All Forum Posts by: Jame V.

@Michael Kugler “AirBNB is synonymous with ‘Crash in my dipsy dumpster and bring all your frat buddies’” Not even remotely accurate.

You probably only get 500 million after taxes. Not worth my time imo

Originally posted by @Jerry Shen:

1) There is a difficulty algorithm built into bitcoin so this scenario is impossible. Even after every bitcoin has been mined (in 2140) miners will still get transaction fees. The economic incentives to run bitcoin nodes are self-stabilizing.

2) Which government? Almost every developed nation has bitcoin regulations. It's impossible to regulate bitcoin itself but you can regulate at the exchanges when you convert to local currency. As far as the top few owning the majority of bitcoin, this is no more true than the top few in the world owning a high percentage of wealth. A lot of the analysis I've seen on this fails to point out that a lot of bitcoin addresses with a ton of bitcoin are actually owned by exchanges where they could potentially be shared among thousands of people. Volatility is also a function of total market size. On a percentage basis it has gotten way less volatile as it's gotten bigger, and the introduction of bitcoin futures has also significantly reduced its volatility

3) No retailers don't want to take bitcoin because no one will pay a $25 confirmation fee to buy $25 worth of stuff on amazon.

I'm talking about the electricity costs of mining and transactions.  If there is no change (in the efficiency of algorithms, or upgrade of hardware/tech), all these miners keeping bitcoin alive will pull out because it will cost too much to run.  In the long run it will stabilize, but energy cost to reward gap is getting closer, faster.

Good point about controlling the exchange rate, I'll look more into that

If by wealth you mean cash reserves, this is regulated by government. These top cash reserve holders can not greatly change, by any means, the value of the dollar.  

Bitcoin looks more volatile than ever IMO.

Ya...And also it'll take 2 days for a transaction  😂

Some abstract things to think about: When the cost of mining and transacting bitcoin surpasses its value...it’s over. All those expensive setups will go down. It’s not regulated by government, which is a good and very bad thing. The top “very few” own the top “very high” percent of bitcoin. So instead of the market in the hands of the govnt (who is slowly devaluing he dollar), it’s in he hands of a few people, who can make this market as volatile as they want. When one sells, you can bet that the rest will sell. Amazon and no other large retailer wants to hold bitcoin because they’ll hold a large chunk of the market

Originally posted by @Gregory B.:

@ james v the point of the bill is to prevent investors from taking advantage. This bill is not intended to be used by investors to get a tax break. It is meant to be used by homeowners and to encourage homeowners to buy their residence and stay in it.

 Thanks Gregory. Do you know who it’s meant to protect the investors from taking advantage of?  Homebuyers or the government?  

The first question I'd ask myself, in your position, is can you build houses up to (or down to) the standards of the neighborhood you're building in.  

There are a ton of factors that go into deciding whether or not to build vs buy.  But when you get to a certain point, after you can answer the big time questions like the one above, you just need to research, pick a path and take it!

When you build, you generally need to be able to put more money down (for land and foundation) without making any rent during the construction (first draw is usually AFTER foundation).  Unless of course you take another of the many paths besides a typical construction loan like a private lender.  

What it'll come down to is your research!  I think most importantly is LOCATION LOCATION LOCATION. A lot of things can make or break you, but IMO, market is one of the biggest factors from the get go.

Get to know the market:

Are there future plans for developments in the area? 

- Will drive down competition for your home

- Will potentially increase your construction standards

Are there houses similar to the house you can build?

Are the prices for these houses what you wish to sell around?

Will the finishes be of the same quality as the home next door?

Is there even a demand for new homes?

What is the rental market?

There have been many success stories doing both of these things, both are proven, so it's about market&numbers research and making it work for YOU! 

https://www.biggerpockets.com/renewsblog/2013/11/2...

https://www.biggerpockets.com/renewsblog/2012/06/0...

https://www.biggerpockets.com/forums/44/topics/117...

You hadn't mentioned if you had built houses before, so if you had, I'm sure you already know most of this stuff...and it really comes down to which numbers work for you and your dedication to the construction project.  Building a house and being able to market it and invest in it is a good skillset to have!

All knowledge I give is from research and not experience. With an FHA loan, you’ll need to pay extra mortgage insurance. But since it’s government backed, fha insurance is generally much less than traditional loans (that are < 20% down). An FHA mortgage insurance is probably around 1.75% Also, there is another yearly premium of like .4%-.8% (paid monthly) with FHA Another con, you’ll be paying more per month since your down payment is lower. This will lower your cash flow. As you mentioned, you can refinance to another loan after a certain amount of time (1 year?) and remove this insurance in most cases. Also, you had mentioned you were doing some rehab? There is an FHA 203k renovation loan you can look into (you probably already have). You’ll get money to buy the appartment as well as doing some renovations. There is definitely no right way to do this. Id say go with 20% down traditional loan to avoid insurance, premium and higher monthly payments IF you can. If you NEED renovation money, then maybe an FHA 203k is best...OR maybe you can get a private lender or family or your cash reserves to cover the renovation. And these aren’t your only options! Like Melvin mentioned, there’s homepossible and probably 1000 other ways to get the money. (I am not vouching for homepossible, idk what it is) There is a ton of fha/traditional info already on the forums and online. It has helped me a lot

Why was this imposed? What's the purpose?  So now, house hackers will be taxed on gains from sale. This sucks but isn't the end of the world, right?  Still will have the cashflow and taxed gains once selling.  I'm just trying to get the concepts here!

More importantly, large corporations will be taxed less on investments.  As far as I can see, this could kill "our" (people starting out and smaller-medium sized investors) real estate future.  These big companies will be buying up real estate now, no?

Haha. App crashed when I clicked post

Is there a spot to submit bugs found in the bp app?