All Forum Posts by: Lucas Thomas

Quote from @Lucas Thomas:

Well alright fellas, 

This will be my last post for this thread as I got a non-landlord business  to run (I don't landlord for a living) which allows me to buy more "S" word properties that make "No Money" and "Eat up all my time".

Poor me. 

But I'm glad I learned the following lessons from our time together:

+ "Build your OWN A+ Properties, Dummy".

+ Overpay for B+ properties that make negative cash flow... And get rich... I think.. Somewhere in there?

+ Buy Blackstone (who does the same "bad strategies" I do cause they are REAL Landlords) cause real estate is too hard.

+ Be Best Friends with your tenants cause they WANT to pay rent. Go figure

+ Rent to the perfect TENANT and NEVER have problems... EVER.

Well I'm glad I know now. 

Thank you BP.







 

 I actually had to crack up over this.  Kudos to you for wading in.  Honestly, I appreciate it because your input made me clarify what exactly my business model is. And how different yours is. Thanks!  You brought up plenty of points that are worth noting  

It’s worth mentioning that people with enough money to invest in real estate may never have spent a moment in a Class D or F neighborhood   So they don’t understand what they’re taking on   Even more so if the whole thing was orchestrated by a $15,000 seminar on how to do it   These poor blokes are blindsided when things go south  

Most of my friends don’t invest in real estate because of the classic argument that “the water heater might break in the middle of the night.”  Like myself, they simply don’t have the skill set or desire to tackle what you’ve done   

Quite frankly, you’re providing needed housing for the bottom rung, and you’ve figured out exactly what works.  That learning curve scares me! The bottom line for me is that I like self management, (haven’t had great luck with management companies) and the less calls from the tenants, the better. 

I definitely appreciate your input, and hope you stick around 

Quote from @Lucas Thomas:

Quote from @Jay Hinrichs:

Quote from @Lucas Thomas:

Quote from @Stuart Udis:

There’s no such thing as a passive investment in a “D” neighborhood if you’re the owner. I also don’t believe anyone suggested in this thread that cash flow is not important. Cash flow is important to the extent it covers expenses and provides reserves in order to obtain favorable debt.

An investor who understands market fundamentals and invests in the correct markets will outperform the investor who purchases real estate in stagnant D neighborhoods.Thats the reality.

 Another factor not discussed is the disposition process of lower tier real estate. These transactions are disproportionately impacted by transaction fees as well and the only “natural buyer” is another investor often in markets with endless supply of similar product which impacts pricing dynamics. Usually these are properties with paper equity that never translates at time of sale. But I doubt I’ll get someone who can’t seem to acknowledge lower value real estate is disproportionately more expensive to operate to buy into this either….

 Silly Stuart. 

You operate in a state that doesn't inflate like mine do. 

My "D" properties are worth way more than your "A+" Townhomes. :)

And I bought them for nothing (Meth Dens) over the last 15 years.  

And the operational costs are cheaper because I don't have to make anything pretty. 

You just want to die on this hill don't you? 

But seriously... I'm out. 

Toodeloo. 

P.S. 

Don't be mad that people like me exist and make passive income on "D" areas. 

Toodles!

Dude,  your experience posted on your wall is quite amazing.. everything is  1mil with 250k down and 10k a month or 100k purchase with 20k down and 2k a month.. also you say you are realtor a lender a note buyer etc etc.. pretty amazing 

And the markets you say you own or work in D class are basically less valuable than Stuarts D class dollar wise.. I think folks need to take a grain of salt with the things you post myself I am suspect .. Stuart has been a benefical member of BP for years and I know he knows his market and what he describes is true. Myself I rent our funds out to BRRR folks and flippers in all the markets you describe in your bio. And have done over 4k transactions including Philly.. Now to be fair I have not done anything in NM .  But I do track some of the RE there as folks come to me to fund deals there so not a market I am interested in these days. 

