Dallas Investment Property Club

[shintoooo]

bump





Did we lose all of our investors already?


Who's going to take the initiative? What is the cost of that?

Dallas, Nevada, Arizona, California,

I think Shintooo needs to throw a house warming party at his (soon to be) new pad and start this ball rolling

Pronstar and I had our first official meeting (via phone) yesterday and he sent me some information for me to review today and to get the ball rolling. We will be updating the thread shortly.

 

[Flying_Lavey]

.

For everyone's information, here's some background info on the DFW market. New home permits exceeded the 2007 record last month. The median home price has gone from $149,000 in 2007 to $252,000 today.

The northern suburbs are growing like crazy. You guys all know about Toyota moving here. There are about eight other multibillion dollar companies building headquarters in the Plano/Frisco area, bringing 50,000 jobs.

Most of the new houses are selling for well over $300,000. That's a big change from 2007. In 2007 we bought a 2,300 SF two story in McKinney for my son, it cost $132,000. It is in a subdivision of similar homes, they are classic KB Homes cookie cutter models. It's now worth $225,000. The market for houses costing less than $165,000 is insane. They sell within hours. Investors buy most of them. The lower end of the spectrum is being priced out of reach of those looking for a starter house. Something like 70% of these lower priced homes are being purchased for rentals.

Rental properties in the $900-$1,400 range are hard to find, and when a property is put on the market it rents within a couple of days.

New builds are being pushed out further and further from the metropolitan area. Home values in Collin County are escalating like crazy. Here in Plano, a rental house two doors from me was vacated six months ago. It was a rundown piece of crap.

The new owner replaced all of the outdoor cedar siding and trim, replaced all the interior doors, put in new tile and laminate, remodeled the pool, replaced mechanical systems....well, you get the idea. They paid $167K for it, it's on the market for $320K.

Even more interesting is a two story across the street from me. It's nice, but looks a little dated inside. They did paint all of the cabinets and paneling, but you know it's a 1978 build. It sold for $187,000 in 2013, and it's been empty for three years. Last year there was lots of activity on the property, looked like paint and carpet were replaced and some foundation work was done (we have shifting clay soil here).

Two weeks ago a sign went up in the yard, and three days later "contract pending" was added to the sign. The asking price is $365K. I was pretty surprised. I've never seen a house listed at over $315K in my neighborhood.

As has been mentioned, because there's no income tax in Texas property taxes are really high. The taxes on a $240,000 rental property we own are almost $7K per year.

If you guys are going to get into the market, you'll have to be aggressive. I'm retired and not too mobile, but I could do legwork and run construction. I owned commercial construction firms in all sorts of disciplines for 30 years. I know some good residential subs in the area.

I could also do property inspections. As I said I've worked in every discipline there is, and more qualified to assess a property than a guy that has taken a couple of home inspection courses.

So I'll be around if this idea comes to fruition.

I hope this overview is helpful.

So what you are saying is everyone should have done this deal 3 years ago.

That's kinda how I'm hearing it from that post too. Sounds like the investor market is already highly saturated and it really sounds like the entire area is being built up and invested upon based almost wholly on speculation. One of those cards fold (1 of the large businesses doesn't come, 1 leaves or closes, gas prices spike again with all the further suburbs, etc...) and everything can come crashing down.

I wish I had the ability to invest in a program like this though. Just sounds like the DFW market may have already passed it's peak investment window.

 

[pronstar]

The time to put money to work is always going to be "now".

The DFW metro area is huge, I believe there are opportunities to be had.
Looking at a hot area in North Dallas may or may not be the best strategy, but that doesn't mean there aren't other areas to consider.

Dallas proper has nowhere to expand but East and South.
And the city is already pushing East (which is where I live)...right now, many people aren't considering it but with gentrification comes value escalation.

As an example, my neighborhood area has a mix of investment homes, mature homes with shitty lawns, nice but simple established homes and fresh rehabs with new BMW's (or in our case, Lexus ) in the driveway.

