All Forum Posts by: Jarrod Kohl

@Jeff Licciardi R.E. investing is supposed to be a almost scientific type of investing where the investor has the ability to control every aspect of the investment ; unlike investing in Stocks or Bonds where the investor has little of no control over how companies functions etc. But that is far from the truth because this is not liquid , and you cant control the lending rates/closing costs, contractors , inspection etc. And the various REI "experts" all disagree with each other on what type of investment works. They say , "it depends" ,but are never shy to dismiss a method of investing. Buy and Hold investors diss flippers,whole sellers ; sydicators diss SFH investors; SFH investors diss MFH investors ..and note investors diss holding physical investing , individual investors diss Turn key, investors vastly disagree on what price,what area you should be in, neighborhood you should be in , how long you hold, investor in state or out of state. And in all this , Real estate investing is EXPENSIVE , its not cheap...so you take this massive risk on a non liquid investment that if it goes wrong ,you cant easily get out of. The people who are already set and made money in R.E.I are simply selling real estate to the wanna be or soon to be and making them believe that they can make it too

REI and Stock investements can be very similar. Think of it this way, some people buy and hold (with all kinds of variations) this has worked well in both Stocks and in RE if you have a well spread portfolio and hold long enough you will almost always make money. But it might take 20 years. So many people want something faster, which is fine, but it also has a lot more risk. Again this is true in REI or Stocks. In the end you try to find something that you are comfortable with and really deep dive into that, spreading your type of investments all over the board is tough. Lastly, it seems easy to have less money to "play" with stocks, but in reality you are not likely to make much without putting much into the market.

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Originally posted by @Michael Kiley:

Originally posted by @Tim G.:

I'm really bored and I don't feel challenged professionally. Not sure if this means I need to move into another asset class or do something different. Money isn't a motivator like it used to be. I need a creative outlet and way to give more purpose to my work.

I've been fortunate to spend the majority of my time doing meaningful work with quality people. Every day I get to use my hands and create something beautiful that's tangible and purposeful rehabbing houses. I've rehabbed homes all over Cleveland almost exclusively by myself and someone I enjoy company with. It's a good life, a rewarding one...but here's my "problem" I listen to what other successful investors have to say about creating a passive income by developing systems and hiring teams to do all their work (deal finders, contractors, brokers, property managers...) I know this makes financial sense and it's smart...but at the end of the day, I don't find it satisfying. My problem is that as much as I would like to enjoy the fruits of a scalable business, creating one is as exciting as filing my tax return. So in conclusion, I think that happiness must lie in the balance. I feel that we all need an outlet for our creativity and if we don't allow it, life gets boring and we lack purpose.

Maybe the key is starting small. So instead of creating a big company, just find a contractor that you like so that you can start doing two deals instead of one, or at the very least you could finish things faster and scale that way.

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I would say short CDs or T-bills, failing that, then yes maybe just a savings account that can give you a little something.

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Not sure if you will read through this whole thing, but as others have said, I would probably find another agent. Offering less than list is fine, but on this particular property I have no idea if it is a valid price you are offering. Just be aware that you may piss of the seller, but then again they may be very happy to have an all cash offer even if it is low.

A buyers agent doesnt have to submit all offers, he can say No thanks I don't want to represent you. A LIST agent does have to present all offers even if it is "crazy"

I would also say another reason for not using that agent is that I would worry about the offer presentation. "yeah this guy is an idiot and thinks he can get it for $XXX so just let me know if they want to counter...." rather than a more positive sell to the offer

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You don't need to get a license to work on your own properties and if you are just using it to "save money" on RE transactions, its probably not worth it.

In most states, you will need to be "under" a brokerage, this can be a large chain like Keller, or even a friend who has a brokers license and allows you to "hang a license" there. I would say it is really only useful if you want to do it full time, even if you only want to do it full time for a year or two and then focus more on your own company.

Not sure how long it would take to get a brokers license in WA (next step above RE) in some states it is as little as a year, others there are education/deals and other hurdles as well as requiring a few years.

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Hi Ezra,

I would be happy to talk with you about property management. Most of the properties that we look after are in Beacon Hill/Back Bay and the South End, but we are looking to expand.

Thanks,

Jarrod

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Boston, Massachusetts

Originally posted by @Josh Oaten:

@Jarrod Kohl What are the sorts of key trends that you will specifically look for or those that will catch your eye?

It depends on what market, but big trends or large employers moving to area or adding plants, colleges adding programs etc. Hard to say exactly, but I think it gives you a little more general knowledge on the area.

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If it is a specifc market I also suggest the local paper of that area, though some are better than others certainly, it can help with greater trends in the area that are happening.

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Originally posted by @Stephen Swiatek:

@Ben Leybovich Know you mentioned stainless steel appliances and I love the look myself. Had my eyes opened the other day though on a new apartment bus tour I went on and saw many of them going with black appliances. When asked for the reasoning they all came back with the same thing and that was that stainless looks great but stainless shows every little scratch...especially with the fridge magnets. Consensus was same rents with black and less maintenance costs and just look better over time. I know black tends to be a bit lower in cost so this may be of help...

I also like Black applainces, if I can avoid stainless in rentals I tend to get black ones, the white one get old fast and look cheap and the stainless is nice, but I don't know that people really pay extra for it. I have usually found that apartments with Black appliances rent just as fast as the stainless ones.

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Originally posted by @David Cahill:

You are right about the property management bit in that three-families generally require more maintenance and upkeep vs. condos, but the returns are fare more superior.

I wish I had a crystal ball about the potential increase in areas, but here is an off the cuff answer for ranking:

Dorchester (it's complicated - Dorchester is so large!)

Everett

Winthrop

East Boston

Revere

Roxbury

South Boston

If you as 10 different people you would probably get 9-10 answers on that. I would focus on a few areas and look for good deals. As Charlie mentioned (who by the way knows his stuff) deals are tough to find right now in any of those neighborhoods. I would personally rank them with South Boston (depending on where in South Boston) and then East Boston (with bonus Amazon gamble) then Everett, Winthrop, Revere and Roxbury. BUT some of the properties you find in Roxbury are going to be a much better investment than East Boston or South Boston.

Really no harm in looking at ALL the neighborhoods since the market is so tough right now and any great investment is going to be swarmed by investor cash. Just watched a Beacon Hill condo get listed for 500 and get 6+ offers for over asking in less than 3 days.

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All Forum Posts by: Jarrod Kohl

Jarrod Kohl has started 8 posts and replied 206 times.

Post: What is your biggest problem you face right now as a REI?

Post: What is your biggest problem you face right now as a REI?

Post: Where to stash cash for short term?

Post: Making offers on houses but the real estate agent isn't happy

Post: To Be or Not To Be - Licensed

Post: East Boston / Chelsea / Boston property management

Post: What Are Multifamily Investors Reading?

Post: What Are Multifamily Investors Reading?

Post: Appliances for 98 Units

Post: HELOC or Cash-out refi