All Forum Posts by: Account Closed

I wouldn't hold my breath for high interest rates any time in the future. US gov owes 28 trillion, plus the 3-4 Biden is about to tack on. The fed is the stock markets *****, and they'll scream and squeal every time the fed raises rates a fraction of a basis point. Fed has proven to bend over on demand ever since 08.

That said, I'd much prefer a significantly higher rate environment as a buyer if it would compress valuations as opposed to the BS low rate valuations we have now. I can refinance high rates off my back down the road. There isn't a damn thing you can do to refinance over paying for property.

0 Votes

Originally posted by @Rayan Perez:

@Joe Splitrock thanks for the tip, There’s gotta be another way to funnel this.

Wonder if he can take advantage of opportunity zones with crypto gains.

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Says the agent from Austin. Let me guess, you've also got access to "deals" too.

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Austin, Texas

Both sides of my family are Italian immigrants, a few generations back. Once upon a time, when they invested in Real Estate they called it buying an "income". ...an income because the damn thing was going to start generating revenue when they bought it. Not- maybe 2 years from now if things go well. No need for "creative" "strategies" to try to wring some value out of lemon peel deals either. They just simply bought a property that was going to require the work and care of being a landlord, and in exchange, it was going to generate X amount, right from it's first month. ...and they didn't have to search through hell and high water to find these "incomes" either.

Well it's 2021. We don't have the luxury of investing the way previous generations did. Understood.

But debating negative cashflow and calling ourselves investors is just a bridge too far for me.

2 Votes

Sorry, just don't automatically buy the 1500/mo "profit". You're new, if you weren't you would be asking and/or wouldn't be asking using that language, so there a very good chance you are missing some things on that projection, most likely in the expenses category.

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Originally posted by @Thomas Corley:

@Deonte Watkins I would look into small multi family to take advantage of low interest rates! Good luck!!

Low interest rates don't help much if the price to rent ratio sucks. Which it does across the nation here in 2021.

1 Vote

Originally posted by @Cody L.:

Originally posted by @Account Closed:

The entire post sound like advertising to seek investors. Real entrepreneurs don't set a goal to buy a few properties so they can retire. Real entrepreneurs love what they do and do it until they die. How can both of you have full-time jobs in Seattle and afford to move to Cleveland for 6 months. Overall, your post is not proof that your investing is successful. I went to Ohio a few months ago, looked at properties, crunched the numbers and I think it is a horrible state to invest in because rents are too low when comparing real estate prices and all costs to operate are going crazy. I would like to know how you can move for 6 months, close multiple deals and actually self-manage properties in another state when you have full-time jobs and when it often takes 60 to 90 days to the close of escrow to purchase many properties.

Wow Jack, that's a lot of words just to say "I'm jealous"

My story isn't far off. I lived in San Diego. Had a 'real job'. The only difference is my 'real job' took me to Houston. I decided to start RE as a living. Did both for a while (real job and invested). Got to about 200 units (?) before doing it full time. Grew it to about 800 units. Moved back to San Diego. Continued to grow the company to about 2000 units.

No, this isn't an advertisement (I don't use investors). It's just a post to let people who might get discouraged by your post know that what OP did *IS POSSIBLE*

I say "Congrats" to OP. Well done. Glad you shared so others can be motivated to do the same.

Ya, but at the same time... 10% CoC and a 2x equity multiple? for first time syndicators with 1 year experience... fishing in the same 100 unit+ ponds REITS do... in the low yield market conditions we've all been facing, that got even tougher in the last 2 years.

It's not that I'm so much doubting her post as being real. It's what those numbers are going to end up actually looking like that makes me raise an eyebrow.

4 Votes

Originally posted by @Gary Rubens:

For the city of Detroit What’s a solid B neighborhood you recommend this can be a duplex or single family

Thanks

I sincerely recommend you come here to MI and see with your own eyes. You won't believe how bad the city is until you actually see it.

Calabasas, so you should be familiar with most of LA. I used to live in LA for 18 years. I worked for a 3rd party logistics company as a sales rep for a while. Worked a territory from Echo Park down to Carson and about as far east as El Monte. Nothing in the entirety of South Central or East LA was a bad as Detroit. I'm not taking about one special little blighted zone either. Block after block of the city.

The best metaphor for the city is the football team. Just like the Lions, Detroit has been "coming back"- for 3 decades.

Best thing I can tell you is take a trip, visit, and see for yourself what that city means in terms of being a good place to invest your hard earned money.

People can push back against what I'm saying in this post all they want. A trip will cut through the BS.

1 Vote

Originally posted by @Janet Behm:

Alecia, Relationships and real estate investing are both "the long game."

And, of course, run the numbers...

That numbers part tends to get overlooked- If you can't show your partner how what you plan to do adds up on a spreadsheet, without optimistic projections, then you shouldn't expect your partner to be on board. They are likely doing you a favor with their reluctance if you can't.

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Originally posted by @Stephen Pendl:

@Account Closed short answer is Yes! But of course there was much consideration and due diligence involved before making an offer and during the time we were in contract. Being familiar with the zoning code (or engaging someone who is ;) ) is key here. For our highest risk deal, a SFH on land zoned for 10 units, we developed a concept design with an architect and complete a pre-app meeting with the city all prior to closing. Not to mention, we had a secret weapon in our corner (realtor @Corby Goade) who kept us very well-protected with how he structured all our offers - highly recommend him and his team.
In terms of construction costs, you're right there is much volatility there these days. My entire W2 career has been in commercial construction management, and the approaches we're implementing to lock-in pricing in that side of the industry can be emulated on the small scale multifamily level. Additionally, if bids come in way too high to the point where it's not feasible to turn monthly cashflow right away, an exit strategy is to get the design through entitlements, produce a permit set of drawings, and sell to a larger developer who has the resources to be able to control their own construction costs.
Kudos to all for the various creative approaches to adding value to the Treasure Valley community - exciting to see all the positive growth that's happening and it starts with people like you. Cheers!

Thanks for elaborating on that a bit, especially the "My entire W2 career has been in commercial construction management" part. People looking to get started in REI without any background can end up reading something like that and thinking they can get "creative" without knowing what they are doing... and as I'm sure you know it won't be hard for them to find a realtor all too eager to egg them on.

1 Vote

All Forum Posts by: Account Closed

Account Closed has started 1 posts and replied 214 times.

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