 

[Rvrluvr]

interested

 

[Old Texan]

That's kinda how I'm hearing it from that post too. Sounds like the investor market is already highly saturated and it really sounds like the entire area is being built up and invested upon based almost wholly on speculation. One of those cards fold (1 of the large businesses doesn't come, 1 leaves or closes, gas prices spike again with all the further suburbs, etc...) and everything can come crashing down.

I wish I had the ability to invest in a program like this though. Just sounds like the DFW market may have already passed it's peak investment window.

The Houston area is in a residential growth spurt also, but not as much as Dallas. South of Houston, chemical plant expansions have fueled a building boom and coupled it with RV parks and small housing "villages" for all the workers here short term.

I live in a gated golf course resort community that has been in distress for over a decade. The property had about 800 units (1975 was establishment date) when we moved in with available ready to go lots numbering around 400-500. The biggest property owner for the last 10 years was the school district who got all the repos. I recall 2 groups of investors, 1 from CA, that had bought up around 100 lots each time. Whatever went down, they lost them back to the bank.

In the first 10 years I lived here, we'd have 3-4 new builds each year, maybe. But starting last year and all the petrochem projects going big time, we have had over 40 new homes built and there are 1-2 minimum starting out of the ground every WEEK......It's crazy. No home goes up for sale that isn't turned in less than 30 days. Homes that sat unsold and occupied in the past for long periods, now are sold. And these are not rentals, folks are buying to live in them.

The workers all have either RV's or rent small fabbed trailer like homes without wheels. Parks and "villages" are popping up everywhere and investment groups are building more. With the ones I see 90% full, this could continue for a couple years at least.

TX is booming but beware, it can and has shut down just as fast as it began. Structure investments to allow for a downturn as it goes in cycles from what I've witnessed over the last 40 years....

Not being negative just practical......Like Rod Stewart once said about himself and fashion, to paraphrase, "If it's worn on the street, it's out of style."

Look around for large properties that started out with plenty of lot sales. Most as investments. The type of deals that had many in for a quick turn where it turned into long term wait. Properties went back to the bank or tax district. When many areas get built out, that 10-20 year old subdivision laying fallow now becomes a hot market. Infrastucture is in place and the property is ready to break ground. Like my subdivision has become and several more in the area. If you can find something on that order in the right place in Dallas, you'll be onto "gold". But there are many with the same thoughts so strike fast.

Good luck to all!!!!:thumbsup:thumbsup

 

[LargeOrangeFont]

That's kinda how I'm hearing it from that post too. Sounds like the investor market is already highly saturated and it really sounds like the entire area is being built up and invested upon based almost wholly on speculation. One of those cards fold (1 of the large businesses doesn't come, 1 leaves or closes, gas prices spike again with all the further suburbs, etc...) and everything can come crashing down.

I wish I had the ability to invest in a program like this though. Just sounds like the DFW market may have already passed it's peak investment window.

EVERY market was cheaper 3 years ago. If we were talking about this 3 years ago, naysayers would have said "Hmmm property values are going up more aggressively elsewhere, I don't like this investment."

Dallas has a variety of large and small business in every vertical imaginable, a favorable dusiness climate in general, and its population is on an upswing. The fundamentals are not speculative, there is a reason the market is competitive. No housing market is recession proof, but over the long term rent never goes down, only up. As Pronstar said, almost always NOW is the time to invest, if the returns pencil out that is.

 

[Ryphraph]

Interested

Ryph...

 

[pkrrvr619]

subbed

 

[pronstar]

OK everyone, looking to gauge real interest now.
Still looking at details, but we need an idea of how much of a pool we have to work with.

Post up if you'd be interested at the:
$5k level
$10k level
$20k level


These are the general areas we're currently researching - East and South Dallas. This search is for the $50k - $150k range, 484 properties.
http://www.realtor.com/realestateandhomes-search/75227/beds-3/type-single-family-home,multi-family-home/price-50000-150000/sby-1?pos=32.622261,-96.926244,32.853002,-96.488508,12&qdm=true


With a lot of inventory in the sub-$100k range, it make sense to pool money together and buy multiple houses.
We could theoretically purchase 5 homes @ 20% down with $100k...cash flow positive on all.
And if we need 30% down, no big issue on a house that's sub-$100k.

