Comments on: Austin vs. San Antonio for Single Family Real Estate Investing http://www.lifestylesunlimited.com/austin_vs_san_antonio_for_single_family_real_estate_investing/ The Education and Mentor Group for Real Estate Investing Wed, 25 Apr 2012 19:34:45 +0000 hourly 1 http://wordpress.org/?v=3.1 By: Tony http://www.lifestylesunlimited.com/austin_vs_san_antonio_for_single_family_real_estate_investing/#comment-19937 Tony Fri, 05 Aug 2011 21:18:09 +0000 http://www.lifestylesunlimited.com/?p=1901#comment-19937 San Antonio is probably the best market, and San Antonio is probably growing just a fast if not faster than Austin. Houston a well. San Antonio is probably the best market, and San Antonio is probably growing just a fast if not faster than Austin. Houston a well.

]]> By: homepwnerer http://www.lifestylesunlimited.com/austin_vs_san_antonio_for_single_family_real_estate_investing/#comment-128 homepwnerer Fri, 16 Oct 2009 15:30:07 +0000 http://www.lifestylesunlimited.com/?p=1901#comment-128 I'm seeing the same that the guys at LU are. High equity capture, 30-40% discounts on purchase price and 100-200 a month cash flow. However, I don't consider this true cash flow as the debt service is covered but the expenses, management, maintenance, etc.. are still dropping the cash flow to near break even. However.. This is the model that should be followed - if you are breaking even after accounting for maintenance, management, incidentals, debt service, marketing, 1-2x rent loss etc.. your actually doing even better than Del's business model projects. teh_homepwnerer pwnhomes.com I’m seeing the same that the guys at LU are. High equity capture, 30-40% discounts on purchase price and 100-200 a month cash flow.

However, I don’t consider this true cash flow as the debt service is covered but the expenses, management, maintenance, etc.. are still dropping the cash flow to near break even.

However.. This is the model that should be followed – if you are breaking even after accounting for maintenance, management, incidentals, debt service, marketing, 1-2x rent loss etc.. your actually doing even better than Del’s business model projects.

teh_homepwnerer
pwnhomes.com

]]> By: Brian Lee http://www.lifestylesunlimited.com/austin_vs_san_antonio_for_single_family_real_estate_investing/#comment-127 Brian Lee Wed, 06 May 2009 18:56:01 +0000 http://www.lifestylesunlimited.com/?p=1901#comment-127 I need to clarify that my above responses were about single-family investing, as the topic of this article was about the single-family model. John and Francisco, if you were asking about multi-family partnerships; I would have to refer you to one of our multi-family mentors to answer your question. I need to clarify that my above responses were about single-family investing, as the topic of this article was about the single-family model.

John and Francisco, if you were asking about multi-family partnerships; I would have to refer you to one of our multi-family mentors to answer your question.

]]> By: Brian Lee http://www.lifestylesunlimited.com/austin_vs_san_antonio_for_single_family_real_estate_investing/#comment-126 Brian Lee Wed, 06 May 2009 16:14:01 +0000 http://www.lifestylesunlimited.com/?p=1901#comment-126 As long as your legal structure allows it. Talk to your lawyer and CPA to make sure you have an agreement that is transparent to the IRS. As long as your legal structure allows it. Talk to your lawyer and CPA to make sure you have an agreement that is transparent to the IRS.

]]> By: John http://www.lifestylesunlimited.com/austin_vs_san_antonio_for_single_family_real_estate_investing/#comment-125 John Wed, 06 May 2009 16:04:49 +0000 http://www.lifestylesunlimited.com/?p=1901#comment-125 Can the passives take depreciation? Thanks, John Can the passives take depreciation?

