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elliotth27
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sure Dsal, fire away!
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Free registration at the forum removes this block.It's been a few months Elliot, how are things? Did you start getting into bigger deals? Are you still acquiring and managing or are you developing as well?
I've read every single post made here and realize the true value lies within your knowledge/due dilligence process in finding deals. I believe you coined it perfectly as a 'system' and with all the years of experience you have (including the phenomenal 10%+ returns) you have something that is tried, tested and proven. Which leads me to ask why you haven't sought to license this to other developers even REITS for hefty upfront fees and backend royalties ?
I know you are specialist CRE company with interests only in assisted living but i'm sure other companies with a focus in warehouses, office blocks, apartment complexes and shopping malls would find your deal-sourcing process very lucrative. Those returns are pretty good to be honest.
I have to ask as the deals get bigger and you develop bigger projects will you look to become a public REIT ? That is afterall the fastlane exit strategy.
@KeithrtayGreat first post, I am also doing RE but on a much smaller scale. I just manage and complete rehabs in the ATL are.
There are about 6 guys that do RE on a pretty big scale on this site:
Runum
z*********
Cash Flow Depot
Hattterusguy
Rickson9
JScott
Those would be the guys to speak too as all 6 of those guys are firmly entrenched in the fastlane.
My question is what makes you feel that CRE development is a slow lane business? I have see countless acquisitions and liquidation events take place in the CRE industry that have made individuals tremendously wealthy.
I feel that it may take longer than maybe leveraging the internet to create a business, but the possibility still exists.
Would love to hear your thoughts on this view.
Thanks!
@elliotth27Freedom is what it's all about, and once you taste it there is no turning back!
On a short vacay right now. Will respond later.@SteveO may be interested to chime in here.
I read most of the posts but not all. Based on what I read, I believe your leaving money on the table for yourself. Are you a fee developer?
No I am a syndicator. I make money on acquisitions, development, management, and sponsorship promote / disposition, as well as any profit from my own personal investment in each partnership.
@Greg R , sorry it took me so long to respond to this. Thanks @ChrisKyle for linking me again.
This entire thread is confusing to me. @elliotth27 , you started this process at a fantastic time in the cycle. Your hands were in a lot of pots and you should have made a killing on this.
The inner workings of a business will never be clear from a few posts. It looks to me like you are very spread out. How can you be an expert and keep your hands on the pulse of all of these diverse processes.
Development can be lucrative. But it is mostly a grind. You have to get great deals on land and be efficient at the build. Real estate cycles really come into play here.
I have tried development with commercial. It was a small 10,000 sq ft medical office. Long process. Made money but it was a lot more work for the return compared to my rehab side.
Let me tell you why I like rehab. Replacement cost of a building means the cost to develop. I like to buy when buildings are way less than replacement cost and sell as they are approaching that number. The only real way to do this is to play the cycles though. Poorly maintained buildings in good areas can sell for low amounts during a downturn. Rental demand is weak and there are few buyers. So the prices drop significantly.
Once the building is modernized to a degree and the occupancy is stabilized, sell and repeat.
Syndicating will allow you to do this on a much larger scale.
Reading through this thread, I would expect that you made a few million in the last few years. Is this correct?
You have made millions in the past few years and don't feel that is fastlane? That is why I was confused. How much do you need to make to feel fastlane?
Dude, keep kicking a$$. You will get better and make more as you progress.
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