Rents to the East are a bit higher (as are housing prices), but not all that much.


You'll see that some of the cheaper homes in the south already have long-term renters so that could be a plus.
Like these:
http://www.realtor.com/realestateandhomes-detail/1402-Harlandale-Ave_Dallas_TX_75216_M81811-66156#photo2
$95K with rent coming in at $900 means we could be cash flow positive with $20k down and financing the rest.

https://www.dfwrealestate.com/Listing/3001-Carpenter-Ave/5965212bbbc13c6427beb065


Rents are sort of all over the map, but I think we could be cash flow positive immediately regardless of cash or finance - rents are high relative to housing prices.
Here's an example of the going rate for rents in teh general area, search capped at $1500/month to limit what's shown:
https://www.zillow.com/homes/for_rent/house,mobile,townhouse_type/0-405562_price/0-1500_mp/32.903515,-96.213799,32.443436,-96.877098_rect/10_zm/

We still have a LOT more research to do, so please keep the above as examples of the direction we're looking to, not commitments to anything in particular at this time.

 

[wsuwrhr]

Im still in for 5 and I would like to go in for more later, if possible, if it starts to work.

OK everyone, looking to gauge real interest now.
Still looking at details, but we need an idea of how much of a pool we have to work with.

Post up if you'd be interested at the:
$5k level
$10k level
$20k level

 

[lbhsbz]

OK everyone, looking to gauge real interest now.
Still looking at details, but we need an idea of how much of a pool we have to work with.

Post up if you'd be interested at the:
$5k level
$10k level
$20k level




You'll see that some of the cheaper homes in the south already have long-term renters so that could be a plus.
Like these:
http://www.realtor.com/realestateandhomes-detail/1402-Harlandale-Ave_Dallas_TX_75216_M81811-66156#photo2
$95K with rent coming in at $900 means we could be cash flow positive with $20k down and financing the rest.



We still have a LOT more research to do, so please keep the above as examples of the direction we're looking to, not commitments to anything in particular at this time.

I'm curious as to your choice of houses...particularly, the one on Harlandale Ave (I know its just an example). I have not owned an income property before, so forgive my stupid questions...but a place with bars on the windows is probably in an area that doesn't attract stellar tenants or ones that pay rent or take care of the property. I'm sure there is a good reason behind going after this class of property, but what is it?

I'm in for 10K

 

[pronstar]

I'm curious as to your choice of houses...particularly, the one on Harlandale Ave. I have not owned an income property before, so forgive my stupid questions...but a place with bars on the windows is probably in an area that doesn't attract stellar tenants or ones that pay rent or take care of the property. I'm sure there is a good reason behind going after this class of property, but what is it?

I'm in for 10K

That's a very broad search, we didn't pick any homes in particular.

 

[Flippindough]

This is the type of stuff that keeps me up at night, surfing the internet and pouring of financials, doing due diligence on properties. Im not a big fan of single family homes, why that is its either feast or famine. You're at 100% occupancy or 100% vacancy no middle ground. Also value is solely based on the market, in which I have ZERO control over. Thats why I look at Multifamily properties, 16 units and above. Everything about this type of commercial real estate in my opinion is a better investment than buying a single family home, your loan is based off the performance of the property (NOI) and not so much the buyers financial statement. As you get bigger and buy bigger unit count buildings you can get government back loans such as Freddie Mac and Fannie Mae, non recourse 30 yr loans and a cheaper interest rate. The ability of leverage for economic sale, cash flow, tax benefits are just a few of the many reasons I prefer large multi's over SFR. Quick run thorough of a deal I'm under due diligence as I type this... 74 Unit building in Memphis, TN purchase price of 1.575M cash flow after debt service $69k year one. The deals are out there you just have to patience and be willing to put in the work to find them. Good luck guys! Its addicting!

