All Forum Posts by: Amelia G

Honestly, I found it through Brandon's great YouTube videos and maybe those set the expectations high, so I was super excited to discover BP had forums ... but I'm having trouble finding the usefulness of the forums.

I usually love forum interactions.

But, if it is against the rules to have a discussion of, for example, the pros and cons of specific refinance lenders in your area, what is the point of forums? I get that there is a directory, but the real value of forums is being able to share experiences and perspectives.

And it seems like there are frequently zero replies on threads where someone asked a question it would be super cool to get feedback on.

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Thanks. All great advice. But, if all that has been tried, do you change lenders? If the lender is unable to override the appraiser, but the appraiser seems wrong, incompetent or biased, do you file a complaint? What are reasonable and effective next steps?

When it is a sale situation and the difference is not extreme, then it is not incompetence, just a difference of opinion and Buyer and Seller can just split the difference. But what to do in more extreme circumstances or in a refi situation?

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With the low interest rates and low inventory, it seems like a great market to sell or refinance, but appraisals can be gravel in the gears. What do you do when an appraisal comes in low, if the home is hard to find comps for, if you get an appraiser who doesn't take much care, if the market is just hotter than an appraiser's opinion?

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Originally posted by @JD Martin:

Originally posted by @Robert Gilstrap:

@Emily K.

@JD Martin

Emily, don't listen to any of these naysayers; what a bunch of horse sh*t!

There is nothing, zero, nada wrong with rental arbitrage other than the old school, risk averse - "this is the only way I know how to do it" offering their advice saying it's "generally frowned upon".

This is more jealousy in my opinion of "why are you able to make as much or more than me without owning anything when I've had to spend all this money buying a property".

It's taken me 50 years to realize that real estate is nothing more than a tool; an asset, to help you leverage your way to financial freedom. Don't get too cozy with it. People have real lasting value; not property.

I own more real estate than many of these guys AND I also arbitrage because it's common sense smart leverage and it's win - win. If I can control an asset and gain the upside but also avoid the downside AND make a larger profit how in the world is that "not sustainable"? I negotiate solid, long term, below market rent deals with my owners that are 100% fully disclosed and I have more of them than I can handle. The world is full of landlords looking for a safe and easy (i.e. low but consistent) return on investment. Any talk of "ethical or legal practices" or "laws changing" just expose those investors who are strictly "in the box" thinkers whose lack of risk tolerance keeps them where they are comfortable. There is nothing legally or ethically wrong with rental arbitrage; nor is it more intrinsically risky than long term rentals provided you have your contractual agreements solidly worded.

Always fully disclose to your landlords what you are doing and don't worry that they will want to compete with you because 99% won't. It's too much work and a greater capital expenditure for them. They almost always opt for "easy street"; which is a steady, reliable (even below market), low hassle, guaranteed return vs. an unknown return that might be exponentially larger or may require more involvement and thought. Remember Maslows hierarchy of needs: humans always seek to avoid pain 1st. Seeking pleasure comes much later. This is why most Americans stay on the sidelines and end up living a life of mediocrity.

Provide a value to the landlord. (below market rent BUT stability + low risk + low maintenance + no/low mgmt. fees). The net to them should be greater than if they placed their property with a local mgmt company.

I just now realized I need to stand down from my soap box and stop talking but do not be dissuaded by those who would seek to squash your dreams...

Thoughts:

1. You are certainly entitled to your opinion. That doesn't make anyone else's invalid.

2. Who cares how much real estate you own? Do you think that makes you king of opinions?

3. You are a middle man, which is likely why you think it's a great idea.

4. Real estate is a commodity like virtually anything else. Give me a list of other products in which the product owner leases the product to an individual and allows them to sublease the product to someone else for their own profit with zero input from the product owner. Cars? I wonder how Hertz would feel about me leasing their cars and then re-renting them from "JD's Nice Car Rental lot"? How about copiers? Power tools and heavy equipment? Boats?

Frankly, I couldn't care less if other property owners want to let their tenants sublet. I would never do it. No one is going to make money on my property except for me. It has nothing to do with jealousy. I do very well with my properties and if there was any meat on the bone to turn my properties as STRs that meat would be going to me, not to someone who wants to "manage" my property. And I suggest that if someone's "dream" is to make money with no money and no assets, they would be better served using that energy to acquire some capital and leverage their own property.

PS: I'd love to know how someone who is not financially prepared to buy their own property is financially prepared to maintain the hotel they're running on someone else's property.

Cars are leased all the time to people who turn around and use them for car share, Lyft, DoorDash, etc.

