All Forum Posts by: Account Closed

Originally posted by @Kalin Stocker:

Originally posted by @Account Closed:

You're just kidding with 8 or 10 cap right? Or do you have a time machine. 

I get that this isn't the norm anymore, I am just looking at a property that is a "sober living" type of rental that has pretty phenomenal returns that I haven't seen in a while. Found myself wondering what everyone else was seeing in other parts of the country? 

Seeing 3-5 on small commercial multifamily, SE Michigan, with 5 proving itself a red flag in one way or another every time I dig deeper. As far as acceptable, none of that is acceptable. Probably get more in the numerous blighted areas, but I don't recommend those to anyone. 

Originally posted by @Greg Scott:

An 8 Cap is a mythical creature akin to the loch ness monster or a unicorn.

SE Mich here too. You know whats funny though, I knew too many people on the West Coast, where I used to live, that imagine this is the land of cashflow. 8 caps on every corner for people willing to invest out of state. 

You're just kidding with 8 or 10 cap right? Or do you have a time machine. 

Actually gotta follow this up with a real world example. Names and location omitted for privacy reasons.

Woman with wealthy husband(entertainment executive) decides she wants to play with Real Estate. Husband agrees. They go to some broker and he shows her 3 properties- second largest city in the US, and he shows her 3 properties to choose from. That was the extent of her search. Goldilocks style, one was to big, one was to small so she picked the one in the middle. Husband somehow agrees with all of this. The property was a full reno job that had been siting on the market for a year and 1/2, and she was the only one in all that time who would offer the full 2.5M. Don't ask me how I know, but I do, from both sides, buyer and seller. She bought a dog.

No where along the line did they care about her experience, only the fact that her husband was good for the funds. Period. Their lack of experience was actually a bonus to the sellers.

Originally posted by @Jon Sidoti:

Hello hello! When going after some of the bigger properties, Bios are almost just as important as the offer. I’m figuring this out submitting offers that sellers, brokers, owners all want to see track record and experience.

 or money, which at the end of the day is all they want from you. Show them you actually have the funds.

What seller actually cares if you have a track record or experience to be successful after they sell to you- especially after most likely ripping you off for an outrageous price to begin with because they can in market conditions like these.

Think I'm wrong? Imagine your selling some BS 3 cap commercial building and you want 5M. You have two buyers. An experience veteran who can raise the 5M, but wants to inspect and know his *** from a hole in the wall, and an overnight bitcoin millionaire with 0 REI background but he'll pay 5.5M cash right now to lock up the deal. Be honest, who are you going to pick.

Everywhere. Especially the agents. Don't know what your local REI meetups look like.

Long range planning is good-  also might want to look at whether it's even possible these days to get 1 quadplex, that under a mortgage, cashflows they way you are planning, let alone 10... and if it does, what kinda of an area are you "investing" in. Especially since you aren't strategizing to hit the eject button and exit in 5-7 year timeframe. Area quality is going to matter.

:)  ...so let's see someone in the name of "can do" tell him this is doable. Who's it gonna be?

One thing you need to consider is- all the rest of those out of state markets are also chock full of investors (many of them local) "combing through" every deal in the area as well. What's going to be you're edge?

They talk about having your "core 4" on this site for long distance REI.

Originally posted by @Casey Powers:

Originally posted by @Jay Hinrichs:

I personally have never had zillow offer on anything i own.. I would have sold in a heart beat if they offer way over market  everything is for sale for the right price.

However on the few Vegas props we have I have had offers from think it was I pad and its was no different than all the wholesalers that low ball me constantly..  the I pad offers were 100k under market. 

1029 Appaloosa Hills, North Las Vegas. Highest exact model match sold comp in that neighborhood was $292k in June and the next highest was $290k. Zillow bought it for $324k with $1500 repair credit + closing costs and Zillow fees —> net $304k to seller, closed first week of August. Of course they put on the public record they paid $308k. Ha

Right after sale and cleanup, Zillow listed it for $311k. Progress Residential bought it for $321k and now has it listed for rent at $1995. Highest rental comps in that neighborhood were about $1600. I have watched Progress Residential consistently rent homes for $200-300 above neighborhood leased comps. How they do it: they pretty it up a lil bit and don’t screen renters. According to someone I know who’s currently renting from them, they only wanted to see a most recent bank statement, no credit check. 

This is just one example. Zillow and Opendoor have been consistently overpaying for a while now. And the bigcorp rental owners have been significantly overcharging on rents for a while too, at least for 2 years since I’ve been watching them. 

 Agreed, especially about the stretching for yield above market rents by loosening tenant standards.

But let's face it, how many BPer's over the last two year didn't over pay and are in a similar boat? all in the name of "taking action".

The difference is, if it all goes to hell for Zillow, management ejects relatively unscathed and the share/bond holders eat all the pain. How do the BPer's that over payed eject unscathed? -unless of course you use someone else's money to do your REI, which is the real way to be doing it.