 

[Bails]

Pron,
I'm not interested in single family homes for the reasons mentioned above. I'm interested in the multi unit apartments. It all depends on what the goals are for me. If you guys end up looking for multi units I'm extremely interested.
Bails

 

[saucedaddy]

Pron,
I'm not interested in single family homes for the reasons mentioned above. I'm interested in the multi unit apartments. It all depends on what the goals are for me. If you guys end up looking for multi units I'm extremely interested.
Bails

I'm in for 20 but Multi family only as well.

 

[pronstar]

Were interested in SFH and multis, both purchased smart.

Again, the links are just examples.

But realistically, to start, I think duplexes and maybe triplexes are going to be in our comfort zone at this point. Once we start rolling we can look to larger investments like 16-unit buildings.

Success breeds success and I'm certain we'll get there eventually.

 

[Hammer]

Im still in for 5 and I would like to go in for more later, if possible, if it starts to work.

X2

 

[hallett21]

In for 10-20 if I get a formal layout

 

[LargeOrangeFont]

In for 10-20 if I get a formal layout

I'm here as well.

 

[Raffit78]

In for 20

 

[Rvrluvr]

In for 10-20 if I get a formal layout

I'm here as well.

X 3

 

[DC-88]

Here's how a Single family home - priced at 100K with 20% in Dallas would pencil in my mind coming from someone who owned a 19 unit building there--

Down payment= $20,000
Income= $900 per month
----------------------------
Bills per month
Prop tax =$250.00
Payment =$450.00
Mgmt fee =$ 90.00
Insurance = 35.00
Total - $825.00+

There will be constant maintenance and possible partial vacancy between tenants too . We did some serious research when we bought ours and there's some major Section 8 shit going on with a lot of the multi family stuff for sale. Also it was near impossible to keep vacancy less than 15% so don't plan your investor prospectus on anything more than like 80% +- occupancy rate IMO. Also these multi family buildings are damn near worthless as far as selling or someone getting a loan on if they're not close to full...... maybe there's opportunity from that perspective on the right one in a good area as a fixer upper or something. Many of the leases when you buy are propped up by the current manager or first month free type shit too so watch out for that --I'd rather build a brand new apartment building with no loan, own for 10 years then sell it before it appears to need anything substantial , even if it was here in Cali.

 

[Raffit78]

This is a "starter" investor group. This isn't end all be all. Unfortunately with 20-30 guys, there's not much in the pot to be able to buy land, build complexes. Trust me, no one would deny this if it was in the starter budget.

If this starts up and it gets legs, switching from 15-20 houses to 30-40 door apartment complex isn't out of the realm. 4-5 years from now, with enough equity, cash flow, it might turn into something larger. But we gotta crawl before we can walk.

 

[DC-88]

we gotta crawl before we can walk.

I guess my point is that 50% down may keep you on your feet...20% down from experience keeps you down on the mat lol. If your'e a Texan than you can take advantage of their tax rates to offset the property tax on a daily basis. All I know is our building was what I as a 25 year contractor would consider well built, good bones and style of type 5 construction, and had a new roof. One year we coughed up like 24K just to make things even . Better have some good partners to do that with 20% down on a bunch of stuff. As crazy as it sounds I've done way better through the years with Havasu real estate, but love it or hate it nice areas in Cali are where the appreciation cycles always pay well....

 

[LargeOrangeFont]

Here's how a Single family home - priced at 100K with 20% in Dallas would pencil in my mind coming from someone who owned a 19 unit building there--

Down payment= $20,000
Income= $900 per month
----------------------------
Bills per month
Prop tax =$250.00
Payment =$450.00
Mgmt fee =$ 90.00
Insurance = 35.00
Total - $825.00+

There will be constant maintenance and possible partial vacancy between tenants too . We did some serious research when we bought ours and there's some major Section 8 shit going on with a lot of the multi family stuff for sale. Also it was near impossible to keep vacancy less than 15% so don't plan your investor prospectus on anything more than like 80% +- occupancy rate IMO. Also these multi family buildings are damn near worthless as far as selling or someone getting a loan on if they're not close to full...... maybe there's opportunity from that perspective on the right one in a good area as a fixer upper or something. Many of the leases when you buy are propped up by the current manager or first month free type shit too so watch out for that --I'd rather build a brand new apartment building with no loan, own for 10 years then sell it before it appears to need anything substantial , even if it was here in Cali.

