All Forum Posts by: Wala Habiby

I was wondering what kind of a CAP should I expect on this type of investment. The options I saw had shopping centers on top of them in good areas. Zero expense for the land owner, just collect rent every month.

@Adam Bosma thank you for your explanation and I will look more into it and see how it fits my portfolio but my current feeling that even though I am doing very well, I don't have a lot of excess cash that is just sitting in the bank. What ever cash I have access to, is used for my next future deals and if I use too much of it, it can prevent me from making my next big move. Now of course I am not talking about 10-20k, but just not sure if "investing" 10-20k would really make a different and also, as I am very busy I doubt I will be able to give it enough attention and time to do my own research so I can judge the right stocks/bonds or what not to build my future there.
Sorry if it seems like I have already made a decision, I am just leaning towards one side and trying to find reasons why I am wrong lol 

I have had couple of opportunities to purchase a simple fee land lease where I will be purchasing the land only, and the commercial building on top is paying me a simple fee each month. At the end of the lease, the building will be mine as well.
Has anyone personally been though this? did you enjoy the experience? what kind of return do you expect?

I have had couple of opportunities to purchase a simple fee land lease where I will be purchasing the land only, and the commercial building on top is paying me a simple fee each month. At the end of the lease, the building will be mine as well. 
Has anyone personally been though this? did you enjoy the experience? what kind of return do you expect?

Good evening, 

I have been dealing with Real Estate for over 10 years and personally investing for over 5 years. I have grew my portfolio tremendously in the past few years with a $1,000,000 in equity BUT I have been told that I need to invest in other means such as the Roth ira or personal 401k. I really don't understand those investments much but I do know that I pretty much don't have total control in their success or failure, and I truly don't believe in stocks anyway. I see it as a fools bet (no offense). I am just not a gambling kind of guy and I like to see success connected to how much work I put into something (physically and even better, mentally)

Are we just taught that investing in stocks/401K/Roth Ira and similar investments are the way to go and should be part of everyone's portfolio, but maybe for true real estate investors its not needed ? or is it truly important and needed?

I have been struggling with making a decision, as right now I don't see value in it but in comparison,  it took me 5 minute to see true value in Real Estate investing years ago. 

Thank you for sharing. 

@Scott Trench I have been through this before and 7 out of 10, a large payment was not worth the hassle of dealing with their issues BUT I have done it multiple times but I structured it a little different. Instead of taken 12 month rent payment, I would take 4-6 months deposit and then the rest can be the last few months on their lease. This one first I quarantine that they keep paying every month until we get to their "already paid rent" and of course I also have a VERY large deposit in case they mess anything up. I would keep an eye on them and if anything happens that I am not comfortable with (illegal activity or signs of them destroying the property) then I would evict them, fix what I need, rent it to someone else and usually I am still ahead by few months on the rent/deposit. Win/win...
Now I will say, in a hot market/area where rent is high and I have no problem in renting, I probably won't do it. I usually end up doing this when I have a property that goes vacant in a dead month such as December/January. 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $160,000
Sale price: $215,000

An example on how the MLS is still a great place to find deals! Found this property in a very hot area that was under priced, I put a cash offer, As-is, sight unseen within minutes of it being Active. Closed within 5 days, turned around and put it on the market FSBO, had a contract within 1 day. During inspection, I gave them $500 for repairs, and had to pay their agent 2% but over all I will net about $50,000 for few hours of work.

What made you interested in investing in this type of deal?

Knowing the market and understanding the shortage in supply.

How did you find this deal and how did you negotiate it?

MLS, called the list agent and gave him a cash offer, As-is, sight unseen within minutes of it being Active

How did you finance this deal?

Cash

How did you add value to the deal?

Let it sit on the market more than 20 minutes lol

What was the outcome?

Made $50,000 for not much work

Lessons learned? Challenges?

This was one of my bigger deals and just have to understand that risking more money (investing) will help be get bigger payoff.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I represented my self on this deal. I am a top agent in the Knoxville area, with over 10 years of experience. I work HEAVILY with investors, all kind of investors. Some flip, whole sale and fix&hold. I understand the numbers and can guide you through the process.
Follow my page and contact me if you would like to talk, I am an open book.