All Forum Posts by: Paul Vail

Quote from @Brooklyn Owen:

I'm looking for an experienced and reliable CPA in Jacksonville, Florida who knows real estate investing finance well. Any recommendations? 

@Brooklyn Owen - super common request in the last few weeks.   I'd start with networking at your local REIAs and maybe a Bigger Pockets meetup once this storm blows by you.   Alicia mentioned the classifieds section here on BP for hunting, as well:  https://www.biggerpockets.com/...

Quote from @Carlos Ptriawan:

There seems to be some confusion as to what the graph depicts.  The green curve is the CPI-adjusted median price of a home.  Various factors go into the peaks off of the average (speculation, supply/demand pressures, loan interest and inflation rates), but note that economically the pricing will need to revert to the norm at some point.

Thanks for the clarification, it's clear now. The problem with saying housing to revert to the norm as some pundits say is it doesn't reflect supply and demand, it doesn't reflect mortgage and it doesn't reflect the interest rate/inflation policy at a particular phase. Comparing 2010-2020 to 2020-2022 is plain wrong as inflation and interest rate are very different.

If a house has to go back to CPI status, we have to drop 50 percent which doesn't make sense unless there's a war, drop 10-25% seems doable. 

In many Asian countries, inflation of 8% is normal sometimes. No gov is reacting for that. Only real estate is able to hedge against such a drop in currency or buying power that's creating inflation. 

But this is good stuff, we will know which theory will be correct in short future :)

 As you rightfully hint, it's really anyone's guess.   But maybe we should think about other elements that go into this spike.  Much of it was all the easy money chasing too few homes.  OK -- so that bolstered pricing to the stratosphere.  Who will now be able to buy the prices if they remain this elevated?  If the average American is buying a house in the inflation-adjusted median value of $230k, what magically has happened to wages at the median level to allow for buying at $400k?  Where is all this new income parity?  It doesn't exist. 

When a commodity is temporarily priced outside norms, and the support for that price increase (easy money) is temporary, what will happen to the commodity pricing?   One doesn't have to have a science degree with years of advanced mathematics, or an economics hobby, or more than an 8th grade education.  However, we have a marketing industry pretending to be real estate pundits selling the idea that this is a new normal and sustainable.  All of us here on this forum have skin in the game -- and in our hearts, we know better.  I do wish folks would not pretend this isn't a very dangerous bubble.  :)

@Varun C. - What did you finally decide to resolve your question?@Varun C.

Quote from @Katherine Hudec:

Quote from @Paul Vail:

This seems to be a common request.   I wonder if BP has a section where they would want self-promotion of professionals listed by region and/or vocation.

Have you joined your local REIA and asked there? Also, most states have a certification board -- reach out to them to see if there's a list of

CPAs in your area. Start calling them and asking who in their circles concentrates on RE.

 I have not, but I absolutely will. Thank you for the recommendation!

We have two REIAs in our area, and I find the groups different enough that they each add value to my continuing education and networking.   Oh -- and see if there are BP meetups in your area.  People from this site are different still -- and just as valuable.   Best of luck with everything!

One account for each LLC (legal entity) -- doesn't have to be any more complicated.  Separate account for security deposits (usually a long-term CD that can be cashed out early with minor fees), one per renter such that this money is always available for refund and unavailable to be spent accidentally elsewhere.

Anyone in your local REIA a good resource for recommendations? I'd suggest visiting your state licensing board and maybe local court house to see what kind of legal 'reputation' they may have, as well.

https://california.licensesear...

Nuts -- meant to add in:

If you are looking for real estate AND paper assets, the usual 'easy' answers of DRiP stocks or better yet ETFs based on DRiP stocks would be a slow value play, so says the financial gurus (I am NOT a CFA so this is just opinion).  Guessing the future is a fools game, but I think we have taken a LOT of the froth off of equities in the last 10 months, with more yet to come.  But let's pretend we are 75% or more of the way to where the equities market should be based on P/E.  Safe cash parking in laddered I-bonds (treasurydirect.gov) for year+ reserves and CDs for whatever the emergency fund needs to be.    So along with multidoor rentals in smaller stable cities/college towns, having diversified holdings in the paper investment sector seems to cover a larger base.

Are you asking 'where' as in location/region or what kind of real estate or what kind of assets?

You're in San Fran.  Frankly, anything that has seen a tremendous uptick in valuation/prices and rent and is peaking isn't maybe the best place to buy.  Buying at the peak and watching things get closer to underwater over the coming months of a recession would be painful.  If renting is the game plan, smaller cities that continue to have significant population increases and housing shortages would seem ideal for small multifamily.  Diverse industry/employment or something more recession-immune like state/federal government/military would be factors, as well.

This seems to be a common request. I wonder if BP has a section where they would want self-promotion of professionals listed by region and/or vocation.

Have you joined your local REIA and asked there? Also, most states have a certification board -- reach out to them to see if there's a list of

CPAs in your area. Start calling them and asking who in their circles concentrates on RE.

This seems to be a common request.   I wonder if BP has a section where they would want self-promotion of professionals listed by region and/or vocation.

Have you joined your local REIA and asked there? Also, most states have a certification board -- reach out to them to see if there's a list of

CPAs in your area. Start calling them and asking who in their circles concentrates on RE.