already really good at something, why don't you capitalize on that instead of trying to get into a completely new business? Maybe start another business in your field with the funds you have?

@Uzi Pablo And by the way. If you really do have that current income you are going to get mobbed with a crap ton of brokers trying to sell you everything they can and people wanting you to fund their deals. Find the big real estate lawyers in your area and tell them you’ll be a private money lender. Come up with a standard like 65% ltv, 12% interest, and 1.5 points. Call the title companies in your area also. Learn on how to vet the deal yourself. Start small on like a 100k project or something and if you like it grow and if not recoup your money and move on.

@Uzi Pablo You should definitely not be an active real estate investor. Your skills are in business and programming and you should stick with it. Your focus should be on preserving wealth through real estate. Don't take real estate deals with better returns that are riskier, just play it safe now and don't lose it. You probably have a circle a of wealthy individuals that you know, so get advice from them and see how they invest their capital and who they trust. You want to get advice from people wealthier than you.

Congrats @Uzi Pablo I agree that you don't need to mess with active RE investing. You're a capital manager now. Learn all you can about multifamily apartment syndications, storage syndications, and mobile home park funds. Spread it around. You're attorney and CPA will be highly valuable of course. 

@Uzi Pablo 

1) Congrats on building successful businesses! Would love to learn what these are if you don't mind sharing. 

2) I wouldn't post any info on how much you have/make on a social media platform (f.e., BP)  if you didn't want a publicity. So I'm guessing this was an intentional post on your side. If it weren't, then you can still take your post down (it's your post, so up to you what to do with it). Otherwise, yeah you know it  - friend requests will be pouring in. 

3) Do not invest in anything until you educate yourself on the strategy and understand the risks involved. Everything has the risks associated with it, even NNN leases.

4) Sounds like you're looking for passive investing options, which entails no control, but also very limited to no engagement on your part. If that's the case, the options would include but not be limited to:

a) Lending money (warning: don't go into a second position). This can be done either directly with flippers or through intermediary companies that connect flippers with lenders (for a fee of course, but they verify the info for you)

b) NNN leases @Joel Owens is your guy for it. 

c) invest in syndications (btw, this does not entail multifamily only. it can be any asset class: MFH, SFH, storage, hotel, etc... The choice is yours as to what to invest in). If you need a way to find such investments or want more info, feel free to PM me.

d) invest in notes (performing or non-performing)

Again, education is the Key here. Read books and posts about these and other strategies on BP and outside of BP, pick one, and concentrate on it until you're comfortable to start investing. Only then take action. 

Best of luck!

For STNL (single tenant net lease) where you are 100% passive and do nothing but get a check returns might look like this.

Newly minted leases or close to newly minted leases for primary terms ( new construction NNN, sale leasebacks, ground leases, etc.)

Dollar stores ( 2 million range and below)

Cap rate - 6.25 to 7.25 ( varies by quality of construction, location, etc.) Usually you can buy in with 30% or more down.

Value add ( not many years left on primary lease term) Usually bought all cash or with very little debt. 7.5 to 10 caps

Banks - New primary leases most go up in price to about 6 million and maybe 5 to 6 cap rates.

Value add - Leases fixing to expire could see up to 9 caps. If building is dark but still paying the rent sometimes 12 or 13 cap rates. Again lenders do not like these much so paying cash or low debt for LTV to curb risk in a lenders eyes on the loan.

Pharmacies - CVS, Walgreens, Rite Aid - Usually flat rent in primary terms with most priced 3 to 8 million and a few up to 15 million. Cap rates usually 5 to 7 cap rates.

Value add you could see 9 to 10 cap plus.

Restaurants - national credit like Mcdonald's, Chick Fil A, Starbucks looking at mainly 4 to high 5 caps.

Credit goes into franchisee or mom and pop users then cap rates rise about 100 to 200 basis points and rental increases are generally higher at 2 to 3% a year versus national at maybe 1% to 2% tops.

Price

2,000,000 to about 5,000,000

Auto Stores ( Advance Auto, Oreilly's, NAPA, Pep Boys, Auto Zone,etc.)

Newly minted leases 1.5 to 3 million in price. Cap rates - 5.50 to 6.75

Debt for STNL properties currently ranges from about 5.10 to 5.9 depending on credit and lease terms with LTV. Amortization payment schedules most are 15 to 25 years.

If you want info on retail centers let me know.

Most multifamily buildings are about 5 to 6 caps right now (some 4's) for quality even the big ones. If cap rater Is higher generally area is bad etc. and with the type of money you say you have the headache is not worth the risk. If you buy multifamily at a low cap rate then rent growth has to keep happening to blend the cap rate return upwards at a good clip over time. If property taxes rise, insurance rates go up, and rent flat lines or has very little growth then those properties can cost you money versus commercial NNN the rent increases are set and the tenants are paying the costs.

@uzi 

@Uzi Pablo We should be asking for your advice. Your doing much better than most of the real estate investors across the u.s. You can take the advice of Grant Cardone and only buy apartments that are 16 units or more. You can become the lender and earn 10% without the day to day headaches of flipping, managing rentals, etc.

I would love to hear about your business's if you ever send direct messages to people here on biggerpockets. In return, I will tell you how I lost money in real estate investing and how I made money.