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The Wife and I are looking to start investing in real estate. Hopefully build up a few rental properties and have some semi passive income. If anyone has been successful here in DFW, I would appreciate if I could take you out for lunch/dinner and get some advice.

Thanks in advance.


-----------------------
be safe.
 
Posts: 149 | Location: DFW, Texas | Registered: June 01, 2011Reply With QuoteReport This Post
Not really from Vienna
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1. There is nothing that will give you insight into human nature better than being a landlord.

2. Experience is what you get when you don't get what you want.




 
Posts: 20895 | Location: Young American Teen Club | Registered: January 30, 2007Reply With QuoteReport This Post
I believe in the
principle of
Due Process
Picture of JALLEN
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I'm not in DFW, but I did run an investment company, among others, heavily invested in real estate residential, commercial, development, financing, for 23 years, and was a lawyer concentrating on real estate for 40.

If I were to do it again, I would invest in REITs. Stay away from direct ownership and active management. Sleep at right.

After surviving the 2007-10 melt down, barely, I got out, put everything in securities, mostly Realty Income stock (NYSE:O) and lived happily ever after. No rent skips, bad checks, vacancies, peculiar persons to deal with, lazy, irresponsible slobs, real estate brokers, escrows, title companies, or other crooks. There are other REITs with different business models, concentrating in apartments, industrial, medical, etc. even mortgage REITs.

Some will say that you forego the advantage of leverage, using borrowed money. I say leverage is not necessarily an advantage. Avoiding leverage is probably all that saved me from complete ruin.

More and more, real estate has become a full time occupation for pros. The day of the moonlighting amateur, owning a few properties, managing in his spare time while working in another field, is either over or soon will be, and is becoming unappealingly risky. In most places, and I dare say DFW is one, the market is more efficient which makes successful operations very competitive.

Anyway, that is my advice, for what it is worth, and you don't even have to buy lunch, or even a glass of ice tea!




Luckily, I have enough willpower to control the driving ambition that rages within me.

When you had the votes, we did things your way. Now, we have the votes and you will be doing things our way. This lesson in political reality from Lyndon B. Johnson

"Some things are apparent. Where government moves in, community retreats, civil society disintegrates and our ability to control our own destiny atrophies. The result is: families under siege; war in the streets; unapologetic expropriation of property; the precipitous decline of the rule of law; the rapid rise of corruption; the loss of civility and the triumph of deceit. The result is a debased, debauched culture which finds moral depravity entertaining and virtue contemptible." - Justice Janice Rogers Brown
 
Posts: 42850 | Location: Texas hill country | Registered: July 04, 2005Reply With QuoteReport This Post
Needs a check up
from the neck up
Picture of Timdogg6
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quote:
Originally posted by JALLEN:
I'm not in DFW, but I did run an investment company, among others, heavily invested in real estate residential, commercial, development, financing, for 23 years, and was a lawyer concentrating on real estate for 40.

If I were to do it again, I would invest in REITs. Stay away from direct ownership and active management. Sleep at right.

After surviving the 2007-10 melt down, barely, I got out, put everything in securities, mostly Realty Income stock (NYSE:O) and lived happily ever after. No rent skips, bad checks, vacancies, peculiar persons to deal with, lazy, irresponsible slobs, real estate brokers, escrows, title companies, or other crooks. There are other REITs with different business models, concentrating in apartments, industrial, medical, etc. even mortgage REITs.

Some will say that you forego the advantage of leverage, using borrowed money. I say leverage is not necessarily an advantage. Avoiding leverage is probably all that saved me from complete ruin.

More and more, real estate has become a full time occupation for pros. The day of the moonlighting amateur, owning a few properties, managing in his spare time while working in another field, is either over or soon will be, and is becoming unappealingly risky. In most places, and I dare say DFW is one, the market is more efficient which makes successful operations very competitive.

Anyway, that is my advice, for what it is worth, and you don't even have to buy lunch, or even a glass of ice tea!


I always love your insight. As an real estate attorney here in South Florida, your wisdom is always appreciated. I got in real estate just in time to build up a title company and have it get smacked when the bubble detonated.

