All Forum Posts by: Drew Shirley

Hey Tammy, I've done about a zillion of these so feel free to PM me with questions.

A lot of 4-plexes get posted on the MLS, so you could have a realtor send you a list. Those will be tough to cash flow though.

Or you can go to HCAD.org and do a search for smaller apts, I think there's a 4-20 unit category. 

PM me for more details. 

Hamed, I would recommend either a separate LLC for each property or a series LLC with each property in a different series.

How much will it rent for? and How much are all the expenses of the property? would be two key questions. 

If you put 20% down and finance the rest, you're looking at a loan of $192k. If that loan costs you 6% principal + interest, that's about $11,500 per year in mortgage payments, almost $1,000 per month. Is the rent minus the expenses more than $1,000 per month? If not, you're going to have negative cash flow. 

"A lawyer's time is his stock and trade."

An attorney who does not charge his clients for the time he spends working for them is giving away inventory for free. If I didn't include the time I spend drafting and crafting emails in my bills, I'd go broke. 

I'll usually talk to a new client on the phone or exchange emails about the legal issue for free... up to a point. Once the client hires me, he's paying for my time, no matter what I'm doing. 

The funny thing about GC that I've noticed the tone of his videos has changed, from "anybody can do it" to "you probably can't do it by yourself... you should invest in Cardone Capital." Hahaha. Now that he has a fund, his message is a little different. 

I don't know you so this is not a comment about you personally, but a startup restaurant is a highly risky undertaking. You're basically taking a leap of faith with all your money. Plenty of well-positioned restaurants with great food and great service have failed just because they didn't get enough traction before the promoters ran out of money.

If you buy multifamily real estate, however, you're buying an existing income stream. You should be able to make close to 10% cash on cash right out of the gate and another 8-10% in tax savings before you paint one door. Then you can add value strategically, cash out and double your money in 2-3 years. Then do it again. 

@Tom Lafferty Sounds like a great deal! Good luck. 

Certainly it would, and I don't have any objection to the warning - it's good to be wary before sticking your toe in the securities pool. I just thought I'd mention that there's some good news, too.

If you're making a presentation to investors, I don't see why you wouldn't include tax savings on an example tax rate, say 28%. When you can deduct all operating expenses, mortgage interest, and depreciate the buildings, etc., you're talking about an additional, what, 9% return?