All Forum Posts by: Ray Hage

Quote from @Mike Klarman:

That's sad to hear.  Seems like taking advantage of eager investors with exaggerated marketing claims. 

Coordinating OOS deals is hard.  It's a moving target.  I went through 8+ GCs in one market.  In and around the Philly market, which is my home town, my contractor comes from a referral from a friend who worked with this GC.  The difference is night and day between using someone you find online or in a search vs a personal referral.  Night and Day.

Eager newbie investors will get taken often, unfortunately.  I agree with you on the personal referrals. It is usually much better. OOS would work if you have a solid contact in that area though but yea dealing with strangers is going to end up in hassles unless you get insanely lucky!

Quote from @Clare Cui:

Wow all these insights are so powerful ,and ultimately I decided to go with my gut and Im glad I did. I don't think it's worth it to me in the long run from past mistakes and I'm going to stick to my standards. Thank you everyone! 

 It is better to have an empty unit than a terrible tenant. Stick to your standards and gut feelings every time

Looking forward to another great event @George Munoz!

Whether for a lender or wholesaler, I would avoid it. So many things can go wrong in a RE transaction that you don't want to risk it unless it's very small like $500.

Quote from @Chris Seveney:

@Ray Hage

I agree as I would stay away from condos as between special assessments and increase of fees, what is the risk vs reward.

Many of these buildings are run by people who are not property managers or have development experience and lack the knowledge to properly run the property

Also many don’t realize that on older buildings your initial estimate will be 30-50% less once the work starts, especially on older concrete buildings that are susceptible to deterioration due to the weather in these areas (especially the salt)

I agree with you Chris. Risks are high and rewards are ok at best in FL at this time. The only positive to a condo is its low entry point. I feel especially bad for the older folks who are on a fixed income as they are getting slammed with 6 figure assessments. Any money made will be gone quickly! Google something like "Florida condo assessments" and you'll see a few news stories in the last few months

I would stay away from condos for a while. Inventory continues to increase and people are getting desperate to get out. I would wait a while to get them at a discount but with condos, it always feels like a gamble because of future assessments, fee increases and difficulty getting a tenant approved in a timely manner.

Quote from @Selena Towell:

I am eager to get stated investing in real estate. Would love to purchase my first multifamily then do Flips.  Any advise?

 Hey Selena, I would avoid a "coach" as well. I am an investor and realtor here in South FL and  I can advise you on getting into multifamily property. I would advise against a coach as they're just going to give very general advice vs advice you on a specific property. Not worth shelling out a few thousand dollars for a coach in any market.

Miami Beach is definitely not the place to start! Far too expensive. 

Also, I can not emphasize enough, this is not the time to buy condos anywhere in FL. It is currently in the beginnings of a disaster. 

I would tell you to keep saving money at this point and consider a SFH househack in Fort Lauderdale or WPB as your first one. Maybe even a duplex. For now, keep reading and learning while putting money away. You're not ready yet

Sorry to see this! I generally tell people to stay away from these guru groups and courses as well. It's just best to find local investors and good realtors/PMs for each market that you're looking at. Expensive lesson learned but you will recover

Quote from @Dan N.:

Just needed to blow some steam off in the group.
All 7 of my accepted offers have fallen apart at the inspection phase.

Each time we find an expensive problem in the inspection and the seller is not willing to make concessions.

$3K spent on inspections with no house to my name yet. 

 Damn that is quite a bit! I've lost a couple thousand on inspections as well over the years. Maybe for the next property, offer a bit less in anticipation of a major issue being found. It is tough right now as sellers still think we are in 2022/2023 market. The problem(/blessing?) is that the Fed is expected to lower the rate so that we may see more buyer demand and prices wil hold steady. Stay cool and don't jump into a bad investment!