All Forum Posts by: Brandon Roof

I am not a financial advisor but if I were in a similar situation I would definitely be forging ahead with dollar cost averaging, possibly diversifying outside of REITs as well with other sectors being hit harder recently.  There still remains a lot of uncertainty in the near term so I'm not interested in calling a bottom, nor do I think there will be a meteoric rise back to the highs anytime soon.  However, if you're looking at a 3, 5 or 10 year time horizon I think being able to take advantage of a pullback like this that comes along very infrequently will provide much greater long term value than a savings account.  Best of luck!

I am not a financial advisor but being in a low-cost target-date fund certainly seems like one of the more reasonable options for somebody that would like to "set it and forget it".  As for timing, I really don't see the benefit of waiting unless her actively managed funds are vastly outperforming the great index.  I'm guessing it's not and it's getting rocked along with the rest of the market, so timing is rather moot particularly if they have 30+ years left in their investment window.

If I only had $500 or $1,000 to invest, I would personally lean towards a Roth IRA. This would allow me to still invest in real estate as well as numerous other areas while doing it all within a tax-advantaged account, likely with more liquidity and the ability to withdraw my initial contributions without being penalized if I ever found myself in a pinch.

I'm pretty sure it's been the top of the market for the past half decade, yet here we are.  Unloading relatively illiquid assets in an attempt to time the market may prove futile.  I think everybody will have to position themselves as best they can given their unique situations.  Maybe they want to deleverage a little or pump the brakes on a series of acquisitions, but to press the eject button when hysteria is more widespread than measurable data could be even more costly than buckling in for the ride.

I don't have the ability to read the article but $PSA has been getting whipsawed around like the rest of the market and is well off recent highs.  I can only assume that the article is referring to a European or Asian company then.

Most stocks are moving independent of underlying fundamentals at this point in time, so I wouldn't get too attached to anything with a high-yield, real estate, utilities, etc. that become potential short-term safe havens, only for funds to later churn out of them as the dust settles.

If your belief remains that people will continue to downsize and/or be unwilling to part with belongings, then self-storage would certainly support that belief.  Specifically in the months ahead, I don't see a rational reason for there to be increased demand in self-storage as people could potentially be compromised financially and a self-storage payment isn't going to be high on their list.  They might even begin emptying units in hope to sell goods in order to make ends meet.

Long-term, I personally believe in self-storage but I'm not making any huge bets based on what transpires in the next few months.

Based on the scenario you laid out I guess I'm confused as to why your "mentor" would get any percentage of a prospective deal.  If you had some sort of verbal agreement that they would provide guidance in return for a percentage on your deals, then that should have been outlined very clearly upfront.

Based on the information you provided, it seems like the last thing you want to do is hold onto it as is.  You are losing $70/month on the mortgage alone, and without knowing what else your "payment" figure includes, it could be hundreds more in PM fees, property taxes, insurance, maintenance, etc.

The refi certainly seems more appealing at a glance but again, if we have to consider the additional expenses listed above you'll still end up underwater.

Honestly, it seems like unloading this thing any way you can in order to limit your losses seems like the best play.

If you feel confident in your ARV and reno budget then you can't raise you bid at all. You actually need to drop it to 65%-70% of ARV minus rehab costs in order to improve your chances of assigning this contract. Likely need to move on from this one.

@Sam Snider You may want to give a call to Genoa Bank as well. They are a small, local bank I've worked with in the past. I most recently got a 20-year at 4.75% for a home in the same price range as yours (bought for $65k and appraised for $83k). When I inquired about possibly refinancing with them in the future, they stated that they'll go upwards to 85% LTV under certain circumstances. You may not that much but hopefully they might be able to offer something more favorable than what you've received thus far.

I'm not a realtor but being on the same side of the fence as you, this is similar to what I've experienced and I'm fine with it for a couple reasons.  A "deal" can mean something different to everybody.  What they consider to be a deal will likely be different from your definition, that's why it's preferable to them to provide with more options that don't necessarily fit your criteria as opposed to handpicking one or two and potentially missing out on an opportunity you would have considered.  You're absolutely correct that you can just as easily go to any site and filter through a list of properties in your desired area and price range but I believe their value comes into play more when it comes to details that might not be readily available to everyone.  Maybe they know a particular home owner is in a real bind and needs to unload the house fast.  That's information that's not going to necessarily show up in any search online.  They are also going to be able to potentially put you ahead of a trend.  If they see a wave of listings in a particular area and learn that there is going to be some major drainage work done two years from now that will significantly impact taxes, unless your going to meetings at city hall or live in the neighborhood, those are likely things you may miss.

When you do begin to narrow down properties you like, they may be able to provide you with data that will reaffirm your own in regards to comps in the area, ARV, and the direction of price trends. Again, this is an area you can do yourself but it may be where they are willing to pickup some of the legwork as you inch closer to a purchase. Lastly, during the negotiation process is where a realtor can really set themselves apart to work towards your desired price in order to get you that "deal".

At this point, you may be expecting a little too much but they can bring value to the relationship in numerous other ways.  If you're looking for more you can obviously work with other realtors or think of ways you can incentive them.  If you are looking to flip, give them the listing, or if you are going to dozens of properties, pick them up a gas card from time to time.