Using your math, for someone starting out with purchasing property is a 10% return on your investment year over year on a property (before major maintenence) good, bad?

 

[shintoooo]

Keep the comments coming. This is all great information. It's good to hear from people that have done this before, good and bad.

 

[hallett21]

Keep the comments coming. This is all great information. It's good to hear from people that have done this before, good and bad.

We are talking about investing in single family residences? Or multi family?

 

[shintoooo]

We are talking about investing in single family residences? Or multi family?

Yes

 

[wsuwrhr]

We are talking about investing in single family residences? Or multi family?

Yes

 

[Bobby V]

Keep the comments coming. This is all great information. It's good to hear from people that have done this before, good and bad.

How does it work for taxes at the end of the year for each investor?

 

[shintoooo]

How does it work for taxes at the end of the year for each investor?

You get a K-1 that you will report on your individual tax return.

 

[pronstar]

Everything is on the table. We could pay cash for a few homes, or put 50% down on twice as many, to generate cash to reinvest.

We're not trying to reinvent the wheel here, we want to build on the shoulders of what others have done that's proven to work.

The point is, we have to start somewhere...every journey begins with the first step.

Comments and suggestions are most appreciated.

 

[Bobby V]

You get a K-1 that you will report on your individual tax return.

S Corp or business partnership?

 

[shintoooo]

S Corp or business partnership?

LLC for real estate

 

[pronstar]

Oh, and we'll obviously have papers drawn up by an attorney, spelling everything out.

We'll form an LLC and will have transparency about the finances.

 

[Raffit78]

I guess my point is that 50% down may keep you on your feet...20% down from experience keeps you down on the mat lol. If your'e a Texan than you can take advantage of their tax rates to offset the property tax on a daily basis. All I know is our building was what I as a 25 year contractor would consider well built, good bones and style of type 5 construction, and had a new roof. One year we coughed up like 24K just to make things even . Better have some good partners to do that with 20% down on a bunch of stuff. As crazy as it sounds I've done way better through the years with Havasu real estate, but love it or hate it nice areas in Cali are where the appreciation cycles always pay well....

I agree whole heartedly, I truly do. As a matter of fact, I have gone even as far as talking to good friends of mine about the Dallas area and why I have raised questions. The weather plays a big roll with properties. The humidity is harder on equipment then people realize. I have quite a few friends in the real estate game and that I have helped along the way. The ones that invested for the same exact reason we are investing Dallas, (lower purchase price, future forecast) they have moved away from and invested in Victorville if you can imagine that. Through my own experience in which I have a couple properties now in the inland empire. I have yet to have major issues. (Thank Goodness) Houses built in the 80's and one which is newer. I have had the same tenants in the properties from the same day the sign for rent went up. (6-7 years ago) Same can't be said about Dallas. My friend who owned quite a few out there has tenants coming in and out on average once or every two years. This is just an additional cost on top of all other stagnant expenses, although some disagree, Tax rate eats away $500.00 a month on average on a house out there. That can be potential profit in any other state, or even surrounding areas, but Dallas (highest rates in all of Texas).



To be really aggressive in this market, there has to be a strategy. What I mean by this is heavy leg work. As an agent, what I would suggest is getting a hold of a title company and getting as much info on properties in a particular area (pronstar) suggests and heavily marketing. Door knocking, sending out mailers. (I own a printing company we can use my resources) You need to be the first one to a door that might find even a remote "interest" to sell. These are the properties that can bring in the higher of profits and under value. If a house is already on the market, it's already passed many of investors eyes, a retail stamp has been put in place and a long term owner would be happy to be there. Not quite the investor group. You need properties that need rehab, roof issues, AC issues, interior issues, so you can buy the property from the owner for less money because of these reasons. Agents are smart, to get a listing, they will do anything. They will even put up their own money to just cover up the bad stuff with a "band-aid" JUST to get the listing and mark it at the highest value possible. Finding foreclosed properties, talking to lenders directly. IF the house isn't bought at the right value, $300 a month in positive cash flow for a $40,000 down payment isn't the investors dream. IT would need to have 20-30% cap rate for it to be worth it for an investor to buy and hold. (SFR)


I don't want to ramble, but I love this idea and I really love the fact that in this group we have heavy hitters. Go getters, an accountant, few investors, few contractors.... This is how a group of guys that are self sufficient get together and grow an income producing portfolio. It just takes time, courage and a lot of hard work.


