All Forum Posts by: Colton T.

@Steve Vaughan Yes sir, that makes sense. How did you begin to make decisions about which index funds to get into with your RE money? Did you already have some experience with those or have some outside help? 

This might be a bit too in-depth for a forum post, but maybe someone can assist in answering it. 

Been buying real estate through-out my career, but not much experience in other investment industries. What are some ways to compare real estate holdings to other investment classes in order to help know when to sell / liquidate a portion of them to cash? 

I'm sure REITs have advanced ways of approaching this, and I realize it's not an easy question. But for a smaller investor (say <100 units), are there some good benchmarks to look at in comparison to other investment classes or the macro-economic environment as a whole? Let's assume there's no concern about a crash or major worldwide event, but rather just normal fluctuating markets. 

For example, if properties used to have a 8-10 GRM, but are now pushing 13-15 GRM, due to home prices appreciating faster than rents, that might appear like a sell signal, but only if there was better looking returns elsewhere. What are some ways to validate that and compare it to alternative investment returns?

Thanks.

If I want to loan money to an entrepreneur for a retail/restaurant startup, what are the requirements for me to lend them money in Texas? Limitations on interest/terms? Any recommended courses that you'd recommend to prepare for this?

If a restaurant or retail entrepreneur is opening a new place and wants a commercial loan for equipment/expenses etc., what are the requirements to lend money to them in Texas? Limits on interest rates / terms? Any recommended courses that you'd recommend to prepare for this, as the person lending the money, even if not required? 

Just wondering what the reliability of these are to set up as an on-site machine for payments inside the apartment complex to make payments easier and quicker.

Just wondering what the reliability of these are to set up as an outdoor ATM for payments inside the park to make payments easier and quicker. 

What types of policies would you want to get when purchasing a park filled with older park-owned units?

What's the story from your MHP ownership experience that would be your go-to tale when speaking with a new MHP buyer? 

I've assembled several adjacent acres with multiple property types between them in a prime area. What's your experience in this? Better to develop the land complete and sell lots / pads or sell the assembled package to a developer? 

I have more land banking experience than land developing experience, but how hard can it be and is it worth it? 

I would avoid @James Hamling's advise like the plague. There is no new build-to-rent projects in North Texas clearing massive amounts of money in rent from the jump. Even if you own the land free and clear, 4 acres is not enough land to get any economy of scale going for your development and you'd be spending a fortune on the planning, zoning, materials and development to only bring in what the market demands in rent. You might be able to build 20-25 townhome units on it, if you're lucky. Now, you might start making reasonable cash flow 5-10 years down the road if rents continue to skyrocket in the area, but it's a long-term game and it's not something you can afford unless you have several years of costs saved up ahead of time. Plus, why not wait until materials/labor become more affordable again and save the cash flow headache. 

I would either hold, sell the land or subdivide and sell smaller lots for a pretty penny. But the type of project you're hoping for is best suited for an experienced developer who wants to build a community for a slow-growth REIT or private equity fund.