Forum Replies Created
- jayhinrichs wrote:Alex SC wrote:jayhinrichs wrote:I think one of the important aspects of this conversation as it relates to WI is that she has sufficient MASS or SCALE… I think she mentioned that she has 8 properties to date, So probably a 400 to 500k investment on her and her husbands part…. As well as based on what she has shared she has bought in the easier to manage areas of Atlanta and did not go for the cheapest thing on the market, And this is a big AND,,, last year is not this year in the market, All those who were trying to time the bottom well you missed it by and large at least in the Metro ATlanta market…WI I and others timed it well just because they made a decision to proceed… So WI has again by what she has stated on the forum 8k to 12k coming in monthly gross ( if everyone pays) and or more. With this kind of financial commitment and investment you have the scalability to run this as a little business… And here is my point I bet WI spends a pretty good amount of her month e mailing skyping and other management duties managing her managers. And running her small rental business… I doubt seriously that she just sits in her easy chair collecting her rents as is portrayed buy the Turn Key companies
And yes if they have to travel to Atlanta 1 or 2 times a year for the 5 to 10k a year that would cost, its just the cost of doing business. so you add in those cost to Property management, vacancy when and if she will have any,, and on going repairs… TAx's insurance. etc etc. And its a nice cash flowing business, but it is a business and needs to be treated as one. Where this model goes Squirrly is for the investor that buys 1 or 2 properties.. There is no scale and no mass.. So fixed expenses travel expenses they cut into the return in an inordinate % of gross rents… if you have one property and you pay 5k to come and look at it before you buy it. there went year one 50% of your rental yeilds.. add in other costs and your brake even or negative geared year one. So I think the comparison to the TWH model for the smaller investor the one that would like to dip their toe… Is pretty easy,,, No need to come view your Note purchase as you do not own the property just the debt with equity, NO closing costs or any other fee expect the purchase of the note… And thats kind of how it goes in our market here in the US. I have only had 1 client actually physically visit there Note purchase out of over 5 million dollars worth of note sales in the last 12 months… I mean the CPA and doctors from Perth invested with us specifically because they did not have the time to spend 2 weeks running around the US…. At the end of the day of course the US welcomes the OZ investor and love it that they are coming here and spending money on properties hotels food rental cars… Airline tickets.. Although Qauntas probably gets the lions share of those fees. Anyway something to think about.Real estate is just like the simple game of monopol . The concept of owning the whole block. The new SC property management company we are going to use has 2200 units under his company. Now even for them it is a numbers game so the more homes the more potential income. To off set any losses ….
Alex your new manager I think I met him one time,, I was making an offer on 300 homes that one family owns there in Charlotte and he managed them… This guy would literally talk your ear off then your arm and your legs if you let him,,,, But knew his stuff.
SC guy has 2200 units he talked so much I left Kevin in their with him came back 1 hr later and he was still going. Charlotte guy is younger then me but has 300plus house _ taken on our his is over the 450 market. He is also the one with the fund that is buying and holding so he does not sell many deals to investors any more
jayhinrichs wrote:I think one of the important aspects of this conversation as it relates to WI is that she has sufficient MASS or SCALE… I think she mentioned that she has 8 properties to date, So probably a 400 to 500k investment on her and her husbands part…. As well as based on what she has shared she has bought in the easier to manage areas of Atlanta and did not go for the cheapest thing on the market, And this is a big AND,,, last year is not this year in the market, All those who were trying to time the bottom well you missed it by and large at least in the Metro ATlanta market…WI I and others timed it well just because they made a decision to proceed… So WI has again by what she has stated on the forum 8k to 12k coming in monthly gross ( if everyone pays) and or more. With this kind of financial commitment and investment you have the scalability to run this as a little business… And here is my point I bet WI spends a pretty good amount of her month e mailing skyping and other management duties managing her managers. And running her small rental business… I doubt seriously that she just sits in her easy chair collecting her rents as is portrayed buy the Turn Key companies And yes if they have to travel to Atlanta 1 or 2 times a year for the 5 to 10k a year that would cost, its just the cost of doing business. so you add in those cost to Property management, vacancy when and if she will have any,, and on going repairs… TAx's insurance. etc etc. And its a nice cash flowing business, but it is a business and needs to be treated as one. Where this model goes Squirrly is for the investor that buys 1 or 2 properties.. There is no scale and no mass.. So fixed expenses travel expenses they cut into the return in an inordinate % of gross rents… if you have one property and you pay 5k to come and look at it before you buy it. there went year one 50% of your rental yeilds.. add in other costs and your brake even or negative geared year one. So I think the comparison to the TWH model for the smaller investor the one that would like to dip their toe… Is pretty easy,,, No need to come view your Note purchase as you do not own the property just the debt with equity, NO closing costs or any other fee expect the purchase of the note… And thats kind of how it goes in our market here in the US. I have only had 1 client actually physically visit there Note purchase out of over 5 million dollars worth of note sales in the last 12 months… I mean the CPA and doctors from Perth invested with us specifically because they did not have the time to spend 2 weeks running around the US…. At the end of the day of course the US welcomes the OZ investor and love it that they are coming here and spending money on properties hotels food rental cars… Airline tickets.. Although Qauntas probably gets the lions share of those fees. Anyway something to think about.Real estate is just like the simple game of monopol . The concept of owning the whole block. The new SC property management company we are going to use has 2200 units under his company. Now even for them it is a numbers game so the more homes the more potential income. To off set any losses ….
And yes if they have to travel to Atlanta 1 or 2 times a year for the 5 to 10k a year that would cost, its just the cost of doing business. so you add in those cost to Property management, vacancy when and if she will have any,, and on going repairs… TAx's insurance. etc etc. And its a nice cash flowing business, but it is a business and needs to be treated as one. Where this model goes Squirrly is for the investor that buys 1 or 2 properties.. There is no scale and no mass.. So fixed expenses travel expenses they cut into the return in an inordinate % of gross rents… if you have one property and you pay 5k to come and look at it before you buy it. there went year one 50% of your rental yeilds.. add in other costs and your brake even or negative geared year one. So I think the comparison to the TWH model for the smaller investor the one that would like to dip their toe… Is pretty easy,,, No need to come view your Note purchase as you do not own the property just the debt with equity, NO closing costs or any other fee expect the purchase of the note… And thats kind of how it goes in our market here in the US. I have only had 1 client actually physically visit there Note purchase out of over 5 million dollars worth of note sales in the last 12 months… I mean the CPA and doctors from Perth invested with us specifically because they did not have the time to spend 2 weeks running around the US…. At the end of the day of course the US welcomes the OZ investor and love it that they are coming here and spending money on properties hotels food rental cars… Airline tickets.. Although Qauntas probably gets the lions share of those fees. Anyway something to think about.
