All Forum Posts by: Account Closed

Account Closed has started 141 posts and replied 4068 times.

Originally posted by @Terrell Garren:

Originally posted by @Account Closed:

Anyone know if there is an 'ignore' function on BP Forums?

Very,very funny!

0 Votes

Originally posted by @NA Whelan:

I have been living in the same Apartments since February of 2014. I usually sign a year's lease at a time with a small increase in the monthly rent. We also have to go with a certain cable internet company which is included in the rent and water at a discounted rate. I just received notice that my renewal is up and the increase of rent and cable exceeds $100. We are forced to pay the cable / internet which will now be over $100 a month. I understand a small increase but over $100 a month combined rent and cable service I think is ridiculous and I do plan on speaking with the manager to find out exactly what is going on

Have you tried buying a house and saving the hassle?

2 Votes

Originally posted by @Joey Gong:

Hi, I am in Orlando just evicted a tenant for failing to pay rent. However he left a car in my front yard. The tenant is not responding, how can I get rid of the car?

Depends. If you actually want to get rid of it, you push it into the street and park it so that it is a couple of feet into traffic. Then you call it in as a "traffic nuisance". It will be towed away rather quickly. But, I did not suggest this and if called upon in court I will deny it. ;-) It works, just don't ask me how I know.

0 Votes

Originally posted by @Michael Plante:

Originally posted by @Account Closed:

Originally posted by @Michael Plante:

Originally posted by @Account Closed:

Investing in multi-unit properties even as small as 4 units. It seems like millions and millions of investors have their heads buried in the sand and they have single family homes burned deep into their small brains. I seriously want to punch brokers who tell me you can make as much with single family homes as multi-unit properties and I will challenge any real estate broker or investor, any day. and that is no b.s. nor joke. Bring it on! I love a good argument.

Very interesting

any guess why Blackstone chose to buy 6 Billion dollars worth of SFH to rent out VS buying multifamily?

Sorry! I disagree 100% and would like for you to tell me why Blackstone purchase $6 million worth of single family homes.

I won't use the word 'perhaps'. I will bet that Blackstone would have been better off purchasing multi-unit properties.

The book 'Be Obsessed or Be Average' written by Grant Cardone is actually a fairly-well written book considering he dedicated one chapter explaining how he is a recovered addict, turned his life around and became a multi-millionaire. Personally, I think the Grant Cardone is a super bright person and he still has some serious flaws, but one thing he preaches very heavily is the difference in profits earned purchasing multi-unit properties vs. single family.

The one main thing that Grant Cardone does not teach is how to do the simple math that the BP calculator does and the math similar to the images I posted.

I will say this over and over and I would like for you to prove that Blackstone made the right decision and I would like for you to prove that I am wrong in regards to anything I write. I'm betting tire of saying the same thing over and over and I love the challenge. I've been writing on many forums for many years and I always say that I will prove the accuracy for what I write and I will apologize when I make a mistake.

Please! Can some expert show me the proof where you can earn even close to the same money with single family homes as you can with multi-unit properties. I showed you my number and now show me some proof that I am wrong.

I wrote on a contractor forum for many years and some members kept writing posts saying that my plumbing company did not make the money I claimed in my posts. So, two members from the forum came to my business and as soon as I showed them one bank statement and my customer list database where we could pull up all the sales for one month they didn't want to see any more and they wrote several positive posts about the claims in my posts.

When I write that I made $34 million plus $2.4 million = $3.6 million between 2001 and 2021 with a little more than $2.2 million in cash then I guarantee you that I can back up that claim with a list of my assets and a few tax records. But...the serious issue here is not in regards to whether or not I am full of b.s.. The real issue is about proving through the math whether or not multi-unit properties can really generate $36.4 million in profits vs. investing that same amount of money in single family properties between 2001 and 2021 where I am ready to prove that if you went the single family route it is very likely that even though housing prices are rising like crazy I don't think most houses prices have recovered to above their price before 2001, meaning investors who invested in single family homes with $2.1 million would have lost money, or if prices did rise above 2001's prices they did not rise much while multi-unit properties were doubling in price every year for several years.

Just a few of the properties I own and their appreciation since 2001

Purchased 28 homes in Las Vegas between 2008 and 2010 at auctions for 30 cents on the dollar. I gifted 6 to my children still have two and sold 20 homes and netted $3.5 million. So, if you add the 6 I gifted plus the two I still own then my total profit for the 28 homes is probably about $4.5 million.

