All Forum Posts by: Matthew Gentile

Seventy pounds is nothing to a professional investor, we lift the weight of the world everyday. 

Are you wholesaling deals to a company or are you trying to buy deals with investor financing? 

642k in twenties, is a hell of a wad. Stack that up you get about 120 foot stack if my googled math is correct. 

You ought to take that baseball card and trade it for an even bigger house, I hear 1031 takes baseball cards now. As for the gold, what is this the 1920s throw that junk away we are here for bitcoin now. 

Congratulations on hitting it big!

I agree with Michael. You'd have to look for a no inspection offer on the property. In MA that is now commonplace to waive inspections which is mind-boggling in some of these older homes but it's working for buyers.

I'd never advocate completely waiving on the buy side, just too risky for my blood but on the sell side its like Christmas morning to see a waived inspection. You could roll the dice and attempt a sale, just be careful if you let an inspection contingency offer be accepted, you open yourself up to having to go back on market in the event the buyer backs out or the renegotiation goes poorly. Which then raises eyebrows and you could end up doing the repairs yourself before sale, getting a lesser deal, or be stuck with it and doing the repairs yourself.

I've had offers at 100k over ask be rejected for 30k over with no inspection. Which tells you everything you need to know about the state of the property but the reality is that works in the current environment. 

Let us know what you decide to do!

I had been wondering myself just how far this could go. I can't imagine it gets any higher without the House of Cards doing what they do. 

Similar to the 15$ Big Mac, even inflation adjusted from 5$ should be around $8.50 so the gouging is greedy and it is real on all accounts. Should be interesting to see how this all shapes up. 

Do you want to be involved as a manager or as an investor, or both?

The larger the project the more they tend to rise in complexity. Partnership is a great way to learn from folks who are already doing what you'd like to do. However, you need to offer some value yourself. Whether it be money, time etc. 

Real estate in most scenarios is not a "burning much money" type of investment unless you are buying property that needs considerable work. Real estate investment is parking money as equity for appreciation, tax benefit and hopefully cash flow and inflation hedges. 

Operating real estate is a more cash-generative business but requires work, effort, and time. The roles can coincide but you need to be clear with what you're looking to accomplish. Being an operator and being an investor are two different jobs, very interconnected but you are not required to be both in larger projects. (Always helpful to have knowledge of both sides!)

Diversity of portfolio is good for maintaining capital but if you're having success in one area I would continue with it until you have enough capital that needs to be diversified and then seek out professionals in those spaces who can benefit from helping secure your capital in other asset classes, personal opinion!

History doesn't always repeat but it usually rhymes!

I agree with everyone above,

I think from a management perspective, rent by room will have you involved quite often and unfortunately probably diffusing problems with shared common spaces. Renting the entire home as everyone has said will yield lower cash flow but if you have a family renting the home you're less likely to encounter issues with tenants. 

We tend to see rent by the room more common for students around universities in MA at least. But it's less common in areas that are more remote in my experience. Mackaylee said it best, align your priorities with the strategies you employ and over time you'll find your most efficient and which ones you enjoy more. 

@Gino Barbaro

Absolutely agree, seemingly a ton of capital looking for a home these days. I' 'd be curious to see how much money down would convert a deal from unacceptable into acceptable in this environment. Could be a beneficial analysis to consider for people who are trying to understand these price tags and conditions.

It's fascinating to see the changing market from state to state and city to city. Inventory seems to be ticking up across the board, I wonder if sellers are starting to feel the pressure from higher for longer and looking to maximize an exit at these prices in preparation for a downturn. Would make the most sense in my mind.

Thanks for sharing Gino and Henry

Hi Erik,

What are your long-term goals in real estate? That will help organize your thoughts and actions, are you looking to take advantage of appreciation mostly and are hoping to use low money down and scale with multiple properties appreciating? Are you looking to do 50% down in high cash-flow areas to get a consistent return month to month to live on? Are you planning to invest every dollar for the next 10 years, so the following 50 are duty free if you invest wisely? 

I'm being over zealous on purpose here! But you need to come up with a clear idea of what you're hoping for. Doesn't need to be exact and it can always change, but a good direction will help a lot. Plans can fail, direction cannot as long as you stay with it. 

My goal is consistent cash flow so my wife only has to work when and if she wants to and I know what that goal number is month to month. How I accomplish that has multiple avenues but I can be more direct with my approach. 

Best of luck! Keep us updated.