All Forum Posts by: Matthew M.

Probably the best answer I know of to this question is in the paper below.  https://www.nber.org/papers/w2...

Big picture, on average the higher yielding sfh areas have outperformed compared to the more expensive coastal cities.  With that being said, the difference isn’t that much and of the top returning cities there’s  a combo of both rental yield and appreciation.  This is also not including things like value add deals and buying distressed, etc. You can get higher returns in either an appreciation or cash flow market with good management. Also not taken into the account is the absolute PITA it is to manage b and c class rentals from a distance.  

@Ian Hogan I think the key here is that you are comparing levered returns to unlevered returns. You can also borrow and invest in the stock market so to make it apples to apples you should measure with comparable leverage.

@George Lynch it is a good way to tap your investments without liquidating assuming they are relatively stable and diversified and you maintain the upside of your investment account. You still own the securities, it’s just you have a loan against them you pay interest on. I wouldn’t necessarily recommend a margin loan for this purpose because the requirements and terms can change without notice at anytime at the discretion of the broker, but a SBLOC is meant specifically for this type of purpose. Good luck.

@Jerryll Noorden How much is your class?

@Jerryll Noorden not a wholesaler, but the obvious question that is begging to be asked is:

How do you generate leads? Since everybody else is doing it wrong.

@Chris Hill mathematically it would be faster to pay off 10k per month than save up 120k/year and throw it at the loan at the end of the year. Basically the quicker you pay down the principal the less principal available to accrue interest on. I’m certain Calculators online can show you the delta.

@Mike Hern Still, all points sign to more adoption and regulation, including taxation. Coinbase for example sends 1099’s to customers. You have to check on your tax return if you hold or purchased crypto. It seems that if anything, it is becoming MORE widely adopted and accepted into the mainstream, and you have people here giving reasons why it will be banned, forecasting the future essentially, as to what will happen versus looking at what is actually happening. It would be an enormous policy pivot to ban bitcoin or any other crypto at this point, just seems extreme and I don’t see it happening, not to say it won’t, just seems low on the likelihood scale.

@James Hamling you are right that if the US banned bitcoin it would hurt. My question to you is, why such conviction in your forecast? What makes you so sure that bitcoin will be banned? XRP, for instance, just won a lawsuit against the SEC which effectively deems it NOT a security, bitcoin and ETH both passed this test as well. What tea leaves are you reading that I am not?

Thanks,

@Rob Kishi this has gone a bit off the rails and I’m not sure why so much hate. This seems like a pretty innovative lending product. Many people have bitcoin but haven’t unlocked the purchasing power of it because they are hoping it appreciates more or they don’t want to pay the capital gains. However there is almost a trillion dollars of BTC out there and platforms like these help unlock that value for real estate purposes, assuming they can execute.

@Randy Beharry where in Baltimore? Baltimore county is very different than Baltimore City. I have a few townhomes in Baltimore county that have appreciated quite a bit since I’ve owned them and generate good rents. Essex, Middle River, and Rosedale are a few areas to check out.