All Forum Posts by: Jeff Petsche

@Dan Mumm thank you for your reply and great information to digest. 

I am looking for longer term wealth/passive income at this stage of my life and yes I would want someone to manage it for me, so I will always take management fees into consideration. 

I'm 53 years old, semi-retired (retired police officer earning a tax free pension, but still operate my resale real estate business with referrals/past clients). My girlfriend/partner has a corporate VP executive position and makes great money, so none of our investment income will be needed to live on. 

We have an 8 year plan with leaving California and would like to be in a position where our passive income from investments matches what I currently earn in retirement pension. 

With that said, I've ran some ROUGH numbers and if I can cash flow $250 per door, I'll need 2.75 purchases per year for the next 8 years to hit my MIN number. 

Is anybody investing in properties where short term rentals (AirBnB) make sense and if so, what's the success you've had and what should other AirBnB investors look for if going into that market? 

Also, now that AirBnB has been approved and is legal in the Las Vegas/Henderson market as of 10/14/2019, is anybody investing or researching this opportunity? 

I have a friend who is a Realtor and she says Clark County is due to approved/legalize AirBnB within a year.

She's really big on this investment class and get your thoughts here because I have zero knowledge in this space. 

Thanks to all who contribute. 

@Menard Sampson thanks for the reply and we do enjoy life, but still too young to sit back and do nothing. 

Time to take my 16 years of real estate experience and put it to use in a different way. Plus my girlfriend can't pull the plug from her career for seven more years, so going to have fun with the RE investment journey. 

And don't ever settle for "it's enough". It's never enough and we should always be striving to achieve more wealth. If not for us, then to help others. 

@Jennie W. we have and I'm looking at a 420 unit apartment offering in Florida as we speak. $100K investment for 5-7 year hold with 6% PREF, plus % of equity upon sale. 

@Terry Lao I'm 100% confused by your post and the assumption of GREED, but I don't mock opinions. 

I sent you a more detail message PRIVATELY. 

Thanks for your reply. 

@Anthony Rosa thanks for your reply and you are correct about I know what a good deal looks like, so why pass it off to an investor when I should get it myself. Short Answer: The cash to buy it myself and/or lack of partners to go in with at the time. Don't have that problem now. 

As for being comfortable, yes I am and it's paralyzing at times. As for investing OOS for a few hundred in cash flow per door and not being worth it because of lower appreciation, not that's not it at all. Just need to identify the type of sandbox I want to play in, get out of analysis paralysis, find the market that makes the most sense for me/us and write offers. 

Leaning more towards multi-unit (2-4) because of more doors and less loans. One loan for a fourplex X 10 loans is 40 doors (more cash flow and more doors for my max loans) as opposed to 1 loan for a SFR X10 loans is 10 doors (less cash flow and less doors for my max loans).

Your thoughts on TURNKEY vs. FORCED APPRECIATION investments? 

@Terry Lao I already know SOCAL won't work (in my opinion) because I love here and represent clients here. I'm born and raised in SOCAL and have been practicing real estate here since 2003, so I've seen the markets you mentioned and was part of that boom/crash market. Bought a house (primary) for $270K and got to $689K in 3 years. STUPID and artificial appreciation. 

As for Vegas, yes it's an option, but I need to look into their rental laws. I believe they are like CA, in that it's a tenant friendly state, but I'm not 100% sure, so don't quote me. 

And, NV (Las Vegas) is like CA, FL and AZ where it's considered a BOOM/BUST state, so not sure I'll be going into that market. 

I believe you can find four unit properties for under $300K in other, more stable markets. 

Thanks for your comments. 

@Terry Lao

@Remington Lyman not sure if you are making an assumption that I won't put work in. I've already flown out to Columbus and checked out the market, so I have no issues putting in the work, the time, the financial commitment and making things happen. And if the deal makes sense, I have no issues writing offers. 

Looking for deal flow and I'll put the work in to analyze and coordinate a team on the ground. 

Thanks @Joe Homs for your reply. Not sure what being a retired police officer has anything to do with my "overshare" post as you put it. Should police officers be different and not share more than others? 

Anyway, thanks for the advise and I've been involved in FLIPS here in SOCAL as the Broker representing the investor, and sometimes I seem to make just as much in my commissions than the investor did after the FLIP, and I had no risk. 

I don't see the $80K profits you mention here in SOCAL like maybe back in the day. I'm seeing FLIPPERS go for deals with very little spread ($20K to $25K) and a lot more risk. 

I just recently went to a live onsite auction of a property in Huntington Beach that had a starting bid of $455K in a neighborhood where ARV comps were $715K to $720K. Two days prior to the auction there was an inspection period window of two hours, so my partner and I went with our contractor. After our analysis of the home, our top offer would have been $515K because there was at least $120K in REHAB, using the existing footprint and not building up or out. It was a total gut if not a tear down. Fifty people showed up for the auction and 35 were active bidders. The property sold for $690K...98% of us were like WTH....No clue what they were thinking and even if it was an end user who's going to live in it, they are still going to overbuild/rebuild for the area. 

Anyway, I'm finding here in our local market, everything is getting way over bid and I haven't seen anything close to the $80K you mentioned in your post as a profit on FLIPS in Orange County and surrounding areas. At least not in my observations. 

Also, I'm not interested in a transactional type business like flipping. I'll be the private money guy on a flip with a return criteria I have set, but I already have a transactional real estate business as a Broker, so I'm looking for more passive investments and buy/hold in our part of SOCAL does not pencil. Maybe more high desert, but not in our backyard. So OOS I look! 

@Stephanie Money thank you for your response and yes I agree that my "WHY" is part of my issue. Meaning, I fall into a very complacent place day-to-day because I already earn a pension that will fund my future life, and Amy too will have things in place to provide us a nice life at retirement..at least a nice life for US. We are very simple people, so what will be needed for us to live comfortably is already in place. Thus, why I get complacent on chasing the all mighty dollar. In fact, I have a sticker on my truck that reads: "I Chase Sunsets, Not Paychecks". 

I agree that I/we need to dig deeper and ask ourselves WHY we want to invest in real estate and what is our end goal and purpose for doing so. I can tell you it's not to fund our future life because we are already there. It will have to be for something other than that and it will need to be BIG enough for us to move forward. 

Again, I appreciate your comments and I trust you are preaching your own words to yourself and your situation. It's awesome that you are thinking about this stuff at your young age. I wish I had people in my circle when I was 25-30 years younger telling me this stuff. 

Good luck to you Stephanie Money and thanks for the connection. 

Jeff