All Forum Posts by: Henry Clark

OP are you acting as the buyers agent or are they wanting you to seek out deals and make offers?

OP always use a Buyer agent.  

The seller pays the commission for them.

Even if this is an off market deal still use a buyers agent and you pay part of the commission.

For your type of REI pick the best realtor in your market as your buyer agent and stick with them. Always have them be the original point of contact, not you.

Never penny pench them.

They are now part of your team.

You will get more deals out of the blue from them and they will also know your business model and the rest of your team.  

Our realtors have brought or helped initiate over a $1mm of value add to our deals without us asking.  

OP. As Joe mentioned you have to do the math. Forget all of our opinions. Until you do the math anyone can be right or wrong. The things you're being told aren't opinions. They are based in many deal analysis and experiences. You have at least 3 different REI math analysis you need to be good at before even trying an REI deal And even then you reach a point where you just have to do a deal to advance your learning.

1.  Risk/return

2.  Cash flow, cash in cash, cap rate, return type calculations

3.  Financing-  let’s do financing since that is the one you are discussing  

You have $100,000 to invest      
A. $100,000 on one deal. With an LTV of 50%. $200,000 deal in total.

B. Do two $50,000 deals at LTV of 10% or two $500,000 deals.

If A and B perform the same which one do you have the potential for the most Appreciation and Cash flow the two primary REI metrics? If A and B value goes up 20%? If A and B cash flow at 1%?

Does A or B give you the best return?  Even with that answer you still have to consider 1 and 2 above.  

 In one of your posts your considering investing in Syndications.  Just the above are only about 3 out of 50 deal analysis questions you need to know and answer.  

Each responder has a different REI type, risk tolerance, return specs, stage of their investment career. You need to spell your background out then ask for input. You will get a great and useful response. All of the investors above have probably made over $500,000 of either errors, lost deals, etc. But that was part of our learning processes.

OP depends.  
What is your refinancing cost- appraisal, loan fee?

What are your interest rates- low going to high, staying the same, high going to low rates.  

What stage are you personally at?- Risk tolerance, equity creation, cash flow needs, time management, etc.

OP. All of these folks have different REI strategies, risk tolerance, stage of investing, strengths and weaknesses. All of their recommendations are correct even if they sound opposite.

You have to pick one and start making mistakes and learning.    There is no “Passive” investing.   There might be “Passive” ownership but not investing.  On another post you were talking about syndications.  Owning them is passive, but investing in them is extremely active.   Takes a lot of research and learning to know the right questions.  You are the Investment Banker.  

As mentioned by others. House hacking is your least risk and most passive investment since you have to do it anyways. First time out if you're doing a flip or BRRRR do an easy superficial one. Carpet, paint, landscaping, overhaul kitchen or bathroom. No structural flips. ADUs, wall moves, roofs, etc

Seller won’t accept any offers.  They want to sell from east to west.  Even at asking price.  Understand they want to keep as large a Portion as possible in case a large buyer wants.  We want the next lot over.  Will pass for now.  Will look if any other land can be purchased in this industrial zoning area.  

Seller won’t accept any offers.  They want to sell from east to west.  Even at asking price.  Understand they want to keep as large a Portion as possible in case a large buyer wants.  We want the next lot over.  Will pass for now.  Will look if any other land can be purchased in this industrial zoning area.  

Staying at a low key Bnb.   You could go 1/2 way.  

Still looks Bigger and lighter.  But not as easily to pick up cleaning issues as White.  

Dinner was great. Beet blue cheese ravioli with pumpkin sauce, beef cheeks and Al dente linguini with meat sauce. 

No news from my realtor on the land we are trying to buy for this new storage location. Will Wait till Monday to see if we get a counter offer.  

Meet the immobiliare (realtor) and the Geometra (surveyor, title search, tax, permit, etc person) on Tuesday all set up.  I’ll do a separate post on that. Looking at possibly a home in Montecatini Italy.  

Remember it's your money you're always right. Self storage is both a great cash flow and appreciation REI product.

My brother who is working in Livorno Italy will go back early for our family reunion and I’ll meet him to look for a Self storage spot near Dallas for when he goes back in 2 to 3 years.  

Mean time in Belize my Manager is clearing and prepping 89 acres to plant more teak this rainy season in June July.  Thank goodness for cellphones and the internet.  Will update that post at some point.

Will there be institutional financing? If so the seller needs to know they will need to take second position. See if he will take a personal guarantee unless this goes against the exposure you are trying to reduce with an LLC. Or see if the owner will take a note with you and not use the land as collateral. Use the example below as collateral for their note.

Your current cash position you would put into this project. Ask your institutional lender if they will reduce their rate by 1% point plus give you good investment terms on your cash position. Plus reduce your LTV or cash infusion. If you deposited funds with them as a CD.