All Forum Posts by: Sam B.

@Rik Batts

Real estate is a capital intensive and low return. Through leverage you can grow wealth over time. With no credit, experience, money, it will be hard to build assets on your own.. my advice is to work in the industry and learn while someone pays you for your time. Then go out there and start buying!

@Joel Owens

How many of your deals have involved 1031 buyers recently? Hard to see how people would be willing to pay the same price of an asset before the covid noise vs today.. why would a buyer want to take the additional uncertainty risk? Look at all the triple net reit stocks trading off 50-75%, I could get similar exposure if I just bought those at a much lower price point.

I just wonder that once the 1031 buyers/sellers burn off, would the market slow?

Thank you all for the great responses!

Im current under contract on my first deal.. and have 45 day diligence period

Its a retail property in NJ that is 3 units and occupied by mom and pop tenants. Unfortunately NJ is not allowing non essential businesses to be open, so all the tenants are closed.

Since I’m new to this, I am not sure how to proceed as I have two issues..

1) tenant strength is different vs when I agreed to this deal a few months ago

2) it’s impossible to do tenant interviews, inspection, etc given current conditions

I had my lawyer draft a extension addendum and seller agreed to a 15 day extension, but it’s such a short period extra and doesn’t address the tenant strength issue I am facing.

I think I need to go back to the seller and ask for more help here, and I want to minimize cost till I have more certainty. Could you guys give me your thoughts on what to ask for which would address these issues? Any other advice?

Much appreciated

@India Brown

Take a pic of your toilet paper and send it to the seller.. worth more than cash these days

@Jim McWethy

I am interested to hear what others have to say as well. I’ve looked at two deals on there. Both sounded great on paper, but then after digging in I found things to make me believe that an acquisition had not been going to plan.

@Jeremy Rhodes

You thought you could shield your w2 income by buying a rental? Sorry man you are sorely mistaken.

W2 income is the most difficult type of income to shield. The government preys on the working people of America, they are the biggest losers when it comes to taxes. Especially the ones who make high w2 income. Sadly I am in this w2 bucket, with much higher income. The only thing you want to ensure is that the profits from your investments are not taxed as badly.

@Zaid Bender

Real estate is simple. It’s based on supply, demand, and price. Office and Retail supply growth has been 0 for the past 10+ years. Demand, to your point is suffering in some areas like malls and big box concepts. Price on office and retail right now are very attractive versus history.

Multifamily and industrial are seeing healthy demand, however prices have skyrocketed and supply growth is rapidly escalating.

I prefer office and retail at the moment. Not malls or big box but everything in between.

@Nicole Blair

If you have a contract that protects ensures seller performance then you are protected by with whatever you decide to send him.

@Wayne Brooks

I am still trying to buy this property but I am off in price. It seems like the bank/receiver is in the property for 2mn, but I am at 1.8mn. How much pressure does the bank have to sell an asset off their balance sheet? Was wondering if they can keep the asset as long as they want or if they are forced by some regulations to get rid of an asset by some set time frame. Any other thoughts on how to make a deal?