All Forum Posts by: Account Closed

In response to Rondi's comment about a door in your home office-- I would consult IRS publication 587 for a definitional framework of "exclusive use" for your home office for conducting business. I have never read or heard about any requirements regarding a door. I am a CPA with more than one real estate business that utilizes a home office deduction (including a brokerage).

Birmingham and Royal Oak cash flow but have higher barriers to entry because of price. I like those areas because of the new construction and investment most of the other suburbs you mentioned lack. If you buy a SFR to hold and the property is in the path of growth for investment down the road you have some additional options in the future for building. Also, perhaps you could be one the few remaining hold outs in an otherwise newly developed part of town. Developing market intelligence in these suburbs is important as you seem to understand well based on the premise of your question-- developing a niche. There are very subtle differences in an already small footprint for these cities.

I am doing some strategy consulting right now for a portfolio company of a large private equity firm. The company is a start up mortgage bank and the PE firm has committed $0.25b in capital-- any ideas are open for discussion on how to deploy. If I came to the exec team and said ..."millennial and apps" I think I would get laughed out of the room and asked if I was serious. Apps are ubiquitous ; nobody cares about them ...everyone has them and is making them. It is excessive. It is no secret companies are trying to transform into digital enterprises and adopting technology in the process. Is a brokerage firm with digital tools all that differentiated? Maybe, depends what kind. Not an app. Your demographic trend that forms the basis of the business model is about as predictive as baby boomers are going to be selling homes when they retire. No kidding what does that mean for target marketing or a niche? People buy homes because of life events not their age group. It just so happens many of those events are younger people-- promotions, marriage, firsts jobs, etc. I would do more research on demographic trends on millennials and find some empirical research (industry news, academic journals, etc) to support the claim. Everything I have seen indicates the opposite trend; urbanization is one of the global mega trends right now and would seem to indicate that migration of millennials into the suburbs from city life may not happen at all.

What happened to being short, concise, and responsive to the original posters. It seems like many posters have used this thread as an opportunity to describe at-length everything they know about a particular topic (unrelated to original post). The comment isn't directed at anyone in particular-- the thread just seems to have gotten off topic with every possible artery that could stem from a simple topic.

You could probably expand the sale date to six months or even 1 year. An appraiser could probably provide better context on professional standards in this area, but I think 90 days is a nice to have not must have. Are you using realcomp MLS data or public sources? You may be missing transactions with public data. Out of curiosity, what was the draw to that area? It seems like there a good opportunities in SE Michigan.

Fair housing act of 1968. Age is a protected class.

Jeff- in Michigan, does the state filing of the Articles of Organization replace the need for any operating agreement? Just curious-- cant imagine you would need an operating agreement for a SME, but if required, legal counsel may be beneficial.

The Hudson yard project in NY used this financing vehicle extensively. You may be able to do some research and get some insights. Related companies is the developer.

I think inflation will still remain high in Argentina and the peso will continue to deval in the next few years...but, with the upcoming elections in the fall, many are predicting the release of many currency restrictions which prevent firms and individuals from exchanging local currency for USD and remitting back to the states. I have seen a few predictions that GDP growth will turn positive (negative at the moment) in the next year or so, but I am not really sure what the explanation is other than fiscal policy by a new prez (and this is purely speculative). 

I think I might consider investing their if it was in $USD; however, the availability in country is so limited it would be hard to conduct business in anything other than local peso. I will probably steer clear for the moment and focus on investing in my own back yard. : )

You may have seen a thread that outlines how they're restrictions for FHA approved lenders to hold a RE license. I once saw a loan officer who specialized in FHA lending throw his books across a room during a RE pre licensure course when he learned he could not provide FHA loans as a salesperson. Quite entertaining to say the least!