All Forum Posts by: Charles Kao

@Neil Henderson

This surprises me because if operator is that large tom absorb loss how would they not have another bank lined up to step in especially with history to show performance prior to extenuating circumstance.

@Jay Hinrichs I would agree. I have had bad PM but unless you are thinking they are purposely ripping you off just leave it. I still

do business with a PM company that did a bad job for us because they manage

a ton of rentals so are naturally a source

of off market deals and referrals for us. People

judge you just as much when things go bad as when they go well.

@Jason Gines

Its still marketing turnkey operations and the less they have invested the more likely they allow others to put junk on there. Your

case seems different because you are doing quite a bit of your own research as well. The more properties they get on their marketplace the more money they make so they are basically a glorified MLS because they are marketing themself at a discount to the typical real estate transaction.

@Jack Medford @Frank Wong

Frank is exactly correct, you are assuming you invested at the right time for those gains with hindsight. If you invested in BitCoin during that period of time you could have lost half your money. Its volatile because its a sentiment driven commodity not fundamentally driven.

@Tyler H. What I would I do is probably different than what you should do. 250k is alot

of money to do damage but I'd just buy the best investment you can and not focus on just 10-12 units. If you own a small portfolio of small multis you probably have the savvy to manage a multi, and you might be able to get an apartment owner to land contract you an apartment building. For us every deal so far although that likely will change

we go in 100 percent capable of closing the deal without investors. It just so happens that we have not had to as investors recognize the deals and also recognizing I am not as "proven"

as some other syndicators I gave them them

more equity. If you own 10-12 units whether its

12 SFH or one 12 unit I think an apartment owner would realize you have the savvy to manage 40-70 units. A deal

I am working on now on land contract for 66 units the sellers did not entertain it at all but after getting to know me and have their CPA reiterate the benefits of a land contract that I communicated they now are willing to do 10 percent down. I also

looked at the opportunities of financing. I found a lender that does 100 percent financing

and another that does 90 LTV so I look

for deals that meet their criteria because my spending power increases. If you just focus on finding good deals AND how to execute on them you will be fine.

@Vidar K.

Bitcoin will never outperform

real estate. If Bitcoin is around in 20

years I will be surprised. The concept

is great but the federal

government just has to create its own federally backed cryptocurrency and cryptocurrency is done.

https://www.chicagotribune.com/business/ct-biz-quadrigacx-cryptocurrency-passwords-20190205-story.html

There is a new cryptocurrency everyday and like the early 1900s when each bank in a state got to print their own money unregulated currencies fail.

@JC Wu @Jason Gines

Problem with these turnkey operations is they get greedy or they get pressure from

their investors or board of directors to keep growing. Eventually all these turnkey operations go south because they have to take risks to keep their investors happy. Their performance is not in alignment with that of the investor buying the properties. Your investment performing well, great so are all of the others because its the hottest market we've ever had.

@Ryan Hill Stay with your number unless you get new information that makes you change it. You always lose if you get too hyper focused on a deal. I see this all the time with small commercial deals where investors won't back out because its the first deal they have even gotten close to. Its why I like to try to sell

off market to a newbie investor and leverage if they don't give me my price I am going to just put it on MLS. The most leverage you have is when you don't care if you don't

get a deal. Is that hard to do? Absolutely.

@Sean McKee

For that size when I am buying I value it on cashflow since its 30 year fixed financing so no need for cap rates. For resale I look at sales

comparisons.

@Amber Saulsbury

I'd focus on finding deals instead of all the taxes on the back end because you never know what will happen down the road. Maybe they will get rid of the 10k salt tax, maybe they won't.