All Forum Posts by: V.G Jason
V.G Jason has started 15 posts and replied 3397 times.
Post: DON'T SELL YOUR STR! Adjust Your Systems...
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Your top advice is fair, your ChatGPT advice after just destroys your credibility for your original view.
To address the topic--remember why they got in. They got in because folks on here, like the STR shop and others, said it was recession proof and praised it's passive abilities or barely active necessities. It's not-- it's hospitality that's asset backed. That's a great spot to be in, but you need to leverage appropriately and underwrite conservatively. Or you do what you're telling them not to do which is sell.
Post: BRRRR to slow for me!
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Quote from @John Matthew Johnston:
@V.G Jason Not sure if I completely understand the question. I picked 10-15 K passive because I make around 100K as a RN and I still needed to carry the benefits so I added an additional 5k on for health benefits and Paid vacations.
$15k per month today is what in 2030, 2040, 2050'? I don't know... but it's a hell of a lot less.
You want to stay ahead of the curve--health benefits are absolutely something to underwrite conservatively on. Paid vacations? Vacation with my family 5 years ago--4 of us was about $14,000 for a trip to Europe and now it's $37,000 at least.
Inflation is like catching a dragon, it's really imperative when you invest for "financial freedom" you're thinking very differently than end gross number(10k-15k) but really the end net debt(close to 0), liquidity(RE is not), quality(your RE is) and gasp I say---diversity.
Totally different way to look at it. Also not hating your job but shifting your perception. Look what it's able to afford you, right now. Something you're dreaming about affording later...how ironic.
Post: Financial advice on saving money to invest in RE
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This is incredibly hard to ask without knowing your income & overall savings level to sufficiently carry you through a physical asset investment. You're going to need that as your safety valve.
With that said, you don't have to share your income. I would just say if you have $90k to invest, you just don't have enough. You really should not be buying low hanging fruit properties but actually concentrating on quality properties that are distressed. That's more capital, time intensive but the control of the investment and the inherent barrier of entry is what keeps it so valuable.
This is exactly the advice that's not heard on here because you have too many agents that similar to a pimp than to a reasonable advocate(devil or not). My position without knowing more would be to invest in a different asset class-- when that sizes up, then diversify into RE.
Post: BRRRR to slow for me!
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Quote from @John Matthew Johnston:
@Erik Estrada We decided that we would concentrate on higher end houses in great neighborhoods\ School Districts because we wanted a higher caliber renter and better appreciation on our properties. The downside is the cost of those properties and actually finding these sought after properties in a competitive market aren’t exactly easy. Because of the cost of these nicer properties we end up doing some of the work ourselves so we usually average a 6 month reno so yes the time to find/reno/ seasoning period is what slows us down a bit
No, that's the upside. Just later.
Post: BRRRR to slow for me!
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Quote from @John Matthew Johnston:
I’m a nurse and just picked up
My 12th SFR. These are all amazing B properties in great school districts and I'm holding mortgages on 10 of them. After PITI, Capex, repairs and vacancies( 5%,5%,10%) we are cash flowing $5600 dollars /month. I am grateful for this and we have worked our butts off for the last 6 years to build this portfolio. It's just taking longer than I thought to make my original goal of 10-15k a month just from real estate investing. Im not even sure if I have question, more so just seeing if anyone else every felt like this. I know I'll eventually hit my numbers I just don't want to be in a job I hate for the next 10 more years.
What made your original goal of 10k-15k a month?
Did you use that in a static form or do you understand how money works?
Post: Financial Planning + asset allocation
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Quote from @Kevin Dehesa:
Quote from @Drago Stanimirovic:
Kevin, you're thinking like an investor already , BRRRR is a great way to recycle capital, especially if you're putting 20% down and looking for strong cash flow. Analyzing deals comes down to being conservative with your numbers: account for rehab, holding costs, and realistic rents post-refi.
Looking out-of-state makes sense in today’s Bay Area market, but success there depends on building trusted local contacts. Focus on markets with landlord-friendly laws, growing populations, and strong rent-to-price ratios.
Feel free to reach out if you need any help!
Thanks Drago, will definitely reach out! how do i build rapport with local contacts in the market im looking into? would i have to take a trip or i can just call them? Also where can i start looking for the landlord-friendly laws, growing populations, and strong rent-to-price ratios? My goal is to get 10 doors..
As for all the other questions, what would you do if no one told you what to do and you managed to do things based off of your own analysis, risk tolerance, and interest in real estate? Start there. Otherwise, you're easy pickings to get scammed.
Post: What's a fair amount to charge for an STR pet fee?
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Being pet friendly is a requirement.
