All Forum Posts by: Larkin Adey

@Jay Hinrichs - Good post Jay, and congrats to all who have have been successful thus far. We did not send out letters, or post zombie apocalypse signs - nothing to stir up any more fear with our tenants. We have collected 100% of our rents on 35 units and have zero vacancy. Time will tell as we move further down the rabbit hole - recession, and economic damage is the mainstream media pitch daily, but we are hopeful that people head back to work after May 1st and the economy recovers. Our investment group has continued to write offers and will continue to purchase as long as the banks will lend. One note - a good friend and partner had a Jumbo loan out in CA that the lender canceled last week. Was supposed to close and the bank decided they were no longer funding jumbos for the time being so he is in a pinch. We have a development deal that is hinging on his closing, so fingers crossed.

@Account Closed - I'm not sure the exact % of landlords who are accidental and own 1 or 2 rentals, but I think it is something staggering, like 50% of all rental properties. Many of these folks are the ones who may be in for a rough ride. They may also have lost their jobs, have mortgages to pay etc. etc. Your logic from another perspective sounds like this: "Banks shouldn't force us to make payments on vehicles, credit cards, mortgages, student loans & SBA loans, because unlike most people, they have unlimited cash due to quantitative easing..." It doesn't work like that. When we enter into contracts - be they leases, mortgages, loan agreements, revolving lines of credit - whatever - we make the commitment to pay our debts, regardless of the situation. I plan to work with my tenants and would like them to feel comfortable staying in their homes, but they need to do everything within their power to make good on the agreements they have with me. I will do everything in my power to ensure they have a nice home to live in, free of crime, with no roaches or mice and if issues arise, I will promptly fix them (The right to quiet enjoyment) - That means sacrifices for all of us.

@Mindy Jensen - Great post, and a fun opportunity to see who here is willing to tell the truth... Which after reading 10 of these is probably NOBODY !! If there are members on this site who have 20 months reserve sitting in cash - they do not understand the power of leverage or how to expand their business/scale-up. While I do believe in having healthy reserve, and I do find some comfort in seeing many of these replies - (as I am investor who had the wonderful experience of fighting through the 2008 market implosion) I do think that anything above a 4-6 month reserve mark is a wasted opportunity to grow and build your business. I'm 40 years old now, and I can honestly say to all of you, that you have to press forward, hustle and grow. Time waits for no one.

5 months reserve in cash/stocks. 35 doors.  

@Gregory Schwartz

Baptism by fire.

You will be ok, just keep working on those unit and get them ready to rent. There will be some mortgage support if you get into trouble, ensure you vet your tenants well - they need to be able to pay rent!

Good luck!

@Keith Hill

Yes, move forward with your plan. People still need places to live, renters will still respond to your listing. By the time you are done preparing the property for rent, the lockdowns will be lifted.

You wouldn't quit on your dreams because of flu season, so treat this with the same approach.

#overblownreaction

"Dare to go where others fear"

I thought about posting this topic on Friday, but didn't think people would be responsive to the idea. There seems to be some actual fear of getting sick, losing loved ones etc. - so thanks for jumping on the grenade and bringing this conversation to light. I agree with you, there is blood in the water and I am doing the same thing you are. Buying 1/2 positions almost daily in stocks that I have wanted to be in for years, but had been overpriced. I listen to a podcast called Invest-talk Daily for some insight" many of the stocks I am buying represent companies with good dividends, low debt and in industries that will rebound, i.e. Banks, Petroleum, Airlines, Tech. I'm staying away from the hospitality industry - I see potential for bankruptcies - and there will be no bailouts for casinos. 

As for the impending vacancies/late rents - we invest in C class multifamily which is supported to some degree by section 8 payments, in the near term these guaranteed payments will be helpful. We plan to carry on with business as usual - the balancing act however is this: Operating funds for (RE Stress)/Equity Purchases (Stocks)/Future Distressed Real Estate purchases (12-36 Months) with impending struggling investors/property owners

Honestly folks, I'm a bit surprised at the negative sentiment for this post from Jacob Lapp. How many of us have listened to hundreds of BP Podcasts, slowly gaining the realization that 75% of the large RE portfolios were built following the 2008 crash - and if I was a betting man - I would bet all of you at one time or another wished you would have purchased more RE following that crash than you did. This 2020 SM crash has offered up some very good pricing on equities and as investors we would be foolish to turn a blind eye to an opportunity. Jacob - for what it's worth, I have been investing in the SM. I believe there are good deals to be had with these prices. Banks, Energy Companies, Tech, Medical/Pharma all have been crushed. Do some research and find companies with low debt service ratios that will be able to survive a potential recession, and if they offer a good dividend, and you want to make a play - do it! To be clear, I am not a consultant, financial adviser or stock broker. Just an old RE investor and entrepreneur that can smell blood in the water, just like you.

@John Teachout

After reading this thread:

I'm going to watch back to the future tonight, count rolls of toilet paper then buy chevron cvx. It pays a 6.19% dividend and is an energy company with little levered debt.

Then I'm going to have nightmares about Franz Ferdinand, a flu like illness and Bernie Sanders stealing from me.

Tomorrow, I have to go to work - and then we have an inspection on a 5 plex we just put under contract.

My ham radio says there is a safe zone somewhere up in Maine.

Good luck everyone. Wash your hands.

@Jay Maranan

In this instance it won't help much with noise. Creaky old rentals are just what they are.

Loud, and old, and usually poorly insulated.

Just rent to small people upstairs.

@Anne Williams

There are still deals to be had. The housing market will hold out the longest.