All Forum Posts by: Ryan Landis

@Gary Coop one thing to keep in mind, and I don't want to get into paying down vs. not, is as you scale up you might be able to receive the same cash flow without having to have that large of a portfolio. Just something to keep in mind. There are a ton of ways to skin the same cat if you just know how much you want per month in cash.

@Sharon Hsu most won't just due to the nature of the increased responsibilities, etc. (maybe they will for a higher fee though). You might be able to find one of the Airbnb arbitrage people as an idea (i.e. you rent it to them and let them figure out how to make the spread on it being furnished). I am sure you know this too, but most condos might have restrictions on sub 30 day stays so if you are doing long-term furnished you might need to find more of a corporate housing situation, etc.

@Jonathan Levi I don't know how the international investing process goes, but you might just look at a dialed-in syndication or get more into note investing. I think you would probably be able to get some mailbox money in those scenarios with proper diligence for what it is worth. On those, you might be able to focus on screening the person a bit more vs. having to overall screen the property (assuming the right equity positions/LTVs/etc.) Just a thought.

@Kahleb Kelsey you probably want to understand how it got vacant (i.e. ellis, buyouts, or what), and how the meters/utilities are set up along with permits. I used to own a 5 unit in Berkeley and went to undergrad there back in the day. The reality is it is a phenomenal market, you just need to understand it. What I tell people is if you want to invest in some of the more tenant-friendly spots, you have to spend the time to really figure it out. I also think it should be a place you end up trying to double down in vs. a one-off (i.e. not worth figuring it out just for a 1 off property - I know Berkeley is expensive so even if #2 doesn't happen right away, the goal would be to make the City a focus).

@Ramon Melero totally understand! Sometimes the professionals though can mess things up/delays/etc. so just plan for contingencies when you Budget. You may also be able to just take something that is average in a good location and do better end finishes and make it a place you are okay living in. Again, new construction is pretty great when it is done. The big things are "when" and "done" lol

@Precious Thompson having an "intake" process may be helpful so you can get clarity with the client around what they are looking for/hoping to purchase/etc.

It happens all of the time, because things change, but it helps set a little bit of some ground rules to get things going.

@Ellie Perlman nice post! #4 :)

I got to say that the actual property manager/asset manager makes the deal a deal or not. The other things can save you if things don't go well, but a property manager can destroy the investment - especially when it is supposed to be passive...

@Gloria C. every agent has their own communication style, just like every client does. For example, if you called me and said Ryan I have an offer I want to put together that is cash $200K+ over what the property is worth and I can close in 3 days you surely are going to get a different response then Ryan I am not pre-approved, I have not signed the buyer broker agreement that we walked through together, etc. (again I don't know the full situation but as written there likely is something bigger than them just not responding within 30 minutes). What I am trying to say is the good ones will do their best to be responsive, but there are other things often going on (hopefully they have other clients, maybe some rentals, etc.). So confirmation of receipt, if it is not a fire drill, might be enough. But unless they are doing things that are causing you to consistently miss out on opportunities, probably worth a check-in. They also may be too afraid to tell you that they don't actually want to work with you - not saying that is the case, but they may not have the heart to fire clients they don't want to work with.

Just trying to put things in perspective. If you emailed your attorney, they probably wouldn't get back to you that quick. If you called your doctor, the likelihood, of you getting seen within 30 minutes is rare. Not all agents are equal, but defending them just a tad bit ;)

@Ramon Melero you are in an awesome position! Just my 2 cents, and take it with a grain of salt, but managing contractors is hard enough. Building (if you don't have the right people doing it) can really go over budget and become a bit of a nightmare. If you can pull it off, power to you. But there is something that needs to be said for just having rent checks come in from day 1.

@Brandon Miller there is no right or wrong as others have mentioned. I will say there is a lot of "comfort" in owning stuff free and clear. The tax man still gets to bill you for property taxes, but the stress level changes quite a bit. There are some asset protection items you would want to make sure you have dialed in if you do own it free and clear (i.e. debt sometimes makes it so people won't pursue the issue) but you can't go wrong paying it down. Maybe some opportunity cost in the decision, but if you grow to fast and get in over your head, you can "lose" or more way than one