All Forum Posts by: Simcha Davidman

@Enzo Pazos one thing which might help you settle on going small is that if you want to buy an apartment building/complex would probably require a commercial loan, and that will be hard to come by for someone with no track record (and you'd have to meet certain net worth requirements).

What type of returns are you trying to achieve? How much annual income do your parents need? You might want to think about investing in the stock market. I might get yelled at for suggesting that on BP, but if you have to learn an industry anyway, and you have 5 years to accumulate, it may be a realistic option.

In addition to what @Nathan Gesner suggested, I'd add to find out what type of units they manage. You don't want a company that's managing a Class A building dealing with your Class C tenants, and vice versa.

Congrats and good luck!

@Ryan Zomorodi pardon my ignorance. If both sides get a 7% pref and 50/50 on the rest, isn't that the same thing as 50/50? What do you gain with a stated preferred return?

Thanks.

That is a great idea from @Anthony Lewis but you'd have to figure out the details. Maybe let them live there for free or for less, and you may not have to share the cashflow from the other units.

An alternative could be figuring out how much time you have to spend in the home to fulfill the requirements for the loan. For example, you might consider traveling back to NYC on Monday morning and spending a few days there, then traveling back Thursday and working from home Friday. This would put you in your LV home 5 days (and 4 nights) a week. Of course, you'd have to verify that it works for the loan, and that your current job would be accommodating.

Where is your first deal? Good luck and keep us posted!

I'd love to get on your lists. Thanks.

No doubt that someone in college considering quitting should have go through this exercise before making such a drastic decision. From what I can see, unfortunately, most kids entering college don't really go through anything like this to start, so that the whole experience is relatively unguided.

In other words, I agree. And to take it one step further, kids should be going through this thought process before starting or way at the beginning of college - in order to mitigate the risk that it be a waste of 4 years.

@Jason G. thank you so much! The Canton one must be a bit disappointing for you, but hopefully it will smooth out now that you got a new tenant in. I'm going to have to go over this thread again and reread everything you wrote about the Canton property.

The other two are really solid, and it's very encouraging to see those numbers. Thank you for being so transparent and open!

Thank you!

@Jason G. Thank you for this! It's awesome!

Based on what I've been able to follow, it seems like you've had to renew or lease up 5 of the 6 units. Were you able to increase rents? Can you provide some detail on this? Like, how were Roofstock's "market" rent numbers as compared to the in place tenants and to what you actually got at market?

Would you also be willing to give some more detail on the types of returns your getting? Both in terms of net cashflow after all expenses and reserves, and on the cash you've had to invest?

Thanks again and best of luck moving forward!

@John Lee thank you!