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where to find real estate mentor specialized in cash flow properties?

d0min0 931 185 May 9, 2016 at 04:39 AM
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have a good chunk of change that i want to invest in cash flow rental properties rather than letting it sit in the bank. just don't know where to start. i live in san francisco but am willing to invest in areas within a 2 hour radius of san francisco. if there are any rental property cash flow gurus in here that doesn't mind teaching, i'd love to hear from you. thanks in advance heart

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#2
Since 2009 the market has doubled. IF you would have invested that cash in an s&p index fund you would have doubled it by now. Still think rentals are the way to go? lol
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#3
Look at the BiggerPockets website it is a social media site for real estate investors. Lots of content in the forums, blog and podcasts. I would recommend looking through the podcasts and look for the investors who operate in high price areas such as yourself. That might give you some ideas. I am sure there are people who are looking to partner with someone with money if you are willing to take the time to vet someone.

Before you find any properties or a "guru" you need to know what exactly you want your role to be. Are you going to manage the properties, perform the repair work, or just collect checks and hire everything else out. Use BiggerPockets to become an expert and teach yourself. You need to have your own knowledge base to detect the people who don't know enough or are going to mislead.
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#4
Quote from FHRITP View Post :
Since 2009 the market has doubled. IF you would have invested that cash in an s&p index fund you would have doubled it by now. Still think rentals are the way to go? lol
Because the stock market never goes down. Funny you do not pick the decade of the 00s as your sample size... I wonder why...oh yeah...no return lol.

The stock market is for gambling...real estate rentals if done properly make money regualrly with minimal risk.
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#5
Quote from d0min0 View Post :
have a good chunk of change that i want to invest in cash flow rental properties rather than letting it sit in the bank. just don't know where to start. i live in san francisco but am willing to invest in areas within a 2 hour radius of san francisco. if there are any rental property cash flow gurus in here that doesn't mind teaching, i'd love to hear from you. thanks in advance heart

There are plenty of sources online. The basics of it are finding a good property in a decent area that has a stable return on investment of 8+% that is fully occupied or easy to rent. Like anything else, that is easier to say than to do. I use 8%, others will differ but to me if it can not pull in a profit of at least 8% on your money then it is not worth the time and effort. In very hot areas, you will often see <5% returns as the price to acquire goes way up and the assumption is that property values will continue to increase and you make your money off the depreciation allowance and when you sell down the road. Do not fall for that imo as what is very hot today will come down in a hurry in a recession and one is in the rental business to make money not speculate on real estate (though there is nothing inherently wrong with that either, just it is much more speculative). If the property appreciates over time it is an added bonus not an assumption in the business model.

All expenses need to be calculated up front (insurance, utilities, maintenance, property taxes, etc) as well as your costs to borrow if applicable and obviously what the going rents are in the area and the safety of the property from a valuation perspective (i.e., are property values likely to be stable, increase or decrease). Never get anywhere near a property that is not in a good\stable valuation area imo.

Also figure you need to get an accountant for your taxes and a lawyer to handle closing and other legal\lease issues and will need to form an LLC corporation (or should at least imo).

You also need to factor in the management aspects of it (who manages the books, pays the taxes, deals with issues and repairs, etc.). Property managers cost money so if you are not local or capable of handling it, then you need to factor that into the equation as well. And you will need to make contacts with local contractors if you do it yourself...plumbers, electricians, etc.

When starting out, usually it is advisable to stick to your local area where you are most familiar with the market and start small with something like a two family home.
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Last edited by YanksIn2009 May 9, 2016 at 10:40 PM
#6
Quote from YanksIn2009 View Post :
Because the stock market never goes down. Funny you do not pick the decade of the 00s as your sample size... I wonder why...oh yeah...no return lol.

The stock market is for gambling...real estate rentals if done properly make money regualrly with minimal risk.
Yes...no one has ever lost money buying real estate...said no one ever. lulz
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#7
Quote from FHRITP View Post :
Yes...no one has ever lost money buying real estate...said no one ever. lulz
Yes...no one has ever lost money buying stocks...said no one ever. lulz

2 ways to make money

Stock Market
Real Estate

You just happen to be Stocks.
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for those that hate spelling mistakes www.walmarts.comCool

bulb save money by checking your insurance every 2 years (and not every 20)
#8
Quote from stufine View Post :
Yes...no one has ever lost money buying stocks...said no one ever. lulz

2 ways to make money

Stock Market
Real Estate

You just happen to be Stocks.
Nothing guaranteed. Theres risk either way...but theres also money to be made either way.
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#9
Quote from YanksIn2009 View Post :
Because the stock market never goes down. Funny you do not pick the decade of the 00s as your sample size... I wonder why...oh yeah...no return lol.
Even in that "lost decade" if you invested a constant amount monthly from January 2000 thru January 2010 you averaged about 3.4% annual gain. Not bad considering it starts at an all-time peak and includes two major crashes.

Quote :
The stock market is for gambling...real estate rentals if done properly make money regualrly with minimal risk.
There's risk and reward in both. The stock market isn't gambling any more than real estate is. You can choose to gamble by randomly picking stocks or investment properties, or you can invest by doing either intelligently.
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#10
Quote from Rob_799 View Post :
Look at the BiggerPockets website it is a social media site for real estate investors. Lots of content in the forums, blog and podcasts. I would recommend looking through the podcasts and look for the investors who operate in high price areas such as yourself. That might give you some ideas. I am sure there are people who are looking to partner with someone with money if you are willing to take the time to vet someone.

Before you find any properties or a "guru" you need to know what exactly you want your role to be. Are you going to manage the properties, perform the repair work, or just collect checks and hire everything else out. Use BiggerPockets to become an expert and teach yourself. You need to have your own knowledge base to detect the people who don't know enough or are going to mislead.

thanks!
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