All Forum Posts by: Lane Kawaoka

Next month's Greensheet presentation is Wednesday 8/3/2021 at 7-8 PM Pacific Time - A chance to ask your questions live (It is always the first Wednesday of the month)

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This is a little misleading since the property values are so low.

With so much marketing smoke a mirrors... the only way to determine who is legit is to build organic relationships with real accredited pure passive investors.

It depends on the price of the property. In higher rent areas 6-9% might be fair but for sub 100k properties 10-12% and 100% of first months rent is the range.

LOL every thing is negotiable if you can find something else.

Learn what is a sucker deal that is daisy chained around... versus a deal that is underwritten conservatively.

What is "conservative underwriting"

Get to know the top things LP passive investors should look for before investing other tricks sponsors play

15+ Hours of content

Link

-What are some great exit strategies when buying a rental property if you dont want to sell?

You will eventually want to sell... investing is a game of return on equity. As the value goes up you equity goes up but your return on that equity goes down.

-What is a conventional loan?

Conforming residential loan where you have the credit to qualify. A non QM loan terms basically suck.

-What is a "turn key property"/ "turn key company"?

Turnkey can mean a lot of things but its supposed to be ready for a green investor to take over. I started with this but you eventually get out of it as the turnkey providers charge a premium for the product.

A condo or anything less than 200k is like a 10k house in Detroit... it does not exist without huge issues. Dude every one who comes to Hawaii has this idea but you are like 50 years too late... you are better off finding something in LA or inland empire if you want to stick to a tier 1 primary market.

San Francisco, Hawaii, Los Angeles, Seattle, Boston are examples of primary markets which are NOT ideal for cashflow investing. It could appreciate but I consider that gambling. Sophisticated investors invest on cashflow where the rents exceed the mortgage plus expenses (and enough money to pay for professional property manage to do our dirty work). A lot of this concept is explained in the Keynesian Beauty Contest theory where only the top competitors get the most notoriety but the best picks are hidden in the field. So part of the game is staying away from the "dumb" amateur money.

Sophisticated investors look at the Rent-to-Value Ratio and look for at least 1% or more to be able to cashflow after expenses. You find the Rent-to-Value Ratio by taking the monthly rent dividing by the purchase price. For example a $100,000 home that rents for 1,000 a month would have a Rent-to-Value Ratio of 1%. Most people I work with live in primary markets (as opposed to Birmingham, Atlanta, Indianapolis, Kansas City, Memphis, Little Rock, Jacksonville, Ohio, or other secondary or tertiary markets) where the Rent-to-Value Ratios are under 1%. Plus we invest in red states so we have good landlord laws on our side too.

Inherently when you go through operation you will be faced with mini repairs here and there. You will gain experience managing these minor repairs from afar and might even build a little rolodex.

Its swimming on the shallow end of the pool of course but it helps.

I got out of turnkeys because you have no recourse as an OOS buyer to get abused by big repair bills... everyone things you are an absent rich owner.

Sam and I was in a Mastermind together a while ago... although I don't know what he does in his group I can vouch that he is a legit guy and cares a lot about his people. You can be sure he is not another fake it till you make it random real estate guru which are plenty out there.

Not really a thing called doctor loan... its just a marketing thing.