All Forum Posts by: Carlos Ptriawan

Now that I am very accustomed to the most individual contributors here in BP , I can select based on their expertise, what their strengths at. Everyone is different in the forum. For someone like Jay I wrote down his advice for "investment criteria", for Dave, I save his 1031 analysis. Dan is excellent in his market. Some of the answers in BP related to "technicality" and "financial" is extremely good. You don't get it everywhere else, so respecting those answers is crucial in my opinion.

This is why Also I prefer AI that do lot more algorithms in "Natural Language" rather than AI LLM which specialises more in open-ended questions. You tend to get a better and "truer" answer from forums like BP compared to even newspapers or journalism.

Only Twitter is a serious competitor for BP imo.

2 Votes

Quote from @Kevin S.:

@Dan H.

Thank you, Dan. The wise one has risen and the wise one has spoken.

The problem with forums like this or Reditt is that this is opinion-based and may impact someone's business. If I say something bad about certain investments, there would be folks attacking us/me LOL. For example on the thread about syndication, if I say something pro about the GP, the LP side is attacking me. If I say something bad about the LP, the GP is hitting me too. Say something bad about a city and their realtor is ready to bring you to the court ha ha lol

Just enjoy these nuances. These are just opinions so if someone has answers that I may not like I just skip it lol.

Also since this is just opinion some opinions are only good in theory and some advice are good in practice (but may against the law/the norm).

1 Vote

Quote from @Jay Hinrichs:

Quote from @Carlos Ptriawan:

Quote from @Cory J Thornton:

I have been thinking through housing, affordability, and the effect on what until the last few years have been dead markets. Any home with a decent commute to a decent market is not affordable.

Over the last few years, and even now, I am seeing investors put their capital to work in areas that locals have previously ignored.

It begs the question, in order to afford a rent, afford an investment property, or a primary home, will price start pushing people to forget the first three rules of Real Estate (location, location, location)?

As a local example, a recent study showing the migration patterns of folks leaving Raleigh, the #6 city most likely to pick up those residents was Rocky Mount NC. Five years ago, this was not the case and even three years ago people were still highly suspect of that area (myself included). Now I'm starting to see people push much further out to 3-4 layers away from primary job markets completely sacrificing location for cost of ownership or cost of living.

What do y'all think?

Is this something anyone else is noticing and if it is a trend, is there anything that will make it a short lived thing or is it going to continue longer term?

This is very common.
Lets say suburban purchased 50 miles radius outside of city center. Milleneal would purchase 75mile radius, rand 75-150 miles are areas where it's bought by genz. because of the disparity in buying power, people is buying even further and further away. That's good area to invest.

CA is the poster child for this.. Myself growing up in Cupertino CA ( SF Bay Area Apple headquarters ) no one starting out could afford a home there on average incomes.

So buyers spread out to places no one would have bought say 10 years before that.. East Palo Alto
Richmond Vallejo Livermore and beyond to the central Valley and 2 hour commutes.

for 70% of the country there is no affordability issue.. houses can be bought even todays interest rates for the same basic cost as rent..

these cities all have housing that is on public Sewer Water and police protection and houses can be bought that are liveable ( not brand new ) for 100k to 200k

1. Detroit
2. Cleveland
3. Columbus/ Dayton
4. Baltimore city
5. Toledo
6. KC both KS and MO
7. St. Louis
8. Milwaukee
9. Chicago
10. Smaller towns in S Carolina and N. Carolina
11. Many Parts of semi rural FLA.
12. Jackson MS
13. Birmingham AL
14. Memphis
15. Indy

Etc. Etc.

And any Midwestern city under 100k pop.. Now the question becomes where will buyers want to live the inventory is there its the buyers that are choosing the more expensive areas.. A lot of that has to do with Schools And other Social benefits and concerns. Folks that have good credit and jobs they are picky so thats why your seeing new construction sell so well also.

yes and it's also the same phenomena in Asia too. Recently, there's been a study about this market where the new city is rising. I think if we want to keep track of it, follow the builders and where Starbuck is opening their new store.

Also people that can't live in east palo alto/livermore they move to central valley, that itself is also causing price to rise.