Also...... Single Family Resident homes that are purchased with a loan, will have to have a guarantor. Meaning, we can't just have our "Dallas Investment club Inc." get us a loan. This would be something we would have to discuss. Is pronstar or someone else in the group ok to have loans under his name for properties? is this something their income can suffice? There is still a lot of thinking to do. If we need a lender to get more information from, I can start looking. I just need to know the game plan.

 

[milkmoney]

As advised, I am out , good luck to you guys , hope u do well and it all works out at the end of the day. [emoji202]

Or should I say, no longer interested.

 

[RiverDave]

We are interested for 5-10 pron! Let us know what's up!

 

[pronstar]

just need to know the game plan.

This thread and the knowledge within it, including posts like yours, are helping to formulate that game plan [emoji106]

 

[Flippindough]

Just an FYI as far as I know the SEC frowns upon the solicitation of money for investments online, mail, etc... You have to have a personal relationship with potential investors and disclose a (PPM) private placement memorandum. Just a head up.:thumbsup

 

[Raffit78]

This thread and the knowledge witting it, including posts like yours, are helping to formulate that game plan [emoji106]

If there is one or two advises I can give to anyone. Whatever your comfort level is. Whether it be 5k, 10k, 20k. Your money sitting in the bank is doing 0 for you. If you think that amount will do anything in a 401k, roth IRA, or stocks, its not going to. After your capital gains tax, (inflation) you are back to square one. If you can afford to take a chance in real estate. The worst you will lose is time. The price of 5k, 10k, 20k is sadly pennies in the bigger scheme of things in real estate. You have WAY more to gain then to lose. I would rather lose 5k trying in real estate, then sitting in a bank and doing nothing.


My biggest mistake I made and I wish no one does and why I'm loving this idea, is that I didn't buy enough properties. I could have easily owned 7 or 8 before the market passed me up in my income category. This budget puts me right back in. Even with less cash flow, it's the journey for me. I'd love to be sitting pool side or Havasu side 10 years from now talking about how a site like RDP brought bunch of good guys together and threw their money in a pool and made something of it.



Raffi

 

[wsuwrhr]

If there is one or two advises I can give to anyone. Whatever your comfort level is. Whether it be 5k, 10k, 20k. Your money sitting in the bank is doing 0 for you. If you think that amount will do anything in a 401k, roth IRA, or stocks, its not going to. After your capital gains tax, (inflation) you are back to square one. If you can afford to take a chance in real estate. The worst you will lose is time. The price of 5k, 10k, 20k is sadly pennies in the bigger scheme of things in real estate. You have WAY more to gain then to lose. I would rather lose 5k trying in real estate, then sitting in a bank and doing nothing.


My biggest mistake I made and I wish no one does and why I'm loving this idea, is that I didn't buy enough properties. I could have easily owned 7 or 8 before the market passed me up in my income category. This budget puts me right back in. Even with less cash flow, it's the journey for me. I'd love to be sitting pool side or Havasu side 10 years from now talking about how a site like RDP brought bunch of good guys together and threw their money in a pool and made something of it.



Raffi

Yessir.

 

[wsuwrhr]

Just an FYI as far as I know the SEC frowns upon the solicitation of money for investments online, mail, etc... You have to have a personal relationship with potential investors and disclose a (PPM) private placement memorandum. Just a head up.:thumbsup

...and we all do.

 

[Raffit78]

Just an FYI as far as I know the SEC frowns upon the solicitation of money for investments online, mail, etc... You have to have a personal relationship with potential investors and disclose a (PPM) private placement memorandum. Just a head up.:thumbsup

This is true if the "capital" is opened to the public. For instance, If Pronstar is out soliciting, trying to bring in "outside" money from other people. You are 100% right. BUT if the plan is to have 20 guys (a group of friends) and that be it, then it is ok. ( I did speak to our real estate lawyer about this as well).

