All Forum Posts by: Paul B.

@Andrew Cushman

That's some good information. About the company where you invested...my opinion is that there are advantages to investing in a particular deal, an LLC that only exists to own one particular property, rather than an open-ended fund. It just seems easier to analyze one property, and keep track of the operations of one property, while with the second choice, it's too easy for the sponsors to turn it into some sort of Ponzi scheme. Even if the sponsors had no bad intentions initially, if things get rough, they could start taking in new investors and paying out their money as dividends. Sure, you can cook the books on a single property too, but it just seems that it would be easier for an investor to catch some funny business if they are looking at the monthly or quarterly financial statements.

One advantage, I suppose, to investing in a group that plans to have many properties, is the ability to diversify in case there is a problem with one. 

I'd be curious to hear anyone else's thoughts.

 They must be paying all cash. A lender is going to require that net operating income cover at least 125% of the debt service. It seems like a good sanity check. 

If the correction happens two years from now, there is money to be made today in shorter term plays. Keeping your powder dry for two more years means you going to lose value (to inflation) and opportunity costs while you miss out on a continuing bull market. Of course, if the correction happens tomorrow, you might get hurt. Investing some capital now, and keeping some for later is the best of both worlds. 

 I don't know either, but it would not surprise me if more tenant-friendly environments (SF, NYC...) have anti-discrimination laws that mean you have to tread very carefully when charging higher rents and deposits. I've seen proposals that criminal record can't be used to disqualify an applicant (not sure if it ever passed), so anything is possible. I do know that in Massachusetts, the security deposit can't be more than one month's rent, and it cannot be kept as last month's rent if a tenant fails to pay. In fact, the laws on security deposits in MA are so onerous that many landlords in that state choose not to collect one at all. 

The OP is in Alabama, where I suspect the laws are more landlord-friendly. 

 I agree. I suppose you can separate people in the real estate business into two groups: people that everyone wants to know, because they bring something to the table (money, experience, etc.) and the people that are hustling for more business (new Realtors, wholesalers, etc.) and need to stand out. 

If you're in the first group, you can ask someone to Google you and find your website, and they'll do it. If you're in the second group, you better have cards and make it as easy as possible to find you, or they'll call someone else. Have a picture so they can associate a face with a name. Someone commented that they don't want to see your dog and life story on a card. If there is something that will help you be remembered, I don't see why not. My first set of cards said, "Real Estate Investor." I should have been more specific because there are a few bullet points that I end up repeating to everybody. Why not put the equivalent of an elevator pitch on a card?

Hmmm....so do you get a lot of random calls from strangers? Is your personal number on there? Has it brought any legitimate leads? I think it really depends what business you're in. Frankly it sounds like you're just littering at best, attracting stalkers at worst. 

 I haven't heard of seller-financing at that level, although of course it is possible. I hope you will post more updates about how it's going in the future.

You seem to have posted the same question in two places, so here is a copied and pasted response:

There is more than enough information online for free to learn about the process. Even the high-priced gurus give you a basic introduction for free, or low cost.

Look into Brad Sumrok. He is based in Texas but has students all over the US. Many on this site are opposed to gurus, and I am going to try to avoid getting into that argument here, if I can. But it sounds like you are considering the guru route. If you're looking for a mentor, I think he is the best. He has a seminar here in Dallas in November, for not a lot of money. It's not a high-pressure sales pitch to join his mentoring program. It's basically two days of multi-family education with only a small amount of time selling his program. You'll have an opportunity to meet many successful students of the program who have already done deals. Even if you don't join, I think the weekend is a great use of your time. 

There is more than enough information online for free to learn about the process. Even the high-priced gurus give you a basic introduction for free, or low cost.

Look into Brad Sumrok. He is based in Texas but has students all over the US. Many on this site are opposed to gurus, and I am going to try to avoid getting into that argument here, if I can. But it sounds like you are considering the guru route. If you're looking for a mentor, I think he is the best. He has a seminar here in Dallas in November, for not a lot of money. There is no pressure to join his mentoring program. It's basically two days of multi-family education with only a small amount of time pitching his program. You'll have an opportunity to meet many successful students of the program who have already done deals. Even if you don't join, I think the weekend is a great use of your time. 

 That sounds like an interesting project. I don't want to hijack this thread, but I'd love to hear more about it. Have you posted about it elsewhere on a different thread? Is it possible to get financing on such a property, or was it an all-cash purchase?