All Forum Posts by: Jefferson Kim

I'm so embarrassed, I just realized this article is dated October 28. Please, moderators have mercy on me and delete my entire post.

So who's going to buy some land and sit on it?

http://fortune.com/2014/10/28/tesla-closes-on-free...

High risk, high reward.

If Tesla actually finishes the construction, the land will most likely be very valuable (assuming the zoning is all good). In addition, other high tech companies will follow suit and start locating there. Battery production is supposed to begin in 2017.

The flip side, if Tesla fails to finish the construction. Then ouch.

I see a 18.29 acre piece of property within 10 miles of the site asking for $325,000. Assuming 0.25 acres for each house (including roads, etc.), 73 single family home lots. $4,500 per lot.

Heck, I can't even buy a condo in a decent neighborhood for that price around where I'm at.

So who's in?

[BTW, this post is in good fun. I don't have that kind of cash to gamble to that extreme. But I could always dream.]

It was nice meeting everyone. Feel free to add me on LinkedIn:  https://www.linkedin.com/in/jeffersonmkim

 The event is tonight. You haven't missed it yet!

 Definitely will slow down the inflow of cash and stop the super appreciation in many areas (ie. San Francisco & New York City), but I don't know how hard the crash will be afterward due to Chinese propensity to purchase in cash or to have low leverage.

Generally, underwriters are still going by appraisals and conservative LTV ratios, so if a Chinese buyer wants to purchase at higher than appraised values, the Chinese buyer will pay the difference in cash.

The people who will hurt the most are the speculators, but I don't forsee anymore as huge of a crash as I was expecting when I didn't consider how deleveraged Chinese buyers generally are.

At least without Chinese money flowing in, we'll be able to see where the natural, domestic demand would bring real estate pricing.

I imagine some areas of the country, like the midwest, have the least Chinese money affecting their pricing, though it's hard to say how much Chinese money in US investment funds may be affecting pricing overall throughout the US.

@Lynn Harrison Too funny. Yes indeed.

Bruce Norris put out an interview with Harry Dent (with controversial history of predictions), but does bring up the point about China's bubble that should be popping anytime soon.

http://www.thenorrisgroup.com/blog/news/harry-dent...

I don't think the Chinese are generally over leveraging in the States (mainly paying in cash since banks are still pretty stringent on their underwriting standards), so I think the ones left out will be heavily leveraged investors flipping a home that can't maintain cash flow.

Maybe not government intervention, but maybe the Chinese mainland will just have a huge economic slowdown resulting in no more cash flowing in from China. 

There are some parallels to the Japanese bubble, but I'm not too versed enough about this.

Thanks for orgianizing. I have this event on my calendar!

It's a 5.43% Cap, Class A (early 2000 construction), with return at 26.1% / year assuming a 3.19% average appreciation.

Maybe a 3 - 5 year hold or more depending on where the market goes.

I was planning to do it all in cash, but I think it'll be better for me to partner with someone with boots on the ground that has an invested interest.

I'm based in Orange County, California, and see property to purchase in McDonough, which is a suburb of Atlanta, GA. How would I go about finding local investors in the area to partner up with (Boots on the Ground with skin in the game)?

I was told it's better to have the property self managed by a partner that is local, rather than try and have a management company manage the property.

Zillow has a nice feature, Rent Zestimate that gives me a very quick glance at what kind of rent / value ratio a property may potentially have.

Does anyone know of a website that will allow me to see an overlay of the percentages or search by that parameter?

So for example, if I only want to see properties within a 1.5% - 2% ratio or only seeing properties with a ratio above 1.2%

I guess I could custom program something for my own use using Zillow's API, but I was hoping there may be something already preexisting.