But we are entitled to our opinions.. I personally drank the D class coolaid as a landlord and bought about 300 of them in many of the markets you are in. I exited them within 24 months.. Management was just too intense and there are better things to do with our capital like renting our money or building new homes and selling them to home owners.. But I realize BP has a lot of starter investors that just want to buy a rental or a few for long term investments.. And I think personally all the markets your in this can be done but I do recommend buying at the median home price and above for the out of area small investor to have the greatest chance of long term success.. 

 You have a weak stomach and just because you bought a bunch of properties wrong and hired the wrong people just goes to show you don't know how to buy in the asset class. Thanks expert. 

The whole point of this thread was to talk trash on Class D.  So I'm talking about the downsides of Class B+ and you primadonnas got all butt hurt cause you can't take the heat. If you can't operate in the "meat grinder", keep your opinions to yourself.

Anyway.. 

I'm done on this thread cause apparently going to someones profile and using personal attacks on people is tolerated. As I've been nothing but kind in my responses. I haven't called anyone the "S" word. I didn't go to anyone's profile and start making personal attacks. All I did was show that Stuarts properties don't make sense on paper, has a bad opinion on an asset class he doesn't own or understand, and he made a comment about if you just "build" them, you can win. Cause that's available for 99% of us. Lol

And yeah,  my profile is bare because I operate in an ugly asset class and people aren't very nice. Present company included. You keep trying to hurt my lil ol' feelings because I make money off something you can't.  sad :( face.  

I am not talking trash about D class heck I make a great living funding those that are in the D class buy hold model.. Many of my clients own 200 or more doors and I help them buy more  each and every week in cities  like Baltimore and Cleveland and KC  Toledo St. Lu Bham   etc etc.. The point of this thread though is its not for everyone and certainly very risky for folks that are not local and cant scale.. In fact I personally will not loan to anyone who is not local. I will consider those that have a local partner though.. I have clients like CA based tech folks that partner with a local and are building larger portfolios.. But one off no way.. 

As to the information on your Wall .  A lot of Folks on BP look at those not to dissect or criticizes but to sum up the veracity of the person giving advice on BP.. So no way to really know what you have or dont have etc etc.. I will let others also have thier own conclusion about that.. If you make D class work for you.. Good for you.. Its sorely needed.. I know in Baltimore for instance I am super proud of what I do there in the D class area with my two clients that each own well over 200 row houses as I stated.. I funding a 23 home package for one next week.. they are all shells al blighted on one block each will take at least 100k for the full gut rehab.. so there we are pumping 2.5 million in cash into the hood.. that is something that my client can be proud of and I am proud to be his capital partner.. 

then on the flip side you go to my 90 home new build Project in Oregon 750 to 1 mil each that I own and have been selling to owner occ and a lot of those folks are paying cash  U know empty nesters down sizing to very nice Single levels.. So its pretty wild  fund a home that can be bought for 10k then build 750k plus and we do some 2 mil plus builds in charleston SC. Kind of all over the map.. But I still go back to my roots at D class C class funding..

And just because I dont care to own them  like I said I had 300 at one time.. does not mean its bad for others to own that class.. The exception is the out of area going to buy one or two.. those folks I think take on more risk than they realize and would generally be better buying in a better neighborhood and asset class.. 

Also, can somebody please tell me what the "S" word is?  Slumlord?

Quote from @Sebastian Bennett:

@Lucas Thomas Lol Jay is prob the foremost expert on these boards with credentials that can actually be corroborated. You on the other hand must've posted 10+ times on this forum topic alone and haven't been able to answer how you manage to keep fixed costs of owning real estate lower in your properties. So why don't you share with us how you spend less? We've been waiting for an answer and you haven't been able to supply a coherent explanation. Also as Jay noted (good recon!) you play the card of someone with no money and had to scratch and claw his way owning D properties but are investing significant amounts of cash into your projects. IN fact millions of dollars as downpayments.  Far more cash than almost everyone on these forums so something is off 

 Yeah. You guys suck at Class D. That is what's off.  

