Posted by Ronald * Starr(in No CA) on September 06, 2003 at 20:03:36:
Nice to talk to you. You are probably getting pretty good at what you do.
I’d find it a lot easier to respond if you said I want to do “X” and what do you think about it. You open-ended question makes it harder, since I don’t know you.
But, I like your question so I’m going to spin out some ideas.
One thing would to get more efficient at what you are doing and do more small deals each year. You might train more people to work for you so you do less of the direct work and more of the directing work.
You might, as you suggest, move up to larger residential properties. Whether to resell soon for profit or hold for the long term is up to you. William Nickerson?s ?How I turned One Thousand into 5 Million in my Spare Time? suggests this type of approach. Buy small, fix up. Hold until the rent roll is stabilized, then exchange up into a larger fixer property. Then do the same again. At some point you will a large property providing you with all the money that you desire. Then you just live the good life. When he died, he owned, as far as I can tell, just one property. It was the ?La Peralta? apartment complex a block from the Alameda County administration building here in Oakland, CA. It was five stories high and had about 95 apartments. He h ad owned it since at least 1968, so you can imagine the great cash flow he had.
You might start moving into other categories of properties that are typically more valuable than are the single family houses. This could be commercial properties or industrial properties. Again, you could fix for quick resale or for longer-term holding.
Good Investing***************Ron Starr***************