Let's do a thread on why you shouldn't buy real estate as an investment.

On Twitter, you only see the positives of owning real estate.

However, the downsides of owning real estate are quite real.

Buckle up; let's go! Passive Investment:

Let's start with the most commonly misunderstood aspect of real estate.

What is commonly touted online by influencers is that real estate is a passive investment.

In no way, shape, or form is this true.

Everyone on Twitter talks about how to make money in real estate.

But no one talks about how you can lose all your money in real estate.

One wrong move, and you're bankrupt

So, let's go through the most common way real estate owners lose a lot of money! 1.) Buying a building with an overmarket lease.

Example: Single tenant NNN property. Think of a Chick-fil-A

Chick-fil-A signs a 10-year NNN lease at 40 PSF base rent for a 10,000 SQ Ft building.

NOI = $400,000 (40*10,000)
Value at a 6 Cap = $6,666,666 (400,000/.06)

Have you ever wondered how some people are able to achieve great success so young?

Or how some people always seem to be progressing upwards in life?

Early success stems from planning and being cognizant of your time.

Let's do a thread on how to achieve your goals at any age. A common phrase I like to tweet about is "Moving the Needle"

I use this framework and mindset to ensure I am moving in the right direction in life at all times.

Without it, I would not be doing what I am doing today.

A lot of the advice from Real Estate Twitter overlooks some of the basics for newcomers.

Therefore I wanted to make a thread that broke down 10 basic things that you might not know if you are new to real estate.

Enjoy! Let me know if you want more stuff like this 1.) Hold each property in its own LLC.

For the most part, every property you buy should be held in LLC.
Do not hold Real Estate personally.

I wrote a thread on this a while ago if you want to go into the why.

https://twitter.com/1147260739196989440/status/1604476886532464650

As promised, here is a thread about why you need to use LLCs in Real Estate.

If you aren't using an LLC, I question your knowledge.

Anyways let's do it Why am I making this thread?

Every month or so, I post some version of the below tweet:

https://twitter.com/1147260739196989440/status/1603204761985208322

There is a serious issue with buying cheap properties less than 200k

Your cashflow is not enough in dollar terms. Properties have fixed cost.

Sure you may cash flow 1k a month but what happens when you need a new roof?

Bye bye two years of cash flow. Bigger is better And if you’re curious the tweet that triggered me:

https://twitter.com/getmoneysmarter/status/1546903003315277825

A thread on our real estate niche and our favorite type of deal.

This is a thread you will want to read as this asset class is extremely underserved and relatively unknown. 🚨 Location:

Personally, I think location is the most important aspect of real estate regardless of the asset class. Therefore we will start here.

We invest in lower-income neighborhoods with high density. A well-known example would be downtown Bronx.

In thanks of 10k here is a thread of MOST of the best people on real estate twitter.

Books of information are posted weekly from everyone.

The thread will be continually updated and will live in my pinned tweet. @TheRealEstateG6 Starting off with the RE God because Anon accounts have to stick together.

Younger higher up at an institutional PE shop. Does deals on the side. His firm deals with a lot of offices.

Also has probably the best course on the PE model. (I have read it).

Sam Zell AKA the "Grave Dancer"

Amassing an over 60 Billion-dollar commercial real estate portfolio and pioneering the REIT structure.

Let's break down his story: 👇 1.) Zell was born in 1941 to two polish immigrants who migrated to the United States in 1939, shortly before Germany invaded Poland.

Zell's father was a jewelry wholesaler.

The time has finally come to launch my website.

Super excited about this and can't wait for everyone to check it out.

All I ask for in return is to show this thread some LOVE. Monthly Newsletter:

I will be sending out a 5-10 minute read every month.

Sign up here you won't want to miss it:

theestateranger.com/newsletter/

This will be a thread on a basic overview of the ways to get into Real Estate:

I decided to make this thread due to the large volume of people asking how they can get into Real Estate. The first thing to note is that not all Real Estate is the same.

For simplicity purpose, I will break it into two categories,

Commercial

Small Family

This will be a 30-day thread on how to manage a building on a budget:

This will be helpful for anyone wanting to learn about how to save money and manage your own properties

Enjoy :D Day 1:

Why should you self manage?

I think its particularly useful when distinguishing yourself from others, especially when your time is worth less than money.

I pursued this when I was younger and now I have a thriving management company next to my RE portfolio

This will be one of the most important Real Estate threads I do:

It seems like no one understands how taxes work when you sell a cash flow property

Although this is a very important thread I doubt it gets that much engagement

So make sure to like this shit

Let's get into it: Introduction:

Before you buy a building you must always look at your exit strategy. If you are buying to hold for 15 plus years than this thread is not very relevant to you.

If you are looking to sell then listen up because taxes on your sale price can make or break a deal.

This morning I want to break down where to find the best business information on the web: 1.) My twitter :D

Seriously go through my pinned threads. I post a lot of solid Real Estate information.

If you don't understand anything I refer to just google it! On google you can find more in depth definitions.

Review of 20 Year Absolute NNN building in Massachusetts:

loopnet.com/Listing/1174-S… Basics:

20 year NNN lease with a 6.75% cap selling at 697 psf

Looks to be a basic hold and collect play. Nothing to do with the property for a 20 year period besides collect cash

Here is a thread on how to negotiate loan terms: Loans:

Lets start with how to negotiate loan terms.

The first thing you get back from a bank is a term sheet. This outlines the term of your loan.

It is important to note that this is just the first step of the loan terms.

This will be a thread answering the questions I receive.

If anyone wants a question about Real Estate answered just @ me or comment on my threads.

I hope you enjoy! @twtJSanghvi Asks

"What could be a shortest and suggested roadmap for a non-RE newbie, in his mid 30s, to break in big boys club"

The big boys all have large portfolios. (Usually coupled with Insurance and PE but thats another topic)

What you need to do is build your portfolio

We are here again evaluating yet another Loopnet building.

If you want to get the most out of this post first read look at the property yourself and write down all your questions.

Lets cross-compare and see if we are missing anything.

loopnet.com/Listing/24-38-… Overview:

$1,695,000, 8.25% Cap, 14,451 Sq Ft and 117 Price PSF

These numbers right here pique my interest.

Great cap low purchase price lots of square feet to work with.

I like this so far

So last week I explained how to find a Real Estate deal. (See below if you missed that)

Now I will be showing you what happens after you submit your LOI.

https://twitter.com/EstateRanger/status/1179388483900715009?s=20

Disclaimer:

This is for commercial real estate not residential

The transaction process changes by state.

There is a lot of things involved when purchasing a building. Don't expect everything to be here.

This is a thread on the basics. Don't kill me if I forget an item.

I will be compiling a thread of all of my threads.

I have a lot of information in my threads and I want them to be accessible to you guys.

Otherwise this information will just get lost in Twitter. This thread is on my tips for real estate:

https://twitter.com/EstateRanger/status/1147270291871227904?s=20

How to flood your inbox with Real Estate Deals This takes a lot of upfront work but is smooth sailing after systems are in place