For those of you who flip properties, are you keeping those gems you find along the way, or flipping them too?
If you are keeping them and hadn’t in the past, due to not wanting to be a land lord, how are you overcoming all the BS that comes along with holding these houses?
I flip ALL my residential property and then buy and HOLD commercial land or buiding’s with SOME of the profits. The rest of those profits provide opportunities in other areas.
I am currently buying air cooled Porsche 911’s that I fully expect to DOUBLE in value over the next 10 years. Porsche’s current lineup of 911’s are JUNK…Rear main seal leaks, HORRENDOUS resale values and the entire lineup has been decimated by building cars to a price point instead of to an engineering standard. As a result, Porsche’s earlier “hand built” air cooled 911’s are quickly becoming recognized as extremely OVER engineered “jewels.” The VALUE in these cars will be fully realized in the future as people conclude that these cars will NEVER be built to such a high standard ever again. WATCH. I remember seeing 1950’s Porsche Speedsters selling routinely for $35,000 to $50,000 just 10 years ago…Those same cars now fetch $125,000 to $150,000. Those prices MOVE an entire market for other Porsche’s as buyers look for a more affordable alternative.
MONEY…Creates O P P O R T U N I T I E S…Those opportunities create more $$$$$$!!!
I flip ALL my residential property and then buy and HOLD commercial land or buiding's with SOME of the profits. The rest of those profits provide opportunities in other areas.
I’ve been seriously thinking about commercial… land I’m just not familiar enough at this point to venture into it, unless I can find buildible lots I can flip to home builders.
Been thinking about finding buildings that I can find cheap on fairlybusy roads and seeing if the zoning can be changed from residential to commercial and leasing them to small business professionals such as lawayers, doctors, accountants etc…
I am currently buying air cooled Porsche 911's that I fully expect to DOUBLE in value over the next 10 years. Porsche's current lineup of 911's are JUNK...Rear main seal leaks, HORRENDOUS resale values and the entire lineup has been decimated by building cars to a price point instead of to an engineering standard. As a result, Porsche's earlier "hand built" air cooled 911's are quickly becoming recognized as extremely OVER engineered "jewels." The VALUE in these cars will be fully realized in the future as people conclude that these cars will NEVER be built to such a high standard ever again. WATCH. I remember seeing 1950's Porsche Speedsters selling routinely for $35,000 to $50,000 just 10 years ago.....Those same cars now fetch $125,000 to $150,000. Those prices MOVE an entire market for other Porsche's as buyers look for a more affordable alternative.
Based on your great track record here, I am sure you are correct. I’ve been keeping an eye out for them, just haven’t found any real motived owners looking at taking my low ball offers. Some I’ve looked at had too much rust.
Stick to 911’s made AFTER 1978…These 911SC’s (Super Carrera’s) have fully galvanized bodies that hold up to rust much better than earlier cars. This is actually a great example of what I was pointing out here. Porsche fully submerged these cars in a chemical bath to galvanize the bodies which gretaly reduced rusting…
Another SHORT LIST of very expensive things Porsche did to these early cars…
All these engines were DRY SUMP OILED…The only other cars that have dry sump lubrication are RACE CARS…Dry Sump mean most of the engine oil is held in a TANK and fed into the engine via hose lines.
This does a few things…First, during high speed corning oil doesn’t slosh to one side of an oil pan starving the engine of lubrication. It also allows for MASSIVE volumes of oil…In a regular car, oil capacity is limited by the size of the oil pan because it hangs UNDER the engine…With the more expensive dry sump system, oil tanks can hold larger volumes of oil…That additional oil also helped cool the engine adding to the 500,000 miles these engines can see between rebuilds with good maintainance.
HUGE 4 wheel disk brakes that don’t warp or fade when pushed hard.
Engines built with forged connecting rods, forged crank shafts, oil fed timing chain tensioners.
Very advanced and reliable fuel injection systems that STILL work perfectly 30+ years later.
Literally HAND BUILT CARS.
Finally a comparison where it counts…THE RACE TRACK!!!
In the 1970’s DATSUN wanted to take the Trans AM title from Porsche with the 240Z…The factory backed datsun teams with completely NEW engines after EVERY RACE. Datsun engineers would remove the motor from the 240’s and replace them with a NEW factory motor after EACH race…
Porsche???
They ran the entire SERIES with the original motor in each car…And they STILL BEAT DATSUN!!!
How do you handle all the fluid changes that need to be done on a regular basis with all these cars? Do you drive them frequently or let them sit? That’s one of my big concern…
Amsoil fully synthetic oils…The best I’ve ever used. I do the changes myself.
AND…You MUST drive these cars regularly to keep them happy.
It’s a sacrifice I’m willing to make. :biggrin
Agree, Amsoil does make top quality lubricants, never had any issues my self
AND.....You MUST drive these cars regularly to keep them happy.It’s a sacrifice I’m willing to make.
Never get attached to real estate, even if it is your own house. I tend to keep the “gems” until the right buyer comes along (paying the price I am looking for,) than I sell those as well.
There is no way around the problems of being a landlord. Organization is key. I know investors who live off the cashflow and travel, leaving someone in charge of their properties, but these are tips for being a successfull landlord: have someone manage and work only for you (not a management company) - establish your own trusted maintenance team - be very strict and methodical with your tenants from day one.
You have to find good property managers. The strategy I employ is to flip properties then when I have enough cash I but a rental property to build my cash flow. Eventually I will not have to work and I can spend my time on my family, volunteering, travel, seeking excitement and all of my business and entrepreneurial ideas. You should have a good idea going into the deal if it makes sense to flip or hold. You can even do rental flips which work great if you can provide lenders for investors who want rehabbed, rented, managed, turnkey rentals.
You have to find a good property management company and complete your due diligence on them. Difficult things like this you must do in 3s, that is evaluate a ton of property management companies and whidle it down to the 3 best. Choose the best one and you have 2 backups. Do this for all difficult things like finding an agent, project manager, contractor, attorney, etc.
Some properties are better for flips, some better for rentals. You can rent then flip to investors looking for holds. It really depends on your goals. I prefer to flip then acquire cash flow rentals so I am not only increasing my networth but also my cash flow. The idea is to have enough cash flow so I don’t need to work and I have plenty of reserves. Basically you end up with freedom of location and freedom of time. You can work your butt off for periods and travel or do other things that interest you for periods. It’s all about your goals.