All Forum Posts by: Jeff He

Oh that's very interesting. I've run into a couple investors who find friction with closing costs. I'm keen to understand why that is. In your opinion, what do you find frustrating around closing costs. Is it difficult to gauge the closing cost numbers before closing, or are closing costs high enough that they're hurting your returns?

How much time and effort would you say the paperwork takes? If you've used different lenders, does it vary between lenders? 

@Sachin Amin

What about the single family deals don't excite you anymore? Is the challenge with scale that it's hard to keep tabs on everything? Are you looking for new property classes/strategies like STR or self storage?

Or are you looking for a more passive real estate experience?

wow. $4000/m rent and your mortgage is $800/m? Keep it! What's your insurance cost + property tax? Also going to need an estimated maintenance and capex costs to calculate COC.

How did you hear about them (I don't invest with them) ?

It's supposed to help people with lower savings/liquidity. They might have be rich on paper (own a $1M in SpaceX options) + have strong income, but poor in cash. With the restrictions under the Dodd-Frank act, you're very unlikely to see a situation where a homebuyer gets a mortgage they can't afford.

Do you plan to self manage the property or hire a property manager?

A lot of it will depend on what the market rent is in your area. If the cash on cash return isn't high enough, it'll probably be better to sell and reinvest the capital into a property with a better ROI.

Hi Raul, 

Oh no, I'm sorry to hear that. At least you made a good profit! :) What was the COC return you were getting on those properties and what sort of cash flow numbers are you looking to hit on your next one? Do you have a preference for in state or out of state investing. Including out of state might open you up to more options.

@Jonathan Bell

I was lucky to meet mine in college, and it's been a blessing.

@David Francis

I'm a firm believer that there will always be value. Some years it's going to be harder than others to find it though.

A common strategy used in investing is to dollar cost average into an asset. Instead of spending all your cash in one year, you spread it out over time. This makes price volatility less of a concern.

What's your liquidity need? Are you looking to invest the capital into a property for at least 7 years? Are you investing more for appreciation or more for cash flow?

Do you prefer to put the entire amount into one property or would you like to see it diversified across multiple properties?