All Forum Posts by: Uzi Pablo

@Uzi Pablo "in the weeds" means being more involved in the day to day operations of the business. If you are in the weeds, you are meeting contractors at properties for bids/payment, collecting rent from tenants, and so on. Since you have the cash, you can leverage your time and a team to complete the most effective formula.  Your job is more about relationships, looking at reports to optimize how your investments are performing, etc.

Cap rate and return depends on size of property you are buying. Obviously as the higher the purchase price on a property the smaller pool of individual buyers can afford that property. Less competition can mean increased yields to the buyer as the loan amount is larger so lender compete for better rates and cap rates are usually higher so you typically can get a bigger spread between debt rate and cap rate for return.

Goodness. Why not just retire? Live comfortably. Give the rest away to family or charity. Volunteer at an old-folks home? Take up fishing or painting? All of the above?

Seriously. What is the point of creating the largest pile of cash you can if you never intend on using it for anything?

The lottery got up to like 1.5 billion the other week. As I dreamed about what I would do with my winnings, I came to realize it was more money than I could ever spend and it would actually become a liability to a normal life. The only rational choice for me would be to give it all away (ok, most of it).

But, I suppose if you want to be as famous as Rockefeller, Morgan or more recently Gates or Buffet, you just keep on keeping on. The thing I love about Buffet is he helped a whole bunch of people get rich right along with him.

But seriously, be the lender if you want the best returns for the least amount of actual work. There are firms that do that out there for you to invest in. No? Well then, I'll take your money and build a portfolio for you, but the cost will be an interest free loan. I can deliver your 10%.

Without talking to you on the phone it would be hard to go over potential investment options.

There are different levels of being passive and active with properties and deal sizes with varying asset classes.

The 10% return you have to quantify if total return or cash on cash return. There is cash on cash return and then total return factoring in mortgage paydown (if you do not buy all cash), tax depreciation, any mortgage interest deduction, rental increases, etc.

Likely since you have no info on profile this might not even be your real name. I deal with ultra high net worth individuals on a daily basis buying large multifamily and also commercial retail NNN and retail strip centers etc. On here they sometimes contact me and use alternative names on BP. Some just read in the back ground and do not use a profile to post.

With my potential clients I verify a personal financial statement before getting on a call with them. My time per hour is high and I have to verify they really do have the funds to buy before answering a ton of questions. Talk is cheap and the buyers have to be verified upfront.   

Be prepared to get a lot of colleague requests and messages now that you announced you have $1M per month income and know nothing about real estate but want to invest. In the future you should never disclose on a public forum how much cash you have available. You will attract more of the wrong people than the right ones. Be very cautious of those who message you offering their services. With all that being said I’d suggest you keep your money safe and sound in a high yield savings account or something alike while you study various investment strategies and learn which is the one you want to pursue. As you gain more knowledge you’ll start to figure out exactly what direction to go. Welcome to BP and best of luck!

wow that's a lot of cash and a lot of info! 

I would say your job now is to put the cash to work. You should avoid any kind of active real estate stuff like flipping,  and possibly focus on buying rentals in cash, getting a PM on it right away, and looking for the next deal. Look for higher end rentals that cost more but also are less work to manage so PM can cut you a bit of a break. 

The main thing is stay out of the weeds of real estate. Put together a team that runs the business. You should be able to do better than 10% as well I'd say.