Purchase 28 units in 2001 for $1,950,000. Value today is 28 X $320,000 per unit = $8,960,000 plus the properties are paid off and my cashflow is currently about $45,000 per month after expenses, but when I had a mortgage two years ago I my cashflow was still more than $100,000 per year. So if we take an average of $70,000 per year for cashflow in 20 years I netter $8,960,000 - $1,950,000 = $7,010.000 plus 20 years of cashflow = 20 x $70,000 = $1,400,000 + $7,010,000 = $8,410,000 or I earned 431% on the total amount I paid for the property plus a lot of other tax benefits.

Show me a house that you can purchase today and where you actually can manually control the amount of money where you can increase the single family home 4 times the price you pay in 20 years. You cannot purchase a single family home and do any sort of math projections where you have the control to make that home worth 4 times what you paid in 20 years, but it is very easy to find multi-units, TODAY, where the math will prove that the buyer will earn 4 times the price he pays for the property.

I sort of started in the real estate business in 1963 when I was 13-years old because I was working for a Jewish family that owned half the city in Springfield and Holyoke Massachusetts. This family took me under their wing, armpits, or whatever and they owned several very large apartment buildings, 25 movie theaters, commercial high-rise buildings and single-family homes.

The richest people in the U.S. own multi-unit properties and commercial buildings.

Send me more information about why Blackstone buys single family homes and send the math. I don't believe they are turning a profit and there are a lot of very large companies operated by some serious screwballs. Tell me what happened to that company that had some screwball business model where they were buying thousands of single family homes without looking at them, or something like that. Last I heard they went bust and had they had the same business model to buy multi-units without looking at them I would give them 100$ of my sort to say they could have purchase any multi-unit with blindfolds because just a few years ago, multi-unit properties were doubling in value every year. What a shame and waste that they didn't have the brains to look at multi-units. They would probable be trillionaires, today and they could have used the exact same amount of investment capital.

Blackstone is buying neighborhoods of new built homes so there is no real cap ex for them right now. They need the depreciation of the properties, which is huge to them. They know that the investment will cash flow & they are betting that over time the properties will go up in value. They don't believe there is enough upside value in the stock market to risk $6,000,000,000. They believe inflation is headed our way or even already here and having cash on the sidelines erodes it's value. It's a "security play" with tax benefits. Multi unit apartments are very competitive right now and there just aren't enough of them to buy.

4 Votes

Originally posted by @Account Closed:

@Mike Hern but where can I contact and meet these people

Family, friends, church, synagogue, real estate investment groups (NationalREIA.org), country clubs, PTA, Lions Clubs, Eagles Clubs, Hospital volunteer associations, any group that meets on a regular basis, preferably people that have 401(k)s, IRAs and pension funds. Turn off the TV and unplug the computer and go meet people.

0 Votes

Originally posted by @Jeremiah Taylor:

I'm a realtor in Columbus, Ohio. I primarily work with investors. I see them fix and flip and profit. I have the quality contractors. I have the team to be able to support the buying and selling of the property. We have the property managers when the time comes that I want to buy and hold. The only thing I don't have are the funds to do the whole thing myself. I know to purchase a traditional home you need 2 years of employment history, a certain credit score, and the funds for a down payment, closing costs, etc but if I don't have any of that is there a lender that will provide the financing for the purchase and rehab if I find a good deal?

Most hard money lenders will lend 65% of the project and expect you to bring in the rest. Why don't you use private lendrs instead? Family, friends, someone who runs a small pension fund, etc. IRAs, 401(k)s.

1 Vote

Originally posted by @Joshua Corser:

As a new investor, I’d love to find out more about low or no money down financing options… I appreciate any tips, info, or guidance! I would love to start this journey ASAP, but I don’t have tons of cash at this time.

Even with low or no money down, you could find yourself in deep trouble if you don't have sufficient reserves for emergencies. Try doing private money instead, Someone who has a 401(k), IRA or pension plan and they need to make better interest than they are getting currently.

0 Votes

Originally posted by @Account Closed:

@Mike Hern thanks for the response and f I'm doing a JV I cant be using a commercial lender only a private one

Depends. Normally I use my LLC as the entity of choice in a Jont Venture and most lenders won't lend to a LLC. I haven't tried because I do creative financing and I self fund. But, if your LLC is seasoned enough, some lenders will actually lend to the LLC. If you personally are the entity in the Joint Venture, it depends on your credit and debt to income ratio like any other loan. By the way, I'd check with a mortgage broker and credit unions. They are better for lending.

0 Votes

Originally posted by @Melanie Johnston:

More Good News for Property Owners/Investors in the West Valley! (West of Phoenix)

This the latest in a slate of good economic news for the cities west of Phoenix, collectively called the West Valley.

