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   Non-TechInvesting in Real Estate - Creative Opportunities


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To: E_K_S who wrote (2670)7/11/2019 10:12:44 PM
From: John Vosilla
1 Recommendation   of 2722
 
You really need to screen potential tenants VERY, VERY closely these days. I am not impressed with the tenant pool overall mostly Millenials is a far cry from the 1990's and 2000's IMHO. I had 18 single family rentals going at one point 3-5 years ago.. I've done probably about 500 RE deals (many include building lot's and mobile home) over last 30 years. Been cashing out stuff bough cheap during depression not doing rentals anymore and certainly not fourplexes EVER in marginal hoods anywhere near FL...Of course would have loved to buy a fourplex in Palo Alto back in 1978 though LOL.

Yes number still can work great on equity with some leverage 3.5% interest rate 15 year. You can find $150k newer 3/2/2 in central FL (best place to be IMHO) rent say $1400 month in best case scenario if pay retail ready to rent day one. Not sure how to get 9% unleveraged return these days when factor in all operating costs and capital reserves for replacement..

You guys should check online what is available in our midsized and larger cities in the midwest, Was kind of shocked that much still so cheap.. War zones in Akron and Detroit even Pittsburgh still. Depressed pockets on other side of track college towns like Kalamazoo and Lansing and South Bend (Mayor Pete) for a little more..

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To: John Vosilla who wrote (2671)7/12/2019 11:39:51 AM
From: The Alchemist
   of 2722
 
I've got experience in Detroit RE. Not as bad as you think (though some parts are) and you can get houses pretty cheap.

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From: E_K_S7/18/2019 9:15:26 AM
   of 2722
 
Fernley to get 4,300-acre industrial park after 2nd biggest land sale in Nevada history Huge new commercial development near Reno NV just announced July 2019 . . many companies from CA moving North/East to NV



The rebranded industrial park will be called the Victory Logistics District. Mark IV Capital shared its plans for the 4,300 acre commercial and industrial park just 30 minutes east of Reno-Sparks during a Tuesday event held by the Economic Development Authority of Western Nevada. EDAWN estimates that more than 10,000 direct and indirect jobs will be created as a result of potential development stemming from the industrial park.


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The new commercial development was to lead to over 10K new single family homes built near the development.


EKS

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From: SAM7/19/2019 11:26:57 AM
   of 2722
 
Experience with Fundrise or similar RE investments

Hi,
I am kind of new to this board. I have not invested in any private Real Estate as I don't have time to manage the property & tenants myself. My RE investments are thru a bunch of REITs, RE mutual funds & RE income funds.

Recently came across Fundrise that pools lot of small investors' money and invests in some RE private limited partnerships. Has anybody on this thread invested thru them. If so, what's your experience?
Secondly are there any outfits like Fundrise where a small investor can invest say $50K or so and not worry about the day to day managenment.

Thanks for your help.
_SAM

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From: SAM7/19/2019 11:31:54 AM
   of 2722
 
Experience with Fundrise or similar RE investments

Hi,
I am kind of new to this board. I have not invested in any private Real Estate as I don't have time to manage the property & tenants myself. My RE investments are thru a bunch of REITs, RE mutual funds & RE income funds.

Recently came across Fundrise that pools lot of small investors' money and invests in some RE private limited partnerships. Has anybody on this thread invested thru them. If so, what's your experience?
Secondly are there any outfits like Fundrise where a small investor can invest say $50K or so and not worry about the day to day managenment.

Thanks for your help.
_SAM

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To: SAM who wrote (2674)7/19/2019 2:08:46 PM
From: Black Blade
   of 2722
 
This question arose in May and since then I am invested in FUNDRISE and been adding a little more here and there. I looked at other similar investments and considered Realty Mogal, Realty Shares, Groundfloor, Rich Uncles, etc. but Fundrise looked the best for the non-accredited investor. I still may revisit Realty Mogul and maybe even throw some spare change at Rich Uncles (only need a fiver to open an account).