Thanks,
John

]]> By: Brian Lee http://www.lifestylesunlimited.com/austin_vs_san_antonio_for_single_family_real_estate_investing/#comment-124 Brian Lee Wed, 06 May 2009 13:52:47 +0000 http://www.lifestylesunlimited.com/?p=1901#comment-124 Partnership arrangements (single-family) can be anything you want them to be. That being said, it's typical for the lead to take 25%-50% of the equity and cashflow. Some arrangements treat equity different from cashflow. I like to give my passives some downside protection by offering not to take a cut until they reach a certain level of return. Remember, passive/lead deals are only good for the passive if the returns are pretty big, say 50-100%. It's not a very good deal for the passive to split a 10% return. Bottom line is as a lead needs to under-promise and over-deliver. If you were referring to multi-family partnerships, I would have to refer you to one of our multi-family mentors. Partnership arrangements (single-family) can be anything you want them to be. That being said, it’s typical for the lead to take 25%-50% of the equity and cashflow. Some arrangements treat equity different from cashflow.

I like to give my passives some downside protection by offering not to take a cut until they reach a certain level of return.

Remember, passive/lead deals are only good for the passive if the returns are pretty big, say 50-100%. It’s not a very good deal for the passive to split a 10% return.

Bottom line is as a lead needs to under-promise and over-deliver.

If you were referring to multi-family partnerships, I would have to refer you to one of our multi-family mentors.

]]> By: Fransisco http://www.lifestylesunlimited.com/austin_vs_san_antonio_for_single_family_real_estate_investing/#comment-123 Fransisco Tue, 05 May 2009 18:46:45 +0000 http://www.lifestylesunlimited.com/?p=1901#comment-123 Brian, Can you explain for me how you structure a deal with passive and active investors? Who is responsible for what and how is the cash flow divided? Thanks Brian,
Can you explain for me how you structure a deal with passive and active investors? Who is responsible for what and how is the cash flow divided?
Thanks

]]> By: Nicolas http://www.lifestylesunlimited.com/austin_vs_san_antonio_for_single_family_real_estate_investing/#comment-122 Nicolas Fri, 01 May 2009 22:18:54 +0000 http://www.lifestylesunlimited.com/?p=1901#comment-122 I sure will, On paper, I have run some numbers and yes, they could cash flow, still, here in L.A.. we have not see a bottom and we are far from it... If I were to invest in a multifamily deal say in San Antonio as a passive investor, what's the average commission? I sure will,

On paper, I have run some numbers and yes, they could cash flow, still, here in L.A.. we have not see a bottom and we are far from it…

If I were to invest in a multifamily deal say in San Antonio as a passive investor, what’s the average commission?

]]> By: Brian Lee http://www.lifestylesunlimited.com/austin_vs_san_antonio_for_single_family_real_estate_investing/#comment-121 Brian Lee Fri, 01 May 2009 21:00:39 +0000 http://www.lifestylesunlimited.com/?p=1901#comment-121 As an addition to my last reply, there are a few Lifestyles members in California that are investing in multi-family. Also, a few members are partnering with leads in Texas to take advantage of the ideal market. As an addition to my last reply, there are a few Lifestyles members in California that are investing in multi-family. Also, a few members are partnering with leads in Texas to take advantage of the ideal market.

]]> By: Brian Lee http://www.lifestylesunlimited.com/austin_vs_san_antonio_for_single_family_real_estate_investing/#comment-120 Brian Lee Fri, 01 May 2009 20:59:04 +0000 http://www.lifestylesunlimited.com/?p=1901#comment-120 In my experience, the Lifestyles model doesn't work in California... That being said, I've heard rumors that real estate in parts of California is getting so cheap that it's starting to cashflow. If you or anyone can report back to me that you can cashflow to a large bread-and-butter renter pool, I'd love to investigate. In my experience, the Lifestyles model doesn’t work in California… That being said, I’ve heard rumors that real estate in parts of California is getting so cheap that it’s starting to cashflow. If you or anyone can report back to me that you can cashflow to a large bread-and-butter renter pool, I’d love to investigate.

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