All Forum Posts by: Tim Ryan

Looking to buy? I have two houses I just finished and a third on the way. Eagle Rock on the hill with spectacular views.  Are you an agent?  Or trying to learn about design?  What's the purpose?

Hey Chaz,  I see you are in LA as I am (Pasadena area).  Let's connect and see if we align. I have the experience you are looking for. Perhaps we can find the win-win in a Mentor/Mentee relationship. DM me.

Derek, here's my advice: Don't do it.  I say that very directly because not one person told me to not do it back in 2007.  Everyone thinks it's a great idea to have vacation home. I mean come on, we've worked hard already and made some money. We deserve it!  Well, I don't agree because it backfired on me and I'll tell you why it might for you also.  When I bought a vacation home in our local mountain ski resort area it was 2007 which we now know was the height of the market.  What about today in Park City? You said so yourself, it's already the height of the market! Not a great time to buy real estate.  I spent a lot of wasted money and ended being negative cash flow for 8 years (I wasn't willing to foreclose like everyone else did) until I could sell for the mortgage balance and get out, after losing around $140k.  This could happen to you (what? my real estate agent, mortgage lender, insurance guy, attorney, title rep never told me this?!!)  I learned years ago from Robert Kiyosaki that everyone listed there is selling something. Guys like me are true mentors and giving advice I would want...  Here's another thing. I can buy several "vacation homes" now but I never will. Want to know why?  Because we can stay in any Airbnb across the world for a nightly fee. No other expenses, property tax, insurance, etc. And can go to multiple locations (rather than one). That reminds me: After owning our vacation home for around 6 months my wife was asking about family vacation location we should start booking. I said, our money is in this house and our vacations need to be there. To that she said, "we can't just go to the same location every time we want to get away!".  Hmmm a conversation I guess we should have had before the purchase.  The ultimate advice I can give, get back to true investment property purchase and ownership. Buy with positive cashflow rather than the money pit the vacation home will be. Then go to Park City is some else's bad-*** Airbnb whenever you want.  

Interesting.  I really do believe in reading to gain needed education and life experience (learning from others), but I also agree with you that it's not the end all.  It's really just the first step.  Getting out and doing it. is a must. Failing and picking yourself up, is a must. Taking chances, is a must.  I've seen many, many people on this platform say to new investors "everything you need to succeed is all right here. Just listen to the podcasts, read the books and engage on the posts".  Totally not true.  It's a great early step, but it's certainly not all you will need.  Most people want the easy road unfortunately. They are attracted to the easier routes.  I have taken the road of active investor and it cost me a lot of money, several mistakes, stress... But has also produced a lot of success, which by the way keeps increasing over time.  So, at some point, you'll need to put down the books and get out there and do something! 

Since you are not actively in this business, I would recommend investing in Syndications which is professionals who invest in large apartment buildings. I've ran several syndations but do not have any at this time. I know someone in the Pasadena area who does and who is top notch.  I can make the recommendation. Message me and let me know since we are close in proximity.

2% is a dream. But when you are in the game, you can find them. 1% is more realistic and actually not too easy to find these days.  However, I am finding and buying between the 1% and 2% rule now.  The key is to find the right location. 

@Sendhil Krishnan. From your writing it sounds like you see your options being 1 or 2 single family rentals.  I think you need to be thinking (and looking into) multifamily properties with a commercial loan. You will only need to put between 20%-25% down and the loan is a business purpose loan and not treated like the mortgages we buy on our primary residence. So, it's easier.  An 8-unit property at $100k per unit and your $180k down would net good cash flow.  However, seeing you are in Orange County, CA, you will have to buy out-of-state for sure.

Hey Bradford, congrats on getting a deal going.  I've both learned and lived that when you have a good deal, the investments always come. I've never had a problem raising funds in syndications. Be sure the deal is solid and has upside potential for the LP's. Where to find them? If a 506 (b) then everywhere you have direct contact with people. You'll be surprised how many people want to get into these types of deals and usually in our area meeting the accredited investor requirements is not a big hurdle.

@Aileen Soriano-Pisaturo. Which state are you located?  I am in Los Angeles and only invest out of state.  The key is to narrow down to one location work that area for the next several years. Most of the mistakes I see new investors make is jumping all around the country to multiple locations.  I was in Chattanooga TN from 2009 to 2018 and did very well because I knew it was a growth area. I am now in the Midwest. Message me for more information I can give you about how to narrow down the location.

Deal flow will be the issue with a Fund. I've done several syndications and keep thinking about a Fund, however I don't want to have quotas or the need to buy to use the funds, etc.  On a syndication, you raise the funds and have the asset.  At least start at syndications would be my advice. We are sort of local as I'm in LA. Let me know if you ever get up this way. I almost never make it to SD. I did when I was younger and surfed a lot. But that was then...