Started By
Message

Information for my fellow Real Estate Investors

Posted on 1/15/16 at 10:06 am
Posted by Fat Bastard
coach, investor, gambler
Member since Mar 2009
77645 posts
Posted on 1/15/16 at 10:06 am
I figured i would start a pure real estate thread only here for those who would like to add to it. Here are some helpful links. To start i will put some funding options like this: gorilla capital, FOA commercial, DHLC investments], corevest finance , Lima One Capital , Fund That Flipthen information, education and possibilities below

bigger pockets

struggling investor

hipster investments

do hard money

flipping junkie

invest 4 more

afford anything

clever investor

learn RE investing

must know investing

RE tipster

1-2-3 Flip

Here also is a helpful hint snippet from PREI magazine:

"2016 is upon us and everyone is telling you to get your goals set right? When it comes to those goals around investing, I always like to share with my investors some good practices to include in their investing endeavors. I have found with hundreds of conversations each year on acquiring a set number of properties, or perhaps properties that will generate a certain return, that probably the most important elements of those objectives get overlooked.

The Average Person’s Objectives
While return on investments, cap rates, and number of properties to acquire are great goals to have, I have found that people unknowingly have deeper objectives. When I ask them why these goals are important to them, I get answers like these: It will give me a nice retirement, or I will then have the cash flow I need, or if I continue at this pace for 5-10 years, then my investment plan will be accomplished.

The Seasoned Investor’s Objectives
Seasoned investors take their objectives to a deeper level. They understand that to have good cap rates and great ROI or accomplished investment goals, they will also need to ensure the properties are going to be able to perform over time. They do not just look at how properties perform today; they want to ensure they perform tomorrow, next month and next year. To seasoned investors, “buy and hold” means doing proper diligence to ensure the property will be worth holding long term. They understand they are investing in more than just an investment property; they are investing in a city or a market they trust to provide an economic foundation to support their investments.

7-Point Checklist to Ensure Sustainability on Investment
1. Are jobs being created? Many have invested in cheap properties only to later find vacancies and stalled cash flow. Investing in markets with job growth is paramount to ensuring you have a steady stream of renters who can afford to make their rent payments.

2. Is the population growing? This, of course, goes hand in hand with job growth. If a market is creating jobs, it should also be growing its populations. When you have rental property in markets that are growing in size, this also lends to a steady stream of tenants who will want to rent from you.

3. Are homes considered affordable? This is a big one—and often overlooked. Investing for buy and hold purposes suggests you will cash flow today with an exit strategy to enjoy a nice appreciation and sell to the retail buyer. To further help your objectives, buy in affordable markets where the home cost of a median price home is no more than three times the median income. Markets where you can acquire the median home price for three times median income or less provides for affordability and ease in finding retail buyers when you prepare to liquidate. The job growth and population growth will help to raise both the income and the home prices, ensuring you sustainability in your anticipated growth.

4. Are insurance premiums and property taxes low? Managing expenses is the number one task for any business owner, and investors are no different. Insurance and taxes are those uncontrolled expenses that you want to make sure are as low as possible. Cities that are not prone to disasters like tornados, or hurricanes or winds or mudslides, etc., are able to keep the rates in these areas low. Likewise, cities that have strong and financially responsible management in place and have a strong and vibrant , growing city with multiple streams of revenue also are able to keep their taxes lower. Expenses such as insurance and taxes that are outside of our controls for expenses can indeed be minimized by investing in areas where they are organically low.

5. Is it a landlord friendly state? Coming from a tenant friendly state where I grew up in Minnesota, investing in landlord friendly states are a pre requisite of mine. Any investor who was forced to do an eviction will tell you that a state that favors a tenant can be costly. To sustain great ROI you want to invest in states that are landlord friendly and understand you need to run a business and getting paid on time is important and has consequences when this does not happen.

6. Diversification: A variety of jobs in different industries is paramount for survival. We all know what happened to Motor City (Detroit) when the auto industry left. They are still trying to recover. This city relied on this one industry. When it left, there were not enough other businesses around for the city to thrive. A city thrives, survives or dies. Where do you want your investments?

