All Forum Posts by: Neal McSpadden

As someone who is currently studying to become a registered financial adviser, you're right. Most of the focus is on paper security instruments. After all, that's how the industry makes most of its money.

One of the things I hope to offer clients is insight into owning real estate, private lending, real estate LPs, and so on as financial assets.

The fundamental tug-of-rope in real estate is yield vs. capital gains. In most situations, the more of one, the less of the other.

I'm still seeing cap rates of 15+% in rehabbed SFR rentals in my area. As investors come back into the market, we'll see capital gains rise and yields fall.

So if you are interested in yield, you'd be rotating into those kinds of properties and out of properties that have already experienced capital gains.

I've been an options trader for about 10 years now. If you know what you are doing, it's a great way to produce consistent returns. You would have to pay me to buy a stock :).

I even started a website about teaching people to sell puts for income, a vastly overlooked technique.

But like all things, the devil is in the details. The learning curve is steep, and amateurs can lose a lot of money doing stupid things.

The others who have replied are correct, but I will offer some encouragement.

Educate yourself to the point where you know what all these terms mean:

Private placement
Limited partnership
LP-LLC as GP
Reg 500 to reg 504
Blue sky
Qualified investor

When you understand these terms you will at least be able to ask the right questions.

Yep, your buyer will see the price you optioned the property for.

If you are assigning a lease/option you will need 4 documents: a lease agreement between you and seller, an option agreement between you and seller, an assignment of lease between you and buyer, and an assignment of option between you and buyer.

Hope that's clear.

In order to do this, you'd have to stay in the deal and not assign the option.

Yes, if you assign it, you are out. Typically you would not create a 2nd lease/option agreement, you would just use assignment contracts.

I'm mostly a lurker, but welcome to Atlanta REI

Same experience. I got a great deal on my personal residence, but the process was very painful.

Those tax and trash numbers are probably monthly, not yearly.

The SAFE Act that everybody is nervous about is a federal law that requires states to enact their own version. Check your state's version, many states have exemptions that may be useful to you.