All Forum Posts by: Chris Seveney

Take a look at this graph:

What do you see?

What RECENT "buy" opportunities do you see in the overall market?

When do you think it was more difficult to find a "deal" on real estate, in 2011 or 2019?
How about today?

It's pretty easy to see that real estate proces peaked around 2007-2008 and then crashed during the Great Recession.
Around 2011-2012 prices started to recover and got back to their pre-Crash highs around 2015-2016, but really 2018-2019 when adjusted.

So, why are newbies reading books written BEFORE 2019 and thinking that you can still successfully invest using the EXACT advice in these relatively "old" books?

Yes, some of the basic principles in ANY book can still be applied to any time.
Napoleon Hill's book, "Think and Grow Rich" written in 1937, is still a good read for it's basic ideas.
Yet, you have to adapt those ideas to the modern world!

Too many newbies seem to think they can blindly follow "old" advice in today's real estate market and be successful.
Many, basically get taken advantage of by those in the industry that have an incentive to keep newbies blind to new realties, just to keep their good times rolling.

What many newbies have figured out is that they can't make the numbers work on rental purchases in their states - like California, Arizona, New York, New Jersey, Washington, etc.

What they have NOT figured out is that if they go to cheaper markets, they aren't being shown Class A rentals to buy.
Most are being encouraged to buy Class B-minus rentals and below, but no one corrects them about their mistake of using Class A assumptions on these rentals:

When a newbie gets smacked with reality via their losses, they then can only suck it up until time improves their mistake or dump at a loss.

So, my question is, why can't we all do better and grow our industry with integrity?

I'm doing my research and I came across wholesaler who said if the buyer is requesting an inspection, they aren't a real buyer, probably just a wholesaler trying to scope the competition or lock up your contract. 

I'm wondering if there is ever the case where an Inspection is OK from the buyer, and if so, what are some things to lookout for? Or is it always the case that if a buyer is asking for an inspection, to simply say no.

I wonder if anyone has heard of 711 Rescue (https://711rescue.com/) and can let me know if this kind of company might be able to help the LPs in case of imminent foreclosure. 

I am invested in a small multi family in TX and the management was not able to fill the property and do repairs and the income has dwindled badly. They stopped paying the lender and wanted to work something out with the lender but the time is running out (ie the management company did not do any significant improvement during the forbearance period) 

One of the LP just emailed me and said we need to raise 65k to enlist help from this company. Any info on what you think can be helpful for the LPs is greatly appreciated. If you know of any legal entity in TX that can help in a case where GP is not doing their job (maybe a branch of SEC), please let me know.

TIA

Quote from @Chris Seveney:

Quote from @Don Konipol:

The potential problems mentioned by the responding posters in this thread are real and well thought out.  IMO these problems would need a solution before the OP’s securitized token offering would be viable.  It might take a large financial institution with capital for “brainpower” and marketing, and financial and reputation strength to design as well as create a trading market for this type of security. 

Where I differ with most of the posters on this thread is that I feel solutions can be developed to address the problems and something similar to what the OP suggests would be viable. 

I do NOT have enough knowledge or experience in this arena to provide specific “how to” accomplish this, or even to provide specific”proof” of my position.   A lot of the basis of my position on this can be described as “gut feel”.  The reason I’m pointing this out is to distinguish my post here from most of my other posts where I have specific expertise, knowledge and experience in the subject matter.  Not here.  

 The issue I see is smart contracts/tokenized real estate and traditional real estate investors is like oil and water. Yes of course there are people who think tokenization is cool and you can get some $ from it, but to grow it at scale - real estate is old school and most who invest six figures in real estate are not 25 years old and are not keen on tokenization. I did a poll of 700+ people who invested in real estate and less than 2% would want it to be tokenized. The reason being they see no benefit and they do not understand it. 

Here is an example: We run a fund that has a transfer agent that handles the cap table. This is done via a traditional cap table. A competitor of ours does it on a platform with smart contract as well as crypto to invest. Within the first month I believe the company byte federal has a data breach. You investing in that fund? 

Lastly, in this example, if you are only able to collect rents but have no equity on the property - that is worse for the investor than owning the property. I would much rather invest in a REIT or another fund whereas if the rent was not going well but the property had appreciation then I would feel more secure. What is the security on the above? The only place this would appear to make sense is in Class D neighborhoods which could cash flow.

You have rights to income but nothing else - sounds like an unsecured note at the end of the day.

Chris you make good points.  My “reasoning” is based on two points

1- the current system of property records filing in a million different jurisdictions with expensive title searches necessary for almost every title transfer and mistakes still being made can be made much less expensive, much faster, and much more reliable through migration to some sort of “blockchain” National registry.

2- Numerous investments have been divided into, and offered as tranches of the whole.  While offering the “cash flow tranche” of a SFR might not be viable, the cash flow tranche of a portfolio of say triple net leased properties may be much more viable.  At its most simple we’re separating the appreciation/capital buildup benefit from the cash flow benefit.  

