All Forum Posts by: John Collins

How legal is this? On your local county page when you look it up, I'm seeing quite a few listed as this. A good form of privacy, but not sure about legality.

Your money will be made in the due diligence phase, which is now, so keep looking at all your options and break things down street by street. External settings matter even in the hottest of areas, I have seen shifts in SF away from 1 good 1 bad road to a more widespread gentrified area when you're dealing with professionals who pay a higher price point. People don't want to deal with volatility during a grocery run or a late night at the office so this is a big deal when you want the rent checks to come in over the years. 

It's a duplex so you'll have 2 parties paying $2-$2.5 each, I'm assuming. Applications will be plenty, so make sure you screen well! 

From the data you've got a good long term deal on your hands but shld adjust for the timing of the market. If you are in a rush to get tenants in May or June the quality and price will likely be compromised. And don't fall victim to the theory that appreciation in hot markets is infinite, it's certainly been a good run but there will be barriers and push back in the coming years. Not just from new builds in non traditional areas, but politics. You can see why AOC is very popular and the direction NY is trending in so it would be foolish to think the affluent white half-gentrified areas are immune to it. 

Regardless, if you have the DP and financing available for 1.6m, you will have options so talk to as many people as possible to make sure you've picked the best option. 

Hypothetically, could you lay out a 5 year strategy of what kind of property you'll enter the market with paying all cash, the expected returns, and when you plan to scale?  

What is a zombie house ? Why would multiple ones exist in a good neighborhood? 

Yeah, you're going to have to ride it out and not panic if you want to get your money's worth. Next 3 months not a good time to sell, but if we see the curve go down significantly in may and june then you might have people rushing to buy in july, a lot of traffic crammed in for missing summer months, and you might get more than expected.

Flood insurance is cheap in south , Find out what it is in your state, Let the new home owners know that , but will likely only sell for below market. 

Have you looked at the comps for similar properties on the road/neighborhood? This is something worth asking the agent who will be representing you (unless you have a license and are representing yourself), it lets you know the average vacancy for that price point and kinds of people applying. Get all the info you can out of agents familiar with that area. 

You shouldn't have problems screening tenants who are professionals and want the short commute into Manhattan. You might have to make some minor changes to catch the eye of people at that price point, some want updated counters , fixtures etc because you do have newer builds with similar rent. Many would pay $4k a month for a shoebox that feels brand new vs a bigger space that is outdated or not too clean. 

Keep in mind a RE bubble that was always going to burst that has been sped up by COVID, but higher price points and a trendy area should give you a high chance of quality candidates.

North Bed Stuy is a safe walk, but in newly gentrified areas you always have 1 good road next to 1 bad one and a lot of characters. Make sure to get a thorough inspection and walk through of the property, Brooklyn is a place where you can get a lot of crap for $1.6m and someone will take it.

As far as safety , bodies are piling up in NY right now and there's anger towards China creating new virus strains with wild animal markets for food and medicine (and I realize the far east encompasses a lot more than China, but angry broke people don't care)... so I would monitor the situation.

 The disdain is over the feasability of something purchased for $20k going for that price... not the fact its in small town America. In fact thats where a higher percentage of deals are to be had, the more you go into remote locations.

Honestly, why can't they just delete the next 3 months from fiscal history?

No rent
No mortages
No taxes
No transfer of ownership unless previously agreed to

Pic of house? Area located in? 

Would also get 2 more quotes to know your options. 

OK, and the honest and accurate advice was given here -

With the 100 million and real estate network already in place, you have the sufficient leverage and wiggle room to take the necessary risks and scale at a fast pace, then make cutesy catch phrases to impress naive teens and the uneducated.

In conclusion, prey on the poor and weak, take aggressive measures against them, keep raising rents in these units while avoiding maintenance, and use the large cash flow to buy marquee properties in cities after multiple generations and 50 years of the money working for you.

Capiche? OKAMONDO 

Flips - risky if market isn't hot and you don't know what you're doing. This is not for rental but buying below value, remodeling them, then selling at a high price.

Otherwise, real estate is a long term game where leverage is king. You need additional sources of income to pay for high enough initial down payments that give you favorable interest rates. It's only after a while when you have much more equity in them you can keep refinancing and increasing cash flow, then getting a huge chunk of change from appreciation. Many investors pool their money together to form syndications when they want bigger properties with bigger margins.