All Forum Posts by: Thomas Ackley

Yes, they are passive investors in the partnerships. They’d be LP’s and I’m an GP. Each entity / partnership is created with different OA’s, splits, plans and goals.  

I have a few developments in the works. Each development has its own entity and partnership structure. 

I am looking for a best practices as it relates to systems used to manage all of this. My partner recommended Invest Next. 

Even though I have good deals in the works, we are still in the beginning phase of a lot of these. The $4000 start up cost seems high and I am not sold on the value the system would bring for the projects. Would Google Drive combined with Slack, Monday or some other project management / communication system suffice for several partnerships with several different entities? Is a system like Invest Next the best practice for structuring and managing partnerships like this? 

https://www.investnext.com/

Well, I hope @Avery Carl is right and Kyle's assessment is wrong. I am all in on this model and my partners and I are under contract for 3 with her team for this year and am planning on being ready for 2 more by the end of the year if the first one goes well. I analyzed the crap out of my local market (WI) and a few other vacation markets and am beyond excited to grow my portfolio out of state with her team.

Daisia, I just posted on your STR question... Look on FB for a real estate investing group in your city. Attend meetups. Talk and ask questions there, too, so you can connect with people in your area.

House hacking is the way to go. I think its the smartest thing for a 20-somthing to do. If you are really focused on making REI your life and career, go find a real estate related company and work for them to better understand the field. You'll meet people, get to know your market, understand how things work better. A property management company would be great. They'll give you crap jobs to do but the experience will be invaluable for your future. You're 21. Spend a couple years toiling at the bottom of the ladder learning and meeting people. With intention, focus and drive, you will be way ahead of any of your peers in 5 years.

The arbitrage model is definitely doable, but you will not find many doing it on this forum. I can get into an arbitrage deal quicker and cheaper than buying a house and self-managing it, but I am missing out on so many benefits of actually investing in real estate. To start, its a great hedge against inflation, which is coming, there's principle paydown, the appreciation of the property, the massive tax benefits, the increase in equity and net worth as each year goes by and the ability to use leverage (loans) to grow. 

Like Michael said above, what's your exit strategy? The arbitrage model is not real estate investing, its a job. You'll pay a lot in taxes and you get none of the benefits of real estate investing besides some income. Almost every 21 year old does not have the business acumen to successfully scale an arbitrage business to make it really work.  

If you're 21, read a few BP books and figure out what model of actual real estate investing you want to get into. If you're attracted to STR, find a way to combine the two. Maybe find a part of your city that is prime for STR, buy a duplex at 3.5% down, live in one half and try your hand at throwing the other half on a STR. If that fails to bring in as much money as you'd like or is too much work for you, rent it out to a long term tenant. Third option, or exit strategy, would be to sell the duplex.

Think of your 30's and 40's when you're 21 and not your early 20's. You can still have income in your 20's while setting yourself up for a prosperous adulthood.

Read the book, "The House Hacking Strategy" by Craig Curelop, then read a few other beginner BP books. Read, listen to the audiobook, watch an hourlong BP webinar on Youtube. After that, and you still think the arbitrage model is the best route, more power to you and I wish you the best. Any information you would need to learn how to successfully implement that model is on Youtube and in this forum, anyways. 

 That was definitely a typo / editing error, Paul, and I apologize. What I meant to say was I know you can buy single family houses for under $100k.

I've been investing in Wisconsin for a few years. There are opportunities here, but I am all in on the PF market right now. 

My partners and I are under contract for 3 properties in the PF area with the STS for 2021. I overanalyze the hell out of markets and properties. I am all in on building my portfolio, for the time being, in the PF market. I have one STR in what I think is the best vacation spot in WI for a STR and each PF house will be almost twice the purchase price. I am confident each PF cabin will provide better numbers, in terms of the COC / ROI, etc, than my WI STR. I am very happy with my WI STR, btw.

That being said, what @Paul Sandhu said about Wynnewood, OK is a golden ticket. If one were to look into that project and be sure its going to happen, copying Paul's business model in Wynnewood would be an amazing opportunity. That sounds like the type of idea that a few people think about and 3 people actually do. If that plan goes through, there will be so much demand for that model. You could scale that pretty quickly. I know nothing about that project besides what Paul said and that you can buy single family houses for under $100k there. 

There is obviously a large gap, in this thread alone, with opinions regarding PF specifically, as well as other general topics. Figure out what type of portfolio you think you want, learn how to analyze markets, models and then specific properties. If you find a model you like, copy the success of someone that will talk to you.

My first STR is in what I think is the best STR market in WI. Here are my concerns with that market.

1) I can feasibly see the market I am in be legislated out. The residents generally don't like the STR's from what I can see.
2) There are a a small amount of contractors in the market. I've been trying to get a quote for a new HVAC system for about two months now. Still not even a quote.
3) There is a loooong off season. I am filling my weekends right now at 40% of my summer rates, but I don't think I'll even fill the weekends from January through March... We will see, though. 
4) It's not the easiest to scale there, as there are not a lot of properties that are on the market and most require plenty of work.

The fix;

I went out of state and to a market that has a lot longer busy season, where the market has had STR's for decades, where the economy is more built on tourism, has a population that can support a lot of contractors and has a lot bigger market to purchase from.

In short, I called Avery.

Look up Adan Reek of Stay MKE. He also manages places in Minoqua.



http://StayMKE.com/


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