Type of Investments

[claynor]

Dear REIN group,

First and foremost, I would like to say a BIG THANK YOU to all your efforts to making the 2008 Quick Start happen. It not only validated my belief in the group, but also confirmed the integrity that the people who represent it.

My question is:
1. What are the different types of investment vehicles (ie: Single Family, Multi-family, Commercial, Industrial?, Institutional?, etc.)

2. What are the advantages and disadvantages of each.

I was completely blown away by how comprehensive the Quick Start package is, but it never talked about the types of investment options. Knowing this, one can structure their investment portfolios in sequence, rather than just relying on single and multi-family alone.
(I wanted to ask Don or Russell or any of the Senior REIN Members, but they were too busy at the workshop and I didn`t want to have other people waiting in line too long).

3. I just noticed that the Filing System used LEGAL folders. I have LETTER size. Would it be a problem? I have never come across legal size papers, but you guys would know better. (Not a biggie, but sometimes I fear asking these types of questions for fearing looking stupid

).

Thanks and More Power!

Clay

 

[MonteDobson]

Hi Clay,

Glad you enjoyed Quickstart...that`s what really kick me into gear a couple of years ago. Here are some comments to your questions:

1. There are many different types of investments available. This is completely up to you and you should base this decision on where to focus your efforts with your longer term goal in mind. Obviously part of this question depends on how much capital you have available, your credit score and your experience. Most get started with single family revenue houses and move into bigger things later on. No real advantages/disadvantages of each other than what YOU want to get out of it. Work on your personal Belize and you`ll be surprised at how clear this all will become. The properties you buy should answer a couple of simple questions: Does this property fit the system? Does this property bring you closer or further away to your goal?

2. As for legal vs letter, you will need to update you files to LEGAL as many of the documents you will start to acquire will be LEGAL in size (ie. titles etc). Just head to Staples and they will have everything you need (ie. hanging file folders, file cabinets etc).

Main message around all of this is pick one that you think you`ll be good at and TAKE ACTION. Many people ponder these things for years and never do anything about it.

Hope this helps and good luck!!

 

[thejules]

Hey Clay,
Way to invest in your investment education. The REIN Program has set my investing career on a very positive track. I used to invest in run down duplexes, tri-plexes, and four plexes, but the rennovation costs and the tougher tenant profile didn`t provide the kind of return that I was looking for. Plus these types of properties didn`t appreciate fast enough for me to get this costs back out of the building through refinancing.

Since joining REIN, I have switched my focus to Condominiums, Condominium Town homes, and 30 unit apartment buildings. Yes there is monthly condo fees in any condo property purchase, but this takes a lot of the management pressure off of me. And then all I have to look after is the interior of the unit and manage the tenant. And in a 30 unit building, you can hire a building superintendant and the economies of scale work way better on a 30 unit building because your managing all your units under one roof with on furnace, and one bank account.

I have been a REIN Member since August of 2003 and I own a lot of properties that cash flow positive every month. However, I am investing for equity appreciation more so now than cash flow. I like the analogy of the farmer planting thier crops and tending to them while they grow in value and then harvesting them when the fall arrives & the economic fundamentals say it is time to do.

I hope that helps...