As to the OP, the only clients I have that survive a few bad tenants are the ones with 15+ properties. The guys with 2-4 single family homes are always shitting bricks that a tenant has screwed them and they are close to not making a mortgage payment. I even have commercial landlords getting screwed by tenants.


__________________________
The entire reason for the Second Amendment is not for hunting, it’s not for target shooting … it’s there so that you and I can protect our homes and our children and and our families and our lives. And it’s also there as fundamental check on government tyranny. Sen Ted Cruz
 
Posts: 4375 | Location: Boca Raton, FL The Gunshine State | Registered: July 30, 2002Reply With QuoteReport This Post
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I apologize for the topic drift, but where would I go to find out more about REIT? Would this be good for a retirement "nest egg"? I'm 40 if it matters.
 
Posts: 2824 | Location: PA | Registered: November 15, 2009Reply With QuoteReport This Post
quarter MOA visionary
Picture of smschulz
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quote:
Originally posted by petr:
I apologize for the topic drift, but where would I go to find out more about REIT? Would this be good for a retirement "nest egg"? I'm 40 if it matters.


https://www.reit.com/
 
Posts: 14186 | Location: Houston, TX | Registered: June 11, 2006Reply With QuoteReport This Post
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Unless your pockets are very deep, it is not passive.

Been doing for 40 years.
 
Posts: 3245 | Registered: February 15, 2004Reply With QuoteReport This Post
Oh stewardess,
I speak jive.
Picture of 46and2
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It's not passive for the vast majority of folks, and that misunderstanding is rampant.
 
Posts: 21576 | Registered: March 12, 2004Reply With QuoteReport This Post
I believe in the
principle of
Due Process
Picture of JALLEN
posted Hide Post
quote:
Originally posted by petr:
I apologize for the topic drift, but where would I go to find out more about REIT? Would this be good for a retirement "nest egg"? I'm 40 if it matters.


I think so. I would be uneasy to have all of it on real estate, I think. I do not, myself.

It is unlikely that Realty Income will produce the kind of returns as in the past. It has grown enormously, by selling more shares. As they have become better known and larger, finding really outstanding deals is much harder.

I believe it will continue to crank out those monthly dividends. For a long time, we bought more shares on automatic reinvestment.

There are REITs of all kinds, residential thst own and manage apartments, shopping centers, medical offices and facilities, even mortgage REITs, and some that are concentrated geographically.

My thought is that the REITS are sold on a yield basis and as interest rates rise, the shares will decline. I've been waiting for that to happen, and been wrong all these years, so far.

Who knows that the next 25 years will bring.




Luckily, I have enough willpower to control the driving ambition that rages within me.

When you had the votes, we did things your way. Now, we have the votes and you will be doing things our way. This lesson in political reality from Lyndon B. Johnson

"Some things are apparent. Where government moves in, community retreats, civil society disintegrates and our ability to control our own destiny atrophies. The result is: families under siege; war in the streets; unapologetic expropriation of property; the precipitous decline of the rule of law; the rapid rise of corruption; the loss of civility and the triumph of deceit. The result is a debased, debauched culture which finds moral depravity entertaining and virtue contemptible." - Justice Janice Rogers Brown
 
Posts: 42850 | Location: Texas hill country | Registered: July 04, 2005Reply With QuoteReport This Post
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Can't say anything about DFW but two of the most important rules apply anywhere. 1. If you buy it right it is almost impossible to turn out wrong. If you buy it wrong, it is almost impossible to turn out right. 2. leverage (debt) is your enemy and can kill you. If you can't buy with cash, Find some investors with cash that will partner with you. Once you do enough deals you will have your own cash. Lastly, If you buy a property that is generating good cash flow but falling in market value, you are losing money. It always amazes me how many people can't understand that. Be patient. I will look at hundreds of deals to find one. Just because someone else will buy a property doesn't mean you should.
 
Posts: 2605 | Registered: August 19, 2003Reply With QuoteReport This Post
I believe in the
principle of
Due Process
Picture of JALLEN
posted Hide Post
quote:
Originally posted by nasig:
Can't say anything about DFW but two of the most important rules apply anywhere. 1. If you buy it right it is almost impossible to turn out wrong. If you buy it wrong, it is almost impossible to turn out right. 2. leverage (debt) is your enemy and can kill you. If you can't buy with cash, Find some investors with cash that will partner with you. Once you do enough deals you will have your own cash. Lastly, If you buy a property that is generating good cash flow but falling in market value, you are losing money. It always amazes me how many people can't understand that. Be patient. I will look at hundreds of deals to find one. Just because someone else will buy a property doesn't mean you should.