You could be the best "brain Surgeon" in the business and not be able to tell me how heart surgery works.  

I only posted cause this particular thread caught my eye as its my class of the world.

Next thing you gonna tell me is that Pawn shops, Title Loans, Payday Loans, mobile home parks, and liquor stores don't make money.

@Lucas Thomas Lol Jay is prob the foremost expert on these boards with credentials that can actually be corroborated. You on the other hand must've posted 10+ times on this forum topic alone and haven't been able to answer how you manage to keep fixed costs of owning real estate lower in your properties. So why don't you share with us how you spend less? We've been waiting for an answer and you haven't been able to supply a coherent explanation. Also as Jay noted (good recon!) you play the card of someone with no money and had to scratch and claw his way owning D properties but are investing significant amounts of cash into your projects. IN fact millions of dollars as downpayments.  Far more cash than almost everyone on these forums so something is off 

Quote from @Lucas Thomas:

Quote from @Jay Hinrichs:

Quote from @Lucas Thomas:

Quote from @Stuart Udis:

There’s no such thing as a passive investment in a “D” neighborhood if you’re the owner. I also don’t believe anyone suggested in this thread that cash flow is not important. Cash flow is important to the extent it covers expenses and provides reserves in order to obtain favorable debt.

An investor who understands market fundamentals and invests in the correct markets will outperform the investor who purchases real estate in stagnant D neighborhoods.Thats the reality.

 Another factor not discussed is the disposition process of lower tier real estate. These transactions are disproportionately impacted by transaction fees as well and the only “natural buyer” is another investor often in markets with endless supply of similar product which impacts pricing dynamics. Usually these are properties with paper equity that never translates at time of sale. But I doubt I’ll get someone who can’t seem to acknowledge lower value real estate is disproportionately more expensive to operate to buy into this either….

 Silly Stuart. 

You operate in a state that doesn't inflate like mine do. 

My "D" properties are worth way more than your "A+" Townhomes. :)

And I bought them for nothing (Meth Dens) over the last 15 years.  

And the operational costs are cheaper because I don't have to make anything pretty. 

You just want to die on this hill don't you? 

But seriously... I'm out. 

Toodeloo. 

P.S. 

Don't be mad that people like me exist and make passive income on "D" areas. 

Toodles!

Dude,  your experience posted on your wall is quite amazing.. everything is  1mil with 250k down and 10k a month or 100k purchase with 20k down and 2k a month.. also you say you are realtor a lender a note buyer etc etc.. pretty amazing 

And the markets you say you own or work in D class are basically less valuable than Stuarts D class dollar wise.. I think folks need to take a grain of salt with the things you post myself I am suspect .. Stuart has been a benefical member of BP for years and I know he knows his market and what he describes is true. Myself I rent our funds out to BRRR folks and flippers in all the markets you describe in your bio. And have done over 4k transactions including Philly.. Now to be fair I have not done anything in NM .  But I do track some of the RE there as folks come to me to fund deals there so not a market I am interested in these days. 

But we are entitled to our opinions.. I personally drank the D class coolaid as a landlord and bought about 300 of them in many of the markets you are in. I exited them within 24 months.. Management was just too intense and there are better things to do with our capital like renting our money or building new homes and selling them to home owners.. But I realize BP has a lot of starter investors that just want to buy a rental or a few for long term investments.. And I think personally all the markets your in this can be done but I do recommend buying at the median home price and above for the out of area small investor to have the greatest chance of long term success.. 

 You have a weak stomach and just because you bought a bunch of properties wrong and hired the wrong people just goes to show you don't know how to buy in the asset class. Thanks expert. 

The whole point of this thread was to talk trash on Class D.  So I'm talking about the downsides of Class B+ and you primadonnas got all butt hurt cause you can't take the heat. If you can't operate in the "meat grinder", keep your opinions to yourself.

