All Forum Posts by: James Wenzel

Cash flow is tightening a little, however prices will also adjust a little. Look at major metros and locations that have affordable cost of living, limited supply, growing population and job markets etc... Im finding plenty of cash flowing deals in most of the major metros in Texas, Arizona, Florida, Georgia, Carolinas. Need to juice your cash flow, you can always add short term rentals to your portfolio. Usually 3-8x of what a normal long term rental cash flows. I just converted 3 of my single families to STR.

I also started investing more in commercial real estate syndications.  Most of the deals I invest in usually pay a 7-10% pref and typical ARR is over 20%. Last year I had 4 passive investments run full cycle and all returned >30% ARR.   

You really need to get plugged in with a mentor group that teaches large MF investing. Even if you are buying the deal on your own, the brokers want to sell to someone that they know or someone that was referred to them (unless you are going to overpay). Also, large commercial lenders mandate that someone on the team has a solid track record when it comes to large CRE deals before they lend. You might also want to passively invest in a few large CRE deals. Then you can see the reports, analytics, best practices and what they are doing to drive up the NOI. I actually passively invested in 20+ large CRE syndications before I started buying on my own. Actually just started 2 yrs ago and picked up 3 large complexes (139unit, 260 unit, and 170 unit). I did pay a lot of money on a course with a MF investment group and they helped me fill the educational gaps. Also, check out some MF investment conferences. Think they have a big one in Charlotte and Phoenix in June and Denver in July. I will PM you if you want to talk about what course I took.

Tons of meetups in Dallas.  Use the meetup app.  Lots of great networking groups there.  

I use the Meetup app to find local real estate and MF meetups.  Looks like there is a bunch live and virtual in those areas.  

Investors and investment equity groups have to put their money somewhere. Options are the stock market, crypto, precious metals, real estate, businesses, or stay in cash etc... For me its real estate if: 1) Invest by location - areas with limited supply of housing, growing population, growing jobs, like Texas, 2) Invest 80% of capital in cash flowing assets - When you cash flow, you can just hold through the rising interest rates, and benefit from principle pay down, equity growth, tax benefits. 3) STR - great way to start off and juice cashflow 4) Invest with large CRE projects in solid locations - Let the pros deal with the interest rates and project hassles. I have invested in over 20 of these and they typically get deals that will be able to weather the rising interest rates. Usually get approx 20 - 40% ARR on the CRE deals.

The goal is to make yourself and investors money.  Maybe have a threshold of profits or bookings before someone can cash in discounted or free nights.  Of course if they stay, cleaning and admin fees will still need to be charged.  Make sure you just put in writing.  

We do 2 nights on the weekend and 1 night during the week.  We typically fill up 90% of the month even during the slow season.  We also have the best product fo the price in the area and use a pricing tool keeping us competitive in the market.  

It depends on the location and local regulations. Most major cities and HOAs are limiting the amount of STR in a certain radius. If you pick the right city and location with low supply, growing population, growing jobs, I think prices will continue to go up. A couple of ways to protect yourself is buy the property at the right price/not overpay so your overhead is low. If you also provide the best product, best customer service, and best price, you will be just fine and still be very profitable.

Dave Ramsey and paid off debt. Bought some single family long term rentals and short term rentals. Saved the cash flow to buy more. Then did the BRRR method and pulled out a bunch of cash and rolled that into commercial passive real estate investing. Now actively buying my 2-4 of my own apartments as well as passively investing in 3-5 deals per year.

Take a look at using hard/private money into conventional loans.  You can pick up more properties quicker that way with less out of pocket.  It might be slow initially, but as soon as you do your first cash out refi, thats when things start to accelerate.  You can also look at wholesaling, flipping, notes, etc... to pick up some extra cash initially. 

The bank you are refinancing with does not do cash outs on investments.  You need to find another lender ASAP or just do the 75% loan now.  I have cashed out refinanced at least 20x in Texas SF investment properties.