All Forum Posts by: Eric Tait

Hey Waylon,

I just found an agent that insured me with a stated value policy,

it is better then ACV but not quite as good as RCV. Shoot me a message and I will give you their info.

Hey Barrett,

Congrats on taking action,

You are lucky in that you are in Texas. Look up "the greensheet" it is by far the best way to get tenants outside of the sign in the front yard. You do not have to specifically advertise for Section 8, THEY WILL FIND YOU!!!

Just be sure to treat them like any other tenant and do a background check and get a deposit.

Postlets is also a great way to spider feed many sites (zillow, CL, etc...) it allows you to put up a ton of pictures and set your rental criteria.

Hope this helps.

Welcome George,

This site is a wealth of knowledge and connections.

And Houston is a great market.

It depends upon year built, condition and where the house is.

Many of the bread and butter rental homes are 3/2/2 and worth between 80-120K. So if you can get away with 10-15 K in rehab each, you will still have equity and those properties will give you a rental rate of $950-$1300 again depending upon on the area.

A simple rule of thumb that I use in Houston is:

at a $70,000 all in basis and a $1000 a month in rent you will usually get around a 12% unlevered cash yield. (assume around a $300 +/- a month in expenses for taxes, insurance, maintenance, vacancy)

You can then slide this based upon your cost basis, and rental rate of the area.

If you use leverage, then of course the returns just move higher.

This assumes that you have rehabbed the property replacing outdated systems (cuts on maintenance costs) and that you know how to manage it well on the marketing and tenant training side.

That is great news, Cuban gets a bad rap, but he does seem to look out for the little guy.

For Shark Tank they are just covering their behinds (Especially with Cuban being an Executive Producer and going through an insider trading case right now).

The show does not want to take responsibility of the viewing public trying to contact the presenters and then investing, losing money, and coming back to Shark tank and suing them for the loss.

Interestingly, to even appear on Shark Tank you have to give the show I think 2-3% of your company. Not a bad hustle.

I second Sepehr's thoughts wholeheartedly.

At the very least, before you send out offering documents that allow a person to invest in what you are doing, you should have them fill out your investor questionnaire.

I send out Executive Summaries that have alot of information in them to people that I meet and ask for information on what deals were are doing, but once my PPM goes out, I number and document everything.

For those entertaining advertising their Reg. D 506's make sure that you really take a look at the requirements, the investors have to be accredited (not just sophisticated) and they can no longer just "check the box" on a questionnaire, you will have to have some documentation from an attorney, their CPA, or tax returns.

I am still going the Old D 506 route for now, because I do not want to collect all of that, again, make sure you have a good securities adviser on your team.

@Shaun Reilly,

In substance the two do not differ because they are both a "Security", though the loan may come from a lender and fall under lending regulations.

If the loan is from a private person you are technically still engaged in offering a security by strict definition.

From the SEC:

Sec. 2 SECURITIES ACT OF 1933

The term ‘‘security’’ means any note, stock, treasury
stock, security future, security-based swap, bond, debenture,
evidence of indebtedness, certificate of interest or participation

in any profit-sharing agreement, collateral-trust certificate,
preorganization certificate or subscription, transferable share,
investment contract, voting-trust certificate, certificate of deposit
for a security, fractional undivided interest in oil, gas, or
other mineral rights, any put, call, straddle, option, or privilege
on any security, certificate of deposit, or group or index of securities
(including any interest therein or based on the value
thereof), or any put, call, straddle, option, or privilege entered
into on a national securities exchange relating to foreign currency,
or, in general, any interest or instrument commonly
known as a ‘‘security’’, or any certificate of interest or participation
in, temporary or interim certificate for, receipt for, guarantee
of, or warrant or right to subscribe to or purchase, any
of the foregoing.

I have been to a number of their events as well, and I went on the Cruise in 2012. It was a phenomenal experience, not only were there top notch lectures in many different disciplines (not all real estate related), but the caliber of people who were on the cruise is probably the best reason to go, the people are from all over the world and can give you contacts and perspectives that are invaluable.

I am now working with them in Belize as well.

Hey Ron,

Welcome to BP and the Houston market. It is a great market right now and deals are still to be had. Define what you end game is and what you want real estate investing to do for you in the long run, your investment philosophy is key.