Would you be interested a real estate investment trust?

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schockergd

New member
Dec 11, 2008
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Circleville Ohio
Wayn3 and I had planned to develop a certified REIT by December of this year, however since he's either died, gone to jail or similar it has thrown a partial monkey wrench in the project.

Anyways, as some of you know, I have a background in real estate (I've been a agent for 6+ years) and own an apartment complex myself. Over the past 6 years I've averaged about a 35% cash-on-cash return with my apartment complex & a single-family house that I own. The market I'm located in has nearly no competition for rentals due to lack of capital.

So, what I'm looking to do is to procure capital so I can obtain favorable financing & then use leverage to increase the the returns on rentals to relatively high amounts (The typical cap rate for my area is 8% to 10% for commercial developments, with residential & multifamily I can do 30% to 40% internally all day long).

I *would* do microfinance on this type of project, but US investment laws suck. I pretty much have to do a LLC type structure with each property as its own LLC and then have dividends flow to investors at a set % of the property.

So , I'm curious to the people on here - What kind of return would you have to get on a management-free type of real estate investment. One where you have voting rights as to when/if the property is liquidated as well as dividend disbursement as well as the amount of leverage used.
 
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As part of the REIT project, we've also considered spawning a "Real Estate TV" webshow in order to show the process of investment in real estate, leverage and the problems with management. Some initial research has shown that this is a pretty big niche to be in with almost no real information out there, unless you want to buy a book by a guy who is now in jail for mortgage fraud.
 
If you're so sure of yourself, why don't you go to a bank? I'm sure they would be interested in your supposed 50% first year returns.
 
productionhead said:
Shocker, which book do you refer to?
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I'll have to go through my inherited pile of "Millionaire real estate investor for 0% down" books that I somehow inherited from family members.

When I checked a year or two ago, there were a few prolific REI guys who wrote books who are now in jail. Carleton Sheets was one of them that almost wound up in jail. I know quite a few of his followers did because he essentially was showing people how to lie on FHA documents for 0% down financing on investment homes.

Edit : Several of Robert Allen's followers were also arrested.

Edit 2 : Here's a list of guys that are in jail, arrested or otherwise legal limbo who have been involved in REI books : http://www.johntreed.com/Reedgururating.html
 
Not sure why you talk about RE investing so much, yet don't see a bank to get loans on your 50k houses.
 
I would jump in, but this just happened to me (And I live in Miami Beach):

TUDcc.jpg


I tried to get my money up, but then got this:

UcPQA.png



But lettuce be cereal for a second.

Why don't you get a loan on the positive cash-flow apartment complex and your single family house as collateral agains a regular bank loan? The fact that you have positive cash-flow on a rental property alone will get you sitting at the table. Being a Real Estate broker, you should know all the tips and techniques to look for. Was Wayn3 coming in with the money for this project? Cause that's what it sounds like.

Or this could be a more sophisticated troll of what we are witnessing now:
http://www.wickedfire.com/shooting-shit/167061-blackhatworld-trolled-scammed.html

Just by that thread alone, your timing is way off. If you had come in about 2 weeks earlier, maybe, but people are going to be more protective at the moment. As well, we are going into the holidays. So everyone, at least with money, is gearing up to make as much money as possible for the estimated $500 each consumer is stating they will spend online. Everyone wants that piece of the pie in internet marketing.

So your bet bet, would be to make this offer after the holidays, when the winners are winning, losers are contemplating a new religion - If your legitimate. Also, why didn't you go to a real estate forum first?
 
CCarter said:
I would jump in, but this just happened to me (And I live in Miami Beach):

TUDcc.jpg


I tried to get my money up, but then got this:

UcPQA.png



But lettuce be cereal for a second.

Why don't you get a loan on the positive cash-flow apartment complex and your single family house as collateral agains a regular bank loan? The fact that you have positive cash-flow on a rental property alone will get you sitting at the table. Being a Real Estate broker, you should know all the tips and techniques to look for. Was Wayn3 coming in with the money for this project? Cause that's what it sounds like.

Or this could be a more sophisticated troll of what we are witnessing now:
http://www.wickedfire.com/shooting-shit/167061-blackhatworld-trolled-scammed.html

Just by that thread alone, your timing is way off. If you had come in about 2 weeks earlier, maybe, but people are going to be more protective at the moment. As well, we are going into the holidays. So everyone, at least with money, is gearing up to make as much money as possible for the estimated $500 each consumer is stating they will spend online. Everyone wants that piece of the pie in internet marketing.

So your bet bet, would be to make this offer after the holidays, when the winners are winning, losers are contemplating a new religion - If your legitimate. Also, why didn't you go to a real estate forum first?
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I got into rentals when they were giving mortgages away. I have 0% down on them. It results in awesome cashflow but no ability down the road to cash it out. At least, not for a while, I do have a 15yr loan on the apartment complex which is slowly getting some principal behind it.

As for 200k - I live in a area of the United States where 1400 square foot homes can be bought for $30,000 and rented for $750 a month. The great issue is that banks wont loan on a $30,000 house because Freddie and Fannie don't buy loans under 50k.
O
 
I live in a area of the United States where 1400 square foot homes can be bought for $30,000 and rented for $750 a month
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Where is this Circleville Ohio?
 
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