All Forum Posts by: Simcha Davidman

Thanks, @Mattias Clymer I'd appreciate that!

Hello Winchesterans (?) !

I'd greatly appreciate your opinions about the neighborhood around Orrick Cemetery and Garland Quarles Elementary School. I recently came across a potential MF investment and my research about Winchester as a whole is positive. Even "google driving" around this area looks decent. Maybe a bit less than B, but certainly not a very rough neighborhood.

Also, while (if) I have your attention, I understand that there is not a lot of MF housing in Winchester and there is a lot of sfr. However, for MF that does exist, how is the rental market? Does the multi compete with the sfr in the rental space?

Finally, any recommendation for property management in this area would be greatly appreciated.

Thank you very much!

I'm going to read into @Alton Williams question and project my own :)

Those of you who are familiar with these programs - are these relatively new, as in the 2 years, or have these been available for the last 7-10 years?

The most passive income you can generate is buying an index fund (mutual, closed end or etf). You can target specific sectors or styles (real estate or high dividend yield, for example). And if you want to do a little bit of work (and I mean literally a little bit of work, like a few minutes a week or a month) to potentially boost your returns a bit, you can sell options.

Before people bite my head off, 1) this is more passive then even investing in RE syndications because you need to reallocate that capital every few years; 2) I understand that this passive return will be significantly lower than most people expect to earn from real estate (the SPY is currently paying less than 2%); and 3) I'm not making a blanket statement to just sell options blindly; that would be risky and moronic. I mean strategically, although the specifics are probably a bit detailed for this thread.

@Brian Lynch I really like The Real Estate Game. I think that was my first real estate specific book (not including Rich Dad, because that's not really a real estate book).

For mindset, I'd also recommend The Richest Man In Babylon. You can listen to on youtube (or download it), it's like 4 hours on single speed. I feel a bit vindicated about that because I showed that to a coworker a couple of weeks ago and he loved it. I was actually surprised how much he did.

@Cody DeLong thanks for being so transparent. Very insightful.

This is so great! I don't even know you and I'm super excited about what you have going on. Seriously. Continued success for ya!

(I'm sorry, I just want to make sure that my comment does not come across as sarcastic at all. I'm 100% serious :) )

@Cody DeLong awesome! Congrats!

2 questions, if you don't mind.

1. Do you know how much money you save, say on a monthly basis, for having LEDs instead of fluorescent? In my experience, the LEDs don't last as long as regular "old fashioned" fluorescent bulbs, but cost way more up front.

2. Did you have a hard time getting financing as your first commercial loan? Did you any partners sign on? Is it recourse? Based on my limited research and talking with a few brokers, commercial loans would require at least 25% but more likely 30-35% down, with liquidity and net worth requirements. And they would want to see the borrower/sponsor has experience. Did your loan have these are different requirements? Can you share how you got over these hurdles?

Thanks very much!

@Brandon Schlichter great story. Thanks for sharing, congrats on the success and good luck going forward!

@Jarrod Senechal interesting take. Have you ever read Outliers by Malcolm Gladwell? He talks about how the uber-successful (the "outliers") all were beneficiaries of serendipity, coincidence, hand-of-g-d, whatever you want to call it. In a nutshell, people who were massively successful no doubt have skills, knowledge and work ethic, but were in the right place at the right time in order to take advantage of an opportunity presented (or, even, an opportunity created).

If Brandon's story would've been 6 years earlier (not even considering what may have been if he was 6 years older), meaning he really got into RE in 2006-07 instead of 2012-13 (I may have the timeline off), it may have worked itself out differently. I think timing had a lot to do with his success.

I guess that's a long winded way to say I disagree in part :).

But I think Gladwell overemphasizes the chance circumstances in which each successful person was placed and underestimates the ability and/or work ethic to capitalize on opportunity. Brandon's story epitomizes one's hard work, dedication, constant growth, and the ability to grab an opportunity by the horns and own it, and not merely be beneficiary of timing. So I definitely agree in part also :)

@Mariela Rodriguez it would make it easier if you had specific, or even general questions you were looking to get addressed.

Good luck!

@Ryan Zomorodi thanks for clarifying. I should've seen that!