All Forum Posts by: Ken Naim

@Matthew Irish-Jones just because a strategy is easy to define doesn't mean it is easy or hard or that it is risky or safe. Learning to play chess takes 5 minutes but a lifetime to master.

Brrrr like any other investing technique is risky. When done properly returns can be great, when done poorly losses will be great. Real estate is a high beta investment with buy and hold being on the lower end but still higher than an S&P 500 fund.

The nice thing about most real estate investing techniques including BRRRR is that knowledge and experience matter. Returns improve and odds of large losses decreases. This is not true with stock investing for example. Professional money managers don't beat the market 70% of the time.

Everyone pushes the technique that works for them, BRRRR, buy and rent, flip, wholesale, commercial, preconstruction, NNN, daytrade stocks, amazon fba, cryptocurrencies, mutual funds, penny stocks, gold, oil and gas drilling, letc. Etc. Etc.

Everyone that wants to invest successfully needs to figure out what works for thier temperament, skill set, personality, risk tolerance and then has to commit time to educating themselves and even money towards experience (losses).

Real estate doesn't offer the best risk adjusted returns neccesarily or the best returns but it is one of the best investments that gives the investor the most control over his risk and returns.

@Christine Zharova Hi Christine. I bought a 40k sqft warehouse in Florida last year. Do you have specific questions or just want background information?

@Mariel Painter-Chapman #2, 1 will lose some potential buyers for sure. If there is room in the budget or you can save somewhere else then #3.

@Johann Jells Yes, but is that appreciation likely to continue? Also you cannot live on appreciation. Ideally you have a mixture of both.

When a property appreciates more than the market around it, it's a good time to take advantage and invest in another property that has potential to appreciate in a similar way while paying you more money to hold it.

@Jesse Stein with $100k down, and 325k appreciation and 12k/year in cash flow, your return on equity is pretty low around 3%. You can do much better. Conservativly you could double your cashflow, if you were a bit more aggressive you can make quadruple it or much more. Sell it and but 2 quads.

@David Kochubey welcome David. I'm just south of you in lake worth. I'll dm you some meetups in the morning

@Shanai Rogers Hi Shanai. Remember that the tax deed auction you buy the rights to foreclose on the deed and any interest or fees the county collects if the owner doesn't pay within the cure period.

If the property is owned outright by the owner ie no mortgage then there is a 99.9% chance they will pay up or sell as they arent going to lose 300-400k.

If the property is mortgaged the bank will cure the note as they aren't going to lose say 200k over 10k.

In many states large institutions will buy up/bid tax deeds for what seems like small profits as even 3% return in 3-6 month will juice up thier numbers.

You can still mske good money with tax deeds but making a grand slam l iike the example you gave is very rare.

A more realistic scenario is taxes are behind for several years. Owner owes 28k for a 400k arv property which is awful shape and needs 175k of work. So you have a $75k profit.

@Nick Johnson glad to help. Feel free to contact me with or post any questions.

@Nick Johnson commercial real estate has a different lingo but the concepts are the same. The main benefits are th as t you can create appreciation and the property is more important than the borrower's credit.

Commercial property advisors has a free online course that'll teach you all the lingo and concepts. If you can't find a, send me a dm and I'll find it for you.

A small learning curve but lots of possibilities to create deals.

@Sandy Metivier commercial property advisors has a free course and many YouTube videos. I found it very educational and a great start.