All Forum Posts by: Michael Zuber

When I talk to new investors they most frequently are either stuck in the I want to buy cash flow properties or the mind set of I have no money and thus must wholesale or worse yet can’t get started. I frequently stop them mid sentence and simply ask them to write down a specific goal because without a goal we can’t really get started because I don’t know where they want to go.

Here is my answer

2010 will be the year I buy 10 additional cash flow properties with cash on cash return in excess of 20%. I will grow my network of real estate contacts by at least 20 in my chosen market. I will continue to look for SFH and duplex’s but I will not be afraid to look at larger deals should the return be available. 2010 will be the best time to buy properties for the buy and hold investor.

Well the first thing I would do is sit on my hands and not let the money burn a hole in my pocket.

I would spend between 30-90 days researching markets, I would create a deal sheet for various properties and then compare all of them against each other. I have seen lots of people with cash do stupid things and buy the first or second deal they look at.

We I help friends get started I make them look at 20 deals before they even think about risking $1!!!! How can a new person know a good deal from a moeny pit. Sure you might get lucky but I don't invest for luck!!!
Once you have a feel for a market and have done the research on a set of deals then you can start comparing deals against your inventory of past properties or investments.

Once you get good at this you can fly through the MLS or Loopnet or any other source of listings and pull out the possible gems. For example I look at my market at least daily and make between 5-10 offers a week.

I know my numbers going in and I will NOT chase or over pay for any property there are just too many good deals out there and we can wait.

So assuming you do the above I would then buy a proeprty and get it rent ready and let it seasno for a month or two to see if it performs as expected. Then go buy the next one.

The good news is you have capital the bad news you could use it to shoot yourself in the foot.

I personally wouldn't risk more than 20% of that capital on the first deal which means Downpayment, Closing Cost and Make Ready. If you choose to invest it in one apartment building you lose out on the learning curve and you better hope you picked the right building. You need to spread that nest egg around a little and keep some dry powder just in case the you need it or the deal of the decade shows up.
In the end you should be able to create a nice little portfolio of properties with 250K just do your research and do pull the trigger to fast.
Good Investing

I only ask as I saw an article in Yahoo Finance that said Housing Flipping is back and it documented a couple of very impressive examples of profit. I know it is not that easy especially when you’re buying on the court house steps as the article discusses. But telling someone they can make 100k simply by buying an REO and selling it is bound to bring in more new investors.

I don’t know about you but I get really nervous when the main line media starts highlighting Real Estate as an easy, quick and lucrative business. This type of attention seems to bring in the masses and start a nasty bubble. Could we really be starting another bubble in housing so soon?

I doubt it as financing is tight and unemployment is too high, but more articles like this are sure to make great investments harder to find.

I am curious if you are seeing the more negative or positive articles in the media. In March it was 100% Negative with Zero Positive. Today I would guess it is 70% negative and 30% Positive. What do you think?

Thanks for all the stories - so it seems like 2 years is about the average - I am a little slow as I am about 7 years in and still part time ... But I am working on it every day!!!

I am strictly a buy and hold investor so I don't have any opinions on Lease Holds. Scratch that, I think every strategy has its day in the sun. I think lease option works best in a rising market but I could be wrong.
I think reading Fixer Jay books is a great idea. He is my hero!!!
As for analyzing deals I say create a list of 10 properties with the relavent criteria and we can get started from there

Anthony, First off come home safe. Second let me know when you're in the states and we can setup a call and I would be happy to walk you through how I got started. I have bought a fair amount of property over the years and I strongly believe that 2010 will be the best year to invest yet.
So get home safe and if I can offer any advice or stories I would be glad to help.
Thanks for your service

Purchase a 3/2 House for 97K in 2002 that I was able to convert to a 4/2 and rent for 1,100. Sold the property in late 2006 for 265K and 1031 Exchange the money into a 18 unit apartment building.

Yes I have found 3 Multi Families straight out of the MLS in the last 90 days. I actually expect small multi families to get even better as SFH bottom and multi's start to foreclose

I don't know of any short cuts in Real Estate Investing. So all I can say is you have to take step one before step two. So I would focus on getting the first several deals done and then looking at adding systems and structure. Nothing helps you grow like making money. Good Luck

What did you accomplish?
I purchased 12 Rental properties (15 Doors). I estimate the cash flow from these properties to exceed $4,000 a month.

Your best success?
Stayed focused on a duplex I wanted and I finally got it after 6 months and seeing it go in and out of escrow 3 different times. I never chased it by over paying. I also jumped in big time when the market was going crazy in Feb-Apr with 6 purchases for just about land value.

Your biggest mistake?
I should have found away to leverage all the equity I created with my recent purchases.

What did you learn?
After 7 years of investing I finally understand what a Motivated Seller is. Every book talks about them but I never really found one until this year. I really like buying rental properties from motivated sellers!!!

Did you achieve your goals?
Yes, I exceeded my goal of 10 properties for 2009.

2010 should be better …

Good Investing