All Forum Posts by: Michael Durham

I have a little over 10K sq ft downtown (b/w state and main and 300S) I rehabbed a few years ago. I had a company in there but made everyone remote during covid and don't ever plan to go centralized again.

Anyone having any success leasing office space in the covid era?  Any referrals for a leasing agent?

@Terry Lao

“You only lose if you sell” is the worst logical fallacy / rationalization for losing money there is. Your net worth has gone down.  it doesn’t matter if it’s realized or unrealized losses.

@Scott Raynor

No, no it is not.

Pending recession? We are in a recession bordering on a depression. Things are only going to get worse.

@Serge S.

This but much more bleak. Half of all small businesses gone within a year, large swaths of bigger corporations in chapter 11.

I don’t know how anyone can even begin to quantify the damage.

Meanwhile I got pitched by two different people to fund some decent sized project projects today to which I replied with laughing crying emojis.

Buy puts, people. It’s going to get much worse.

Net short and chill

I don't understand everyone's obsession with duplexes. I could see it if the cash flow was dramatically more but, if you're using a management company, you're not adding to your own management workload. Why not just buy 2 houses for the same price of one duplex? I would imagine vacancy rates are lower in SFR too since they are more desirable to live in than a duplex. (just my unprofessional hunch) Serious question, not rhetorical as I might just be missing some key benefit.

@Don Gouge all generalizations that I’d say are more often accurate than not but I’ve been fortunate enough to find some great agents and I’ve recently learned not to paint the entire profession with such a broad brush. Agent commissions, on the other hand, don’t get me started, but paying 6% to sell a property especially those in the higher price range...

Without hard data to back this up so I'm speaking more from recent anecdotal experience, I think we are experiencing a slight correction but most sellers haven't accepted this yet. I've seen so many price reductions and still things aren't moving. It may just be seasonality but I feel like the rise in interest rates combined with having gone up too high too fast makes for a market that feels a little too frothy. Personally (as a long term buy and holder here) I'd rather see a mini correction, like I believe we are having and then more reasonable appreciation.

@Shimeka Williams

Most are transactionally-minded and not acting as a true fiduciary. I finally have one that handles literally everything for me, knows exactly what I want and fights for me. Her commission is nowhere near her first priority. Sadly, there are not too many diamonds in the rough.

@Pedro Torres

I prefer paying cash when possible especially when the market is competitive as I think it gives you an obvious advantage. I can’t tell you how many deals I have been outbid but the other buyer “had issues” with their financing and then the seller comes back and tries to re-engage.

I think there is a delicate balance to strike between being over AND under leveraged, though. You won’t generally get the best cash on cash return possible just paying cash as you would with financing. For those reasons I generally like to do cash out refis at my leisure when not under the gun to meet financing and closing deadlines. After all, leverage is what makes real estate investing so attractive but too much of a good thing can leave you vulnerable and perhaps unable to ride out declining market conditions.

Las Vegas, Salt Lake City, and then Northern Michigan in the summers.