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Re: Possible RE investment
Old 08-09-2005, 07:18 AM   #21
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Re: Possible RE investment

JG,
You might like this one.
The same investor I bought the 13 units from is selling out. Everything must go. Him and his dad are selling 101 apartment units in town that gross about 40k per month. He wants 2.9 million for everything and is unwilling to split it up. I think they expanded way too fast as they just bought 50 of those units a few months ago on a 1031. That is WAY too much work for me. I only want 17 of them so we'll see if they'll change their minds (they do every other month it seems) about splitting them up.
Just goes to show there is a such thing as growing too fast especially without the infrastructure (i.e. personnel) in place. I'm going through that now. We bought 29 of our units in the last 2.5 years although we've been doing RE for 7 years. The larger you get the more exposed your weaknesses become. For me I need to farm out more of the day to day stuff and focusing on the big picture investing where the real money is at. Education never stops.
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Re: Possible RE investment
Old 08-09-2005, 07:36 AM   #22
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Re: Possible RE investment

Quote:
Originally Posted by Arif
JG,
You might like this one.
The same investor I bought the 13 units from is selling out. Everything must go. Him and his dad are selling 101 apartment units in town that gross about 40k per month. He wants 2.9 million for everything and is unwilling to split it up. I think they expanded way too fast as they just bought 50 of those units a few months ago on a 1031. That is WAY too much work for me. I only want 17 of them so we'll see if they'll change their minds (they do every other month it seems) about splitting them up.
Just goes to show there is a such thing as growing too fast especially without the infrastructure (i.e. personnel) in place. I'm going through that now. We bought 29 of our units in the last 2.5 years although we've been doing RE for 7 years. The larger you get the more exposed your weaknesses become. For me I need to farm out more of the day to day stuff and focusing on the big picture investing where the real money is at. Education never stops.
IMHO, too rapid expansion is a primary killer of all kinds of businesses.
However, there are opportunities in the situation you describe.
I guarantee it!

JG
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Re: Possible RE investment
Old 08-09-2005, 08:37 AM   #23
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Re: Possible RE investment

Yeah I know I thought about going in with other investors and splitting up the pieces (different parcels) then get the 17 unit that way. I have never done the partnership thing and heard way too many horror stories. The only partner I have is my wife and she lets me do all the work and just asks how much are we worth
Did you have another idea?
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Re: Possible RE investment
Old 08-09-2005, 10:15 AM   #24
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Re: Possible RE investment

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Originally Posted by brewer12345
Thanks for the excellent tips thus far. Any more would be appreciated.

I would probably be renting this property out for 5+ years, maybe using it a week or two a year.
Another "don't"... Most of my neighbors also use their properties a week or 2 during the year. They all have "safe areas" under lock and key to hold personal belongings and to protect utilities from being tampered with. Forget about it. Those areas always get penetrated.
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Re: Possible RE investment
Old 08-12-2005, 06:26 AM   #25
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Re: Possible RE investment

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Originally Posted by MRGALT2U
Good post!* "Buying a dollar for 75 cents."* I like that.

JG
And another thing....................

Local farmer is standing in front of the small town bank selling dollar bills for .75 each. Someone asks "Why?" He says, "Sure beats farming!"

JG
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Re: Possible RE investment
Old 08-12-2005, 04:31 PM   #26
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Re: Possible RE investment

Quote:
And another thing....................

Local farmer is standing in front of the small town bank selling dollar bills for .75 each. Someone asks "Why?" He says, "Sure beats farming!"
Is he still out there? Which bank is he standing in front of? That sure beats stock investing and that real estate thing!
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