All Forum Posts by: Gregory Schwartz

@Assaf Kehati  This question makes me think of the quote, "the best time to invest was 20 years ago, the second best time is now". If you're in it for the long hall and hit your numbers then you should be able to weather the storm in the long run. 

@Jim K. dude you might be my favorite person on BP right now. I honestly enjoyed your worst case scenario story. I will do my best to support the widow. I’m thinking about putting some money aside for college tuition so I can create a future for her unborn child. If I put 15k in an index fund for the next 18 years I can just about cover a decent in state tuition. I understand your perspective and will do my best to prevent catastrophic failure. The true reason/need to invest from a distance is my W2 commitments prevent  taking “vacation time” for the next year or so and I don’t like the local market. As such I am building the appropriate checks and balances to cover those damn loose stair treads. More than anything else I will rely on my Schwartz. 

I really do enjoy everyone's comment and suggestions. I'm not apposed to visiting Huntsville but its very hard to get time off right now and I don't want to let a set back prevent me from finding a good deal.

 @Dumitru Anton, thank you for the recommendation, I do plan on relying on the military focused sub forum to help me with specific challenges.

@Jim K. I've never had anyone recite Italian poetry to me before. Much appreciated. You mentioned mistakes, there have plenty of those. When analyzing risk we have to look at the absolute worst case scenario and the probability of that occurring. Worst case, my agent and inspector lie to me and I buy a **** hole property. Then, it sells for 50% of the comps and I loose 80k. Its not highly likely and will set me back 3 years worth of savings. Based on that, I'm willing to accept said risk. I wont tie up enough in this deal to be bankrupt or "broke on the wheel of life" or god forbid "shamed".

@Dave Lawrence thanks for the vote of confidence. I'm working with Matt Curtis' real estate team but I'll keep Bert in mind. I have heard many times that Rocket City is great, so far I'm very impressed.

@Thomas S. , "punch to the face" refers to the struggles that I will encounter as I grow. I have spent the last 2 years studying, reading, listening to podcasts, and taking advice from this forum and other investors. Historically anything in my life that has been worth a damn has had its fair share of obstacles to overcome. Reading "Fundamentals of Fluid Dynamics" doesn't make doing the problems simple, interviewing recent graduates about the struggles of boot camp doesn't make a 15 mile hike with 100lb easy, taking advice about how to fly in formation 100ft from another aircraft at night doesn't make it easier (or any less risky). When I chose to step up to these challenges I was neither "naïve" or "overconfident", I was prepared and determined, as a result, I'm now a better engineer, Marine, and pilot. That's how I'm approaching this challenge, prepare as you mentioned by learning from others but then taking the leap and inevitably making a few mistakes of my own.

Great post! This helps to reconfirm my decision to start making offers on small multifamily in what is clearly a promising town.

Thanks, everyone. I really enjoy the multiple perspectives. The point @Alexander Felice makes regarding risk being a math problem resonates with me. The risk is worth the reward (at work we call it Operational Risk Management). The goal/reward here is to develop a process, much like David Green mentions in his book. If I take a few punches to the face in the beginning that fine, it's not going to kill me and will only make me a better investor for years to come.  

The ball is in the seller's court now. I'll post again when I hear back!

I blindly signed a 8 year contract with the USMC that has turned out all right. This seems less risky than that. I feel comfortable with the team so far and have had good recommendations from BP members. 

Win or lose on this deal I'll keep you all up to date 

Thanks for the support. I do have a high risk tolerance due in part to being relatively young (30), having stable income (military) and setting my personal finance/retirement on autopilot with a course set for a comfortable retirement at 65.

@Ruthber P. I appreciate the guidance. In all other aspects of this deal I plan on taking the conservative route. More than anything else I want a proof of concept for out of state investing, so that I can continue to take advantage of the best markets.

This first property will be in Huntsville AL.

BP,

Kinda freaking out a little, just made my first offer on a property from 700 miles away in a town I've never been to, on a quadplex I have no intention of ever seeing in person. To clarify this would be my first investment property. Basically, I'm taking a leap of faith, using lessons learned in "Long-Distance Real Estate Investing" to hopefully build a passive income stream. 

Hope my research pays off.

Basics on this first deal... 

Quadplex (Four x  2 bed/ 1 bath)

Asking 170k

Offer 155k

Rent per month: $1640 (market supports $1800-2000)

I'll try my best to provide updates on my huge success (or major flop)!

I appreciate all the advice.

@Annie Dickerson , I've heard some really good things about Rocket City.