Investor from Sacramento looking for future partners
Hi All, I am a small investor from Sacramento, CA and so far I own two townhomes in Las Vegas I rent out, one Class A in Henderson, and one Class B (urban), near the Las Vegas Strip. These are long term holds. I bought one about a year and a half ago and the other last year - I love both of these properties because I did lots of research and analysis and targeted the locations I wanted and waited patiently for the right deals. I have a great property manager and great tenants so I couldn't be happier.
I am looking to grow my portfolio over the next 3-5 years and would love to find a partner or partners on deals. I would love to try a multi-unit deal again looking to hold for long term.
What I bring to the table is a very good risk profile (800+ fico, stable high income, no debt except for rentals). I also have a lot of experience in real estate (I used to sell luxury homes in LA and my license is still in good standing although I haven't been active). I don't have enough cash to do any more deals this year but next year I will have enough cash saved by next year, if and only if conditions are right (see below what I mean).
So what is my overall philosophy? Might as well give you the good and the bad :)
I am very much a risk manager, I look at everything: the area, the economy, the ROI, the competition, the future, the demographics, what's my downside, what's my upside, etc. I don't have a financial model or anything like that, it's just taking the time to do the research, analyzing all the inputs and deciding if something is worth the risk.
I absolutely HATE debt. I know it's unavoidable in real estate investing if you can't pay cash for everything, and I know sometimes it makes financial sense to use debt. So although I hate it, I just deal with it for mortgages. But personally I have zero debt other than the properties.
I don't own my home that I reside in, I am a renter. By choice. I know I know some people think I am an idiot, so be it. In my opinion the time to own your own home is when you buy in 2000, or 2012, not in 2006 or 2018. Buying a non-performing asset (an asset that generates no income), that I am only going to sleep in that sells for 6, 8 or 10 times the average income in a particular area, is not something I thought was a good "investment" in 2006, nor do I think it is today. So I rent, live way below my means and save as much cash as I can.
I also think the housing market is in another bubble. Central banks whether the Fed, the ECB, the BOJ, the PBOC, etc have collectively pooled together their great wisdom and economics savvy and financially engineered a recovery by reflating old bubbles and creating new ones. Thus, I think they have set us up for another crash of breath taking proportions. Alrighty. There's nothing I can do about that other than be there with plenty of cash ready to buy up the carnage.
I love real estate. However, not all real estate is created equal, and not all real estate is a good investment at all times.
Ok so there you go. The good bad and the ugly :)