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re: If you had 500k to invest in the real estate market..
Posted on 6/18/18 at 9:18 pm to Decisions
Posted on 6/18/18 at 9:18 pm to Decisions
yeah if i want to deal with crops i will just trade those commodities and make money going LONG or SHORT with no worry than if i invested in a fund like i was offered awhile back only making money if it goes up and not issues.
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Posted on 6/19/18 at 9:39 pm to stevengtiger
Steven, where are your mobile homes at? North La?
Posted on 6/20/18 at 9:46 am to Rust Cohle
quote:
where are your mobile homes at? North La?
Correct. Mainly looking at foreclosures to rehab and flip.
Posted on 6/20/18 at 10:36 am to stevengtiger
quote:
Correct. Mainly looking at foreclosures to rehab and flip.
glad you are still knocking it out the park.
i am seriously considering using my non taxable for passive apartments with a group/sponsor. they are hold and flip type deals.
drop 200k. get 10% return for 3 to 5 years. Then sell for double.
if it goes 5 years(that is 300k in yields/capital gains). not bad for passive. i can still use taxable money for my buy and holds long term. Maybe i can finally challenge you on flips.
Posted on 6/20/18 at 10:40 am to Fat Bastard
quote:
Maybe i can finally challenge you on flips
Our flips are done relatively cheap man. You can do what we are doing with $80K line of credit, one at a time.
We need to add another rental or two by the end of the year before rates go up, which I am fully expecting.
Posted on 6/20/18 at 10:42 am to yellowhammer2098
I think what you said is absolutely correct for the majority of markets in the SE. Unfortunately in BR, especially around LSU, multifamily market is in terrible shape looking forward. Rents are dropping, occupancy is decreasing, enrollment declining with TOPS uncertainty, and yet more multifamily developments are still being built (some practically on campus). I don't see this ending well.
Most experts in the area would tell you that if there is a void in the BR multifamily market, its in affordable housing units.
Most experts in the area would tell you that if there is a void in the BR multifamily market, its in affordable housing units.
Posted on 6/20/18 at 10:49 am to stevengtiger
quote:
You can do what we are doing with $80K line of credit, one at a time.
well if i have that much it will be by a hair. i have a 30k unsecured at one bank and just got approved by another bank for 50k unsecured but still waiting for it to close so it COULD be less although i was approved. turned down all HELOC offers. was not interested even though I am sure my HELOC would be at least 100k if not more I just do not like using those for investments. who knows may have to get one eventually.
however i am using my solo 401k to most probably do the apartments. double team it from non taxable(for now anyways until i hit 59.5) and taxable side.
Posted on 6/20/18 at 10:53 am to Fat Bastard
quote:
who knows may have to get one eventually.
It has definitely made our deals pretty easy. You could definitely do flips with less than $80K in the mobile home niche but we do our rehabs pretty top notch.
Posted on 6/20/18 at 10:55 am to stevengtiger
quote:
stevengtiger
also my type of flipping will be much different than yours however are you using the 70% rule on most of your flips?
e.g. home ARV is 100k, purchase price plus rehab cannot exceed 70% of that. therefore if you have 20k in rehab your purchase price cannot exceed 50k. or are you willing to take much lower profit margins and do more volume?
Posted on 6/20/18 at 10:59 am to Fat Bastard
quote:
or are you willing to take much lower profit margins and do more volume?
We are definitely shooting for those figures. We have had some that would be much better and a few that have been worse. Mobile homes are much better for this equation in my opinion.
ETA: taking out some information
This post was edited on 6/20/18 at 11:17 am
Posted on 6/20/18 at 1:14 pm to Fat Bastard
Flips, are a full-time job, but 40% returns is attractive. Seems reasonable to find a hud for 50, put 20 into it and sell for 100. Do that 3 to 4 times a year, and make 120% returns?
Posted on 6/20/18 at 1:30 pm to Rust Cohle
quote:
Flips, are a full-time job,
Not really. It is relatively passive for me but I have a great team that helps. I lose some profit doing so, but it is worth every penny.
Posted on 6/20/18 at 5:13 pm to stevengtiger
Yeah, full time job was at exaggeration, but it is very consuming, especially with a full-time job. I found that managing 9 rentals was less work and doing renovations for one.
I would have to meet these guys at Home Depot to buy materials for them, or 1 painter had to be paid more than once a week, because he was so poor. Driving over to the property all the time to bird-dog the progress. I guess that's what you get for trying to get cheap labor, and what you mean by saying it's worth losing some profit for a good contractor.
I would have to meet these guys at Home Depot to buy materials for them, or 1 painter had to be paid more than once a week, because he was so poor. Driving over to the property all the time to bird-dog the progress. I guess that's what you get for trying to get cheap labor, and what you mean by saying it's worth losing some profit for a good contractor.
Posted on 6/21/18 at 8:35 am to Rust Cohle
quote:
I guess that's what you get for trying to get cheap labor, and what you mean by saying it's worth losing some profit for a good contractor.
This is my thought. I meet my contractor once a week and pay him in full for the weeks work. He has access to credit at Lowes and other building material dealers for supplies and I just reimburse and pay the labor. I trust him and he knows we will keep him busy. Me or my partner usually check on properties about once a week but that's really it.
I have said this many times on this board, but having a great team (realtor, contractor, banking, insurance, etc.) has been critical to any success we have had doing this stuff.
Posted on 6/21/18 at 10:41 am to stevengtiger
yeah i have a contractor here who will get the materials and do what i need done as he has done this on my house for me. So he could do the houses for me here if I did flips here. Just need a reputable realtor to give me accurate ARV's. but i don't have time. Which is why i will hope to stick with the passive apartment flips. as a matter of fact I may have to head to Dallas soon to interview sponsors/syndicators.
Posted on 6/21/18 at 10:56 am to Fat Bastard
quote:
Just need a reputable realtor to give me accurate ARV's
I found my guy by getting on Bigger pockets and finding a local REI get together. I went to one dinner/meeting and met him. That was December 2014 and since then we have bought over 18 properties with him. He helps us find, plan repair work and sell properties as well as manage a handful of our rentals. Great guy and again, I know I can trust him.
Posted on 6/21/18 at 11:09 am to stevengtiger
i will assume he is not raping you on commissions and that you worked some deal out when they help you acquire and sell for you.
Posted on 6/21/18 at 11:21 am to Fat Bastard
Yep. Was about to type out parts of our deal, but I'll just leave it as "yep".
Posted on 6/21/18 at 1:01 pm to stevengtiger
quote:
Yep. Was about to type out parts of our deal, but I'll just leave it as "yep".
yeah don't share all your info here. you are smart enough to see that.
we can always back channel as we have done before if the need arises.
Posted on 6/21/18 at 1:57 pm to Fat Bastard
quote:
you are smart enough to see that
I wouldn't go that far.
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