All Forum Posts by: Greg Moore

@John Edwards hmmmm... thanks for the heads-up. I’m going to research a bit further. The platform I invest (gamble?) through offers a Cold Storage custody option that I was thinking of adding to my account.

@Russell Brazil That. Is. Awesome!

After watching a YouTube video from Ken McElroy stating 2020 is a wash, 2021 is the time to save up, and 2022 is likely the time to buy (when properties shift from motivated sellers to foreclosures to REO) I decided to redirect some recent Real Estate proceeds out of a 1031 into BTC.

My question is how much Cryptocurency do you personally feel is the right percentage for your investment mix (that is, if you have crypto)?

@Ashley Petersen my advice is to think about a longer time span and you can exceed your goal.

If it were me, I would expand my horizon to 5 years and...

- I would take $10k and do some Day-Trading. Buy a great company that’s had a bad day. There are a ton of these available for 30-60% discount right now. So you could use that as your play money and aim to double it a few times in 5 years and turn $10k into $50k by 2025

- I would take the other $50k and put it in a passive real estate investment such as @Brandon Turner's Mobile Home Fund through Open Door Capital. Investments like that cash flow 8% and provide a preferred IRR of 15%. So in 5 years, your $50k will have generated about $350/mo cash flow (= $21k after 60 mo), and your original capital investment of $50k will have doubled to $100k.

Using the above scenario, your $60k is now $171k.

This time put the whole $171k back into a 5-yr passive real estate investment fund. This is now generating $1140/mo. cash flow for you for years 6-10 (=$68k if you save it all).

If you’re still following me, your original investment of $60k has grown to $350k - $400k.

At $400k, you now have sufficient capital to generate $2000/mo passive income at 15% IRR. This could continue to generate more and more for the rest of your life. So you CAN achieve $2000/mo but just not likely in 2 years. Give yourself a few investment cycles, be prudent and patient and you'll get there!

Note: you have to be an Accredited Investor for some of these 15% ++ investment funds.

Good luck!!

PS I just bought a rental home in Bountiful UT. I’m a fan of the UT market!

@Steven Hamilton II @Sam Cannata

New information on an extension to 1031x. Short version is if your 45-day window expires between Apr 1 and July 15, the new deadline is July 15.

https://www.irs.gov/pub/irs-drop/n-20-23.pdf

@Kyle J. There are several ideas posed in this thread. @Merritt S. Has made several great suggestions that get to the root causes of why the function is broken.

My answer to your question is we need a disruptive technology that is good enough (=solid business case) for banks to change their process. In my view, this will happen out of necessity. In the same way economics dictate you cannot have a slum SFH on a property that warrants a new 20 story tower, there will be a new standard established that will rely on data. Even if post-purchase upgrades could be verified and documented in a cloud platform then the time is not far away we could get "close"— definitely closer than the current people and process producing appraisals today are able to provide. When we hit that tipping point, the role of the appraiser will be obsolete (at least for standard appraisals in the beginning, and more sophisticated and bespoke scenarios over time).

I could go on with characteristics of the solution, but the purpose of this thread is to roast, so I’ll save those for another thread!

@Merritt S. Why wouldn’t we aim for “accurate” as the standard? And those that fail are inaccurate?

@Eury Marte yes it is very disconcerting. But don't lose faith in REI! It's still a good place to be- even with the weak links described in this thread.

@Tracy Streich I’m glad someone has come to the rescue of the Appraisers. I’m surprised it has t happened before now. Please understand I’m not talking about individuals, but rather the collective function. I’ve been just as upset about the appraiser who gave me exactly the number I expected as I have been about the low ballers. Why? Because they don’t hold themselves to a consistent method or standard. My main argument here is it is time for this functional role to transform.

Ok, so there have been some good points that Appraisers work for the banks. Fine. If banks want real numbers, then how come we have numerous examples in this thread of 6-figure deltas between appraised value and purchase price within weeks? It is because the appraisers do not operate with a robust scientific method intended to produce “truth”.

I agree with your point there is a lack of professionalism in other areas. Those are not the focus of this thread. The headline of “Join me in roasting crappy appraisers” should have served as a filter for the topic of this thread.

Until I see innovation, transformation, embracing of technology, aspirations to improve, a code of conduct, and a commitment to a scientific method aimed at objectively producing consistent and accurate valuations, I will continue to point out there is a need for improvement.

@Raul R. Oh my gosh, I love this idea! Simple, doable. And would introduce at least the same kind of social accountability everyone else providing a service has to live up to. Maybe we just start it here on BP??