All Forum Posts by: Omar Khan
Omar Khan has started 11 posts and replied 1427 times.
Post: J Scott Scheel 3 Days Course Review??
- Rental Property Investor
- Dallas, TX
- Posts 1,473
- Votes 1,993
@Viral Patel You might want to type the name of this guy + "scam" into Google. Interesting stuff ;)
Post: Syndication Sponsor Shenanigans
- Rental Property Investor
- Dallas, TX
- Posts 1,473
- Votes 1,993
@Andrew Sol Great advice on offer but you might want not want to go the lawyer route. This is assuming you have a max. $200-300K investment or something in that range. The reason is very simple: Lawyer fees will eat into whatever you can get from the Sponsor.
Currently, you are getting a health return. Take the money and make it a point to never deal with a, possibly, unscrupulous individual again.
Lawyering up sounds nice but it costs major $$$ especially if the other party has an in-house attorney.
Post: Have You Ever Heard of "Hidden" Concessions?
- Rental Property Investor
- Dallas, TX
- Posts 1,473
- Votes 1,993
@Matt K. Shhhsh! Don't let the cat out of the bag. Morris Invest has more houses to peddle and more investors to fleece.
Post: How Investing in the Stock Market Saps Your Wealth
- Rental Property Investor
- Dallas, TX
- Posts 1,473
- Votes 1,993
@Bill F. Amen brother!
P.S. I hope you have the first edition of "The Art of Memes" by Mike. I've heard it contains just the right amount of saltiness, pride, stupidity and stubbornness. All in one neat package.
Post: Looking for a book that dives deep into a small MF due diligence
- Rental Property Investor
- Dallas, TX
- Posts 1,473
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@Ryan Moore IMO, audio books are great for general topics where one doesn't have to remember specifics. Anytime I need to deeply understand a topic I know I have read and re-read a book - no other way around it.
Post: First Value-Add Apartment Opportunity
- Rental Property Investor
- Dallas, TX
- Posts 1,473
- Votes 1,993
@Josh Detweiler Syndicating this asset might not be the usage of your resources because syndications are expensive to setup and run. The costs alone will massively eat into your profits and a home run might become a base hit, at best.
Best bet would be to partner with a few individuals and take it down.
Post: Looking for a book that dives deep into a small MF due diligence
- Rental Property Investor
- Dallas, TX
- Posts 1,473
- Votes 1,993
@Ryan Moore My vote would be for the The Due Diligence Handbook by Brian Hennessey. It's mostly for commercial real estate but provides ample checklists and guides you through the whole process. There isn't much of a list for smaller properties. Your PM and / or contractor should be your best bet.
Post: How Investing in the Stock Market Saps Your Wealth
- Rental Property Investor
- Dallas, TX
- Posts 1,473
- Votes 1,993
Originally posted by @Gregory H.:
@Account Closed The Dow is the biggest joke of an index ever, a price-weighted index of 30 stocks, haha, the fact that you use it in your example to discuss equity investment shows just how little you actually know about equity markets. I have low 7-figures invested in individual equities & mid 7-figures invested in real estate, and can tell you that both have their positives & negatives, neither is "better" than the other.
Keep telling people you made $75K for 17 hours of work. By that logic of a standard American 2,000 hour work year, it shouldn't be a problem at all for you to make $75,000 x 2,000/17 = $8.8M this year ... what are you on pace for this year (net income, not revenue)? By the way, I know people who do make 8-figures per year with 9-figures of investable assets, and they'd probably have a stroke laughing at the absurdity of your posts.
George you're using math and reality to prove a point. That's so unfair!
Just repeat the simple mantra: real estate = good, things I don't understand = bad.
P.S. Great reply but you can't argue with dummies. They'll bring you down to their level and beat you with experience ;)
Post: Need help on calculating ARV on apt building
- Rental Property Investor
- Dallas, TX
- Posts 1,473
- Votes 1,993
@Justin Johnson While @Jeff Copeland is technically correct that commercial buildings should be valued off NOI and not comps, that isn't always the case especially at this stage of the market.
In all likelihood, the broker pitch will be: "This is an under-valued asset because all the comps around it are getting higher rents/have fetched higher pricing. You can just reposition this and get immediate upside." Immediately you have gone from an income-based calc to using comps.
I'm not saying to not use income based valuation but just to keep in mind that there is a difference between theory and reality.
I wrote about this on our BP blog: The Cap Rate Is Dead, Long Live the Cap Rate!
Post: Metrics for buying and managing Multi-Family Buildings
- Rental Property Investor
- Dallas, TX
- Posts 1,473
- Votes 1,993
Originally posted by @Brian Noel:
Omar, I'm primarily looking in Denver and Colorado, although i'm very open to other cities and states. For me it's all about the cashflow. I need a Cap Rate of 8% minimum and would prefer to get something closer to 10-12. I'm looking at units that are from 8-36 units. Even if i cannot get precise numbers a range would be helpful. For example in my residential rentals i keep 8% annually percent for repairs and maintenance and 3-4% of vacancies. I am trying to find good industry benchmarks. Hope that helps. Brian.
I would steer clear of 10-12 cap properties. In all likelihood, you will be dealing with a very low quality tenant and it's not worth the hassle. Unless you can be a good slum lord, you are going to get into some dodgy deals with shady people.
This article might help you in not focusing on cap rates: The Cap Rate Is Dead, Long Live the Cap Rate!