All Forum Posts by: Account Closed

Are you missing something? You'll be looking at about a 4,800/mo on a 30 year mortgage for starters, assuming you get approved.

Might want to look at your property taxes too.

Let me guess, you're buying for "appreciation" right

Use Excel. You'll have the added benefit of actually understanding the math behind the metrics you model.

Just about any firm you'd work at would expect you to be able to model in excel, so why wouldn't you with your own money.

So were on a couple days now and no response.

Before I chalk this up to being another REI instagram post: someone else want to explain to the class how a house bought for $285000.00 and rented for $1950.00/mo cashflows $400.00/mo? unless it's a cash deal, meaning real low ROI

You can call down the obituaries and work to convince the widow to sell their house under market, with the "value" you add being you'll help her move into an old folks home.

There's one of the staple "creative" strategies that's been in use on SFR for years.

Got the stomach to be that guy?

First Property in 1/31/2021 - Fort Worth, Texas .Yr Built - 2013. Self Managing this Property.

Purchased for : $285000.00(List Price: $260,000.00)

Rented: $1950.00

Cash flow: $400.00

Can I ask you how this possibly cash flows, unless you paid cash and have no mortgage

I, in all sincerity hope everything works out for you. I think it will. These last couple years have presented some very challenging market conditions to get started in. Appreciate the honesty though, because BP doesn't often like to focus on the risks.

For everyone else reading this who's new, you know how Brandon Turner- or anyone else for that matter- tells you your first deal can just be a base hit? ya, right. Your first deal better be a good one or you better have a lot of money to back it up.

"Where do I get this money b/c I'm seeing a lot of newbies saying they get into 5+ rentals in two years."

This site, unfortunately, can often end up being Instagram for REI. ...they are usually leaving quite a bit of reality out.

Family help, buying in dirt cheap areas/ghettos, starting years ago when REI was market conditions were much more favorable, ect.

Originally posted by @Taylor L.:

Originally posted by @Account Closed:

Originally posted by @Arn Cenedella:

@Account Closed

There’s no correct answer to this, just having a discussion.

There are pros and cons points and counter-points to every perspective.

It appears your preference for REITs is more about liquidity issues than vetting issues, which I understand.

I would suggest illiquidity can be an advantage as it prevents investors from making sudden moves when times get bad.

For a recent example, let’s pick Covid. Stock investors who sold after the initial collapse of the market (Spring 2020) now regret that decision. Those who just sat tight, held their stocks have been handsomely rewarded as the market went to all-time highs. Same with real estate - those that panic sold Spring 2020 would also now regret that decision.

Having illiquid investments prevents investors from making emotional (short term knee jerk) decisions.

The one property v multiple property issue cuts both ways. Many investors want to invest in a specific property in a specific location - they prefer to know what they are buying as opposed to not knowing what specific properties they will own thru a REIT.

At the end of the day, each investor needs to sort thru those issues for themselves. It’s not a black and white thing, it’s not an either or thing, it can be a both and thing.

"I would suggest illiquidity can be an advantage as it prevents investors from making sudden moves when times get bad.

For a recent example, let’s pick Covid. Stock investors who sold after the initial collapse of the market (Spring 2020) now regret that decision. Those who just sat tight, held their stocks have been handsomely rewarded as the market went to all-time highs. Same with real estate - those that panic sold Spring 2020 would also now regret that decision."

But this is exactly one of the benefits of liquidity I love. The Covid crash in 3rd week of march 2020 was bonanza for me. I loaded up on things I had on my shopping list and got them for historic discounts. I hadn't had a buy opportunity like that in years. The panic sellers are a blessing for me.

What I missed though, was loading up on some REITs I wanted in 2020. 

Regarding loading up when prices dive - most investors don't do that. That's exactly why prices dive. Heck, even Warren Buffet failed at that in the early days of Covid, and he got flack for it at the following Berkshire shareholders meeting.

That's why the saying "Time in the market beats timing the market" is so popular. The plan to time the market loses to psychology and fear of loss.

To your point, though, I would agree that for some people the liquidity of REITs is a good thing. Primarily because either they or their portfolio are not prepared for the illiquidity of syndications. Syndications aren't right for everybody, and those of us who bring passive investors into deals have a responsibility to make sure our investors understand and can handle the illiquid nature of syndications.

 
That's why the saying "Time in the market beats timing the market" is so
popular. The plan to time the market loses to psychology and fear of
loss.

For the herd. I wait in the grass watching and waiting to pounce them.

Originally posted by @Arn Cenedella:

@Account Closed

There’s no correct answer to this, just having a discussion.

There are pros and cons points and counter-points to every perspective.

It appears your preference for REITs is more about liquidity issues than vetting issues, which I understand.

I would suggest illiquidity can be an advantage as it prevents investors from making sudden moves when times get bad.

For a recent example, let’s pick Covid. Stock investors who sold after the initial collapse of the market (Spring 2020) now regret that decision. Those who just sat tight, held their stocks have been handsomely rewarded as the market went to all-time highs. Same with real estate - those that panic sold Spring 2020 would also now regret that decision.

Having illiquid investments prevents investors from making emotional (short term knee jerk) decisions.

The one property v multiple property issue cuts both ways. Many investors want to invest in a specific property in a specific location - they prefer to know what they are buying as opposed to not knowing what specific properties they will own thru a REIT.

At the end of the day, each investor needs to sort thru those issues for themselves. It’s not a black and white thing, it’s not an either or thing, it can be a both and thing.

"I would suggest illiquidity can be an advantage as it prevents investors from making sudden moves when times get bad.

For a recent example, let’s pick Covid. Stock investors who sold after the initial collapse of the market (Spring 2020) now regret that decision. Those who just sat tight, held their stocks have been handsomely rewarded as the market went to all-time highs. Same with real estate - those that panic sold Spring 2020 would also now regret that decision."

But this is exactly one of the benefits of liquidity I love. The Covid crash in 3rd week of march 2020 was bonanza for me. I loaded up on things I had on my shopping list and got them for historic discounts. I hadn't had a buy opportunity like that in years. The panic sellers are a blessing for me.

What I missed though, was loading up on some REITs I wanted in 2020. 

Originally posted by @Arn Cenedella:

@Account Closed

How does one "vet" a REIT?

Or is that not necessary?

About as well as you would any other publicly traded security, which for most people means not really at all.

But the difference is with a REIT, you own shares in a company holding many assets, and they are liquid. You can dump them at any point of any day the markets are open for any reason you choose.

With syndications, you are usually investing money not for a basket of assets, but for one project, and if that one project starts to not go to your liking, you're not getting your money back. Your money is with them till the end or unless you can get someone to buy you out.