All Forum Posts by: Chad U.

Ditto. A lot of HML fix n flip and DSCR NPLs lately. Particularly seeing an uptick in Multi-family NPLs.

Wouldn't touch Covid originated loans with a ten foot pole, and there's a ton of FHA NPLs out there.

Seeing an influx of HECMs, and sellers are loosening their belts somewhat.

Quote from @Ying Tang:

@V.G Jason There are actually people who make millions off these things. They need to get in and get out quickly, as if they were playing video games. A lot of young folks are into this. They have their groups for doing that, they would get on a video conference and ask everyone to buy when they think "the time comes" for a specific meme. I decided it's not for me.

Yep, for most memes you gotta be in the trenches and if you're lucky enough, get in on the cabal.  Only way to truly make it.  

Quote from @David Cooper:

I came across a hypothetical note: $100K loan balance, 6% interest rate, and $800 monthly payments. The property is worth $150K. What would you consider before buying this?

First off, need the number of remaining payments to determine the yield.  

Just confirming that you do realize that you're at risk of not recouping whatever capital you've put into your 2nd?  If the property sells at auction for just the amount owing on the 1st or less, you'll be wiped out.  Also if no one bids and the 1st position lienholder takes the property back at foreclosure.  

Therefore I would anticipate bidding at the auction to ensure the bid gets over the combined amount of owing on both the 1st and your 2nd.  If you are the highest bidder will need to come up with the funds. 

You can approach the first lien holder to see if they would sell to you beforehand, possibly they might sell at a discount.  As for the tenant, you may have to honor any lease agreements that may be in place if they are locked in for any duration.

Couldn't agree more. When I started investing in notes I used 300k of my own capital and didn't take on any investors until I had at least a dozen deals under my belt. Not to mention that I had already been investing in real estate for 10 plus years, five of which had been investing in distressed real estate including buying at foreclosure auctions.

Quote from @Marcus Auerbach:

Quote from @Chad U.:

Quote from @Marcus Auerbach:

Quote from @Chad U.:

Quote from @Marcus Auerbach:

Crypto is 100% speculation. Remember the dutch tulips? 

If not, you might want to google it..

You basically buy crypto in the hope that someone else will buy it from you for more. Crypto has no intrinsic value. Crypto does not cash flow. It's even worse than gold in that way. Might as well buy an NFT. High on hopeum.

The best argument I see for crypto is that you can take it with you on a USB drive. But you gotta have some nerve to put your life savings on a USB drive, fly to New Zealand and hope that the USB drive is not broken when you plug it in.

Incorrect about crypto not cash flowing.  One can obtain yields far in excess of any RE investment in DeFi, just using stable coins that maintain their peg to the dollar.  Mind you, you could also lose every cent you put in if you get rugged, so it is not for the faint of heart.  

Well, if you run a lending business on crypto you get interest, but crypto in itself does not cash flow. Neither does gold.

There are several that do without having to lend, one in particular is called Ethena.  The premise behind it is a delta neutral basis trade that arbitrages funding rates on various exchanges, which has consistently paid 5-30%+ APR since its inception.

This is just one example, there are hundreds of other strategies where you obtain yield on your crypto.

Right, but that still does not make it an investment. It's a currency. You can lend out dollars too, (or Euros if you want it to sound more exciting). Nobody would say: I invest in dollars because they "cash flow". Same with crypto. 

99.9% of crypto is not currency. And there are numerous crypto that earn staking yields, which are paid out in their denominations.  The yields generally pay out 2-15% and protocols allow you to leverage up these yields.  I've attached an example of one such protocol where you can currently get 23.5% APR on an Ethereum derivative.

Quote from @Marcus Auerbach:

Quote from @Chad U.:

Quote from @Marcus Auerbach:

Crypto is 100% speculation. Remember the dutch tulips? 

If not, you might want to google it..

You basically buy crypto in the hope that someone else will buy it from you for more. Crypto has no intrinsic value. Crypto does not cash flow. It's even worse than gold in that way. Might as well buy an NFT. High on hopeum.

The best argument I see for crypto is that you can take it with you on a USB drive. But you gotta have some nerve to put your life savings on a USB drive, fly to New Zealand and hope that the USB drive is not broken when you plug it in.

Incorrect about crypto not cash flowing.  One can obtain yields far in excess of any RE investment in DeFi, just using stable coins that maintain their peg to the dollar.  Mind you, you could also lose every cent you put in if you get rugged, so it is not for the faint of heart.  

Well, if you run a lending business on crypto you get interest, but crypto in itself does not cash flow. Neither does gold.

There are several that do without having to lend, one in particular is called Ethena.  The premise behind it is a delta neutral basis trade that arbitrages funding rates on various exchanges, which has consistently paid 5-30%+ APR since its inception.

This is just one example, there are hundreds of other strategies where you obtain yield on your crypto.

Quote from @Chris Seveney:

Quote from @Matthew Bernal:

What’s the biggest challenge you’ve faced in a fix & flip? Let’s learn from each other!

Going through an asset right now in a HOA where the HOA wants the property to be demolished because prior builders could not complete it, so we are working on stepping in to get it done. This is a doozy of one.

 Let me guess, but they still tried to stick you with all the back dues when you took it over. 

Too many to mention, but one that comes to mind is a Fix n Flip that took 18 months and 4 different crooktractors to complete.  Lost $50K.  

Quote from @Taylor Georges:

Quote from @Chad U.:

Yes just a side hustle at this point but quickly becoming a larger source of income with a lot less headaches.  Apart from getting rugged periodically and things dropping 90% overnight, lol.  

Haha yeah, it can cause the feeling that real estate investors had in 2008, overnight as well. BTC, ETH, SOL, SUI these are some of the only projects I would invest in personally anymore, as well as a few defi coins within them

ETH and SOL were a big part of the port that took it down.  But even though I'm down over 50% since the POTUS inauguration, am still up over 2x.  Starting to hedge more downside risks.  

Anyhow, good luck to you on your continued RE journey.  I've made some pretty good coin (no pun intended) in Columbus over the years as well.