All Forum Posts by: Neil Henderson

I think people who are waiting on the state or federal governments to "save us" from this crisis by removing social distancing rules in America are in for a rude shock when things don't return to normal for the foreseeable future. It's my opinion, and only my opinion, that things won't return to anything approaching "normal" until there are at least one of the following:

1. A vaccine that is widely available and distributed

2. A rock-solid treatment

3. Wide-spread anti-body testing and solid proof that people with the anti-bodies can't be re-infected.

I could be wrong, but I live at the epicenter of a city that I firmly believe is about to be crushed by this crisis, no matter what the governor, mayor or president do. It's not up to them anymore, it's up to the consumers, and then the business owners to decide if they want to risk their capital and liability staying open. I don't see large numbers of people crowding into bars, restaurants, airplanes, and casinos until the threat is reduced. 

I hope I'm wrong and we're all laughing at the stupidity of all this in 3 months, but I'm not betting on it.

So far so good at my North Carolina properties. 

Following. Very likely this is going to be a challenge for the foreseeable future.

I'll add my recommendation for Patrick Stoy. Great guy and great team. Might not be able to work miracles under today's circumstances, but he's great to work with.

Hi @Rudy Curtler, my wife and I have run a short-term rental, executed BRRRR's, and invested in and been a part of real estate syndications.

The least passive has been where we've been an active participant in a real estate syndication, finding the deals, underwriting the deals, finding investors, communicating with investors, communicating and coordinating with the asset manager, etc. It's also been the highest return on our time and money. 

Next on the list of has been the short-term rental we run, but with that strategy, as with most strategies, it's all about systems and your ability to find and manage the teams of people who can help you work ON the business and not IN the business. It's a tough one to put out of your mind for any length of time, as things always pop up when you are dealing with a large volume of other human beings. 

Next would be the BRRRR's we've executed, but again, your mileage may vary based open the kind of team you're working with. We have a rockstar team and they have made it "mostly" hands-off. The biggest burden on our time being during the deal acquisition and refinance.

By far the most passive has been the real estate syndications we've been passively involved in. Vetting the sponsor, educating ourselves on their business plan, and the market they plan to operate in is the most activity, and that happens in the beginning. Once the capital is in place, it's just cash the checks and read the monthly email reports.

I'll echo what @Scott Meyers says about self-storage. Big fans!

Enough said. Good luck to you on your quest for the perfect passive investment. 

I wish I had an easy answer for you. Lending is bound to tighten up in the coming months and banks get very gun shy about getting "charitable". My only suggestion would be to start calling the smallest banks in the area. Find the ones with the fewest branches and start calling their loan departments. 

Yes! You can absolutely do this! Most deals are going to require money, time, or experience. You're probably lacking in money right now and without a major change in salary that's probably going to continue. So, my suggestion: if you aren't able to find a better paying job, find a way to add value to someone with money and/or experience. Use your time to find deals for them. Cheapest way to find deals is to drive for dollars. Find the local Real Estate Investment Association meeting in your area and start attending those. Find out who the investors in your area are and find a way to bring value to them. Good luck!

We got our start in real estate investing with a short-term rental house hack. Still one of our favorite strategies. Times are tough for many short-term rental operators out there given the Covid-19 pandemic, but if you are sufficiently capitalized to weather several months with no income, you should be fine. Build up that emergency reserve.

Like so many answers in real estate...it depends.

You are, of course, not required to use your own money.

You can certainly find money as a new investor, most days there is more money chasing deals than there are deals, but you will probably be required to pay more for that money and put more skin in the game (your own money) than someone with more experience. 

In order to close on a deal you're typically going to be bringing at least one of these three things to the deal; money, experience, and/or time. If you are lacking any of those three things, find someone with what you're lacking and find a way to add value to them. If they've got money, use your time to find deals for them.

@Aileen B. We have always self-managed.