All Forum Posts by: Andres Vanegas

@Tucker Cummings the rabbit hole is endless and will continue growing in the years to come! If you want a laymen's term version of info, Bitcoin 99 (youtube) and Bad Crypto Podcast keep it simple, the latter is also fun! If you are looking for cutting edge Q & A's with some really technical programming level info Epicenter podcast is awesome. If you are looking to start trading in the Decentralized Finance (DeFi) - finematics.com has a great tutorial, so do DeFi Dad on Youtube and Bankless is a great podcast and keeps it light but will dive into the technical aspects often!

The most interesting part of the entire industry is blockchain and distributed ledger technology. It has the capacity to create a trustless environment where so many middle persons just sit. The level of efficiency and transparency to come is unmatched! I'm excited to see how fast a retail home sale will close in 10-20 years simply by bringing all the information on a blockchain.

@Brittany Bolling - very early! I don't imagine this being the norm for at least 5-10 years and even then it will likely be a stablecoin, like the one the Fed is developing, pegged to the dollar. Soon though!

If you would've taken Bitcoin five years ago when it was 450 dollars and rent was 900 bucks and left it as Bitcoin you would have close to 120k right now. That is for one month! I'm also excited to see what your portfolio will look like in 5 years when you accept crypto! 

@Nathan Gesner - definitely right! There is some, maybe substantial, risk there! Other issue is paying mortgage, taxes, utilities, and repairs. Most of these companies/vendors will not accept crypto so you will need to dissolve some crypto received into cash through a fiat exchange like Coinbase or Kraken. Tax season will be interesting since your crypto is taxed as a property asset - not entirely sure how that would work. Your "pure" cash flow, even your reserves if you wanted, could be in crypto which will leave it subject to market fluctuations.  You are on the frontlines of a novel industry so a lot of this stuff has not been done/determined yet. No risk no reward though!

Hey @Bobby Paquette! Awesome breakdown, I think the mortgage payment is missing in the analysis. Im assuming a 30 year note which would put you in the 130-170 range for a mortgage payment depending on your interest. Still a 8-9% deal which is awesome!

Can I ask how everything went since COVID? Did the HOA make any changes or were there any other hiccups? I'm looking to dive into a condo as an investment as well!

Welcome and Congrats Katrina! I wish you the best in your future endeavors. As I tell anyone starting in this field do as much, "free" as possible - in particular deal analysis and networking. These are two skills that will ensure you are purchasing deals and surrounding yourself with like minded individuals.

Best of luck!

I am not certain about Chicago but downstate NY 10% is the custom, some leave more some less it is all up to what both parties agree on. 

Maybe your financing is weaker (higher LTV) than your associate's causing the seller to ask for a higher EMD to balance the risk.

They may also just be asking - for which you can counter with your typical EMD! Explain you are an investor and can't place 10% for every property you go into contract for. Never hurts to ask!

Best of Luck!

Hi @Rebecca Lane,

Welcome to the wonderful world of investing in the Northeast! Where prices and taxes are terribly higher than most other parts of the country. With that being said, anyone can get into any business/market with enough tenacity, knowledge and focus. I am a proponent of knowing and starting in your own back yard so the knowledge you learn has a place to anchor in your mind. Each market is going to be different thus the type of deals that can profitably occur will change as well. 

To reliably say if an investment in a particular area works you need to know what type of deal to pursue - rentals, flips, wholesales? The second is your target town, zip codes or city. As you probably know areas in NJ vary greatly. Newark is completely different from Bergen County! The same is true for areas in PA. 

Pick a town or two in NJ within an hour or so and dive in. Figure out what deals make sense and then compare between those towns-this means being able to analyze deals, crucial skill. Then do the same for the places you wish to investigate in PA. Find some experts from those areas and compare the numbers with them!

Hope this helps!

Great break down James. Glad to see there are buyers willing to make investment purchases happen especially through house hacks. I wouldn't be surprised if we saw a substantial turn towards the house-hack w/ airbnb strategy in metro areas. The returns are usually higher and make living in these high rent/purchase value areas incredibly feasible.

I am sure their is a way to get this done on your own. I am also sure there is a way to mess this up by doing that. Best go with the lawyer for this one. Transferring a title is a significant event.

Regarding your LLC, also good to consult with a lawyer. Likely they will suggest the same state unless you are trying to incorporate an asset protection strategy.

Hope that answered your questions!

Hey Albert, great to see you are getting out there. The market is hot so if you think you have found a deal but don't think you have the experience just yet reach out to someone who might! I'd start with searching the Atlanta forum for who is posting most often. These are going to be the folks in your area that are going to know whether you have a deal or not. If you are a pro member you can post it in the marketplace if the property is yours to market! Hope that leads you in the right direction!