Obviously, the two questions that need to be answered are 
1- Is the OP designing a solution for which there is no problem?
2- if there is a “problem” Will the “solution” discussed solve it in a cost effective, consumer accepted way?

in any case a LOT more work would be needed before I, or perhaps most investors would be interested.  

Hey all, I want to ask if you would sign this contract.

PM has a snow vendor who comes out to shovel if it snows more than 2". They charge us $250 per "push". Since we have 2 buildings (right next to each) the total is $500. So far this winter they've been "deployed" 3 times. Is this a fair price for snow removal? They don't cover parking spaces. Also, if you're familiar with Chicago, it's your standard 6-unit building, so imagine the sidewalk surrounding it. 

As if you needed more reason, the PM doesn't even verify they do the work. They just pay the invoices. We have had tenants shoveling snow the snow all along. 

What are some of your thoughts? 

Most Realtors suck at their jobs. This is not even just an opinion, it's an objective reality. Some 88% or so flame out of the job within a year. In 2024, 47% failed to sell even 1 house. Obviously some are worse than others, but man, the Realtor in the photo below is comically bad. I'd love to hear some of your comically bad Realtor stories.

Hello everyone,

I’m really hoping to get some guidance from experienced homebuyers, investors, and real estate pros in the Detroit area (or beyond!). Here’s my situation:

Property & Loan Details

• First Home + Investment Potential: This will be both my primary residence and an investment property once renovations are complete.
• Purchase & Renovation Costs:
  • Purchase Price: $100,000
  • Estimated Repairs: $150,000
  • Contingency Budget: $15,000
  • Total: $265,000
• Appraisal: Post-renovation, the property is appraised at around $360,000—so there’s potential equity, but it doesn’t help me with the immediate cash I need.
• FHA Loan: My interest rate is around 7%. I have poor credit, which has limited my loan options.
• Closing Costs: Roughly $22,000, covering prepaid taxes, mortgage insurance, lender fees, and HUD consultant fees.

The Shortfall: $25,000

Initially, I planned to use a down payment assistance program in Detroit, but due to misinformation, it turns out I’m not eligible. Now I’m left scrambling to find an additional $25K within about 8 days. Otherwise, the deal (and all my earnest money/inspection costs) falls through.

Money Spent So Far

• Earnest Money Deposit: $1,500
• Appraisal: $750
• Inspections: $1,050
• Survey: $580

I’ve invested a fair amount already, and I really don’t want to lose this opportunity.

Financial Snapshot

• Monthly Income: $4,500 (increasing to $6,000 by March).
• Monthly Expenses: About $2,000 total, including $1,000 rent (which I won’t have once I move in).
• Future Income: By June, I expect even more significant income from my business ventures.
• Debt-to-Income: Not too high right now, but my credit score is poor, so that limits quick loans or credit card solutions.

Condition of the Property

• Full Rehab Needed: The house currently isn’t livable without major repairs.
• Seller Won’t Negotiate: I’ve already asked for an extension and concessions, but the seller is unwilling to help or budge on anything.

Attempts So Far

• Friends & Family: No one can cover $25K.
• Down Payment Assistance Programs: I’ve tried multiple; none seem to fit.
• Co-Signer: Already have a co-signer on the mortgage.
• Personal Loans / Credit Cards: With my credit score, interest rates are brutal, and I'm worried about jeopardizing my FHA approval.
• Extensions: We’ve already pushed the closing date back by a month.

What I’m Looking For

• Creative Financing: Any reputable local lenders, credit unions, or community programs in Detroit that specialize in these types of last-minute shortfalls for buyers with less-than-ideal credit?
• Short-Term Loan Options: Something that won't blow up my DTI right before closing or sink me with insane interest.
• Hard Money or Bridge Loans?: I know they’re high-interest, but with future income coming, it might be feasible if the terms aren’t too extreme.
• Renegotiating Terms: Is there a way to leverage the future equity (post-rehab value of $360K) without messing up my FHA terms?

Why This Property Matters

• Investment & Equity Potential: Post-renovation appraisal of $360K is significant. This could be a game-changer for me financially in the long run.
• Primary Residence: I plan to live there, so I’m especially motivated to make this work and stop paying rent.

Please Help!

If you've faced a similar eleventh-hour shortfall on an FHA rehab or 203(k) loan (or any major renovation loan) in the Detroit area, how did you bridge the gap? I’m open to any strategies—private lending, local grants I might have missed, or even unconventional solutions. This opportunity means a lot to me, and I’d appreciate any leads, advice, or success stories.

Thank you so much in advance for reading and chiming in. I’m really hoping someone here can point me in the right direction!

(Feel free to message me directly if you prefer. Thanks again!)

I am weighing some options to help my younger brother buying his first primary with a fixer. I was told by another investor that I will run into a seasoning problem, but i don't see how if i don't plan on refinancing. I just wanted to get some confirmation from BP crowd. What do you guys think? This is the scenario:

I buy a fixer with some hard-money. Before seasoning period ends, I want to sell to my younger brother who purchases with conventional mortgage.

Is there anything wrong with this idea?

Hold on while I get my popcorn………..