All Forum Posts by: Account Closed

I own one a large multi unit 21 units in chicago. I don't use cape rate only you have to look at the real numbers because my cap rate is like 6% so many large buildings 5-10% is average closer to 6-8% Cap rate is determined by net income divided by the cost of the property. The problem is my cap rate was like 5.68 but look at my numbers. I have a PITI Of $4200 expenses add 1-2k or more that's $5200 -6200 maybe more depending on repairs etc. Full occupancy is $14k say 10% vacancy so my cash flow after costs is $6400 after it can be less since I have been stabilizing the building repairs etc. So as you can see cap rate helps asses the building but it's not the only evaluator must you look at the real numbers! He should have leases, bills, and costs to prove expenses once you do your numbers then your know your cash flow as far as equity in my opinion it's great if I ever make any honestly I don't care because it cash flows like a slot machine. But it's nice if it get some equity upon sale in 10-15 years. Really understanding cash flow is how you make passive longterm income do not try to play the equity game you will lose. Also, always looking for partnerships 🙂

I would recommend that first she must supply a doctors note for all 4 and also your policy is one pet only I don't think the EEOC would say she needs all 4. If she pursues it raise the cat rent to $25 for first $100 for additional ones since you never stated this to anyone before and keep it your policy any more than one pet $100 pet rent, hopefully that will price her out. I don't allow any pet in my apartments they are destructive especially cats they pee in closets and on floors, dogs scratch floors and chew on trim causing damage so it's not worth the clean up and repair.

I know many people are opposed to taking these GURU classes (a guy who is on here often) I have not mentioned the name unless people request me too, so I have a question are any of them really worth it? I'll give you my feedback on a 3 day seminar I took, I saw all of these people signed up which was crazy because many of them were broke and completely clueless! The class I believe is for many beginners who have no clue at all may be worth the money but $10,000 is hard to swallow for the cheapie package. With that said the material even for the seminar that was $160 was pretty decent I have a decent intermediate level knowledge of real estate from years from mistakes and successes obviously by myself. Basically, they provided a lot of material from more of a business perspective (banking, numbers, some contacts) taking your real estate game to that level, it was decent and provided hard money lenders they work with all the time (how does that work they get kickbacks or special deals? Even one hard money lender that they worked with joined this time (which I was surprised and didn't know what to think of that?) Also, they introduced the big couple of REO guys that work with (again I'm sure they get the best deals while the little guy like me gets scraps). Also, they provided their formula pretty much for free all the calculators or at least you could write them down. They also provided personal coaching.

Now the bad, my problem with the seminar is they would tell you how great it is to make so much money and they were doing it over and over and they could help you too! The catch? Finding the deals they were the gate keepers to everything! Why the hell they going to share anything with you because you paid them? They little club had over 200 members (do the math over 2 million in $$$) that paid the ones on the bottom level got maybe one deal (that they had probably passed on, not enough fat for them) and the training that’s it! The second level maybe 2 deals (they probably didn’t want either) and the training. The top level $35,000 probably got a little more help. Ultimately, I feel that if you get to cherry pick all the best deals and now you’re charging people money is that really worth it just for the info? They do have a portal and have documents you can use and some calculators online. They claim they just can’t do all the deals but yet they do most of the deals personally the guys at the top. So what are peoples feeling on this? I felt like I would pay for the info but more like $1500 or less would be fine but those crazy prices were ridiculous. I felt like I was in a cult nobody talked about the price but they had business meetings on the side and it was all secret I felt a little weird (like dianetics)sp. This was my first real estate seminar and I was disappointed that there isn’t more of a community of people willing to just help people out for free or nominal costs other than sites like deep pockets. Is the common practice at all the real estate meet up groups (constant pitching people looking for angles?) Are people just so greedy they don’t want to share unless you pay? I felt even more separated and segregated from the haves and have nots. I get it that the business is competitive but my close friends who do real estate we all share with each other and help each other out because I would not be here if they didn’t help me. I always help people for free to pass it forward so I found this type of people and groups confusing is this the way you learn and get ahead in real estate? So I would love some feedback on this.

