All Forum Posts by: Will G.

the demise of bigger pockets. Sad

not being commercial, it is comp based

record low cap rates, are one symptom of the last 10 years of artificially low interest rates.  The fed stated goal (with interest rate policy) is to "boost asset prices and encourage stock market investment". All the money printing has caused serious distortions in the economy, so what we have now is a lot more risk than what may be "normal"

I don't pretend to know whats going to happen but the landmines on the economic landscape are real and significant. The bond market is in a bubble due to fed purchases, record debt in student loan,auto and credit cards, the imf says 15% of listed companies can't affordthe payments on their debt, and this year has seen 65% increase in corporate bankruptcy filings, tesla has never made a dime, amazon makes 0$ on merch sales, etc,etc

Short term buy and flips are probably a lot less rissk now. There are even discussions on "disposition adjustments to cap rates" for multifamily on this site! That means few expect cap rates to be lower when selling in the future and are debating how much cash flow will evaporate at resale due to higher cap rates.

Personally, last two deals under contract, bank wanted 50 and 55% downpayments due to purchase price overvaluations, and owners don't care, just waiting for "California money"

Plenty of nice properties around here waiting for "California money" . 

It's terrible time to be acquiring real estate, more so multifamily.

Yea don't worry about details, just give me your money. Good lord.

What specifically are you looking for? Do you know where in knox to look?

oh my god, someone just said "this time it's different"

I would do Nothing in real estate! Seriously, step 1, learn about the r.e. cycle. Look up ian ippolito on here he has great info on where we are in the cycle. 

R.e. is not the only way to passivly invest

rents are higher in maryville(suburb of knoxville), but either are difficult to come up with a 1% rule single family. I have seen some duplexes that are close

if we are talking single family try to stick to 50%. If you come across something you really like and feel rock solid about future appreciation, go ahead and squeeze down the 50 to 40% for expenses, but generally dont count on appreciation, pray for it but dont count on it.

If we are talking about multifamily, that might change things a bit, and gets determined by # of units, condition, etc. 

James, compile a list and sell it!