Post: #26

Another real estate platform worth considering:

Brick X

Post: #27

The crowdfunding type I know a lot of them.

Just opened an account in Brickvest. And checking their site as I write this. It seems like Seedrs for real estate instead of companies.

Post: #28

Anyone have much experience with owning multi family rental properties?

Post: #29

Of course, like most dividend stocks, there are no sure things. Higher interest rates would cool demand for REITs, or a real estate slowdown could force the trust to slash payouts.

SNH’s distribution, though, is likely to keep growing. Each day, 10,000 baby boomers turn 65. Demand for nursing homes, wellness centers, and retirement communities has already outstripped supply, all of which means bigger profits for Senior Housing Properties, regardless of what the economy is doing. (Source: Ibid.)

Forget dealing with tenants. Virtual landlording through REITs like SNH is far more lucrative.

Post: #30

Are there any other US-based real estate platforms to consider? No involvement with tenants or repairs is really appealing.

The problem with realtyshares is that they require a 5k minimum to invest, and to top that off, they ask you to fill out an investors profile with information that they'll use to approve you as a qualified investor. I don't want to do that because I don't want to disclose my income or net worth on these sites. I just want to put my money in there and pull it out whenever I need to.

BrickX seems to be for Australians.

Post: #31

^^^Fundrise.com

Post: #32

@cleanslate : you are thinking about this the wrong way brother. You tell these sites what they want to hear, not what is the truth.

About the 5k min, it shouldn't be an issue if you have the means. If you don't, well you shouldn't be worried about income/net worth issues.

Post: #33

(08-15-2015 08:12 AM)zanetti Wrote:  I'm guessing it is most likely this would be somewhere like LatAm, EE or Asia.

This is exactly what I'm looking at in LatAm. I think it's quite doable there giving my previous experience there.

Post: #34

I am looking at buying a rental property in America.

Any good areas I should be looking?

Post: #35

^Brooklyn man. Like anywhere that has access to the subway, it doesn't matter how "far" from Manhattan it is (i.e. Flatbush Brooklyn, which is 50 mins away from Grand Central by train).

Post: #36

(07-01-2017 06:52 PM)rudebwoy Wrote:  I am looking at buying a rental property in America.

Any good areas I should be looking?

Very broad question but here's a broad strategy that I like myself. Look for duplexes/ triplex / fourplex near major universities. There's always a demand for student housing and the parents have to co sign the lease...that ensures rents will be paid and any damages the kiddies do is paid for ...though generally kids with parents with wherewithal to pay for their ride are less apt to do stupid shit that will cause the meal tickets grief...generally.

Im liking Tuscon AZ right now

Post: #37

(08-23-2017 03:17 PM)MaceTyrell Wrote:  ^Brooklyn man. Like anywhere that has access to the subway, it doesn't matter how "far" from Manhattan it is (i.e. Flatbush Brooklyn, which is 50 mins away from Grand Central by train).

Reasons?

Post: #38

1. People are still moving to the city in droves
2. Gentrification is creeping into neighborhoods I wouldn't have thought possible. For example, one girl I was (albeit horribly) trying to game told me she was moving from Washington Heights to Flatbush in pursuit of cheaper rent, and how her commute to work would practically be the same. When in Flatbush, I see more and more white people, and new developments going up.
3. Flatbush (I really keep harping on this neighborhood lol, I have family in the neighborhood) has loads upon loads of "lot space" for new developments. It's probably one of the more "spacious" neighborhoods in Brooklyn.

Feel free to shoot me a PM and I can go even further into length.

Post: #39

Well, it definitely seems like this has evolved into a REIT thread. I saw a post earlier on the different types of REIT's, and questions about fee's etc. which all differ depending on the REIT's.

As far as crowdfunding goes, RealtyShares (my fav) is really great, RealtyMogul, CrowdStreet, Fundrise, iFunding, etc. PM if more needed. I actually don't invest with any of these guys, but am on the other end. My has partnered with Realty Shares to raise 3M in Equity in one of our hotels. We've partnered with Realy Mogul to raise millions in Equity as well. We were going to partner with iFunding on a deal, but it fell through and I'm not a fan of them. CrowdStreet may work with soon as they do New Build hotels, where as the other platforms do not. Fundrise would only touch Major markets / NYC deals which wasn't our appeal. NYC hotels went down in value anyway. Anyway, it's a public forum so if more knowledge is needed just PM me. Realty Shares and Realty Mogul are both very very impressive to work with and are very good in how they underwrite their deals. They were strict with us, and it really helped us stay on top of our game.


