All Forum Posts by: CK Hwang

Also, i think the timing of your capital investment matters a great deal on whether you get the yield you are after and given how flooded the market is with money right now, I think the risk level is relatively high for a given asset that yield 15%. For example before 2008, it wasn't uncommon to buy a large apartment complex or a fourplex in say.... Riverside and yield 15% or thereabouts. The quest for yield in the last 7 years has meant the same investment is now yielding in the 5-7% range as the money seeks sanctuary. Is this the new normals...I don't know. I don't know enough about economics and policies to make that call. 

HI Brian, thanks for asking. At this time no, I don't focus on turn key properties. I am primarily a fix and flipper. The returns are better here in Socal as a flipper than it is as a long term rental. I have a long term rental here in Socal, which I picked up and manage for my clients as an experiment, but the numbers don't really make sense doing rentals. 

I would say yes, but the bigger question is at what risk? what is your tolerance for risk? As I tell my clients who eye the 15-25% returns in markets like Detroit and upstate NY, it's not whether the returns are there... the question really is whether the risks are worth it to them. 

Personally, I would say it is probably a small sample size you are speaking to. Just out of interests, are any of the people you have spoken to successful investors or flippers who have made their money or making their living from it currently? I would imagine it a bit odd if the investor says there is no money in this field if they have made their millions from it. 

I'm a believer there is plenty of opportunity in real estate if you work hard or work smart. Unfortunately, I am neither, but I do get by, so that should be an encouragement for you.

I'm more used to snagging 1 house in every 100 offers. get unto 3 accepted offers per hundred...I start getting nervous that the market has turned without me knowing. :D

i would just spend it on nonsense. with more money that i can spend in a lifetime (assuming I am the sole winner of $1B), investing wouldn't make sense for me. more to lose than to gain. 

Can I find out if you guys do property management as well?

Personally, i would at least sub divide the rehab into light, medium or heavy rehab job. I really wouldn't do a shoot from the hip estimation for a rehab. A new build on a flat lot perhaps, but not for a rehab. Too many variables. 

"I am forced to have a diminished cashflow now when my time value of life is higher in exchange for apprciation in the future when my time value of life is lower."

Find this argument a little strange. Really from an investment point of view as much as a personal point of view. I'm in my late 30s and I'm enjoying life more than ever.I'm fitter and healthier than i was in my 20s, have a better perspective about what to stress about and what I don't. I love my little family and am happy to spend as much time with them as I can. I don't see why your time value would be lower as you age, i would imagine it would be more better as you fill your life with more people and things you love. Oh and the best part is that my current lifestyle is paid for by a nice cash out on an investment i made in my 20s, and it was all thanks to......capital appreciation 

if you're keeping this house for cash flow, I think the more relevant stat for us to advise you on is, what is the going rent for the house? A house that cash flows isn't always a good investment. 

Also, if you're having could feet? Why? sometimes your gut feeling is a good indicator that the deal isn't as great as it appears to be.