Highlights of the Phoenix Business Journal article, written by reporter Corina Vanek:

After a search that lasted more than two years and included over 300 sites in 20 different states, KORE Power Inc. will build its manufacturing facility in Buckeye, where it expects to employ about 3,000 people.

Coeur d’Alene, Idaho-based KORE had narrowed its selection to sites in Arizona, Florida and Texas before deciding on the Grand Canyon State a few weeks ago, Lindsay Gorrill, CEO of the company, said. The plant is expected to total 1 million square feet.

...

Gorrill said the site that the company has chosen, at MC 85 and Interstate 10, is perfect because it has easy access to the interstate and there will be an APS substation nearby. The site will also have a solar power setup where the building will store its own energy.

...

The company produces battery cells, which can then be put into a variety of different forms, including for use in electric vehicles including trucks, boats and drones, and can also be used for energy storage, including for solar and wind power that needs to be stored and used at a later time.

Arizona is a growing hub for the production of electric vehicles and its batteries. Lucid Motors, Nikola Corp., ElectraMeccanica and Local Motors all chose to build their EVs in the state. Battery recycler Li-Cycle is building a facility in Gilbert and EV parts producer UACJ Whitehall is setting up shop in Flagstaff.

...The Buckeye plant, which has been named the KOREPlex, is expected to produce 12 gigawatt hours annually, which Gorrill said is enough to power more than three million homes.

Developing the first phase of the Buckeye plant is expected to cost about $500 million. There is room on the site to grow capacity beyond the first phase, but expansions will be dictated by market need, he said. At full buildout, the company is expecting the total project cost to be just under $1 billion. Construction is expected to begin on the site by the end of the year, with the goal of beginning production in the second quarter of 2023.

...

About two-thirds of the jobs at the plant will be manufacturing, he said. Other jobs include engineers and warehousing and distribution positions. Hiring has already begun for some of those jobs.

“KORE Power’s investment in Buckeye to produce clean, renewable energy aligns with the city council’s sustainability goals and our goal for significant employment opportunities for our residents,” Buckeye Mayor Eric Orsborn said in a statement. “This project is not just a win for Buckeye, but for the West Valley, the state of Arizona and the clean energy industry.”

(From Melanie) This is a big win for landlords in the West Valley. I just helped a BiggerPockets investor close on 3 homes in that area and he feels announcements like this "de-risk" his investments, as he says.

This is just one of many announcements about companies moving to or expanding in the Valley (which is what we call the Phoenix Metro area...but you know this if you watched the Suns get ever-so-close in the NBA Finals).

CoStar.com just reported this on the Metro Phoenix market:

Job growth is expected to continue at a healthy pace based on the number of [office and industrial] tenants looking to relocate and expand and who are actively searching for space in the market. Prospects looking to locate in Phoenix during the 2021 fiscal year were up 115% from the previous year, according to the Greater Phoenix Economic Council, a regional economic development organization.

...

The organization assisted in the relocation of 45 companies to Phoenix during fiscal year 2021. The companies account for some of the largest planned build-to-suits, leases and occupancies over the past year. On the industrial side, that includes TSMC (3.8 million square feet and 1,900 jobs), The RealReal (593,600 square feet and 761 estimated jobs), HelloFresh (438,690 square feet and 750 estimated jobs), MLILY (643,800 square feet and 424 estimated jobs) and KeHE (470,000 square feet and 200 estimated jobs). Some of the largest office deals were PennyMac (74,625 square feet and 374 estimated jobs) and Robinhood (34,000 square feet and 182 estimated jobs).

The best news in all of this is the economic diversity it has embedded in our economy.

Keeping you in the know,

Melanie

A battery factory huh? Shocking.

That should be good for the Grand Canyon state. By the way, where'd all the dirt from the Grand Canyon go, anywway?

0 Votes

Originally posted by @Account Closed:

What are the best ways to find investors for my deals

Have a deal that they can make money on.

0 Votes

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All Forum Posts by: Account Closed

Account Closed has started 141 posts and replied 4068 times.

Post: What is the most under realized opportunity in real estate today?

Post: What would you do in this situation

Post: How to deal with tenant abandoned vehicle

Post: What is the most under realized opportunity in real estate today?

Post: Bringing in partners to fund deals

Post: Can I Get a Hard Money Loan?

Post: Low or no money down financing…what are the options

Post: Joint venture v.s syndicated

Post: $500 Million Plant bringing 3,000 jobs to West Valley in Phoenix

Post: Bringing in partners to fund deals