All Forum Posts by: Bryan Mitchell

Carmelo, all day every day.

Aaron, keeping looking into this deal. It will help you better understand REI once you go into the documents that the owner must provide to you. Look at the rent roll and P&L for the last three years. You should be able to determine the turn-over. If the turn-over is low, all tenants are paying, low evictions, then maybe there is a demand for efficiencies. Secondly, check with local property management companies to help determine demand. Between looking over the documents and speaking to property management companies, you should be able to determine demand. Of course, if the price is too high, walk away. Lower price, lower risk. There's still risk, but less.

Briana, unless you can get more per door, I would not do it. If you are certain that this is a value add deal where you can get the 92K you speak of, then I would do the deal. LIke you said, this is not an appreciation play, so it will need to have upside and/or be under market rent. 

Your information is mostly accurate, but when you consider multiple factors, you may find it less appealing. The rents are relatively low, appreciation has stagnated, lack of economic vibrance, and diversity of economy.

It's one thing to invest out of state, but to invest outside of the country is even harder. Over six-eight hours time difference, sketchy, unpredictable phone coverage, and convincing commerical bankers to loan you money sight unseen, makes things difficult. Not impossible, but much more difficult. Keep it up!

Originally posted by @Joe Splitrock:

@Christopher Munn 

It is common for one investor to pay more than another. That doesn't mean the person paying more isn't successful. I have been outbid on deals, only to see the investor do really well - better than I thought.

Sometimes other investors see what we don't see. Or it could be a situation where one investor is accepting a lower return than another investor. It happens all the time in business.

It even happened after the crash. I passed on deals that I would kill for today. It is all relative to what the market is doing now. 

I have said before that waiting for another crash is a fools game. Crashes like the one in 2008 are a once in a life time opportunity. Find the best deal you can in the market you are in. 

 But aren't commercial properties at that price point more resilient to downturns? Did the housing correction affect the prices of 16+ unit apartment complexes? I know they affected SFRs greatly as I bought two during that time. 

Daniel,

You said "Loans ended up being 435,000 for the 80% of the complex". What were the terms of the loan. 25 or 30 years? 

"137,000 for the down payment" "So I started looking for multifamily units around town that I could pull my equity out to use as a down-payment for".  Again, what was the total you had for down payment and reserve account? I believe you said a little of $200K? 

So, you refinanced all your existing 5 SFRs? 

Originally posted by @Anita Ahuja:

Hi. I’m reading out of state investing by David Greene. He simplifies the process. It’s a great and well written read.

 I am also reading the book. I am on page 121 and I skipping big parts of the book. It is written for someone who has not started yet. If you already buying properties out of the area; city, state, or country, it is good. However, I know smart phones and property managers are good. 

When I was younger I also viewed custom home design as the most desirable end state. Now, I realize that your custom dream home, unless you plan to live in this for the rest of your life, may not be the dream home for others. Please consider your exit strategy in every scenario. Even your life long dreams can be short lived.  I have moved for work about every two years for the last 10 years. I have lived in three countries, a few different states, single family homes in the suburbs, countryside, in the hills of small village in Northern Italy to a large city in Germany to high rise apartments in the Atlanta. Every one had some great advantages and redeeming value, but NONE of them was ideal. I cherish my experiences and I would encourage others to do the same. For this and more, I can't see living anywhere for extended periods of time, would not spend hundreds of thousands of dollars on the 'ultimate dream home' of which you would most likely not be able to recoup your loses, all for the sake of some ideological neverland. Your paradise could be your prison if you can't exit when you need to. 

Be careful of CFPers. Oftentimes they charge you 1% for some bland advise advise and then they sell you thier products. An estate planner may be what you need according to what you talked about. Basically no one's going to offer you a silver bullet to financial freedom especially a CFP.