I have no doubt in m y mind that you are good at what you are doing. I would love to get some tips to increase my knowledge, so that I can diversify my small/little portfolio that I have (savings which is ridiculously small) into real estate. By means, I am not a Icahn, Ackman, nor Peltz. I am not even close to that.

I almost signed a private cap deal (acquisition) last month; which include a factory and the office up north. For some reasons, I did not go with it.
Yes, I am heavy on securities, and very minimal to no private equities/cap or even a real estates.

I've seen a guy who invested in a motel without too much homework, and they bought a crap hole.
I25 and hwy 119 area is a good example. I know a guy in Castle Rock, who bought a POS motel infested with prostitute and drugee. I am sure he will turn the business around with some renovations.
Church member I know owns a similar type of housing complex in Lakewood, and he is getting sued by tenant left and right, because he didn't allocate his time on doing DD. He got into low income thing with county. lol
This guy has a maintenance crew, but he does some of the easy jobs (such as toilet, light, door fix, etc) on his own on other single family properties at age of 71.
YES. Stock/investment/daily trading CAN takes up your time. However, I am not on the trading floor (for me, home office) every day 9:30-2pm. Maybe I am on the trading desk, when there is some kind of catalyst/earnings. Even that, I can do that off of my tablet/laptop/phone almost everywhere.

I am not saying residential/commercial real estate isn't a bad thing. However, i think there are too much headaches for me.


Quote Originally Posted by ChunkyMonkey View Post
You got it backward my friend. Stock/investment/daily trading takes up your time.. just as much as 8-5 job unless you are in the hundred millions column. Real estate portfolio is on the opposite side.

Keep in mind, only fix and flip or fix and rent has to do more work after the transaction. Most portfolio buyer does not do anything other than maybe raising ongoing rent rate when the contracts expire. Same goes with franchise portfolio (smaller margin but huge volume such as McD franchisors. In most instance they buy multiple franchises in order to stay out of the day to day operation side)

An example of ongoing deal...

Multifamily Property For Sale
Braveson Manor

1775 & 1225 West 6th Ave, Craig, CO 81625









  • Price:$2,400,000
  • No. Units:60
  • Building Size:52,272 SF
  • Price/Unit:$40,000
  • Property Type:Multifamily
  • Property Sub-type:Garden/Low-Rise
  • Property Use Type:Investment
  • Commission Split:3%
  • Cap Rate:10%
  • Occupancy:92%
  • Lot Size:2.33 AC



Description

60 Unit Apartment Building in Craig Colorado. Good unit mix.
Craig CO

Financial Summary


  • Actual
  • Net Operating Income$240,000



So with net operating income of $240k, 30% down - you double your initial investment in 3 years and earn 30% every year not counting the value gain. No brainer No work needs to be done... part of the cost includes maintenance and property management fee already. Many folks who would rather browse this site or go shooting instead of watching the market find real estate extremely easy, non time consuming, with very minimal risk.