All Forum Posts by: Ola Dantis

 Now, I'm not sure I want to look now! 😬

Looks like the syndication came out on top apart from the slightly Avg. Annual Return but then you were a passive investor in the syndication. 

Sometimes, control might be overrated!

I mean it was a complete loss, I'd think that should be a deal killer right there. 

Unless, you really really want a property in this part of town. 

The number 1 trick I use is to write a personalized letter to the owner. 

Works like a gem! 

I think you shouldn't waver on your goal because of the instant shinning 30k cash. Now, if you are somewhat confident that you can 1031 exchange into say two more properties with this one sale, then do it. 

If you aren't sure you will be able to buy another bigger or better property then keep it rented. Wealth building can sometimes be long, boring and slow especially in the real estate investing world. 

Remember, there are no right or wrong answers to these questions, IMO. 

These companies are making money on those who are unwilling or unable to do the exercise you did to find out the truev value of a property. 

For those lazy investors, there is always a hefty price to pay either in the short or in the long term. It sucks, but this is the genius of marketing, unfortunately. 

My question is: Where are you looking for these properties. Sheesssh...

Sounds like pedoville county!

Yes, Cash Flow should exclude reserves. 

Let's use an example here:

Monthly rental: $1,000
Expense ratio: 40%
Month Expenses: $400
Net Income: $600
Reserve ratio: 5%
Reserve: $30
Cash flow before taxes: $570 

Of course, this is just a simple and apparently very profitable example!

These costs seem in line with the market on average. 

The interesting thing I sometimes see in REI is that a lower-priced property doesn't mean costs overall will be lower. A broker lender once told me that is way easier from a loan processing perspective to buy a $50MM dollar project than a $5MM deal. 

This still blows my mind, but it is the reality we live in!

If you are an agent, you could start reaching out to owners of the kind of assets you are interested in. 

This could range from single-family rentals to small multifamily OR it could be self-storage or land. So, now you can see that you need to spend some time figuring your niche and what you'd like to focus on, after that, pick an area where your seed capital can go further if that means the area is outside of Palm Beach, be ready for that. 

Depending on where you are in the life journey, you can simply run numbers on a 4 bedroom house that you can live in one room and rent the others if you are unable to find a property to house hack in your area.