Thank you for your response I just think me like many people just feel skeptical because they are so many people trying to up sell us on some "guru" type programs for a lot of money. I think people just needs programs that work and even if I have to pay a monthly fee for the info and some guidance that's not a problem either. I really have already learned something's from your program and bigger pockets so I do have a good expectation of your program. I think as for newer investors people just need direction not just things handed to you I always work hard so hopefully I can put to use your stuff and make some money. Thanks again for not taking it personal and keeping it fair.

I think that's a smart play for the long term if you make money it's good to keep investing it pays more than a 401k remember anything that make more than a 10 year treasure note is a better investment.

Here is my piece of advice as I'm starting to go through these groups almost all of them have an angle.  Most of these real estate investing clubs and groups try to upsell you on spending money on being in their secret club anywhere from $600-35,000 if you are asked for more money than a simple monthly fee to cover the costs of the groups or other small expenses just run. I'm starting to realize all these big real estate groups have nothing but angles from selling the banks, mortgage companies, brokers and their "special program"  and then they tell you when you can't do it, your doing it wrong that's why your not getting results and as we know most people are capable of following programs that are "fool proof" so with that said I'm not a know it all but rather a realist in the theory their is no "free lunch".  I believe that many people find their niche in real estate making money my friend buys multi units in the ghetto for 200K 10-12 units fixes them a bit and collects anywhere from 4-6K in rents (hes always chasing his money) and its a lot of work so that's his niche.  Ill be going to 3 day seminar hosted by our guy here Mr. Andrew Holmes so with that said I don't mind paying a monthly fee or even training classes for $500 or more.  But if I find out that I have to join the special club for thousand and thousands of dollars Ill be the first here to post but I have a feeling the hidden key club will get sprung after a few of these meetings and to those chumps they can pick out of the crowd so well see.  I believe everyone can have a level of success in real estate depending on the work ethic and making good choices which we all make bad ones we learn from mistakes.  I just wish there was a real not profit organization that was really all about the real estate investing I found one here Ill be attending  soon WCRT Real Estate Investors

 they don't allow any selling at all and that appeals to me.  I feel like I have to navigate around all the gators and snakes to get to finding people who really know there stuff willing to help and don't want anything in return.  I have personally found 2 helpful friends like this and have help me so much (my buddy called the bank and yelled at the president to get me a loan!) and I always try to help my friends in real estate as a pay it forward because if I wasn't shown and helped I wouldn't be in as good place as I am now.

I have heard his basic pitch and this is how it works: (its not a new concept but rather a debt payoff model he's molded for real estate) Also, he's claiming to have the hookups at banks basically claiming that you can buy distressed property with an investor ('which of course hell hook you up) or yourself at a discount then go to a commercial bank and the bank will give you 75% of appraised value so your maxing you the equity but get back the money to reuse to pay off a property or use the money to buy another? He's claiming that if you get a property for 50K spend 20K get a bank to appraise it at 125K then cash out and reuse the money you get 100k refi and get to keep the 30k as an example.  The only issue I have now is your property equity is worthless and now your mortgage is maxed at 100K so lets say the property is making $1400 a month in rent.  After mortgage and expenses your at a break even point.  So your basically getting your money upfront as opposed to monthly spread out again sounds like a finance numbers game with same results could I be wrong? And is the appraisal really the possible sale value down the road? Or is the appraisal overvalued?

With that being said I will say his 2-5-7 program is an old marketing scam they used to sell. I think it was called make Debt into Millions. Basically, if you owe say 10 credit cards and your minimum is $10 dollars pay the minimum on all the cards except for 1. Now take say $100 pay the one down when you free up that old minimum payment you apply it to the second credit card so you see now your paying $20 on the second card after you pay that off you pay $30 on the third and so on. This idea is not new so he saying you pay off all your property in 7.4 years if all conditions were perfect . I have a problem with this where is the monthly cash flow? Great your paying off the properties but you have to wait 7+ years to get the money back I have a issue with the numbers here?

