All Forum Posts by: Adam E.

Did a deal on a SFH in Sugar Land a few years ago. It's been a great investment. Good luck!

Welcome, always like to see other Bay Area folks. Where in Texas are you investing?

A house can be "bought" with anything, as long as both parties agree to it. As home prices were booming in SF around 2015 buyers were paying sellers with stock equity in private companies that hadn't gone public yet. Those were crazy times.  Buying a home is just a trade of one good for another. It could be another property, cash, bitcoin, or some series of things that started with a paperclip.  https://en.wikipedia.org/wiki/...

All of that said, market norms typically dictate what is accepted which in turn is driven by perceived value and liquidity so most buyers probably wouldn't take bitcoin.

Looking at what other models might exist that present new benefits. For instance, selling shares (securities equities) and not entering into partnerships has some advantages, some different types of issues. Reduced fees and increased simplicity are always nice so both are at the top of mind, along with simpler operational overhead. Protection via a LLC, good call out, is also less of a concern since everything is already layered for me. I'm less concerned with specifics by state at the moment also and more interested in hearing what others are doing that might directly or indirectly apply.

I'm from the area and invest in the area but don't live there full time.

Here's my personal experience as an investor in the Bay Area. SF specifically has more inventory on the market than it has in the last 10 years and we're seeing more multi-unit buildings on the market in areas that never had listings than I can recall. Condos in strong, low inventory areas are doing well but in areas that were heavily developed they are sitting on the market and prices dropping. Def. see people moving out of the city, state, or trading up to better spaces or SFH but there is movement in the market still.

Google just announced they're expanding their office space SF. This is interesting for two reasons 1.) There is about 12M sq foot of commercial sublease space on the market right now, that's more than during the dotcom bust. 2.) residential prices on condos and rentals are way down, showing that there is vacancy and people aren't around but Google is expanding.

Like each of y'all, I can't predict the future but here are my thoughts:  Some people were near the point of leaving the city or CA in general, they accelerated those plans and moved. Some people are temporarily living away for a year since the cities don't have anything to offer right now. Much like we saw with dotcom bust and the financial crisis the cities will get less expensive then they will build back up over some time period (SF typically recovers from recessions faster than the national average) because there is already a critical mass of education, business, capital, and people there to go with the social aspects of what a city has to offer. With companies like Google expanding in the city due to low commercial prices combined with the fact that people like to naturally be together and be social I believe it'll continue to bring business and people back to the cities.  The question is, how bad does it get and how long till there is an uptick.

In one of the first properties I bought I didn't get a home warranty. The SFH was about 15 yrs old with original appliances and HVAC. I researched more than I ever need to know about home warranties and when they make sense to purchase than I could ever use after that.

Get a property manager, learn everything you can from them. Run questions past them on repairs, how to handle situations with tenants when they ask you what you want to do, etc... To start, you need to expect you'll make some mistakes, you'll think you understand things one way and later have a different view, and you'll grow. Get people you can talk to that have experience and use their help.  I have a chat group with friends who all invest and we're always trading notes. 

If just one quality: They work with other investors.

I'm normally on the other side of these deals and exploring a new set of deals where I'll buy and take on other investors who want to get into the deal. In the ones where I'm the investor/partner we use a pretty standard structure, cap mgmt llc, partnership llc, pass through on K-1 etc... 

I'm looking other models that have lower overhead for smaller deals and allow for others to invest/buy equity.  Is anyone doing anything else that achieves these things like just having partnership/revenue agreement/contract? I've read a bit about other contract based models and see what some companies are doing by paying people for equity in their homes but nothing detailed enough.  If you have experience with other models, I'd love to hear from you.