All Forum Posts by: Nick Falcone

A lot of haters towards RAD-DIVERSIFIED. They've had excellent returns Net of fees, you aren't committed to stay in the fund, and it's as safe as other REIT's like Fundrise. I've been with them for over a year and a half, just put $25K in to see how they do before making a serious investment. Responses stating even a mediocre rental property deal will outperform REIT's is way off. I've seen many poor investments made with single digit cap rates and even negative cash flows in hopes of getting great appreciation.

I've purchased mainly SFH's for the past 30 years. Started out at 19 not knowing much and buying on land contract with down payments from credit cards. Today I have 48 homes but starting to reduce my portfolio in some areas and looking for completely passive income streams. CrowdStreet has been great, some projects require up to $50K down with most at $25K. CrowdStreet has never had a losing deal since inception and I've cashed out deals in the mid 20's, not bad for investments secured by multi-family. They require between 3 and 5 years on average and you can't sell early but solid company. Just looking for alternatives besides public REIT's like Essex ESS which was the highest returning publicly traded REIT from 1994 until 2020 averaging around 17% (I don't have the exact number but it's close) and Prologis PLD. So trying non traded public REIT's and Crowdfunding. So far I've invested with CrowdStreet, RAD-DIVERSIFIED, Caltier, Arrived Homes and Realty Mogul. No losses but not a long track record. Looking only for deals that will return 20% plus.

I know I won't beat the returns on my rental properties, purchased in preforeclosure at minimum discount of 20% below appraisal and I do cosmetic rehab, rent, refi and repeat. With discount at purchase plus rehab plus rent increases and appreciation, many homes have returned well over 30% ROI over several years.

With a good chance of a recession coming, have cash available to take advantage of the best deals to hit the market in years.  These opportunities come up only a few times in a lifetime.  So be prepared. 

I am a big advocate of low priced properties.   I purchase preforeclosure properties directly from the homeowners in several different counties and in 3 different states.  This includes Detroit where I have purchased homes that are brick 3 bedrooms, 1 bath, basement and garage for as little as $5K to $10K and needing only $2K to $5K in cosmetic rehab.

There are fewer under $10K deals in Detroit now than there were 5 years ago, however, I still find plenty with solid positive cash flow from section 8 tenants for $15K to $20K including purchase and rehab costs.

I wish there were more areas like this as I have been getting priced out of cash flowing properties in South Beach, and Las Vegas competition has been increasing every year.  Luckily metro Detroit is still open with plenty of deals coming up every week.

That is why I am vigilante in aggressively seeking out homeowners who have just gone into preforeclosure. 

I have had several clients look into outbox state property purchases in the last 5 years. A decade ago it was rare, now it is common place as the internet allows us to do so much more than we were able to before. I have rental properties in the metro Detroit area, Las Vegas and Miami, Florida. I have partners in every one of them and a solid team I have cultivated over the past 25 years to assist me. This includes tax attorneys, real estate attorneys, realtors and maintenance workers. I would advocate finding a market you like that provides a solid yield. You don't want a lot of properties with negative cash flows. I would also suggest looking to purchase properties at a discount to their appraised value either by purchasing them direct from homeowners in preforeclosure or finding REO properties. Lastly, don't chase the hot markets, they change all the time. Cash flow should be your primary concern. Yields come from cash flowing properties. Appreciation will come in any solid market.

I have an MBA and a Masters in International Business.  I have used my education often.  It gives me a solid base of knowledge and credibility in my career as a consultant. 

I have a property that is just outside of a traditional airbnb type of rental, but it is short term and all the management is covered.  I purchased a condo in South Beach that is connected to a hotel and I live there approximately 3 months per year.  During the other months the hotel handles renting it out for a small fee.  This allows a nice passive income stream when not utilizing the property.  In addition the condo has more than doubled in value since I acquired it in Preforeclosure from the homeowner in 2008.

thank you for the welcome, and Logan, my interests don't conflict w/ those of Russian ships in Cuba, try to stay a little more focused if you want your opinion taken seriously.

As for others in the Detroit/ Las Vegas real estate markets I welcome any questions, thoughts, advice or comments.

my experience with transferring and/or sale of a property from my original purchase via conventional mortgage to an LLCs, corp or trust over the last 25 years with over 50 properties has been one of no lender interference.

This includes simple assumption of mortgages from homeowners in Preforeclosure status when their mortgage company has no simple assumption provisions and a due on sale clause.

Have I just been fortunate that a lender has not interfered?

Or are they just happy to get on time payments?

I am always able to payoff a property if a lender were to enforce the due on sale clause, but until that time comes I continue as I have over the last 25 years.

Anyone have different experiences?

hi I have been involved in real estate since 1990.  Primarily doing pre foreclosures, foreclosures by auction and reits.  I invest mainly in the las Vegas and metro Detroit areas.  I enjoy the income both from flipping homes as well as the passive income from rentals.  I did a radio show in Vegas in the late 90's on real estate and still am doing consulting work.  Current interest includes looking into real estate acquisitions in Havana, Cuba.