All Forum Posts by: Sam Ally

Apologies for the delayed response as I learned from another here a while back, when engaged in a dialogue on this forum we must "tag" the individuals name to ping them.  Very much to my point @Michael Jacobson it is your lack of local market knowledge that I am addressing. For lack of a better phrase, perhaps you are putting the cart before the horse?  When you make the decision to invest out of market, you may be best served by building your knowledge base and then your boots on the ground team to help you mitigate myriad issues that will arise. You've narrowed your markets to the 3 you reference in your post, and a great start by reaching out here to solicit responses.  From this investors eyes, I believe your suggested cap rate, and the  price points are off base especially in the markets you seek.  Cap rate minimum should be much higher and acquisition lower. Are you seeking turnkey or a distressed asset to renovate stabilize and refinance?  I truly laud your efforts to start building at this young age and I welcome the opportunity to dialogue with you further via this forum or privately.  Good Luck

Deniz:

Indeed you may choose to learn from your mistakes, but in this business your mistakes may cost you a great deal of that capital you just pocketed. You are correct there are ups & downs to anything we may choose to do in life and this is no different. While it isn't brain surgery there is a great deal to cover and to learn and like most other endeavors to become proficient will it require time, diligence, and laser focus. The idea is not lose money while doing so unfortunately all too many have in many ways because they thought this was going to be easy.  Of utmost importance here is the team you surround yourself with, which will be the most valuable and critical investment you will make.  This is a relationship business, your goal now is to surround yourself with those who know what you do not and can do what you cannot.  

Carl: That truly is an open ended and relative question. What is it you look for in a REI club? What is important to you? What are your needs, goals etc. that will go a long way in helping you

Your goals should be dictated by your risk tolerance and engagement in the process.  Cash flow can be found in an abundance of secondary and tertiary markets.  You've indicated your cap rate but what price range are you seeking? Are you currently looking for a tenanted asset or a diistressed property you can renovate tenant and stabilize?  So much to discuss and so very many viable options for you throughout the US to capitalize upon. How prepared are you to move forward?

@Brady Speers:   You've been at your own business for 20  years.  How long did it take you to perfect your craft? I submit you've spent 20 years of your life do not have the credit or cash to buy properties and yet you put an expectation on replacing your income in 6-9 months in an arena you know nothing about?  First, I would say your expectations are unrealistic and quite frankly a bit "reality t.v. ish".  There is nothing illegal about wholesaling, however, there are hundreds if not thousands of individuals operating unscrupulously, and illegally in many ways even many of those on this forum. More often than not due to lack of knowledge, and the mindset that they can make millions overnight because even a "caveman" can do this right?????  Your first move should be to reach out and identify those within your community that are operating successful real estate investment businesses and begin the education process.  Look my man, this isn't brain surgery but requires knowledge, systems. tools resources and a network of those who can do what you cannot while you are learning. Perhaps your business can offer some value to those you identify and exchange your value add for their knowledge or a look see into their business. There are an abundance of moving parts to any successful endeavor, and like anything else, it also requires consistency and a great deal of hustle.  Jay above was correct, most find it impossible, but that is simply because they realize it requires WORK.  All too many think they can get rich quick, all too many fail because of that.  

This discussion should only be relegatged to what does a landlord do.  You are limited in most cases to what is in and what isn't in your lease. Bottom line: you are not going to make everyone happy so you have to mitigage the loss here.  One tenant pissing off the other two & everyone thinks they have the right to do what they wish in their "space". In your case first thing I am doing is meeting with my legal counsel to determine what rights I may exercise to evict  the offending party. Then I will be sitting with the "offender" to discuss the lack of civility/concern towards neighbors and present my solutions based upon legal counsels review.  Much easier to replace one tenant than lose 2 more quality tenants.  Frankly, as a long term hold investor I take lead on the environment created in any asset I lease out.  The tenant pool is deep, my vetting process thorough if there is a "cancer"  within it gets removed.  That may be a bit "cold" but I learned long ago, emotions will eat you up in this business, and that's what it is, your business.  Cannot allow problems to fester.  Good Luck 

"Boots on the Ground" my man.  Anyone you add to your team should have solid knowledge of the area you are conducting business in. If they do not they cannot serve you nor protect you properly, the benefits should be obvious.  And yes you should absolutely never keep investment properties in your personal name, in fact your personal residence should not be in your name either if you own it free and clear.  The protection and preservation of wealth should be your foremost concern. 

Warren Buffett once said "wide diversification is only required when investors don't understand what they are doing". Obviously, the recent economic crash proved his theory. The past 3 years has surely provided some keen insights from the view as a Direct Lender. There was a common thread linking those that suffered most: lack of knowledge.

We certainly don't have all the answers, but as industry leaders the onus is upon us to share what we do know so others may move forward profitably & consistently. We will be hosting a series of webinars providing insights and strategies so you can be positioned properly in any economic climate.  History has proven there will be another economic crash. It has also shown we are destined to repeat our mistakes if we do not learn from our mistakes and mitigate the inherent risks of building wealth.

Seasoned, or new to real estate I ask you to take a shot join us for the first in our series and let me know how we did.  Click on the link below to register.  Yes there will be a replay but not if you don't register!

Thursday November 3 6:00 p.m. est

Yes @Bill D.  our goal is for regular meetings one for those new or relatively little experience and another for those who are seasoned.  Feel free to contact Melissa Pollard of my office @ 407-347-6461 let her know I suggested you call and she will put you on the notification list for future events. Keep pushing!

There are an abundance of Lenders in the market, institutional and alternative business purpose lenders within the area that can refinance you quickly and painlessly, however, any loan offered will be dictated by the rental income. Your debt service coverage ratio must be @ or above 1.25 and to qualify for a reasonable rate the loan amount must be over $75k for some lenders and over $110 for others.  Alternative lenders are built to get you funded in 2wks or less but of course the rates will typically be higher than traditional institutional lenders. Rates can be as low as 6.5% for a 30yr amortized loan but on average in the Alternative Lender space they typically fall in around 8.5%.  Myriad details but it really isnt that difficult, and yes there are horror stories out there that unfortunately in this business is inevitable. Real estate transactions or loans are quite dynamic in process and protocols and of course the human element. Plenty of moving parts to orchestrate and your job along with the vendor you choose is to mitigate the issues on your respective sides then wait for the others involved in the transaction to get you to the closing table.  Happy to share a conversation with you anytime.