All Forum Posts by: Darryl Bull

I once read that the best businesses often serve the bottom of Maslow's Hierarchy of Needs. Not everyone reaches the "self-actualization" or even "self-esteem" tiers. But just about everyone will be fulfilling physiological needs such as food, sleep, and basic health. And almost everyone will be looking for safety in the form of shelter, clothes, and environment. Real estate seems to tick the bottom two tiers of Maslow's Hierarchy and possibly even makes its way into tiers 3 and 4 which are "belonging" and "self-esteem". For example, people buy in certain areas because they want to belong to that community. Or maybe they want a house with a 90210 zip code because that raises their self-esteem. The point is that real estate ticks a lot of boxes when compared to other businesses. And that makes it an exciting opportunity with a lot of levers to pull in order to create value.

@Eliott Elias - Responsiveness as a focus makes sense. Thanks.

@Nicholas L. - Great advice. Thank you.

Real estate is one of the the last forms of true monopoly (And I don't mean the unethical kind). I don’t think a lot of people talk about this one. But if you own a piece of land then there is literally no other way in the world for someone to offer that exact same thing. Maybe what makes your property so special is a beautiful view, a favorable zoning law, or maybe it’s the key to larger land project like when Walt Disney bought up all of Orlando for DisneyWorld. The point is that it is unique and not easily replicated.

Compare that to an Amazon business selling a product. Someone could very easily copy your product and offer to sell the exact same product at a lower price. Then you’re stuck in a race to the bottom. 

Real estate offers one of the last true monopoly opportunities. 

"Land monopoly is not only monopoly, but it is by far the greatest of monopolies; it is a perpetual monopoly, and it is the mother of all other forms of monopoly." - Winston Churchill

Is taking a loan from a qualified IRA a good option? Sounds like this is feasible based off of what I am reading on the IRS website here. See below.

"

Under what circumstances can a loan be taken from a qualified plan?

A qualified plan may, but is not required to provide for loans. If a plan provides for loans, the plan may limit the amount that can be taken as a loan. The maximum amount that the plan can permit as a loan is (1) the greater of $10,000 or 50% of your vested account balance, or (2) $50,000, whichever is less.

For example, if a participant has an account balance of $40,000, the maximum amount that he or she can borrow from the account is $20,000."

Hi everyone - A lot of what I am reading says that a property manager is one of the most important team members to find first for the following reasons:

- They are usually connected in the local community and can make intros.

- They likely have "boots on the ground" experience and knowledge of local labor costs, operational costs, rent potential, regulations, and property histories.

- They can be a great check and sounding board on the financial projections and value add analyses that you do.

Do you agree with this?

What else should I have included in why they make a great first team member (or not)?

Happy Thanksgiving! And happy investing!

Hi everyone - I’m Rhett. I’m located in the North Jersey area, and I’m interested in multifamily. My goal is to close on a multifamily property by the end of 2023. I’m very early on in my journey and have picked up several books to jump start the learning process. In an effort to learn better and add value to the community, I’ll be sharing and summarizing what I read here on BP. By the end of 2022 I will have written 30 posts on topics such as market analysis, deal analysis/underwriting, raising capital, deal structure, financing, networking, and mindset. These posts will undoubtedly be lacking or incomplete in some capacity so I invite those with more experience to correct them/me whenever they see fit. Looking forward to meeting the rest of the folks here on BP! Happy investing!