All Forum Posts by: Josh C.

The market is up like 30% since 2021. How are they underwater? That’s too bad. I will agree that if you are getting communication and transparency, plus Brandon turner as the face, it almost certainly is not a scam. But investments do go bad unfortunately. I’ve personally lost money on two flips over the years.

Hopefully if the deal does go south management will return all their development fees, PM fees, etc in best efforts to make people as whole as possible.

@Carissa Atendido

You are looking in the most expensive markets as those cities have really spiked in the last 10 years, more than the national averages. Look at a little less “sexy” cities and you might find “sexy” cash flow. Indianapolis, has also seen a price spike like everywhere else in the country, but not as much as the places you are looking.

Also, duplexes and small multi family usually don’t cost double and get near double in rents. So check the cost per rent ratios on small multi family.

Good luck!

It depends on your scope. If changing flooring, and some fixtures you don’t need a permit. If gutting the place you’ll need several. If doing pretty much any plumbing, electrical, or HVAC you need a permit. Structural framing needs a permits as well. Roofs, windows, siding need a simple notification which is free and easy to do.

One that has got us in the past is cutting down trees near the street. Even if on your property you need a permit for that, or the city fines you and makes you plant several new trees.

10 years of property management experience you learn all the ins and outs. :)

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What patrick said. No chance for money to fix up a duplex for market rent.

@Jeff Berlin we think we do a good job at City Place. Been doing it a long time and do a little investing ourselves.

As far as repairs go sometimes things do suck and are expensive. If replacing lots of pipe in a crawl space or even worse underground 4K could be a good deal. Now if that just some small spot repairs it could totally be a rip off and that does happen.

Good luck and hopefully you’ve seen great equity growth since that time. It was a smart/lucky time to buy back then. We all wish we bought more.

@Marcus Auerbach

Automation is definitely becoming more and more prevalent, but still a small percentage of actual manufacturing is automated in my opinion. This picture you showed is a new shinny line. Not typical. I sold industrial automation products for 10 years prior to real estate and from Missouri to Ohio anyway stuff is old. Super old. Push buttons and relays are doing much more in factories and then the PLCs and HMIs I was selling. It costs millions and millions of dollars to upgrade a single line let along a whole plant, so just like real estate they just limp along to save huge cap ex and fixed 1970s Nema rated equipment instead of upgrading to newer. Demand for cheap unskilled labor in almost every factory I ever went to except a few of Pharma places was very high.

I do agree with you that finding those people was hard. But need was great. Engineers (which I am, or was) just went to meetings and clogged the system up with unnecessary safety procedures. The blue collar people really did do all the work with very little training in most cases.

Highly recommend if you can take the losses or offset your gains if you had a great year. From my experience the studies cost around 4K, and you get roughly 50% of your purchase price as a deduction. So a 2MM building gets you 1MM this year reduction. At least this has been my average over the several I've done. I think this is cleaner and easier than a 1031, as you don't have to sell anything and deal with the same LLC if it owns several assets.

Also they are being phased out now so this year is only 60% of value. Next year is 40% unless trump changes that.

I think it’s hard to make good money selling 4 bed houses new construction house for 380k. Maybe Florida is different, but not a lot of new construction (unless a bigger neighborhood) one off type house sub 400k around me. Closer to 700k or so. Good luck though if you ca. wholesale to a builder.

If they can be bought for 30k cash, paying 53k+ might be a tough sell though.

@Ryan Treacy

A renter wouldn’t have their own agent so that won’t work. Our market typically doesn’t involve real estate agent to show rentals unless very high end. But there are companies out there that will just place a tenant for a fee of anywhere from 1-2 months rent. We aren’t one of those so not trying to plug our company, but they do exist.

Good luck!