All Forum Posts by: Andrew Freed

It looks like Biden is targeting the 1031 exchange as another revenue stream. Bloomberg wrote a great article on it (link below). What are your thoughts on this proposal? Think it has any chance of moving forward?

https://www.bloomberg.com/news...

@James Carlson Interesting theory and I am sure there is validity to this argument. My personal philosophy on real estate is it will always be more valuable in the future due to the exponential growth of the human population. Every day, more humans populate this Earth. As a result, the average plot of land on this planet is being diminished on a per person basis. As long as human growth keeps at this pace, real estate and subsequently land will invariably be more valuable. My perspective is more long term compared to yours (you are utilizing birth rates to get a view of the short term demand for real estate), but I believe my theory holds true. That is why I plan on buying and holding as much real estate as possible in the foreseeable future. 

@Sean McCarty Colombus is a great market but super competitive right now, especially for multi's. I put a few offers in, but many of the stock available were in class C and D neighborhoods. Great place to invest but be prepared to put in a lot of offers before you land something unless you want to overpay for it. 

@Annie R. - The true benefit of real estate is it locks in your investment for the long term and it can be really challenging to take funds out unlike traditional stock. I don't know about other investors here, but the most success I have had as an investor came from holding long term. Whenever I had a weak hand and got out of an investment early, it always cost me. If you can lock in an investment in the long term, through inflation and appreciation, it will pay you dividends for decades to come. 

But to your point, syndications and active real estate investing takes the same due diligence. I invested in a 132 building syndication and I did the same level of due diligence I did for purchasing a property. I ran the numbers, visited the property, acted like a renter to garner facts, and ran my own analysis. Success is built on doing the work up front and holding for the long game. 

I've never completed a mortgage where they asked for that sort of payment up front other than paying for an inspection and appraisal. All of those costs are normally encompassed in the closing costs. I would definitely shop around. There are a ton of quality loan officers out there. I would just google around, find some well rated lenders and start calling. 

@Heath Shepard Congrats on the deal! What sort of rents can you get for this property? Mind running through the cash flow / ROI breakdown? I was looking in the San Antonio market myself so curious about what other returns investors expect.

@Uneeq Khan Mixing family and business rarely turns out well. I would recommend just avoiding this issue all together and not renting to family.

@Matthew Powell - I would like to do deals with other investors, but when you're just getting started out, I find it challenging to get someone else on board given your inexperience. I have only done my deals alone, but would love to hear about others experiences transitioning from doing deals alone to joint ventures. How did you make this switch? Did you find it difficult giving up a certain level of control? 

@Tyler Jones Welcome Tyler. Get ready for a fun adventure.

@Franck Brichet - I think it might be useful to know the rents on the property? What do you cash flow at each of these options? Definitely something to consider because you don't want an "alligator" on your hands meaning something that eats money out of your pocket every month. 

Also, have you considered a RELOC? You could access the equity whenever you want without sacrificing cash flow. Just a thought.