If I make $1000 a month ($12K ann.) that's 84K over 7 years he's saying the sweet spot is not over $125k properties or so. Basically, your paying of your property own it free in clear but never been able to spend a dollar in 7 years (hope I don't get run over by a bus on year 7). So now in year seven you free up about $6-700 a month and you still have taxes (3-400) and expenses so your adding 700 to that total of 84K over 7 years fast forward say 10 years. So if you look at the numbers if you pay nothing down over 10 years you make $120k if you pay it off over 7 years never touch a dime you make $145K. Do you think waiting 7 years to see income is a good idea can never spend it so keep driving your yugo? I'm not sure about that if you doing it as a investor. Basically, you made $25K more in ten years. And the numbers work the same no matter how many you have so his idea of owning 60-90 properties and whos gonna manage them sounds a little ridiculous. I would personally rather have the $120k and get to use it or save it and let the bank carry the note. Anyone have any thoughts on this? Love to hear them please.  I like constructive feedback. ( I did post thisi on another post because I'm going to the 3 day class to see what that's all about.

So, I will be going to the 3 day Andrew Holmes real estate class its gotten more expensive $160 now but you get 3 hot meals! Feels a little like prison.  Well anyways yes he just passed out this USB stick and provides some basic info to some of the stuff he does sell a monthly service for $79 well does it work?  He has 800 members to date so I guess if all 800 were actively attacking the list it might not produce the results your looking for but as an investor if I could get 1 or 2 deals out of this list I might be worth it?  Now as far as joining his inner circle I have a theory if I can make the money as he claims granted I'm capable and have the work ethic would I pay it? NO, not before he could prove that I can make the money.  I think Real Estate gurus should provide "I kick you in the balls repeatedly refund." Which I would love to propose to him and seriously Id love to sign an contract like this (if he had any balls he would).  If your program doesn't work after I pay you thousands I want to kick you in the balls as hard as I can non stop.  So I'll report back on his 3 day I have a feeling that it will provide some basic info but get ready for the upsell.

With that being said I will say his 2-5-7 program is an old marketing scam they used to sell. I think it was called make Debt into Millions.  Basically, if you owe say 10 credit cards and your minimum is $10 dollars pay the minimum on all the cards except for 1.  Now take say $100 pay the one down when you free up that old minimum payment you apply it to the second credit card so you see now your paying $20 on the second card after you pay that off you pay $30 on the third and so on. This idea is not new so he saying you pay off all your property in 7.4 years if all conditions were perfect .  I have a problem with this where is the monthly cash flow?  Great your paying off the properties but you have to wait 7+ years to get the money back I have a issue with the numbers here?

If I make $1000 a month ($12K ann.) that's 84K over 7 years he's saying the sweet spot is not over $125k properties or so. Basically, your paying of your property own it free in clear but never been able to spend a dollar in 7 years (hope I don't get run over by a bus on year 7).  So now in year seven you free up about $6-700 a month and you still have taxes (3-400) and expenses so your adding 700 to that total of 84K over 7 years fast forward say 10 years.  So if you look at the numbers if you pay nothing down over 10 years you make $120k if you pay it off over 7 years never touch a dime you make $145K.  Do you think waiting 7 years to see income is a good idea can never spend it so keep driving your yugo?  I'm not sure about that if you doing it as a investor.  Basically, you made $25K more in ten years.  And the numbers work the same no matter how many you have so his idea of owning 60-90 properties and whos gonna manage them sounds a little ridiculous.   I would personally rather have the $120k and get to use it or save it and let the bank carry the note.  Anyone have any thoughts on this?  Love to hear them please.  Also, love Andrew to post a comment (and my ball kicking refund)   :)  I like constructive feedback.