All Forum Posts by: Chris Webb

Hi @Adrian Stamer, you should come by our meeting tomorrow at Panera Bread. 7:30 am - ?

This is true, it is great for the comparison of commercial properties. I recently talked with a young person who asked if my real estate finance courses helped in my personal investing. I told her "Absolutely not!" These courses are for analysts who work at CBRE, not for general investors. If someone is new, generally, cash on cash return is the metric that should be used. Anything else has little effect on short to mid-term results. Also, some markets are much different and appreciation is the play. 

Hi, Great job getting this out there to learn. I just took a look. One area I would look at is the interest rate. Right now it is at 0%. Closing costs are anywhere from 2-4% of the purchase price. For example, I am working on a deal now and it is actually 4.5%!!! each deal is different,but you can use 2-4% as a good estimate. Good luck!

Yes! Lynchburg is a great place! @Elizabeth Pebody or @William Lokar if either of you are in town come by our meet up on Friday mornings or every 2nd Monday night! Lots of people who are investing are there and you can bounce ideas off them. 

I can help with the first 2 questions: I do not talk to my family about investing. I have once told my brother about how to do it, but other than that I have not talked to them about investing. Generally, they do not have an understanding of the business side of real estate. They hear "debt" and get scared. An office mate once said to me "Chris, aren't you worried about the debt?" and I replied "not really, i am not paying it." I have owned businesses in other areas and every debt I took on was paid by customers, not me. In real estate the customer is a renter, cost must be less than income and you are fine. People cannot understand this because the see the fringe events - roofs, hot water heaters, etc.

One last thought. I have the education of hindsight and academic study. Those who make choices against the norm are usually on an island. An island is not meant to be heavily occupied. Find a group of investors close to you and lean on them for the real estate aspect of your life. Fill your island with others who understand what you are going through.

Good luck

Hi @Allison Mackin, I wrote a chapter for a book several years back. I would just say write about 400-600 words without reading it and then go back an modify it as needed. Some people like an outline and I do this after I write. I get it all out and then look for flow. Does one idea flow to the next. I hope this helps, take care! 

Quote from @Mike Dymski:

Quote from @Chris Webb:

Quote from @Mike Dymski:

What is the cause?  There are 7 trillion causes...  It was not forgotten, it was intentional...both the cause and the fix.

It is forgotten by pundits - they forget that after the first sale, people move up and become both a buyer and a seller. The middle is not doing this. The market is losing two transactions that regulate price. So it is causing the first-time or entry-level home prices to increase because the supply is the same and the demand increases daily. It is also causing higher-end homes to sit since no one is moving off on the back end. As it states the Fed created this market and kept it running until it could not any longer due to inflation. Unfortunately, they will keep rates high to combat the rising prices forcing people to re-allocate their budgets for all goods. They will not fix this because it means helping "rich" builders. What they would rather do is help out "working class" people who need down payment assistance or a 40-year mortgage and this will only cause those entry-level homes to increase in value. If you can buy, do it soon because the market price might rise as these two programs "help" the housing market.

You and I are talking about two different things.  The government pumped $7 trillion into the money supply (intentionally) and now is trying to vacuum it back up with a blunt sledge hammer (intentionally).  That's the cause...and their fix.

Oh, I see. Not many investors invest based on the money supply, they look at market conditions. The middle of the market is not moving. There is a fix, but unfortunately, the politicians will not allow for the fixes to play out.

Of the 3 options I would say the one about missing another deal is what I worry about. I actually like the higher rates, it is pushing people to other, safer investments which means I can find deals and I can slow walk them while I do all the front work. I am working on one now and have emails out to title and lending about the costs. In 21, those were multiple calls and scenarios over the phone so I could get a contract in!

Deals are out there and many people are forgetting the key fact about RE investing, it is a business. With any business, there are input costs and income. If income exceeds input costs, the business is profitable. Higher rates now should not have an impact on previous investments, if they do liquidate them. Ask, what was the exit plan? This is especially true for flippers or BRRRR(rs). if the rate is to high and it cannot be refi'ed, sell it and take a one-time profit. If it does not profit, assess your front-end evaluation process. Some investors need to review more P&L statements and less BP posts, lol. Take care!

Quote from @Mike Dymski:

What is the cause?  There are 7 trillion causes...  It was not forgotten, it was intentional...both the cause and the fix.

It is forgotten by pundits - they forget that after the first sale, people move up and become both a buyer and a seller. The middle is not doing this. The market is losing two transactions that regulate price. So it is causing the first-time or entry-level home prices to increase because the supply is the same and the demand increases daily. It is also causing higher-end homes to sit since no one is moving off on the back end. As it states the Fed created this market and kept it running until it could not any longer due to inflation. Unfortunately, they will keep rates high to combat the rising prices forcing people to re-allocate their budgets for all goods. They will not fix this because it means helping "rich" builders. What they would rather do is help out "working class" people who need down payment assistance or a 40-year mortgage and this will only cause those entry-level homes to increase in value. If you can buy, do it soon because the market price might rise as these two programs "help" the housing market.

Do you look at the market daily?