1 Vote

Raleigh, North Carolina

Quote from @Rahul Bhatia:

Hello,

I am a fan of David Greene , especially his books on BRRRR and Long distance real estate investing. I was very inspired by it. I am trying to rehab a place that needs TLC. My challenge is that much as I may want to follow the book, things are not happening that way. The contractors who I call up don't turn up to review the property and give me an estimate. Those who give me an estimate, don't give me a break up of costs. Some give me an estimate which is much more than the ARV of the house. I have got an estimate but someone told me the estimate is too high. I don't blame the person giving the estimate as he too will get some portions of the work done from someone else. Somehow I feel the even after so much of effort, it is difficult to put a system in place and have a reliable and workable model for long distance real estate investing. If there is no reliability then investing in ETFs and mutual funds would be more hassle free and viable. Looking forward to thoughts and help.

All these books are written by someone that's very senior in the RE space and hard to duplicate. You may want to smart small and emulate from the basic.

RE is always very difficult especially when you start with the word "remote" and especially when rate is this high.

If you want reliability, ETF is enough.

1 Vote

Ann Arbor, Michigan

if you have mba, you better pursue a management position in Nvidia, Microsoft, Blackrock, or a consulting management company.

There's not big money to make in RE using a professional degree. MBA is more useful for a career or passionate corporate leadership.

4 Votes

Quote from @Clark Kahawaii:

@Account Closed,

It looks like you have gotten a lot of different views and suggestions from everyone. A lot of them would probably work out great, but ultimately you need to do what works for you.

I am a property manager here on the Big Island in Kona. We manage a large portfolio of homes(120+), and have managed units from $1,000/month to $30,000/night. As you have seen from others, each island has its own rules and regulations. It is somewhat imperative to have someone in the market that knows and keeps up with all of the rule changes if you are going to invest out here. There is a bill currently in legislation in Hawaii County that is changing several items that affect rentals. They are on the 7th draft of it.

Appreciation is the obvious play out here on the Big Island. There are very few properties that cash flow if they were bought today, but that doesn't mean that they don't exist. The most common ways(and maybe only ways currently) to cash flow here are large, high priced & high performing STVR's, or multi-family properties. One of the STVR properties that we manage is actually on the market at $5,900,000 currently. The property usually averages about $400,000/year in bookings. Combine that with appreciation and it could be a viable option.

I also know of two different multi family properties right near the heart of Kailua Kona that are on the market as well. One is a 10-unit complex, listed at $3,000,000, and the other is a 9-unit complex, listed at $2,700,000. They are actually side by side buildings. They are underperforming rent-wise at the moment, so would be a solid value-add play if you had the capital.

Let me know if you have any questions on the Kona market and I would be happy to help out if I can.

Kailua Kona appreciation is bit similar to Kihei appreciation. I would say Kona is mini version of Kihei.

What's interesting between these two markets are that there's sudden interest starting from 2016/2017 and the price elasticity is creating very smooth sloping in price chart, unlike Bay Area SF that has few curves of up and down market cycle.

Why this is important is just simply meant that this market almost doesn't have market cycle. Every supply is just being taken. Occasionally I checked in 2000 there're few FS condo w/ 200k, now price is double in just 4 years.

These are really the market where STR regulation is increasing the price.
Many of our baby boomers want to retire, and they may want to move to Kona, Captain Cook, Hilo or even Kau.

What not to like if you can snorkel/diving only to drive 13 minutes to hike and you are on top of the mountain with the cloud.

Only Big Island can provide this, not even Maui or Thailand beach can provide the same geographical landscape diversity lol. This is very unique.

0 Votes

Honolulu, Hawaii

Quote from @Cory J Thornton:

I have been thinking through housing, affordability, and the effect on what until the last few years have been dead markets. Any home with a decent commute to a decent market is not affordable.

Over the last few years, and even now, I am seeing investors put their capital to work in areas that locals have previously ignored.

What do y'all think?

Is this something anyone else is noticing and if it is a trend, is there anything that will make it a short lived thing or is it going to continue longer term?

1 Vote

Raleigh, North Carolina

Quote from @David Dachtera:

Quote from @Carlos Ptriawan:

Quote from @Dan H.:

Quote from @David Dachtera:

@Jonathan Greene,

Good points, though some deserve a bit more discussion.

#1 and #3 are probably the best, though #1 is often just being new to any forum, REI related or not. Perhaps a forum-specific "First Post" template pinned to the head of the forum topic list could help new folks see how to structure an appropriate first inquiry.

