All Forum Posts by: Dougal Murray

@Shiloh Lundahl I think this is a very interesting question and I think @Mindy Jensen hits the nail on the head with a lot of what she's saying.

Part of what I like about Bigger Pockets however is the diversity of people on here and the fact I continue to learn from every level of them. I've been doing this for 15 years, which isn't long compared to some of the folks on here, but a career full of experience to others.

Its important to remember that just because someones been doing this longer than you doesn't meant they are more successful at it, and its good to remember the same when speaking to newcomers too.

Some of the most valuable bits of knowledge I've gained in Real Estate investing are when I've lost money on deals. Early on it was tens of thousand, and in recent years I lost several hundred thousand too. Overall however I would absolutely say I've been successful in what I've achieved and for every deal that goes wrong there are ten more that go very right. As long as you can learn from the deals that go wrong, then they too can be looked at as successes in the long run, even though they may not feel like that at the time.

In short, what I'm trying to say is that whilst there are obviously guys on here who chat through over inflated ego's, I think the beauty of this community is the diversity and the ability to learn from every level of it. Ignore the bravado, learn from other peoples mistakes, and the ******** will make itself very apparent, very quickly. Just don't be too quick to cast aside newbies, because often listening to them and taking yourself back to basics can remind you of past mistakes that can help you (and them) today.

@Jason Sylka This is great. Fantastic job!

Hi Jeff, this sounds great. Is there any more you can share regarding the format and structure of the event (ie are we being pitched to or is this a genuine networking event?).

Many thanks,

Hi Sam,

Markets all over the US are peaking and with $150k unless you are buying into a large multi family deal with a seasoned investor you are going to have to figure out the property management aspect as well. From single properties out of state can often be a false economy unless you are partnering with someone or you have an excellent manager who is on top of your site.

Historically then the last property crash came the one buoyant area in the market was with the multi family and premium / luxury market. When entire other cities were going into Foreclosure markets such as New York and Los Angeles upmarket neighborhoods remained relatively untouched because outside investment continued to flow in. Given you are based in CA, which has a strong economy and premium property values, and you state you feel the market is due for a correction (which I also agree with). Is there any reason you haven't considered investing in Luxury SFR developments, which typically have hold times of c.24 months rather than multifamily deals which typically run at 5-6 years?

INTRODUCTION:

Racing Green Investments are keen to present an exciting development opportunity nestled in the Hollywood hills above studio city; new construction of an ultra contemporary and highly desirable single family residence.

This 6 Bedroom, 8 bathroom home will have 7,900 sf of habitable living space split between a 6,700 main house and 1,200 guest unit.

The property is designed as an ultra modern home with spectacular panoramic views, open plan living and high end fixtures and finishes including Viking appliances, an infinity pool, home cinema and wireless home security and audio systems.

Construction finance has already been agreed with our long term lending partner and first stage plans have already been drawn up and are available upon request.

HEADLINE FIGURES:

DEAL NEED: $5,508,100.

FUNDED BY:

LAND ACQUISITION: $2,000,000

FINANCE: $1,000,000 (50% LTV)

INVESTOR EQUITY - $1,000,000 (50% LTV)

CONSTRUCTION LOAN: $3,600,000

FINANCE - $2,200,000 (65% LTV – INTEREST PAYABLE ON DRAWN AMOUNT ONLY)

INVESTOR EQUITY - $1,000,000

GROSS PROFIT $1,255,000.00

INVESTOR RETURNS:

Investor highlight include:

-XIRR of 17% per annum based on 24 month exit.

-ROI of 38% on an 24 month exit.

SENSITISED FINANCIAL FORECASTING:

-Sensitized financial modeling assumes build of c.$350/sf and $300,000 of built in contingency.

-Assumes 100% of construction loan drawn day 1; uplift on undrawn amount should provide a financial uplift of over $100,000.

-Assumes property held for full 24 months; critical path schedules an 18 month build out.

-Exit price assumes $850/sf on exit compared to similar properties commanding almost $1,000 – PLEASE SEE 3804 RHODES AS CLOSEST SOLD COMPARABLE TO DATE - https://vimeo.com/153865923.

CURRENT MARKET COMPS:

3804 RHODES AVE – SOLD FOR $7,600,000

7,846SF /56,875 LOT. 6 BED, 7 BATHROOMS.

Video viewable at: https://vimeo.com/153865923

4136 HAYVENHURST DRIVE: NEW CONSTRUCTION – SOLD AT $6,995,000

8,500SF / 28,784sf Lot 6 BEDROOMS, 8 BATHROOMS

www.redfin.com/CA/Los-Angeles/4136-Hayvenhurst-Dr-91436/home/4917729 

INVEST WITH RACING GREEN INVESTMENTS