Anyway.. 

I'm done on this thread cause apparently going to someones profile and using personal attacks on people is tolerated. As I've been nothing but kind in my responses. I haven't called anyone the "S" word. I didn't go to anyone's profile and start making personal attacks. All I did was show that Stuarts properties don't make sense on paper, has a bad opinion on an asset class he doesn't own or understand, and he made a comment about if you just "build" them, you can win. Cause that's available for 99% of us. Lol

And yeah,  my profile is bare because I operate in an ugly asset class and people aren't very nice. Present company included. You keep trying to hurt my lil ol' feelings because I make money off something you can't.  sad :( face.  

 Thought Experiment:

Hey Guys!

You should never ever ever do a development deal. I bought over 300 land deals over the years. Probably overpaid for it.  Overran my budget. And barely broke even cause the contractors are too intense. Id rather just buy Blackstone cause real estate is too hard.

Quote from @Jay Hinrichs:

Quote from @Lucas Thomas:

Quote from @Stuart Udis:

There’s no such thing as a passive investment in a “D” neighborhood if you’re the owner. I also don’t believe anyone suggested in this thread that cash flow is not important. Cash flow is important to the extent it covers expenses and provides reserves in order to obtain favorable debt.

An investor who understands market fundamentals and invests in the correct markets will outperform the investor who purchases real estate in stagnant D neighborhoods.Thats the reality.

 Another factor not discussed is the disposition process of lower tier real estate. These transactions are disproportionately impacted by transaction fees as well and the only “natural buyer” is another investor often in markets with endless supply of similar product which impacts pricing dynamics. Usually these are properties with paper equity that never translates at time of sale. But I doubt I’ll get someone who can’t seem to acknowledge lower value real estate is disproportionately more expensive to operate to buy into this either….

 Silly Stuart. 

You operate in a state that doesn't inflate like mine do. 

My "D" properties are worth way more than your "A+" Townhomes. :)

And I bought them for nothing (Meth Dens) over the last 15 years.  

And the operational costs are cheaper because I don't have to make anything pretty. 

You just want to die on this hill don't you? 

But seriously... I'm out. 

Toodeloo. 

P.S. 

Don't be mad that people like me exist and make passive income on "D" areas. 

Toodles!

Dude,  your experience posted on your wall is quite amazing.. everything is  1mil with 250k down and 10k a month or 100k purchase with 20k down and 2k a month.. also you say you are realtor a lender a note buyer etc etc.. pretty amazing 

And the markets you say you own or work in D class are basically less valuable than Stuarts D class dollar wise.. I think folks need to take a grain of salt with the things you post myself I am suspect .. Stuart has been a benefical member of BP for years and I know he knows his market and what he describes is true. Myself I rent our funds out to BRRR folks and flippers in all the markets you describe in your bio. And have done over 4k transactions including Philly.. Now to be fair I have not done anything in NM .  But I do track some of the RE there as folks come to me to fund deals there so not a market I am interested in these days. 

But we are entitled to our opinions.. I personally drank the D class coolaid as a landlord and bought about 300 of them in many of the markets you are in. I exited them within 24 months.. Management was just too intense and there are better things to do with our capital like renting our money or building new homes and selling them to home owners.. But I realize BP has a lot of starter investors that just want to buy a rental or a few for long term investments.. And I think personally all the markets your in this can be done but I do recommend buying at the median home price and above for the out of area small investor to have the greatest chance of long term success.. 

 You have a weak stomach and just because you bought a bunch of properties wrong and hired the wrong people just goes to show you don't know how to buy in the asset class. Thanks expert. 

The whole point of this thread was to talk trash on Class D.  So I'm talking about the downsides of Class B+ and you primadonnas got all butt hurt cause you can't take the heat. If you can't operate in the "meat grinder", keep your opinions to yourself.

