All Forum Posts by: Aaron Schrader

No, likely not.  Real estate has weathered price declines before, and a price decrease does not mean crash.  There's a lot of variables at play that David Greene covers well (even in his Instagram reels you can learn a lot on this specific topic).  I'd suggest checking out what he has to say as he says it with a much larger depth of knowledge than what I can speak from.  

While I'm not sure on how you'd price it differently, it does seem reasonable to me that you could or should.  Some thoughts: would insurance be higher for you?  Would potential risk of building damage be higher?  Do these buildings (dispensary occupied) see a higher rate of break-ins?  Is there potential for a smell to permeate the building and if so could it affect neighbor buildings, or impact rentability down the road if they move out?  

I could be way off- I'm only speaking from my perspective, so I realize those are my outside impressions, but recently had a conversation with a police officer who indicated those were things that impacted the community when marijuana business came in to his community.  

One thing that helped me a lot in conversations, that keeps people from throwing a wall up, is to ask if they know of anyone (friends or family) that is looking at making a transition in their housing.  Someone who might be having a baby and needing to scale up, or empty nesters scaling down, etc.  That one line alone has started a lot of great conversations for me.  The contrast to that line would be "are you looking to move" and 7/5 times they just say no and the conversation deflates.  Yes, 7/5 times.  

I'm in the Black Hills in South Dakota, and this area is growing rapidly.  In fact, Rapid City is the  fastest growing metro area in the midwest (https://www.rcgov.org/rapid-ci...) and we have a strong demand for housing in the area as more people move here, the Airforce base expands, and investors are buying vacation rental investment properties which has created a demand for LTR homes.  I can fill you in on more, but it's a great area and I believe one that is just beginning to see a lot of growth.  It'd be worth a look!  

I just worked with a lender from Bigger Pockets @Miles Juschka and his company has some better rates for investment properties, might be worth talking to him.  

I've mentioned this once before and I'll mention it here, with a disclaimer that I'm not a lender, and I don't benefit in any way from mentioning this loan, but I think it's a very interesting loan package for BRRRR minded buyers. Check out CMG's All In One Loan, there is a CMG I know in Ft. Collins and I'm sure elsewhere in the state, but this loan has an open standing HELOC that you don't have to open a refi to access, and it creates a scenario for rapid pay down of a property. At least give it a look, they're interesting loans.

@Jared Hottle I did a search for South Dakota and saw this question you posted a couple of years ago. I was curious if you ever ended up investing or what you decided to do in South Dakota. I know of a lot of BRRRR opportunities around the area and have a wholesaler I could try and connect you with. Let me know, feel free to PM me too.

Here's a couple of interesting pieces of information if you are looking to invest in the Rapid City/Black Hills market.  Also note that South Dakota does not have the onerous landlord laws that you may find in some other states.  Home prices in the area continue to be lower than other markets and the area has a strong history of tourism.  Let me know if you have questions! (I am a licensed real estate agent)

https://www.pennco.org/equaliz...

https://www.rcgov.org/rapid-ci...

If you waive due diligence there is an amount of risk you take, but maybe you can bring a contractor in to the initial house viewing with you to put your mind at ease?  Even with home inspection, things get missed.  When you waive something like due diligence or home inspections, you can sometimes get away with offering less, particularly if you are offering cash.  A cash buyer, no inspection, is pretty enticing to some buyers.  Maybe the cost difference would offset any unknowns?  I'd also want to know if the home I'm buying is in an area of known problems (soil issues, etc).

My take on it...I'd redo the bathroom and do it up right, not repaint/reglaze. Maybe take out the tub and stick a shower stall in with some cabinet in the remaining space?   In the basement I'd be interested in sticking a common hard surface flooring (LVP or whatever) through the whole thing, just make it run from room to room. Or those interlocking carpet tiles are kind of interesting for a basement, they keep the carpet off the concrete and you can replace just one if something happened to it.  If  you don't think the bedroom thing is going to gain you rental income or benefit the sale that much I probably wouldn't do it.  But it is nice to have a "legal" bedroom.  The drop ceilings I have seen some people pull of decently well in a basement.  Putting can lights into the tiles changes the whole feeling of them, and if all the tiles are clean and not stained, and if the ceiling feels high enough as it is maybe its worth considering keeping it.  Again, just thoughts...