All Forum Posts by: Joffrey Long

BuilderOnline.com has a lead article today, "Editor's Pick: New Ultra-Slim Fireplaces"

Bottom line - as long as you add the venting, you can add this fireplace to just about any place, without it having been planned into original house / apt. footprint (except you need the venting) .

Has anyone else seen this ? Seems like at 7 inches thick, it may make a fireplace amenity a lot easier to provide, where desired. ( As long as you have the vent.)

Source: BuilderOnline.com March 29, 2013 online issue

Joffrey Long

Karen Margrave

Thanks for the question - and a good one.

The following are reasons why I titled this "Hard Money....."

First, because I hold my properties long term, and even during the downturn rents didn't drop that much, the GREATEST exposure I have to potential losses from real estate price declines is in my hard money loan portfolio.

Next, many hard money investors do not have the "long term, buy and hold, sit it out" mentality that I have in my property ownership. They're really only in it for monthly income, and prefer not to have any excitement, such as taking property back. If prices decline, it hits you faster when those are your (or their) goals.
Hard money borrowers/loans are more likely to make payments (or find a new buyer) when prices are stable or rising. So, in my hard money practice, I have the issue as an investor (holding 75% of the portfolio myself or in my own pension fund) or the issue of a trust deed investment provider (25% of the trust deeds are owned by private investors.)

Flippers are largely in and out, so they will usually sell before a major shift in the market, so where a lot of the readers here are flippers, this post was more directed to the group I feel is most affected by a declining real estate market - trust deed investors. ****

In summary, as hard money lender, or as trust deed investment providers, we have to have more of a "finger on the pulse" of the real estate downturns, as our position tends to "leverage the disaster" of a down market.

Luckily, a small group of us backed off a little (not enough) when the market was puffed this last time.

I'm really benefiting from the feedback and different viewpoints here on BP and I agree with your comments on Orange County, I own several rentals there.

HOWEVER, I'm right in the middle of trying to make another purchase there, so it would be convenient for me if the OC real estate market wasn't quite as darn healthy as it is right now.

Joffrey Long

**** Where I say that trust deed investors are more sensitive and have more risk if the market declines, that depends on many factors, and there are many arguments that could be posed to contradict that. It really represents only the specific circumstances of the crowd I travel in.

Tevis Verrett Thank you for the kind words - hope we'll get some good ideas from this.

Kyle B. Thanks for your feedback. To be sure, I'm not talking about a repeat of 08-09, as the factors that caused that to occur are a long way from occuring again.

I'm talking about a downturn specifically caused by factors other than those causing the 08 09 downturn.

Thanks again for contributing.

Like a sleepy frog in boiling water, we're all getting comfortable with the idea of rising home prices. In some price ranges - largely caused by hedge funds and institutional and non-instutional investors buying up everything and driving up prices. (Not a "real market" if you look at the long term)

What if other yields increase and the hedge funds / institutional guys/gals stop buying ? Or worse, sell ?

Of course, we know that "this time it's different." And it is, all boom markets end in a "different" type of downturn. The next downturn will be the fourth one I've been through.

For investors, for hard money lenders, we're all in the same boat if the weather turns nasty.

The question: If you think that "this time it's different," please share your theory as to how the market holds up, even if hedge funds, etc., pull out and all we have left to buy the houses are..........homebuyers.

The water is nice and warm right now, though.

Joffrey Long
Los Angeles, CA

John and Debra,

Thanks for contributing your posts as well. This has been a great resource for me, I've already used some of the suggested sites, and look forward to more.

Thanks all, great to have Bigger Pockets !

Joffrey

David,

Your post is very interesting.

Comments from a salty old landlord:

1) Your cash flow / ROI is a problem for me, since it doesn't include maintenance, reserves for replacements and upgrades required (if you want to keep it being an "executive" house, or any rentable house at all), allowance for management and vacancy, etc. (that's even if the house was in perfect condition and needed no maintenance on the day you last saw it.) I have many rentals and if I send you my schedule E, you'll see it shows that rentals cost more than just PITI to own, sad, but true.

2) If you just "ride it out" for 3 years, and then add back your maintenance and replacement later, and don't think of it as part of your rental, you don't really have the $1,000 cash flow "ROI" that you speak of, but you'll come out ok, most likely.

3) Assuming you're an aging "boomer" as I am, or as you stated, at least headed for retirement, you probably made a good move, as if it's a desirable retirement destination for boomers with money, the competition for houses in that area would likely grow, so you may have been wise to lock something in now.

It's hot over there, don't forget to get the air conditioning serviced regularly - hopefully you've got someplace cool to go in August.

Joffrey Long

Ned, thanks for the site - and related info.

Sam - yes, looking for feedback on all areas. It's a little difficult tracking where each tenant came from, as they sometimes have been on several sites. But eager to hear your results when you try different sites.

Craigslist has an interesting feature in that if you don't continue re-posting over and over again, your post gets buried under the last 200 posts in your area for that day. Other sites seem to work more on a search function, so listing something there only requires you to keep your listing up to date.

Tevis, thanks for looking up those additional sites - more research ahead of us all.

I am leasing out my most difficult to lease house right now, so am "being humbled."

Joffrey

Thanks, Andrea, much appreciated.

Thanks for your comments, Dawn. I used only Craigslist for a while and then branched out into other sites, but still continue to post on Craigslist.

Joffrey

The power of BP. Already have my rental posted on three new sites, thanks to responses I earlier received.

Would appreciate any other sites anyone is willing to share.

So far, we found out about, thanks to RobK and Geof Greeneisen:

Rentlinx.com
Postlets.com
Hotpads.com

I am already using Craigslist.org Zillow.com Trulia.com

Any other suggestions ? Really appreciate any feedback !

Joffrey