That said, I invest more into physical rentals myself and more with liquid REITs like APTS and BRG since FUNDRISE is simply a "long term" investment and somewhat illiquid that generally trades quarterly and fees for sales before 5 years can incur up to 3% penalty (which makes sense since this is designed to be focused on specific properties and construction projects). With REITS you can jump in and out at will no problem whereas with an eREIT like FUNDRISE you are a part owner in a pool of owners. Another con with the eREITs like FUNDRISE is that you can use them as collateral like a physical property to leverage up for additional real estate acquisitions. On their own they can be great for the long haul.

PRO


1. Generally stable long term real estate investment where you select your style: growth (appreciation), income and growth (rent and appreciation) or income (rents)

2. Invests in diversified selection of real property (mostly residential and some commercial) and construction loans secured by underlying asset
3. Low commissions and fees (around 1%)
4. Managers do the due diligence, maintenance, background checks

CON

1. Penalty for early withdrawal
2. Can't be used as collateral
3. you get a 1099 at tax time so distributions are treated as income so no tax write offs for Maintenance and fees.

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From: Black Blade7/23/2019 7:00:53 PM
   of 2722
 
CROWDFUNDING REAL ESTATE
..........................................................................................................................................................................
First off I own two homes, two cabins and two rental properties outright. I also am paying for two more rental properties and hope to have those free and clear in the next few years (but why not let the renters pay the mortgages and build me equity right?). Currently I just don't find any decent deals and certainly no screaming bargains in residential real estate (single homes or multi-family properties).

After weighing the pros and cons of Crowd Funded eREITs I decided to enter the Crowd Funding sector starting with investments into FUNDRISE and RICH UNCLES. I researched REALTY MOGUL and REALTY SHARES but the expenses are higher and I don't see any real advantages to those over FUNDRISE and RICH UNCLES. I chose the Balanced Plus in FUNDRISE and a Starter position in RICH UNCLES (mostly Student Housing). I tend to prefer the Residential REITs for asset protection in down markets but the Retail REITs (Triple Net Properties) have their own advantages. So the Crowd Funding eREITs look like a good fit.

So I will see how this "experiment" goes over the next couple years as I run into my retirement years ...

- BLACK BLADE

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To: E_K_S who wrote (2673)7/23/2019 9:59:07 PM
From: John Vosilla
   of 2722
 
That the industrial center lies within a federally-designated opportunity zone didn't hurt. Plus Cali is so expensive to do business in these days..

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To: Black Blade who wrote (2677)7/23/2019 10:37:29 PM
From: John Vosilla
   of 2722
 
Best of luck with those crowdfunding investments.. Admire your positive spirit. How much leverage do they usually put on these properties to achieve high IRR's since cap rates are quite low these days?? We aren't at the end of this RE cycle but time to be more defensive with the easy money made a decade ago. Would be most cautious with areas that are most overbuilt this cycle such as Class A apartments.. Amazon effect on segments of retail plus bloated inventory levels high end single family most everywhere in the country often well over 1 year of inventory are signs of caution to me. But like you say be conservative have the tenants pay off your mortgage quickly then you have total control. Sounds like you have already controlled your future congratulations..

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To: John Vosilla who wrote (2678)7/23/2019 11:21:20 PM
From: E_K_S
   of 2722
 
The TESLA and Google facilities (I think Google has a sever farm there) have their own economic zones too. It's quite interesting on the benefits that provides. There was even something about no tax on bitcoin transactions. hmm wonder why that was in the economic trade zone document?

You can search Google and read the document. It was a surprise to me but I think it was one of those give aways to get them to build that battery facility. Who know what else was provided but now very business friendly. Remember no State Income tax either.

The one huge problem is it gets really hot and not many trees (high desert). I have been looking at property South West in Gardenville and Carson City. More infrastructure, many parks and many more trees. Some of the best schools too in Gardnerville. It reminds me of the smaller communities in the 1950's in CA .

The area is on my watch list. I own some property in S. Lake Tahoe (in NV) so only about a 45min drive. Would like to pick up some rentals and/or apartment building in the nice neighborhoods around Gardnerville.

The key to anything in real estate is know your location/neighborhood.

EKS

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