All Forum Posts by: Jason F

The inflation rate will benefit you from a resale price perspective. Inflation is ONE of the reasons prices go up.

When you are discussing your 'average appreciation rate', however, that number will have inflation factored into it already. In fact, in most areas, it is the major driver.

I was addressing inflation as a issue in retirement planning, as was Wheatie. People often shoot for a figure ($1M) now and run into problems down the road because they did not consider the value of their money.

I had a NR show up to a property I have for sale.

He walked through the house and his first question was:

"So, what do you do for a living?"

Then the conversation focused solely on me and what my interests were and what my plans were. It was actually a little creepy.

Then he handed me his card and told me to give him a call.

Oh, and, no questions about the house what-so-ever. As he drove away I saw "Leaders Wanted" written across his Ford F-150.

Great buddy, thanks for wasting my time with your sleezy sales pitch. I'll go ahead and give you a call. I love the idea of soliciting everyone under at open houses and in the grocery store in an effort to reclaim the thousands I spent on the same scam.

I have a realtor friend that is strictly focusing on listing homes with the possibility of negotiating shorts.

He's from Miami/Ft. Lauderdale which was the posterchild for over inflated home prices last year. Now it seems that banks are short selling properties like crazy in the area just to get them off the books. He is taking the approach of contacting the seller's. Introducing them to the idea of a short sale and negotiating it for them.

Just thinking about this, it seems like realtors that are doing this in the next three years are really going to profit in this market. It seems that as long as he can stay on top of his marketing to distressed borrowers and become known as the go-to-guy for shorts in a particular areas, he will stay busy.

Any realtors have any opinions on this?

do you think the house is really 'below average'? does it need a significant amount of work?

I went through a similar decision when I graduated college. I knew I wanted to invest in RE but I wasn't sure if I should jump right into it or get a job and slowly work my way into it.

I decided to work for a investment banking firm right out of school and gradually start my investing business. I'm glad I did. While it was a lot of early mornings before work and late nights after, it allowed me to take my time and find those 'perfect' deals without feeling rushed to buy the house of whoever called me back. Within a year I was able to leave my cubical for good.

What I'm saying is that it's okay to get a job and work to support yourself as long as you keep your eye on the prize. Think of it as having 2 jobs, one to pay the bills and one that will eventually make you rich. As soon as you start making more money in your RE career, you can quit our 9-5. I think trying to support yourself in RE as a young person right out of the gates might make you rush your education or deal analysis more than you should.

Good luck. As silly as it sounds to your friends/family and others, you are making a good decision. Stick with it. You are already ahead of the curve.

I would explain this situation to your buyer and see what they say. Maybe they want the house bad enough to deal with it. If not, slowly toss some of your assignment fee their way to help make it go through.

I wouldn't take the lady to small claims court, but that's me. It seems like it would be more hassle than good. Spend that time looking for another deal, it will most likely be more profitable for you when all is said and done.

considering the state of our economy, you now really need to look at inflation in this equation, where it probably wasn't a big of an issue before.

however you get to your $1M, you should consider in 10 years, that $1M will buy a lot less than it would today.

i think we all should really start paying closer attention to inflation as an issue with our longer term holdings.

Well, I think the upside/downside would be different for you and your investor. If you are just taking a % or a fee without any risk, your would be mostly upside.

For the investor, I think he just needs to investigate what he plans on doing with 15 townhomes, because it sounds like he is going to be taking them back if you know the loans will soon become "non-performing" and the from the looks of it, they are doing some price drops.

How does the rest of the complex look? The other 35? Are they selling? Who owns those?

Are the notes all grouped together or are they seperate loans?

If you are able to pick them up for $1.5M you are looking at about $100k a unit, if he ends up taking the property back. So it really comes down to what he thinks is a possibility on the back end. What would they bring in rent-wise?

I would like to purchase existing notes at a discount and hold them in my portfolio. Does anyone know where I could find financing for this?

Basically I want to purchase notes for myself, rather than brokering them off to another investor. I'm not really sure if a 'note' is something that could be used as collateral for a loan.

Any ideas?

If you are buying rentals you might want to line up some other financing. HML will be short term with higher rates by nature.