The only thing worse than tenants are partners.




Luckily, I have enough willpower to control the driving ambition that rages within me.

When you had the votes, we did things your way. Now, we have the votes and you will be doing things our way. This lesson in political reality from Lyndon B. Johnson

"Some things are apparent. Where government moves in, community retreats, civil society disintegrates and our ability to control our own destiny atrophies. The result is: families under siege; war in the streets; unapologetic expropriation of property; the precipitous decline of the rule of law; the rapid rise of corruption; the loss of civility and the triumph of deceit. The result is a debased, debauched culture which finds moral depravity entertaining and virtue contemptible." - Justice Janice Rogers Brown
 
Posts: 42850 | Location: Texas hill country | Registered: July 04, 2005Reply With QuoteReport This Post
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Flippers, investors bought more than a third of DFW homes last year


http://www.star-telegram.com/n...rticle161281298.html
 
Posts: 708 | Registered: March 16, 2004Reply With QuoteReport This Post
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quote:
The only thing worse than tenants are partners.

I guess it depends on how you choose them and how you work with them
 
Posts: 2605 | Registered: August 19, 2003Reply With QuoteReport This Post
Drill Here, Drill Now
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The DFW area is going through a real estate boom/bubble. You could get lucky and be buying into a boom with many years left, or you could get unlucky and be buying into an impending bust.



Ego is the anesthesia that deadens the pain of stupidity

DISCLAIMER: These are the author's own personal views and do not represent the views of the author's employer.
 
Posts: 14612 | Location: N. Houston, TX | Registered: November 14, 2005Reply With QuoteReport This Post
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I have an Inland REIT that has been good to me. I got to buy in at a discount with a guaranteed $5K return. It stayed active for 3 years, returning a monthly dividend, then was sold giving me the opportunity to cash out at ~25% over original value. I've reinvested the original value back into another Inland REIT with the same features. It's run just about 2 years now and there was rumor late last year it may do the same thing as the first.

One note. JAllen can probably tell you more. With my Inland REIT, you purchase 'shares', but they have no 'market value'. You can't easily liquidate, they're not traded. You might be able to find a buyer, but you'd likely loose any benefit. REITs are long term investments.


________________
"Qui desiderat pacem, bellum praeparat; nemo provocare ne offendere audet quem intelliget superiorem esse pugnaturem".
(Whosoever desires peace prepares for war; no one provokes, nor dares to offend, those who they know to be superior in battle.)
-- Flavius Vegetius Renatus,
 
Posts: 3513 | Location: N. Texas | Registered: May 21, 2012Reply With QuoteReport This Post
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Do yourself a big favor and buy some index funds or ETFs, like VTI, Vanguard Total Stock Market Index ETF. *** I'm not sure I'd put new money into the market right now. Hold 'em if you got 'em though.

If you have money outside of an IRA or 401K then you could get into options trading. But I wouldn't unless you have the time to devote to it. What fun would that be?
 
Posts: 3021 | Location: Texas | Registered: October 04, 2009Reply With QuoteReport This Post
I believe in the
principle of
Due Process
Picture of JALLEN
posted Hide Post
quote:
Originally posted by jbcummings:
I have an Inland REIT that has been good to me. I got to buy in at a discount with a guaranteed $5K return. It stayed active for 3 years, returning a monthly dividend, then was sold giving me the opportunity to cash out at ~25% over original value. I've reinvested the original value back into another Inland REIT with the same features. It's run just about 2 years now and there was rumor late last year it may do the same thing as the first.

One note. JAllen can probably tell you more. With my Inland REIT, you purchase 'shares', but they have no 'market value'. You can't easily liquidate, they're not traded. You might be able to find a buyer, but you'd likely loose any benefit. REITs are long term investments.


REITs, like corporations (which they are by odd coincidence!), can be private or publicly traded.

