All Forum Posts by: Jeff Costa

I terminated the contract. Too many variables. Thanks, everyone!

I just had a pre-purchase inspection done on a beachfront condo at Myrtle Beach. The inspector used a moisture meter and found exceptionally high moisture in every wall (10th floor unit) of 18-25%. Sellers agent said inspector was "out of his mind to think that moisture levels in the 20-25% range during hot humid weather is a concern for the entire building." See example reading attached for reference.

Am I overreacting to think this is a deal-breaker? Building envelope failure seem a possible culprit (windows, exterior wall systems, roof). Or is this just considered normal for a condo? Note that the unit has two PTAC HVAC systems for cooling. 

@Myrtle Mike Thompson What metric are you stating for "down about 11% YoY?" 

Has anyone built automation tools using ChatGPT Operator or n8n to scrape rental data from Airbnb/VRBO for (Avery Carl's) enemy method analysis? As someone in tech, the thought of doing this manually feels overwhelming and tedious.

This feels like a significant gap in the REI tools landscape. I'm considering developing a solution for it. Thoughts?

Thanks, @Chris Seveney I will gladly take the referral. Thanks!

Sorry, @chris. The state is PA.

I'm searching for references for a land note collateral review. While Dickie Baldwin at BAG came highly recommended, I haven't been able to reach him as his mailbox is currently full. I would greatly appreciate any other suggestions you might have.

Thanks!

It seems you are not local to ATL, @Sanjeev Advani but I just saw the former CVS drugstore at the corner of Alpharetta Hwy9 in Alpharetta turned into a showroom for high-end golf carts. I bet you did not have that one in your bingo card...

@Jamie Bateman I agree that a listing-only alternative is likely insufficient. Zillow itself is diversified across multiple revenue streams (Zillow Premier Agent, Zillow Rentals, Zillow Home Loans, and data APIs). A competitor would have to take transaction fees (as Paperstac is doing today), but could also find revenue streams in aggregating and selling anonymized market data to institutional investors or researchers. Or offering personalized consulting, deal analysis, or portfolio review for an additional fee (as others are doing today).

Your comment makes me wonder if we have a "chicken and egg" problem in the note-investing market. We are assuming the market size is inherently small and fixed. However, the market's current size could be a result of limited accessibility, rather than limited interest or potential. Lack of user-friendly platforms to facilitate transactions could be artificially constraining the market. In many industries, the introduction of accessible platforms has led to market expansion by lowering barriers to entry. For example, stock trading became more widespread with the advent of online brokerages.

It might also be possible to attract new participants who were previously unaware of (or intimidated by) note investing. If you make transactions easier, there is potential to increase volume by providing better information and transparency, making the market more attractive.

It makes me wonder if we have a self-fulfilling prophecy here. The belief that the market is too small could be preventing investment in the very infrastructure that could help it grow. Your thoughts?

Thanks @Chris Seveney and @Jay Hinrichs. To summarize:

The note investment market is a niche, relationship-driven industry with limited overall size. Its "cash and carry" nature and reliance on personal connections create significant barriers to entry, especially for individual investors or newcomers. This structure explains why institutional players dominate - they likely have the capital, connections, and infrastructure to operate effectively in such an environment. The small market size and relationship-based transactions make it difficult for new or smaller players to participate, which aligns with the earlier observation about the lack of services for individual investors.

Overall, this market seems to present challenges for growth or democratization, as its current structure favors established, well-connected players with significant capital. Any attempt to expand or change this market would likely need to address these structural characteristics. 

Put differently, it feels ripe for disruption.