This really depends on area-- we charge anywhere from $25/night to $200 flat fee(up to 5 days). Most of ours is always 2 dogs max, and a 50lb weight limit but there are exceptions and we work something out. I make sure everyone of our properties is prepared for pets and allows them.
Post: Advice on inspections for out-of-state investing.
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Ask yourself what measures you would go to be confident in your decision on a $300k + asset?
I'll save you from the thought of it. Do yourself the trouble of checking out the house in person and getting an inspection, if you like it enough to offer on it.
If it's "too much trouble" to fly there and check it out. This entire process will be "too much trouble". Go buy equities or something, you won't survive.
Post: The 5 Ugly Truths of Real Estate Investing
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Quote from @Joe S.:
Quote from @Matthew Irish-Jones:
After 15 years I can say I am successful in Real Estate. I have a Brokerage, multi million dollar Construction company, Property Management company and a sizable portfolio.
Here are the Ugly Truths about Real Estate I have learned along the way:
1. You have to sacrifice years of your life. When I first started I worked full time and invested on the side, before going all in on investing and building the business. Those days required 60-100 hour work weeks and almost all of the work on Real Estate was done nights and weekends. The idea that you can be a start up investor, be passive, and be rich is false. Bootstrapping in Real Estate is the furthest thing from passive I have ever experienced.
2. Our team started as a rag tag bunch of laborers that specialized in trash outs, cleaning toilets (that was my job), and painting. Now our rag tag bunch characters are doing full home renovations, apartment complex's, and large scale construction jobs. Through it all we have had the same core team members driving the team forward, and have experienced (even through Covid), almost NO turnover!!!
3. BRRR investing is not for newbie's. Its highly complex and your unknown-unknowns will absolutely crush you. I HIGHLY suggest the house hack strategy for new investors. Yes its a lot of work. Yes moving sucks. Yes its not sexy. However, its safe and achievable. You need a strategy you can pull off.
4. Investing in Real Estate is RISKY. Lots of rosy colored glasses in this industry and people telling me how safe Real Estate investing is. From 2010 to 2015 Real estate investing was fairly safe and it was tough to lose. With labor costs skyrocketing, interest rates up, and inventory low, its very hard to invest in Real Estate now. Lots of investors lose money, don't kid yourself that you can't lose in Real Estate. Sometimes the CapEx and cost to maintain properties well outweighs the income and investors absolutely end up selling for losses.
5. Investing long term is a wealth diversification strategy, not a lifestyle decision. If you come into Real Estate with the mindset of your life getting easier, you have more wealth, and less cognitive complexity you are going to fail quickly and miserably. You need W-2 income to invest. You have to work off hours on investing and instead of relaxing at night you will be staying up late crunching numbers and learning. The reality is if you get 20 doors you will retire in your 60's far better off than you would have without those doors. Acquiring those doors requires you to live below your means, save precious Capital for your investments, and work your A** off in your free time.
You can become a successful Real Estate investor, but the amount of time, effort, elbow grease, and the realistic chance of losing principle should not be underestimated.
Sometimes the CapEx and cost to maintain properties well outweighs the income…
Right… rentals can cost the owner to own…
Capex needs to be apart of the top line when investing.
Post: If you had $1M, how would you invest it?
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Quote from @Jay Hinrichs:
Quote from @V.G Jason:
Quote from @Austin Fowler:
Quote from @V.G Jason:
Two chicks at the same time, man.
It just depends on where you're starting. Someone nothing that doesn't know money; better of paying all consumer debt, buying a house cash, and living simply with any leftover in some form of equities & gold. Someone with a REI background, likely lower LTV higher quality properties in areas they like.
I don't "chase" return percentage. You don't control the outputs, just the inputs. Focus on that.
$1m doesn't really move the needle--continue doing what I am doing seeking value add properties in Austin, Phoenix if we're talking strictly REI at the SF level with personal portfolio.
Otherwise, seeking high quality commercial 2-3 unit location in Utah, AZ, or NV, to add a Culver's and rent out the two other units in the FO portfolio. Ideally sub 40% LTV.
Totally irrelevant, because I don't matter. And those metrics don't matter. What everyone does will be so individual.
My advice about the folks that know nothing is for the 97-99% of folks on here; pay down consumer debt, buy your primary house full cash, invest in "passive" stuff like 60% etfs, 10% gold, 30% bitcoin and relax. You're not cut out for this new "high" rate era with extreme dollar devaluation coupled with housing scarcity, you're being pushed out. Embrace and it play some offense, not defense, and try to beat the dollar devaluation.
DAve Ramsey advice nothing wrong with this route at all.
But yes debt free, passive investing.