All Forum Posts by: Ned Carey

There are LOTS of alternatives, but what will work for you depends on your overall financial picture, risk tolerance, and amount you have to invest.  Dividend stocks, bonds, Notes and mortgages, various funds or syndications, and partnerships are al options to consider

 Check out passive pockets. 

@C Rutherford you got very good advice from @Drew Sygit. 

I think there is an even deeper problem. You have a property that has negative cash flow and you need the cash flow. When I say negative cash flow I mean after considering normal occurrences like vacancy, expenses like pest control, turnover costs, capital expense and many others. 

While this may  not help you perhaps others reading along can learn from your pain. There are many hidden costs in owning rental real estate that you have to figure in when evaluating a deal. 

Regarding your situation, yes I would evict over $10 assuming proper warning to the tenant that this can no longer be tolerated.  However you may have a big problem. Depending on the laws in your state, if you are renting a property that is not up to appropriate standards, she may be able to stay rent free until the problem is resolved.  In your case the fact that the cats have to be placed somewhere else due to the roaches, might be a serious enough problem. 

Perhaps the answer is to sell and invest in something else more reliable or passive.  Good luck.

@Don Konipol your last post suggest we are at similar points in our careers and I feel very much the same way. 

I also agree that cap rates are still way too low and above what Warren Buffet would call the property's  call intrinsic value. 

Question for you. Historically do REITS sell at below NAV and does that vary over time? Where are we now for NAV compared to historic values for REITS?

Thanks

Funny all the people that laughed when we said 2% rule back then. But all the people buying the same properties at 1% are now losing their shirts. 

Maybe we should call it the 1% Guideline, instead of rule. (you can insert whatever % you deem appropriate for your goals and market.)

 @Don Konipol Very interesting perspective on REITs. When I looked at them Long ago it seemed returns over the long run were about like the stock market in general. I figured why have the risk of real estate for average returns. I also looked at size as not a positive but a negative. 

I can easily beat average returns substantially on a particular deal. Obviously my type of deal making can only scale so far. So now that I have built some wealth, your analysis looks very intriguing. 

 Becca, I don't know what specifically happens. I suspect they get a warning and after a couple of warnings they removed. But that is speculation based on my reports. 

@Don Konipol I am with @Chris Seveney I would say about 10% for a note fund

In a syndication for a hard assets like and apartment bldg. I would want a 15% projected IRR with a min 7-9% preferred return.

 It might depend on the specific street or property but I would say yes.

@Anna E. Dixon By and large butchers hill is pretty good. The alley streets are not as nice as the wide streets but you can see that just by driving there. I would be comfortable owning a rental there. 

I live in the city and have been investing here 20 years

@Kyle Vogeler from the way you phrase your question it seems you are putting together a syndication that would require SEC compliance.  In that case a an absolute min would be $25k (most would be $50-100k( due to the hassle of complying. It is not worth it for $10k. If you are borrowing from one person for a flip then $10k is fine if that is what you  need.