1 Vote

Ask them in what way showing you the financials they expect you to rely upon is an issue. At what point in the process are they planning on sharing that crucial info? I'd only take even part of that deal with a lot more transparency from them. Commercial rent, in my experience, typically budgets more than 10% of gross in good times. Good luck!

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Downtown Vegas is teeny but fun and there is a lot of walkable nightlife and food and neon. And it is very affordable by New York standards.

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Originally posted by @Deisy P.:

Originally posted by @Amelia G:

Originally posted by @Deisy P.:

Thank you all for you comments. This all came about because two things just piled up on me on me at the same time. I don't have a trusted handy man, a go to lawyer, a go to contractor for anything. Any way, a realtor friend referred me to his and he fixed a couple of things in my apartment and then I brought up an issue w/ the coach house roof. He went up there and talked about things that he saw and took a few pics and stupid me I didn't research any of it and took his word for the things that needed to be done. He verbally told me the scope of the work would be about 4 days and possibly might higher someone else for $7,800. I paid him half up front and then the rest later. The time came and texted me that he had got there and to open the side gate. 3 hours later texted he was done. DONE? You said it would take 4 days? "I used the best materials and i have 21 years of experience." He said more things but the work was already done so I paid him the rest. I told my realtor friend and he said, why didn't you tell me sooner? I didn't know he was going to go from 4 days to 3 hours without notifying me! So basically he charged me $5,095 just for labor. I emailed him about it after I searched the work and the time between coats and he said he used a dry torch for the sealant or whatever it's called and said he performed work that should have cost me $14k. I gave him the opportunity to give me back a portion of the money and he's not budging. He's not on yelp and i can't find him in BBB. So basically, I feel like an idiot and I should have known better and it's a learning experience but I feel very embarrassed for letting that have happened and I am truly doubting myself yeah, in thinking this isn't for me. I called a professional roofer and the man brought his son and I explained what happened, looked at me and asked me where the man of the house was. In complete shock, I exclaimed that I was the "man" of the house. It was very upsetting and with the tenant that's not paying me anything and I can't do anything about it right now...it's just overwhelming.

Are you sure he didn't give you a deal on a complex job because he is experienced and has a dry torch or whatever? If it seemed reasonable to you on the front end and you got the results you wanted, why are you doubting yourself and your contractor after the fact?

Because he had given me the same quote for a 4 day job, and then without letting me know, three hours later, he was done.

I don't think you should feel bad about yourself because your contractor finished early. I think most of us only wish we had that problem.

Just because your contractor got a hilariously big hourly rate does not mean you got a bad deal.

It is easy to get spun on stuff like this, going over it in your head, but don't beat yourself up when it is not even clear if you got a bad deal, just that the contractor got a good one.

Next time get a few quotes and you'll feel more confident. Good luck!

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Originally posted by @Deisy P.:

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Originally posted by @Uri E.:

Thanks @Amelia G. You bring up very good points! WRT tax returns, it's just as easy to fake them.

If you are just trying to verify self-employed income, it is pretty normal to require 2 or 3 months bank statements. I work primarily with self-employed people. In the Vegas market, I see recent bank statements more commonly than tax returns because self-employed people may deduct a lot. Meaning their regular bank deposits and funds on hand are more meaningful to a landlord than a tax return that could claim a paper only loss for tax purposes.

I'd add that a prospective tenant can fake anything, including the social security number and identity they are applying under, but forgery is a pretty serious crime to commit against someone who will literally know where you live.

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Most people who perform online use pseudonyms.

Ask him to document, if you need that. He should be able to give you an account name or forward an email from the platform. Presumably he has filed taxes with any 1099 he has already received and you could request those.

But why do you want to find your prospective tenant online? If you have the 1099, you can see income, right?

I am not an attorney, this is not legal advice, but couldn't seeing whatever content he creates open you up to liability? You didn't say what platform, but if he does politically oriented YouTube, you could open yourself up to discrimination charges, or, if he does sexually oriented camming, you could be accused of sexual harassment. Why do you want to open yourself up to that?

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All Forum Posts by: Amelia G

Amelia G has started 3 posts and replied 30 times.

Post: How much time do you spend on BP????

Post: What do you do when appraisal comes in low?

Post: What do you do when appraisal comes in low?

Post: Who has air bnb rentals that they don’t own?

Post: Reneg lease vs call personal guarantee

Post: American cities with high walkability but low cost of living?

Post: Female Property Inves./Landlord on the verge of leaving the busn

Post: Female Property Inves./Landlord on the verge of leaving the busn

Post: Income verification (1099)

Post: Income verification (1099)