All Forum Posts by: Pratap Koppula

Thank you @Ujwal Velagapudi 

Wish you all a wonderful time this year.!

The transactions are complex, and to formulate a tailor-made solution for each investor to accommodate the objective of fix n flip, short term and long term could be challenging. One size does not fit all, the assumptions I made to value may not make sense for others. The perception and judgmental impacts are too high.

Thank you @Bjorn Ahlblad and thank you @Greg Dickerson, for sharing your wisdom.

The property is for sale and in the rent roll forward, all tenants rent is past due. How do you deal this, practically replacing all the tenants does not appear viable solution down the line with COVID eviction restrictions?

Putting down payment plus additional working capital until we see the sunshine, hopefully next summer is few months away.

How Banks would react to lend on a typical situation like this.

Please guide and share your thoughts if the cheap is a better case here.

Excellent approach, @Tim Ryan, thank you for sharing this journey.

We have two Clients in GA, who offers free Utilities, and asking to find a vendor with smart metering capabilities, which one did you use. Can you pls share details.

Excellent approach, @Tim Ryan, thank you for sharing the journey.

We have two Clients in GA, who offers free Utilities, and asking to find a vendor with smart metering capabilities, which one do you use can you pls share contact.

Than you Paul, I have to learn and experience the art and science of "Appreciation" and Forced appreciation.

Thank you Derek for your valuable insights.

I had some experience behind why I want to adopt an Income based approach looking with more spread.

Last year, we tried to sell our townhome and listed at 675K in a Class A area in Los Angeles. We have not got an offer on paper and an oral offer at 620K. We thought not a good time to sell (No rationale), and withdrawn from the market. Again we listed and sold in the pandemic for over 700K last month. The annual growth on the property was more than 10% in a year.

I don’t understand is how the price went up 10% during the pandemic, we can assume its demand and supply, but I felt its more of buyer’s willingness in a race (No rationale).

The bankers need 550 years to double our money, while the index funds usually return anywhere between 3-7%. This is where I thought at least we need to earn what we pay as interest (Opportunity cost) and with an intention to hold, looking for better spread to cover the post pandemic crisis and recovery.

As you said, there are different styles of play, I will keep a note ‘why low capitalization can be an alternative’.

In general, everyone tries to focus on the market that’s best works for them in pursuit of business growth, or profit motive. At times, this may result in an inadvertent discrimination, may be intentional or may not be. Similar complaints against the Whole foods and lot of other retailers on discrimination for service areas (Search for Food Desert Documentary on youtube) exists.

This is not COVID, investors move on with or without Redfin.

Looking for a small multi-Unit in California, realized, at times, the Capitalization rate is less than the interest rate (Negative return). Considering the cost of selling expenses, this is really risky in a short term and difficult to survive with low spread on long term.

At the same time, we will not be able to run a financial simulation on every listing and realized the usefulness of “Spread”, the difference between Cap rate and Interest rate. The more is the spread, the better is the margin to protect in this pandemic.

Now looking Vegas and Atlanta as alternatives. However, what is the strategy that works with this low ‘spread’ markets?