All Forum Posts by: Magnus Wikström

Hi Gregory,

Have you got any interesting deals?

@Lesa Simonyi Good point. So you should be able to pick up about 20 of those with high leverage and net say $800/mo on average. You'll easily surpass your goal. Although it's probably not that passive to manage...

Good luck

@David M. I'm looking to do this in the US, but I'm still not sure if I will target Swedish/Nordic investors or US investors. Hence it would be interesting to hear thoughts. It wouldn't be possible to do anywhere else in the world and get those nr's other than the US, thanks to the financial market. Why I'm hesitant towards the Swedish market is because they're extraordinarily locally focussed, and very risk averse. I'm slightly afraid of competition, going towards US investors, and running a higher risk of investors trying to bypass the middleman.

@Carlos Ptriawan Not bad.

If he's got a lease agreement it's a simple DSCR loan.

I recently looked into rental yields in all Eastern US for myself and concluded some of the higher crime cities were the most attractive in my opinion. My shortlist included:

Cleveland OH

Mobile AL

Jackson MS

Memphis TN

Augusta GA

All with plenteous cheap property available. Although with varied economic outlook in the cities... Would be interesting to hear thoughts.

I looked into the Tampa market myself 6 months ago and you'll certainly have continued appreciation - One of the most appreciated markets in the US in recent years. I've heard loads about NC, particularly Raleigh too, there's a lot going on there. Should have some bloomy years ahead. Columbus OH is from what I know cheap, but you likely won't have the same population growth as in the other 2, and I would expect rental growth to remain fairly flat.

I short: Tampa has stable appreciation and a very strong rental market, which will probably continue.

NC, I'm saying Raleigh then, has perhaps the most potential upside, but I'm not sure how far the "boom" has come, would need more investigation.

Columbus OH, you're buying cheap and may get the highest rental yield but you may miss out appreciation gains, which can give you the real equity growth in the longer term.

Tampa safest (investment)

NC (Raleigh) most potential upside

Columbus OH best cash flow in the short term

An advanced guess.

$500k is not little money. It should give you purchase power of buying a property of $2m+. You'll certainly take on risk but not taking on debt will limit your returns. Even not taking on debt, you'd need to take on risk, either via a strategy such as @John Underwood - very impressive, or purchase in somewhat risky neighbourhoods.

Short answer - you could reach those goals but you'd need to be very aware of what you're doing. As an artist with no investment experience or background you likely won't reach those nr's.

I'm actually setting up a business where you'd reach far better numbers than that, but not via monthly cash flows, rather via semi-annual to annual. Partnering with GC's in their spec homes, passively. But it's another story.

@Carlos Ptriawan How would you hedge it?

If you're pleased with 5%, absolutely... Or 15-17% on rental. Ye, it's not bad.

@Carlos Ptriawan, TSLY/QQQY/OARK seems like an interesting product but you always have the risk the ETF drops in value.

@Arn Cenedella It's a good point you're mentioning about the very good deals not being available to retail investors but the good thing about real estate is that this is only partially true. Deals are everywhere and creativity forms our boundaries.

I'd like to hear some quick thoughts on this, as I'm planning on setting up a business -

(I've studied Private Equity at Imperial College, real estate investment at Oxford University, and have a background in real estate finance in Europe. I want to make an actual impact for retail investors in the market I'm choosing)

I'm planning on offering partnerships with builders in their spec home projects, meaning track records exist of virtually identical projects, sale time is foreseen + costs and sales price at a quite a high level. I'm already setting up the financing for the builders, so there will be a financing package with each builder's projects. Ownership is maintained of the project by the investor throughout the cycle of 7-10 months. Only in strongly expanding areas (main focus SWFL). Leveraged IRR 100%+ for top builders, 30-80% for more standard builders, depending much on financing conditions. Would there be an interest? Any thoughts appreciated