All Forum Posts by: Robert Jenkins

I've worked brokerage on both. Familiar with the investment aspect on both and plan to invest in both.

Commercial isn't necessarily more risk just more money. If you review leases correctly and buy the right asset it can be relatively riskless. IE. McDonalds in a suburban Los Angeles Neighborhood with 10+ years on the lease. Well concider it money in the bank because McD's is going nowhere. Of course though you'll pay a premium for the secuirty and not make as much.

The returns will be less of course with any "safe" investment, but the money is really in the mom and pop multi tenant strip centers (aka Riskaay). These tenants can walk and really not be held accountable because the cost of sueing usually ends up being more then what they would have paid and they usually can't afford any of it so they file for bankruptcy and u come out of pocket for lawyer fees. At the same time though they don't have high powere corporate lawyers writing their leases so u can work around things get prices up sell on higher cap rates with higher rents and still make more money!!!

Anyways i'm rambling. Buy some houses 1031 into some commercial building 1031 those into bigger centers 1031 those into trump towers when he's dead or bk again 1031 that into world domination (by then we should have real estate on the moon or mars)

LoL. You got it.

Wow. I was thinking this morning as i was watching cnbc and they talked about how terrible real estate was and i thought back to rich dad poor dad and how he says nobody knows anything useful.

I don't know if it's been done but i started browsing the web looking for games like this. This is a very basic idea but what about something really indepth

Do you guys think a game (like the sims or a massive online game) about real estate investing could be useful? Something very detailed. I was thinking about having something similiar to a mock city like LA and there are different methods

You have homes that have computer generated owners/situations.Also commercial building with computer generated tenants/lease situations. (where the owner will finance, sub2, whatever)

You start with NO money.

You can flip,rent, reposition, demolish and develope.

Maybe do it online also so you're dealing with other real life people

Definately sounds like she's violating a rule.

Depends what agreements she has with the lenders though i guess. If they are aware of this and let her do it because she all cash and closes quick then more power to her.

Personally speaking i would spread that out through a few properties and add a little leverage into the mix. You'll have better appreciation spread out through multiple buildings, little more more security with a bigger number of tenants, better depreciation (infact i think you have to gain some leverage to actually take advantage of that) and if you're in different markets it helps so you have some diversity with how your properites appreciate. (Mike Oh will say don't listen to appreciation BS)

Then again i don't have this situation personally but i run these scenarios for clients a lot.

Josh!

Great Questions!

BiggerPockets was the key for me.

With the ability to ask Will, Rich, Jscott, and so many other great memebers how they got started, it's diminished the fear a lot.

It helps that i don't have a lot to loose and a spouse that supports me at everything i do, but the knowledge and reassurance from people here on BP convinced me to write offers. I've started writing on SFR's and have a few people show some interest and also started networking to start a commercial fund.

That first offer was tough, but now i've pretty much have an assembly line going. =)

my eyes burn...to much reading!

i have to print them out but newbs like be definately read them.

Well I come from commercial and i've done Residential. I use both i'm just more comfortable with LOI. So if they spit on them i could careless, my money is as green as someone who uses a PA.

LOI = Letter of Intent.

Shorter then PA to write up. Just a quick letter saying you want to buy and some basics.

Not legally binding, so it's a good way to get the negotiations out of the way before going onto a legal contract.

There is a lot of typing going on in this thing.

If i can i want to throw my 2cents in.

APPRECIATION!!!!!

Not all appreciation investors are cash flow investors, but all cashflow investors are appreciation investors. So really this argument is moot. No cashflow investor is going to sell a property for the price they bought it for 10 years earlier. Nor would they leave out the appreciated value of their portfolio when calculating their net worth.

When someone says they are cashflow investor they are really saying they are, "happy in the slow lane. Aqunamatata"

On the other hand appreciation investors will all probably be dead at 65 but very very rich.

Appreciation will ultimatley make way more money and cash flow will be more "secure"

I can name 10's of appreciation investors on forbes 400, who are some cashflow investors on there?