A REIT is basically like a closed end mutual fund that owns real estate instead of stocks. They are REITs because they have elected to comply with the tax rules, such as pay 90% or more of earnings to shareholders, etc.

Publicly traded means registered with the SEC and state securities agencies. Many are traded on the NYSE. Private REITS cannot be publicly traded, investors must meet certain criteria. Think limited partnership type.




Luckily, I have enough willpower to control the driving ambition that rages within me.

When you had the votes, we did things your way. Now, we have the votes and you will be doing things our way. This lesson in political reality from Lyndon B. Johnson

"Some things are apparent. Where government moves in, community retreats, civil society disintegrates and our ability to control our own destiny atrophies. The result is: families under siege; war in the streets; unapologetic expropriation of property; the precipitous decline of the rule of law; the rapid rise of corruption; the loss of civility and the triumph of deceit. The result is a debased, debauched culture which finds moral depravity entertaining and virtue contemptible." - Justice Janice Rogers Brown
 
Posts: 42850 | Location: Texas hill country | Registered: July 04, 2005Reply With QuoteReport This Post
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An alternative to REITS are MLPs. Like REITS they have to pay out profits to shareholders. MLPs own natural gas pipelines that transport products for the producers. They also may own oil and gas pipelines, I'm not sure. Since what money I do have is in IRA and 401k I can't own MLPs. At one time not long ago they were a good option for income producing investments, and still may be.
 
Posts: 3021 | Location: Texas | Registered: October 04, 2009Reply With QuoteReport This Post
I believe in the
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Picture of JALLEN
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quote:
Originally posted by Jimineer:
An alternative to REITS are MLPs. Like REITS they have to pay out profits to shareholders. MLPs own natural gas pipelines that transport products for the producers. They also may own oil and gas pipelines, I'm not sure. Since what money I do have is in IRA and 401k I can't own MLPs. At one time not long ago they were a good option for income producing investments, and still may be.


Since the OP asked about real estate investing, that is what we have concentrated on, even in the drift to REITs.

I would never invest in MLP. My rule was that it had to be publicly traded, or I had to handle the money. I had been a title company lawyer early in my career and seen how often private funds are embezzled, or mishandled in some way that led to disaster.

As it was, I not only walked through the Valley of the Shadow of Death on a couple of occasions, I owned a couple of lots in the Valley!




Luckily, I have enough willpower to control the driving ambition that rages within me.

When you had the votes, we did things your way. Now, we have the votes and you will be doing things our way. This lesson in political reality from Lyndon B. Johnson

"Some things are apparent. Where government moves in, community retreats, civil society disintegrates and our ability to control our own destiny atrophies. The result is: families under siege; war in the streets; unapologetic expropriation of property; the precipitous decline of the rule of law; the rapid rise of corruption; the loss of civility and the triumph of deceit. The result is a debased, debauched culture which finds moral depravity entertaining and virtue contemptible." - Justice Janice Rogers Brown
 
Posts: 42850 | Location: Texas hill country | Registered: July 04, 2005Reply With QuoteReport This Post
Member
posted Hide Post
quote:
Originally posted by JALLEN:
quote:
Originally posted by Jimineer:
An alternative to REITS are MLPs. Like REITS they have to pay out profits to shareholders. MLPs own natural gas pipelines that transport products for the producers. They also may own oil and gas pipelines, I'm not sure. Since what money I do have is in IRA and 401k I can't own MLPs. At one time not long ago they were a good option for income producing investments, and still may be.


Since the OP asked about real estate investing, that is what we have concentrated on, even in the drift to REITs.

I would never invest in MLP. My rule was that it had to be publicly traded, or I had to handle the money. I had been a title company lawyer early in my career and seen how often private funds are embezzled, or mishandled in some way that led to disaster.

As it was, I not only walked through the Valley of the Shadow of Death on a couple of occasions, I owned a couple of lots in the Valley!


When JALLEN speaks, I listen.

Oil and gas MLPs are publicly traded on the NYSE. Once the discussion drifted to REITS, to me it became about an income producing investment with potential for price appreciation. E.g., the MLPs. But I'll read and not post now.
 
Posts: 3021 | Location: Texas | Registered: October 04, 2009Reply With QuoteReport This Post
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