ju5tchi11in

I live in los angeles at the moment.

I'm 21, my name is Rob, I currently attend the University of Southern California going into my fourth year.

Over the past year and a half I've been researching and looking at different properties in the area. Turns out there are a good deal of multi unit complexes that are for sale, have been sold, or could be bought.

I was wondering if there was any interest on forming some sort of REIT or and LLC of some sort. Of course it would be a legal thing and all contracts and such.

It seems a lot of us are on here because we are at work and do not like our jobs find this place fun and it seems most of the members that are regulars are fun and good smart people that just haven't found their callings.

Since this is just an interest thread... more information about a REIT or more on an LLC... I am more familiar with an LLC than a REIT but any more info on either is appreciated. There has been an increasing amount of talk about properties and investments, so I thought what better time to form something like this.

Input please A-CL

ju5tchi11in

hmm I got pwned by the mods... I guess now no one will read this thread ever and it will pass into oblivion.

CrockPot

there may be a good deal number of multi-units available for sale, but i doubt you'll find too many that are a "good deal."

ju5tchi11in

u don't need the greatest deal to generate some posative cash flow... and that is all u need. What is a "good deal" anyway? Its all about the numbers if ur interested let me know.

CrockPot

yes a good deal would be one where you can generate positive cash flow. if you can turn:

1) Mortgage payments
2) Maintenance expenses
3) Property tax
4) Property insurance
5) Misc fees (advertising, inspection, legal)
6) Lapse in rental income
7) Deadbeat rentors

into a positive (or at least positive, once you factor in property appreciation) over the long term, then more power to you. as you know, socal's property values have increased astronomically the past half decade or so - to think that we're reaching a plateau or that the bubble will be bursting is probably the safer, if not more realistic, approach. if you want to assume the risk, and have people willing to go aboard with you, good luck to you and yours. how do you plan on providing the credit numbers to even tackle a half million (which is what the minimum, run down, multi-unit is going to run) loan?

mikeymobiles

I am very intrested in doing this but in New Jersey...near rutgers i want to get a rental property for college kids...right now though the market is at its peak for sellers so prices are sky high...I have gone to see a few houses and alot of them need alot of work since its and older area...but start doing research there is alot of information on the net for

5) Misc fees (advertising, inspection, legal)
6) Lapse in rental income
7) Deadbeat rentors

The rest you can start calling up accountants, and lawyers and they prett much answer questions for free hoping you'll do business when ur ready to buy the house...or at least that's how it's been for me when i have questions...

ju5tchi11in

lol that is not a good deal... that is just a property that can generate posative cash flow.

Im not an idiot. Nor am I the smartest out there.

I did not start this thread for people to come by and shoot down this idea... I was looking for interest in this. look up what a REIT is I can't explain it to well... a legal entity that people buy into. almost like a mutual fund except u pool money to buy a property or properties and then invest that money into a property and then after x amount of years which was written into the contract u can pull u get ur money back + set interest %, or during that time when value is building, u can opt out of the REIT, by some buying out the % of the property that u bought in the first place + some interest.

a good deal by my standards is buying a building pretty undervalued and then turning it into a heafty cash cow. or lots of return on investment.

same here mikey. live by the college property value is sky high. but that doesn't need to be the case people rent everywhere. it is better to have a long term tendant/family than college students... being one I wouldn't want my first place to be a college kids place because contracts are year to year and u get pretty much different people each year and maintainance costs are high.

GTKrockeTT I have been researching and going out to look at properties for over a year already I don't know it all or even close to half or probably even a quarter of it all but its an idea and Im going with it because I don't want to end up like a lot of people complaining about their jobs and complaining about things that they can't do or they don't have enough money to fix their transmission. Good luck mikey perhaps we can start something. how did the cellphone accessory business work out? is that still going?

mc222

Rob,
I think its a great idea....Maybe in a little while after I recoop all the cash I just put down on my house, Ill be in touch

aqj

Hey Rob, I'm a Trojan too!! (1999)

I may be interested in some real estate. But I was thinking more in the lines of a limited partnership or an 'S' Corporation (no, not a Type-S corp, this is different). I have a rental property in Norcal I bought 2 years ago and its appreciated quite a bit, so you just have to search for the right opportunities. I've also been talking with friends about getting info on homes that are being foreclosed, as well as apartment complexes in areas that haven't been fully developed yet, with the potential to grow in the next few years.

Basically, what's important is some access to capital and finding people who are willing to do some work or trust you enought to do some work.

I just took my real estate brokers exam Friday. Pretty sure I passed, should know in a few days. My father is a real estate broker and he has been dealing in residential properties in NorCal.

There are tons of different ways to make money, personally, i think apartments are harder in Cali at this time, since rents are not increasing much in most areas (there are exceptions of course)

So anyways, yes I am interested. Send me some more info in what oyu had in mind and we can go from there.

ju5tchi11in

Sounds great. I knew there were trojans out there.

I will let you know when I put something together. Thanks!