All Forum Posts by: Adam L.

I really like San Bruno and South San Francisco . It’s expensive and won’t cash flow but seems like the best value . You may not be happy today or tomorrow but 20 years from now you will have no regrets .

Geotracker is great to find properties with environmental issues in California . I am sure most states have something similar . I have sent postcards looking to buy contaminated properties without any luck . I have cleaned up 3 properties but didn’t specifically target them . I agree that there’s a huge opportunity . I am 40 but would do that if I was 20 . The poster has sound advice .

https://www.waterboards.ca.gov/ust/electronic_submittal/

Say something like this 

https://www.loopnet.com/Listing/1247-Portola-Ave-Livermore-C...

I am originally from SF Bay Area . Have like a dozen houses. All paid off. Probably getting 1-2 cap if that . Some I haven’t raised rents in 10 years . Look more as a retirement play . Don’t need any monthly Cashflow . 

I am a small business owner with like a dozen employees . I have plenty of stress  and headaches doing that . At my daily job , I try to make enough to pay all my family’s bills , pay down 1k debt a day and save 1k a day in savings . That’s why the houses all got paid off .

Hello,

What am I missing. Seems like NNN is a Slam Dunk At 6-7 Cap Rates.

If you can borrow at similar costs to cap rates and put 30-40% Down. Seems like a no brainier.

For Example

$2,000,000 property at 6.75 Cap

20 year corporate tenant . 10% increases every 5 years.

$700k down 1.3m loan at 6.5% amortized over 20 years

You would make $18k a year in Cash flow

Would pay down $31k a year in principal

After the first 5 years. The property value would increase 200k in theory because rents went up 10%.

just looking 5 years out

90k in cash flow

155k in principal pay down

200k in appropriation

446K gain in 5 years.

What am I missing? Wouldn't buying 1 every year or two make sense if you can come up with the down payment?

Obviously the quality of the tenant is paramount . Math looks horrible if they leave after 6 months.

I vote Caitlyn Jenner 

You can try something like this . Just needs to be lower the the fridge door. Get rid of the handle  

https://www.amazon.com/Commercial-Bathroom-Hygiene-Preventio...

@j Scott 

Say you own a plumbing company . On Monday you have 3 water heaters lined up for employees .

$500 material and $500 labor each 

Plumbers get paid $30 an hour in this scenario .

Instead of doing 3 jobs that day . You need him to do water heater at your flip. You cancel 1 job.  Instead of grossing $1500 in labor that day, he only grossed $1000

Let’s say each job took 2 hours .

You need to bill for $500 labor , not $60 … $30 x 2 .

If your paying him $30 an hour and billing him out at $30 your kidding yourself into making a profit on the project . Good for the money partner but sucks for you. You will probably get $50,000 less then partner . 

Hey Ryan,

I think your making it more complicated then it should be . I do see where there could be a conflict of interest dispute from the other partner .

Easy to solve , just get 2-3 bids . If you guy can do the same work for the same price makes sense to keep it in house .

For example , painting exterior . Quotes come in at $6400 , $6700 and $6000.

If you can do it for $6000 and make money , take it . It’s irrelevant if you pay your guy $30 or $75 an hour . His pay has nothing to do with it .

You could also see how much it would cost hourly and do it hourly . In a construction business , wages are usually 30-40% of cost . For example , if paying him $30 an hour . You need to be billing at around $100 an hour. 

Another good resource is the coin laundry association . They have a big show usually every 2 years .

They also have sub chapters , in Bay Area called Golden State . Have a couple meeting a year with guest talkers from the industry or utilities