Page 1 2
Go | New | Find | Notify | Tools | Reply | |
| Member |
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. | ||
|
Not really from Vienna |
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. | |||
|
| I believe in the principle of Due Process  |
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 | |||
|
| Needs a check up from the neck up  |
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 | |||
|
| Member |
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. | |||
|
quarter MOA visionary |
https://www.reit.com/ | |||
|
| Member |
Unless your pockets are very deep, it is not passive. Been doing for 40 years. | |||
|
| Oh stewardess, I speak jive.  |
It's not passive for the vast majority of folks, and that misunderstanding is rampant. | |||
|
| I believe in the principle of Due Process |
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 | |||
|
| Low Profile Member |
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. | |||
|
| I believe in the principle of Due Process |
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 | |||
|
| Member |
Flippers, investors bought more than a third of DFW homes last year http://www.star-telegram.com/n...rticle161281298.html | |||
|
| Low Profile Member |
I guess it depends on how you choose them and how you work with them | |||
|
Drill Here, Drill Now |
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. | |||
|
Member |
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. ———- Do not meddle in the affairs of wizards, for thou art crunchy and taste good with catsup. | |||
|
| Member |
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? | |||
|
| I believe in the principle of Due Process |
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 | |||
|
| Member |
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. | |||
|
| I believe in the principle of Due Process |
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 | |||
|
| Member |
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. | |||
|
| Powered by Social Strata | Page 1 2 |
 | Please Wait. Your request is being processed... |
|
© SIGforum 2024