7. Are things in place to drive future growth? All of the above are important and sustaining it is something you will want to be comfortable with. Does the city have a 5, 10, 15 or even 20 year vision plan for growth? All markets are cyclical and you want to invest within the cycle for sustained growth. Check into where the city is heading and ensure growth is ahead.

There are a number of other attributes we like to look for to ensure sustainable investments. If we lived in a perfect world, we would find cities with all the shining stars shining brightly and casting light on the investments. We do not unfortunately live in a perfect world, but a darn good one though. I have found, however, that if the property you wish to invest in encompasses these seven must-have attributes, you will have an investment worth holding on to for long term buy and hold investments.

Make 2016 count. Happy investing."






This post was edited on 5/7/21 at 5:46 am
Posted by DisplacedBuckeye
Member since Dec 2013
73988 posts
Posted on 1/15/16 at 10:36 am to
Great information. I've been looking at getting my first investment property, but it's been slow going. Hopefully in the next few months, we'll be in position to pick one up and go from there.
Posted by poochie
Houma, la
Member since Apr 2007
6624 posts
Posted on 1/15/16 at 11:55 am to
Happy this thread was made, I’ve been working on analyzing some properties and have a question about calculating ROI. Example:

Purchase cost: $100,000
Down payment: $20,000
Monthly Rent: $1,000
Mortgage+Insurance+tax: $600
Maintenance: $100
Repair Contingency: $100
Vacancy Contingency: $50
Positive cash flow/Month: $150
PCF/Year: $1,800

Do I judge your ROI on my cash flow before contingencies or after? Is my ROI $1,800/$20,000 or ($400x12)/$20,000 or somewhere in between?
Posted by Jag_Warrior
Virginia
Member since May 2015
4282 posts
Posted on 1/15/16 at 12:05 pm to
Great post. Thanks, man.
Posted by Teddy Ruxpin
Member since Oct 2006
39750 posts
Posted on 1/15/16 at 1:12 pm to
It's about time there was a dedicated thread.
Posted by I Love Bama
Alabama
Member since Nov 2007
37881 posts
Posted on 1/24/16 at 2:01 pm to
I may need to backchannel you soon. I'm having MAJOR insurance issues. I got dropped on two houses this week with tenants still inside. I have got to find someone who isn't charging three times what my rate was last year.
Posted by Danny Woodhead
Member since Oct 2013
694 posts
Posted on 2/5/16 at 3:52 pm to
Very nice thread y'all. Read about every thread on the board, this one has staying power.

Google Drive idea is phenomenal
Posted by RickAstley
Reno, Nevada
Member since May 2011
2026 posts
Posted on 2/8/16 at 8:26 pm to
I do not have anything to add information-wise, but thanks to all for this thread! There is some great information being shared here and I am appreciative of everyone's efforts
Posted by Teddy Ruxpin
Member since Oct 2006
39750 posts
Posted on 4/16/16 at 4:37 pm to
Yo, I think you mentioned you make hard money loans. Do you set these up on your own or through a hard money company? I want to explore that route as well but its hard to google search to parse out being a customer for such a loan as opposed to being a lender. I've heard of one in California(Norris Group) which made me want to look for one around me. Only one I found was "Stallion" and of course I know nothing about them so I wanted to find a way to locate the good companies.

Thanks

ETA: Looks like another is "Pride of Austin" aka Alist Partners. I seem to find names off BP but people's thoughts on these companies is slim.

This post was edited on 4/16/16 at 5:42 pm
Posted by Jackalope
Paris. (Austin Native)
Member since Apr 2009
2252 posts
Posted on 5/15/16 at 12:00 am to
And if you live in Texas, I suggest a tech startup from Austin called Listing Spark. Sold my house with no listing commission which saved me almost $9,000, only cost me a few bucks a day to get on the mls. I learned about them from the Investor Underground group here. Everyone there uses them.