As far as the original topic, and what I do. I have an Officer position in essentially a Private REIT (SEC 506C offering). We concentrate only on Hotels (which may change in the future) and that is our bread and butter. We have 5 year holding periods, so investments are typically illiquid up to 5 years. We pay out an 8% or so annual return off Hotel Cashflow, and sell at the end of 5 years returning a net total to our investors of 20-30% annual ROI. Historically we've done in excess of 50-100% but obviously we had the 09' to now appreciation behind us for those types of returns. But if any of you are interested in investing privately into Hotels (accredited investors only with 50-100k minimum), feel free to PM me.

Otherwise, REIT's are great. Hotel's wise, they buy nice hotels and pay good money for those hotels. They milk the cash flow and pay it out to investors at about 8% and make their fees. For example, if they manage 5B worth of assets, they can take a 3%(most likely higher) management fee yearly. When its time to renovate the assets, they usually sell off and recycle money into good products.

What my company does is buy hotels in need of a renovation typically. For example, a typical Courtyard by Marriott in need of a new refresh. We buy it at a discount, do all the construction / renovations and stabilize cash flow. At the end of 5 years, we sell for a Premium back to the REIT's, so that they can milk the cash flow for the next 10-15 years to return to their investors and collect their management fees. At the end of the cycle they sell off at a discount back to guys like us.

Figured some of you guys were interested in the back of house knowledge

Post: #40

True Balla when/if do you think Airbnb (and similar companies) will start to have a meaningful impact on hotel property earnings and valuations?

Post: #41

(08-25-2017 05:58 AM)Australia Sucks Wrote:  True Balla when/if do you think Airbnb (and similar companies) will start to have a meaningful impact on hotel property earnings and valuations?

They've definitely started cutting into the pie. However, if AirBnB wasn't there, hotels would just be making more money and a lot more hotels would be built. In the end, it goes down to supply and demand, but I believe as AirBnB takes more share, there are just fewer hotels being built compared to what it would be like without AirBnB. Also, once regulation comes for AirBnB, it will definitely impact AirBnB as well. Hotels have to pay federal tax, county taxes, state taxes, etc. For example, in Florida we charge like 12% in tax for the room, which AirBnB doesn't. Also, there are far higher property taxes, insurance costs, etc. I think once these things start hitting AirBnB it will definitely even things out for hotels. The government won't let all that money slide forever. Especially Trump who has hotels.

Post: #42

I think the real issue with AirBnB vs hotels is price rather than supply per say. Typically AirBnB rooms are set at a lower price than a hotel room of equivalent quality and location. This is because the overheads for an AirBnB owner is typically lower than for a hotel because they don't have employee overheads as such, their maintenance costs (maintaining a fancy hotel is expensive) and interest costs are lower (residential mortgage rates versus commercial mortgage rates). True they pay an AirBnB fee but hotel owners pay marketing/advertising expenses instead which AirBnB owners do not. Therefore a decrease in the number of hotels being built to offset the increased AirBnB accommodation may not be enough to stop prices/margins from falling because they are competing with a lower cost business model.

As for increased regulation and taxes leveling the playing field somewhat when/if do you think it will happen in countries other than U.S.A?

Post: #43

There is another way to invest in real estate besides actually buying the property. In my opinion its way less riskier than buying places in certain US cities, Canadian Cities and Oz cities.

I did a data sheet on this years ago. have a look

Also this is how you meet the movers and shakers in real estate in your area. You will also run into the lawyers you didnt know about that buy up the foreclosures and get the best deals in the city

/thread-15712.html

Post: #44

^Nice to see you posting again BIGINJAPAN, welcome back!

Post: #45

BigInJapan what you are talking about is very interesting but I would not consider it investing in real estate. Its investing in debt backed by real estate. Debt is a completely different asset class to real estate (at least the equity/ownership of real estate).

Post: #46

(08-26-2017 11:25 PM)Australia Sucks Wrote:  I think the real issue with AirBnB vs hotels is price rather than supply per say. Typically AirBnB rooms are set at a lower price than a hotel room of equivalent quality and location. This is because the overheads for an AirBnB owner is typically lower than for a hotel because they don't have employee overheads as such, their maintenance costs (maintaining a fancy hotel is expensive) and interest costs are lower (residential mortgage rates versus commercial mortgage rates). True they pay an AirBnB fee but hotel owners pay marketing/advertising expenses instead which AirBnB owners do not. Therefore a decrease in the number of hotels being built to offset the increased AirBnB accommodation may not be enough to stop prices/margins from falling because they are competing with a lower cost business model.

As for increased regulation and taxes leveling the playing field somewhat when/if do you think it will happen in countries other than U.S.A?

