All Forum Posts by: Kirby Davis

@Jay Hinrichs @Dave Foster - you guys are too funny. Giving us advice and comedy. Where do we send the cover charge? 

 Ok, @dave foster - you said I called @Jay Hinrichs old when I said I appreciated his wisdom, but that doesn't even compare to how you just called him out. :) 

 Got it. Thanks, Joel. I knew there had to be issues, but for educational purposes I wanted to know what they were. Appreciate all of the info. 

I have no experience with ground leases, so I’m seeing if anyone can tell me the issues with this opportunity. 

Apartment building for sale, 12% CAP, triple net, leased (leasehold) to an educational institution and used as dorms. 20 year lease, 4 5-year renewal options with 2% annual increases built in. Sounds great. But... it's on a ground lease from the city it's in. 45 years left on the ground rental. The tenant pays the ground rent.

What are the issues? What questions should be asked? Is the ground lease a deal killer? It’s been for sale for 2 years, so there’s got to be issues, right? 

@Sejj Jackson

@Avtandil G. Oh, those numbers are definitely always fudged. What I find frustrating isn't so much when it's actually based off a seller's numbers and took some work to reveal. It's when it's so dang blatant that there's absolutely no integrity on the part of the agent. I've had a local agent call me with "deals." One he owned himself and kept saying it was a 10 CAP... basing it off gross income and no expenses. Then, every time we talked, which was frequent because he kept calling, new expenses would come up. He also tried to sell us an industrial property with some of the most made up financials I've ever seen. Rent rolls changed significantly every time they sent us information.

List prices and cap rates are almost irrelevant. Run numbers, make offers that make sense, take the wins when you get them.

@CJ M. Are you purchasing from a turnkey provider? You said they’re already rehabbed?

What price point?

 Thanks, Brian! I'm hoping to have a little fun, get some more education, and maybe find something that looks interesting enough to get a deal going. :) 

Any Kansas City (KC) folks (wholesalers, agents, investors) with advice or who want to grab lunch, let me know. 

@Jameson Hooton I totally understand what you’re saying. We have a business that we run, and the return on your time is extremely important to me and is a key factor in why I’m trying to increase my focus on real estate investing. Realistically, however, if there’s a better return on my time elsewhere, I want to know. Personally, I’m looking to maximize how much money I can make in the least amount of Time. Not saying I don’t want to work, but I also don’t want to bust my @ss for an 8% return when I can make that completely passively.

At the end of the day, I think we are all trying to maximize time to do what we love - spend time with family, travel, whatever it is we want to do. So what we are getting out of the actual time we put in is important.

@Christy Philippoff congrats!!