All Forum Posts by: Doug Utberg

Has anybody invested through RealtyShares?

What was your experience like?  

Were the communication and payments timely or problematic?

@James Wise and @Paul Weller - One way that I think the metaphor crosses over is in the space of banning vs. taxing.

When marijuana was banned, a broad and uncontrollable underground operation emerged to skirt around the laws.  Further, the criminals were indirectly rewarded by the restrictions through the limitation of competition, which kept prices up.

Conversely, when states (Like OR where I reside) decided to legalize marijuana (which was initially against) it converted illicit activity into taxable commerce.

I don't think that it's feasible to "stop" short-term rentals.  Operators will find ways around the rules faster than the regulations can adapt.  

Whether you consider that action to be criminal misconduct or bold innovation is an academic and ultimately irrelevant distinction. It is certain to happen wherever STR's are banned.

That's interesting since Zillow bought Trulia in 2015.

However, Trulia claims 65m unlisted home estimates and Zillow claims 110m.

Both algorithms are supposedly based on physical characteristics, location, and recent sales.

Zillow also correlates its Zestimate forecasts in with the ZHVI forecast for the ZIP / County / State.

My best guess is that Zillow's numbers are more swayed by the general area and Trulia's are more based on the property itself.

The way I think about it is the value of your time vs. the value of learning.

• Hiring a property management company (theoretically) saves you time.
• Self-managing facilitates learning and (hopefully) automating your processes.

I don't think that one is necessarily more valuable than the other - it's more a question of what's most valuable to you.

Another consideration - You can always start with a curtain, then install a shower door down the road if you receive negative feedback from guests.

I like to think of decisions as a 'one-way door' or 'two-way door' - A 'two-way door' is a decision I can reverse for low to no cost.  

Generally speaking, I am in favor of two-way door decisions and have learned to think very carefully about one-way doors.

 Appending onto Nathan's thoughts - It's ultimately about what you negotiate with the partner on the ground.

Some management companies (Such as Nathan's) are very helpful to people looking to self-manage.  Others will try to shoe-horn you into a long-term management agreement.

For better or worse, real estate is fragmented.  This means that there is not always an easy way to find competent people to work with besides making phone calls and screening out the lemons.

You're asking the right kind of questions.

My understanding of the Tax Reform act is that the interest deduction limitation is $750k for a first + second home.

With that said, it may be advantageous to purchase the property as a second home, then place it in service as an investment to capture the advantage of a lower rate and deductibility.

The catch is that you'll have to keep the property in your name vs. holding title in the name of an entity.

 Officially, enforcement comes via legal suit.  

Most likely that the landlord won't want to incur the expense of legal action and will become reasonable.

Withholding rent probably isn't a good idea, because it places you in a breach of contract.

Generally speaking - as the tenant, you have the right to occupy the property throughout the term of your lease, regardless of who owns the property.

In my experience, bad layouts are easy enough to rent, but really hard to sell.

If you're ok with holding it as an income property that you never sell for anything close to other properties of the same square footage, it's probably ok.

I understand your point, but I'm not on board with the logical leap that AirBnB = Building a Holiday Inn.

Planning commissions do zoning to contain commercial activity, but it is often used by entities with vested interests to create barriers to entry and restrict competition.

Further - Taking actions like banning AirBnB only creates a black market - similar to what's happening with STR's in New York.

I'm not trying to make the point that there should be no zoning ... only to say that there are more factors at play than most people recognize.