I think arguments could be made for both sides, plenty of articles that debate both sides extensively. I think once USA takes initiative, the rest will do it as well. It's a lot of tax revenue each country is missing out on. Especially now that a lot of people are buying investment properties just to AirBnB them out.

Post: #47

Great thread. Giving this a bump...

I have about $200k I want to invest in real estate. Any advice?

I like the idea of buying a small home or apartment in a tier 2/3 city that has solid economic growth prospects.

Grand Rapids, MI looks a solid shout. Maybe San Antonio, TX.

Or I would consider a REIT or two, or RealtyMogul type options.

Would love to get opinions. I’m looking for an annual return in income of say, 5-6% + ideally.

How would you invest $200k in real estate?

Post: #48

REITS and REI both have to do with real estate but they are totall different. REITs are a stock investment. People buy them for yield (% return). When interest rates are expected to go up (like this year) REITs generally go down. You still have the yield, but you may lose more in principal. If you just want to hold if for like 20 years and get 5% a year, then a REIT might be a good choice.

As stated above, the advantages of buying Real Estate are: Leverage, Passive Cash Flow, and tax advantages. To get leverage you need to get a mortgage loan, so you'll need to qualify for the loan. So if you were to go to a bank and say I make $x000/year and here are my expenses, they'll tell you what your monthly payment can be. Then you have to work out how much money you need for a down payment. Usually for an investment property (not a primary residence), you'll have to put down at least 20%. So if you wanted to buy a place for $500k, you put down $100k and your payments might be $3000/month on the $400k loan. To manage that you might have to be making $10,000/month depending on your other expenses. then if the property appreciates by 5%/year. After two years it's worth $550k and you've make 50% on your down payment. That's leverage. Of course you're paying the $3000/month. That's where the passive income comes in.

Ideally you want to buy a place where you can rent it out for more than your monthly payments (mortgage, property taxes, property management fee, etc). This is called positive cash flow. The ability to get positive cash flow is going to vary by location. You'll find that in hot markets (like San Francisco), you won't get positive cash flow on 20% down. But maybe if you go somewhere else like Austin, TX it might work (just guessing). If you have a mortgage of $3000 per month and you can rent for $4000, then after you pay the property manager, property taxes and other stuff, you might have a few hundred profit every month. If you make $250 positive cash flow/month, that $3000/year which will give you 3% on your $100k down payment ... every year. then after a few years you can increase your rent and get better positive cash flow. Meanwhile the underlying property value is increasing, by maybe 4-5%/year and since you are leveraged you are making 20-25%/year

So the magic of real estate is that somebody else is paying your mortgage, hopefully you are getting some cash out (passive income) and you are keeping the (leveraged) appreciation. Then depending on your tax situation, you may make more or less additional gains by being able to deduct property taxes and interest payments from your taxes, that could also be used to calculate whether or not you have a positive cash flow situation.

Of course you can just buy a place for $200k, pay for it in cash and collect the rent that might be $1000/month and then you've got passive income of $12k/year which is around a 6% return on investment (but it will be less after property taxes, expenses and management fees). Plus you hopefully still get appreciation of 4-5%/year.

The hardest thing is to find a location where the numbers work. Once you do, go to zillow or redfin and get comps (how much places are selling and renting for). your key numbers will be cost per ft2 and rental price per ft2 based on the size of the place (2BR, 4BR, etc). So based on the rental price per square foot, you'll know whether or not you can get positive cash flow. Once you have all those numbers find a good realtor and send them out to find places that meet your criteria. The key to this is to get a good real estate agent on the front end and a good property manager to take care of it. The property manager will charge 8-10% of the monthly rental price.

If you don't want to put in the homework and find a good location, then do research to come up with comp requirements to make the numbers work, buy the REIT and get your 5%.

Post: #49

I'm currently residing in Paris and still renting. I can "mobilize" up to 100k € to invest.

Would you guys recommend buying property to live or to rent? That way at least I have my own place to live and can start to build my own capital. The problem though is that buying a property ties all my money in one place.

And it's not like I HAVE to buy because for emergency/retirement I always have my house in Vietnam.

I'm reading seriously on property investment / buy to rent in Paris. Maybe I should buy, rent it out and go back to Vietnam living free-rent for a positive cash flow? And when I do have to be in France I do short term rent / Airbnb?

Anyone in a similar situation?

Post: #50

My friend has started a business around syndicated USA real estate (multifamily apartments in places with landlord-friendly laws, like Texas).

He helps foreigners (Canadians mostly, but really can be from anywhere) get into it.

Minimum investment is $50K. He does a handful of deals every year.

If anyone is interested, they can PM me, and we can get you added to his mailing list so you can find out what he is all about.