Basically, after the initial group of friends putting money in an escrow account, "the door is closed". The group cannot go and get more public money, without legal paperwork fillings. (i can't remember what this is called, but he did tell me that there is a term for this).

 

[Danger Dave]

We are interested for 5-10 pron! Let us know what's up!

What he said.

 

[Bobby V]

If there is one or two advises I can give to anyone. Whatever your comfort level is. Whether it be 5k, 10k, 20k. Your money sitting in the bank is doing 0 for you. If you think that amount will do anything in a 401k, roth IRA, or stocks, its not going to. After your capital gains tax, (inflation) you are back to square one. If you can afford to take a chance in real estate. The worst you will lose is time. The price of 5k, 10k, 20k is sadly pennies in the bigger scheme of things in real estate. You have WAY more to gain then to lose. I would rather lose 5k trying in real estate, then sitting in a bank and doing nothing.


My biggest mistake I made and I wish no one does and why I'm loving this idea, is that I didn't buy enough properties. I could have easily owned 7 or 8 before the market passed me up in my income category. This budget puts me right back in. Even with less cash flow, it's the journey for me. I'd love to be sitting pool side or Havasu side 10 years from now talking about how a site like RDP brought bunch of good guys together and threw their money in a pool and made something of it.



Raffi

I have to disagree with you about a 401 making 0 for you. I know mine makes a lot for me. But I would agree that 5 -20 k sitting in the bank won't make you much. Back to the real estate questions.

 

[236eaglexp]

Interested for $10k and very possibly $20k

 

[DC-88]

Using your math, for someone starting out with purchasing property is a 10% return on your investment year over year on a property (before major maintenence) good, bad?

Bad- upkeep alone more than ate that 10% from my experience. Weather and tenants were rough out there. Sell me on a bad ass RV park in Havasu or somewhere in AZ with amenities and entertainment for retirees and snowbirds, or like I said build equity instantly by building a new apartment complex .
Side note as I'm not a hater just trying to provide info---- I've paid to set up my part of 3 LLC s for stuff like this and for doing subdivision stuff , and our lawyer in Dallas was phenomenal. His skills, the steaks we ate out there, and the nightlife were the only bright spots lol. ----- Shintoo and Pronstar- his name is Bryon Hammer with Bourland, Wall, and Wenzel, P.C. Bad ass lawyer who we got along great with and still sends me a birthday card 7 years after we paid to have our LLC dissolved :thumbsup

 

[boatpi]

I agree with some, capitol gains will eat you up, not for me, plus always a risk.

Why not form a larger pool with more money in and buy RE. Like I have posted Las Vegas is still cheap compared to So Cal. Prices are way up, and continue at 10% per year, plenty of renters. I just had a vacancy, rented in 5 days. Eviction is less than 10 days, if any at all. I have had one in 10 years. Property taxes are very low, about $1,400 per year on a 200K house built in 2005. less on older houses.

Buy in for cash is about 200K, return is $1,350 per month gross, plus depreciation. On a 250K house, about $1,500 to $1,600 and increasing.

Or you could from a group of 4 or so and finance houses, lower buy in, I would suggest 30-40% down, many is cheap.

If you are under 45, this is a smart move, keep buying more, when you are 60, houses will have a very low payoff. This is a long term investment with big gains in the end. All done through LLC in NV. I made seven figures on paper in less than 10 years, it can be done.

A few examples; https://www.redfin.com/NV/North-Las-Vegas/3017-Madame-Plantier-Ave-89081/home/29049410

https://www.redfin.com/NV/North-Las-Vegas/5129-High-Sage-Ct-89031/home/29084483
https://www.redfin.com/NV/North-Las-Vegas/802-Royalmile-Way-89032/unit-n-a/home/115777076

https://www.redfin.com/NV/North-Las-Vegas/1304-Crystal-Rainey-Ave-89086/home/29477044

 

[236eaglexp]

I wonder if there's any boat storage facilities for sale in Havasu that would pencil out