Anyway.. 

I'm done on this thread cause apparently going to someones profile and using personal attacks on people is tolerated. As I've been nothing but kind in my responses. I haven't called anyone the "S" word. I didn't go to anyone's profile and start making personal attacks. All I did was show that Stuarts properties don't make sense on paper, has a bad opinion on an asset class he doesn't own or understand, and he made a comment about if you just "build" them, you can win. Cause that's available for 99% of us. Lol

And yeah,  my profile is bare because I operate in an ugly asset class and people aren't very nice. Present company included. You keep trying to hurt my lil ol' feelings because I make money off something you can't.  sad :( face.  

Quote from @Lucas Thomas:

Quote from @Stuart Udis:

There’s no such thing as a passive investment in a “D” neighborhood if you’re the owner. I also don’t believe anyone suggested in this thread that cash flow is not important. Cash flow is important to the extent it covers expenses and provides reserves in order to obtain favorable debt.

An investor who understands market fundamentals and invests in the correct markets will outperform the investor who purchases real estate in stagnant D neighborhoods.Thats the reality.

 Another factor not discussed is the disposition process of lower tier real estate. These transactions are disproportionately impacted by transaction fees as well and the only “natural buyer” is another investor often in markets with endless supply of similar product which impacts pricing dynamics. Usually these are properties with paper equity that never translates at time of sale. But I doubt I’ll get someone who can’t seem to acknowledge lower value real estate is disproportionately more expensive to operate to buy into this either….

 Silly Stuart. 

You operate in a state that doesn't inflate like mine do. 

My "D" properties are worth way more than your "A+" Townhomes. :)

And I bought them for nothing (Meth Dens) over the last 15 years.  

And the operational costs are cheaper because I don't have to make anything pretty. 

You just want to die on this hill don't you? 

But seriously... I'm out. 

Toodeloo. 

P.S. 

Don't be mad that people like me exist and make passive income on "D" areas. 

Toodles!

Dude,  your experience posted on your wall is quite amazing.. everything is  1mil with 250k down and 10k a month or 100k purchase with 20k down and 2k a month.. also you say you are realtor a lender a note buyer etc etc.. pretty amazing 

And the markets you say you own or work in D class are basically less valuable than Stuarts D class dollar wise.. I think folks need to take a grain of salt with the things you post myself I am suspect .. Stuart has been a benefical member of BP for years and I know he knows his market and what he describes is true. Myself I rent our funds out to BRRR folks and flippers in all the markets you describe in your bio. And have done over 4k transactions including Philly.. Now to be fair I have not done anything in NM .  But I do track some of the RE there as folks come to me to fund deals there so not a market I am interested in these days. 

But we are entitled to our opinions.. I personally drank the D class coolaid as a landlord and bought about 300 of them in many of the markets you are in. I exited them within 24 months.. Management was just too intense and there are better things to do with our capital like renting our money or building new homes and selling them to home owners.. But I realize BP has a lot of starter investors that just want to buy a rental or a few for long term investments.. And I think personally all the markets your in this can be done but I do recommend buying at the median home price and above for the out of area small investor to have the greatest chance of long term success.. 

There’s no such thing as a passive investment in a “D” neighborhood if you’re the owner. I also don’t believe anyone suggested in this thread that cash flow is not important. Cash flow is important to the extent it covers expenses and provides reserves in order to obtain favorable debt.

An investor who understands market fundamentals and invests in the correct markets will outperform the investor who purchases real estate in stagnant D neighborhoods.Thats the reality.

 Another factor not discussed is the disposition process of lower tier real estate. These transactions are disproportionately impacted by transaction fees as well and the only “natural buyer” is another investor often in markets with endless supply of similar product which impacts pricing dynamics. Usually these are properties with paper equity that never translates at time of sale. But I doubt I’ll get someone who can’t seem to acknowledge lower value real estate is disproportionately more expensive to operate to buy into this either….