#2 just about defines a "newbie": someone with little or nothing to offer other than futures. I often see this interpreted as being asked to work for nothing. My response to that would be "no one gets a paycheck their first day on a new job, aside from a signing bonus", and those signing bonuses often have tenure requirements for the payout. Just to bolster one's own credibility, offer to accept a portion of the newbie's first deal profits as a show of good faith. While the relationship may ultimately prove untenable, that will be YOUR payment for the education toward becoming an effective mentor.

#4 and #5 really just show up shortfalls in the Bigger Pockets Forums.

#4 shows up the need for a more effective way to search the forums. BP's search function can be likened to Google in it's infancy. Yes, it searches, but there's no way to identify the "head" of thread where a question first appears. It also doesn't seem to recognize a quoted string versus the individual words in a search query. Perhaps an option to only search topic lines versus searching the entire forum database would prove helpful.

#5 is sort of the reverse of #4. There is no option link a question to multiple forums. I had the same issue with AOL decades ago - they called it spam, I called it covering all the bases. A single question could relevant to multiple forums, but attempting to engage the denizens of multiple forums is considered "spam" (it isn't). For example, in the left-hand column on this page, under "Financial, Tax and Legal" are forum topics which often overlap such as "Tax, SDIRAs and & Cost Segregation", "Goals, Business Plans and Entities" and "Personal Finance" could all be relevant to someone's question, but there's (currently) no way to engage the denizens of all those forums without posting in all of them (what you want to call "spamming").

My $0.02 ...

I am shocked that a forum as big, popular, and profitable as bigger pockets does not have a more capable search function.

Biggerpocket is searchable publicly. No need to have search inside BP. We can use AI that summarize the answer from all 10+ years discussions.

I alwasy ask something like this AI prompt "In biggerpocket site, what's the recommended approach when........ .."

AI is a newcomer to the party. It has familiarity issues. It also has credibility and trust issues.

not really, I've been moving my life from typical-google-search to AI. Something that that take 3 hours is now 3 min job. I no longer ask question in forum, BP is summarizing everything.

welcome to new world what even google is being obsolote. lol.

0 Votes

Quote from @JD Martin:

Quote from @Carlos Ptriawan:

Quote from @Ned J.:

@Carlos Ptriawan.... read the post.... he got it cut and is now trying to get paid back. Its a done deal already.

Bottom line..... you did everything right and now you have t

get paid by who ?
insurance company typically has very little reimbursement for tree cutting.

No one is going to reimburse the poster for cutting this tree. It's highly likely the people that came out were simple tree cutting services, not educated arborists (who gets 3 estimates in an emergency?) and of course they're going to say sure let's cut the tree because that's how they make a living. You also don't get paid what might happen, only on what does happen. It's entirely possible the tree never falls, or only part of it falls, or it falls and misses the house altogether. Even a leaning tree might fall another way; I had a tree get struck by lightning last year and instead of falling downhill, it was uprooted and fell uphill on my house.

Bottom line is that if you take matters into your own hands, don't expect anyone to pay you.

Also insurance has very vague wording when it comes to tree, when it's reasonable they may reimburse cutting tree for $500. When it falls, they may reimburse you for $1,000 max.

I used to fight insurance for this issue and finally we won.

My advice: just go againts the law, ignore all the city law, before the tree falls, cut it ! read it again.

mark my word. I know law is crazy. Arborist whatever, if it falls it can endanger people.

City would not care to your house or tenant when the tree already collapsed.

1 Vote

All Forum Posts by: Carlos Ptriawan

Carlos Ptriawan has started 84 posts and replied 7088 times.

Post: Hawaii or Florida

Post: The 5 Biggest Mistakes New Investors Are Making Here In The Forums

Post: The 5 Biggest Mistakes New Investors Are Making Here In The Forums

Post: Is the need for affordable housing creating new markets?

Post: Challenges of long distance real estate investing

Post: MBA, practical to a real estate professional or not?

Post: Opinions on Hawaii Short Term Rentals

Post: Is the need for affordable housing creating new markets?

Post: The 5 Biggest Mistakes New Investors Are Making Here In The Forums

Post: Tree at risk of falling. Homeowner pays?