This post was edited on 5/15/16 at 12:09 am
Posted by Sho Nuff
Oahu
Member since Feb 2009
12167 posts
Posted on 8/24/16 at 1:26 am to
Haven't read the whole thread yet, but are you guys talking about commercial real estate at all? I want to learn more about it. I have a couple residential properties in Hawaii and am looking to add a 3rd but with the prices I'm looking at and how quick they're scooped up I started wondering if maybe I could have a better return/more options with commercial. Any advice or where to start? I just joined BP and will start reading the forums. Glad this thread is here
Posted by bayoubengals88
LA
Member since Sep 2007
19778 posts
Posted on 2/7/17 at 11:00 pm to
quote:


I had previously put these links in the sticky thread but they were never moved into the main post,
Over a year later, I moved this entire thread into the main thread...

You gotta realized I was unemployed the summer I made that thread
Posted by AUGDawg
Montana
Member since Nov 2014
1912 posts
Posted on 2/22/17 at 11:16 am to



marked for later

I'm looking at purchasing another in the 3rd or 4th quarter of '17
Posted by AUGDawg
Montana
Member since Nov 2014
1912 posts
Posted on 10/25/17 at 2:34 pm to
I started a thread, but didn't get any responses.

What website do you guys use to store your content digitally?

I'm old school, and I keep my books in individual (by the property) binders. I have no issues with this, but my fear is that if something happens to those particular binders, it would be a major pain.

I'd like to scan and digitally upload these binders.

FWIW, each properties binders:
closing disclosure
insurance info
warranty info
deed
appliance info
tenant's application
tenant's lease
and a log of all money going into the property and going out (rent)

Should I just scan and upload it to a website like Dropbox?
Posted by Azazello
Member since Sep 2011
3188 posts
Posted on 12/3/17 at 7:31 am to
Hey guys, glad to join this thread (and read through the 300+ posts)

I am moving to Chicago post b-school and planned on buying a house. I started looking at how to file my VA home loan and I saw that you can buy up to a fourplex, the stipulation being that I have to live in one of them.

Posted by MrJimBeam
Member since Apr 2009
12696 posts
Posted on 4/3/19 at 9:41 pm to
This thread will be followed by me and so many. I will say that I’ve gotten lucky so far in my early goings that two properties net me around 13-14 percent cap rate. I plan on sticking with single family homes for now since the comps are pretty unreal with what I’ve gotten. I’ve enjoyed it but I know shite will hit the fan eventually. Completely renovating a home currently and have found a great foreman to help handle all the jobs. Should finish 3 weeks ahead of schedule which is pretty crazy since it was already a tight time frame. Looking forward to all the information this thread presents.

Semi drunk and realized it’s an old thread. Also saw my post and still stoked that apartment deal fell through. Found better opportunity not long after
This post was edited on 4/3/19 at 9:44 pm
Posted by martiallaw
Louisiana
Member since Jan 2008
1458 posts
Posted on 6/19/19 at 2:18 pm to
I was checking into see if anyone has done any flips with DoHardMoney or have heard of it being beneficial?
Posted by tigersfan1989
Baton Rouge
Member since Oct 2018
1265 posts
Posted on 6/21/19 at 5:01 pm to
Can someone help me with some advice. Looking to purchase rental house in the 150k range for first rental house investment. Rents average $1 per sq ft where I’m at so I’m looking at around 1500 a month rental income. Can someone tell me if these numbers are worth investing in a rental house and what expense % could I expect while renting out the house. Not sure on how much insurance and prop tax will run in Louisiana.
Posted by SalE
At the beach
Member since Jan 2020
2459 posts
Posted on 3/15/20 at 8:03 pm to
Forget all that BS..get in the real world..buy now guys..long term hold.
Posted by tigersfan1989
Baton Rouge
Member since Oct 2018
1265 posts
Posted on 12/23/20 at 2:13 pm to
What’s a good resource in determining how much rent you can get from a property you are looking to purchase? I don’t currently see any property in the surrounding area listed for rent but I’m confident there are properties that are being rented. Also can you tell me what kind of rent I should expect from a property based on its purchase price? For example if I a property that is 150k and annual expenses run 5k a year for insurance, trash pickup, grounds maintenance what kind of rent makes sense for this? What should my down payment be? 20%? What kind of maintenance figure should I assume? I have other questions but I’m just starting to look into buying a rental and am trying to learn the right way.
first pageprev pagePage 1 of 2Next pagelast page

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram