All Forum Posts by: Gary Dezoysa

The book Millionaire Real Estate Investor said you make money in 4 ways through property ownership: cash flow, paydown, appreciation, tax benefits. Not sure how tax beneficial REITs are but it seems the other 3 get compressed into a ~7% return (the long term return of REITs) when money is put into those public funds for commercial grade investments. 

I don't see the appeal although that could be from a lack of knowledge. Why would you guys suggest REITs over performing notes? I looked into them on this forum and they seem much move favorable (higher returns in the low teens, relatively hands off even if they turn NPN).

Hi,

I'm comparing performing note investing against turnkey properties in higher cash flowing areas (most likely the Midwest). I need to be very hands off as I am out of country.

What is a realistic cash on cash return range for turnkey property investments?

Thanks

You should still apply a vacancy factor with 1 long term tenant, I think the same applies to note nonperformance. Thanks for the feedback!

Hi,

For a passive performing note investor buying from a professional note broker (found here or elsewhere), what is a reasonable projection to use for notes that turn into nonperformers? I am thinking of projecting a 20% nonperformance ratio, I'm not sure if that is wildly high or low for this industry.

Thanks

Hi,

Being on the other side of the world (Asia) I am looking at performing notes as a way to get safe above market returns. The hands-off factor is a big deal to me, I might do a little paperwork if it makes sense to. But obviously I do not want to foreclose, take possession etc if I can help it.

What is the most hands off way for an out of state/country investor to minimize losses on a note that turns sour? Is it relatively easily to turn around and sell a small note or partial interest to an NPN investor? Or would I need to have a rolodex of specialists on hand to be safe?

Hi,

I'm looking to buy a performing note (or do partial ownership) with a warranty against nonperformance risks. 

What is a realistic yield to target for a fully hands off investment?

What are the best companies to source these investments from at smaller amounts?

Thanks

Hi,

American ex-pat living in Thailand here. I've decided not to invest in Thailand for numerous reasons, and also feel sheepish about investing in the US from out of the country even with a local partner. But private lending is on the radar of possibility.

My question is, what is a good minimum amount to have before offering my funds for private RE investment?

Yes I may need to look into adapting to the seasonality by doing vacation rentals like you said. Turnover will be higher but it's part of the local market dynamic. Maybe I can net a higher yield for my efforts.

As for the commercial properties: sadly no, only condos. And even then, only if the building has a 49% foreigner quota – foreigners can't buy after that.

Thanks. The HOAs in my area are usually reasonable. I'll take a closer look to be sure!

Ok, great! Things slow down in late April so I'll wait until then. I thought this would be a more complex decision but I guess it really does come down to whether I can stay rented or not, thanks!

EDIT: on 2nd thought, are the low rent yields acceptable for a serious investor? And how should I factor in the lack of appreciation for the forseeable future?