All Forum Posts by: Shannon Robnett

@Greg Scott Please educate me on the reality of your statement.  I understand that if you put in pre tax money that grows you pay more tax because it grew.  but if you are investing in say other peoples flips where you are not holding and would be considered a dealer otherwise and you grow tax differed you would have more to pay for sure but you did not pay tax at every transaction so your $'s grew faster and you pay taxes at the end of the game....but this is not a solid strategy?

Non qualified funds same story?

@John Fortes I would like to know more about your mentioned scenario also.

@Izaiah Jacobson  I do not think you could ask for better answers to your questions than have been posted here.

@Daniel McNulty, @Taylor L. and @Charles Carillo all speak from experience that defining goals is the #1 thing every investor(person really) needs to do before undertaking the task.

And @Jesse Daconta and @Bo Goebel are absolutely on track IMHO that education is so important on your journey.  Welcome to the BP family of investors willing to help out fellow investors with advice learned from real world experiences.

@Sara Simpson I believe there are a lot of really good points mentioned here and I would like to add one more for you to consider, and I can really only speak for Boise, as it is my market.  Everyone is looking for property owners to be in trouble because of COVID caused unemployment.  But as we saw unemployment covered most of those at risk for late payments all to well with the $600 weekly.  But look at the unemployment rate in the area you are looking to buy into now that this stimulus is gone.  Boise snapped right back to 5% unemployment in September, so we will likely not see any real deals happen here as we also created more housing shortage during that same time period by starting 300 less houses than 2019 YTD.  Also what has the effect of COVID had on new immigrants to your target area?  My guess is Spokane like Boise has seen a huge uptick in new residents fleeing bigger cities.

@Brandon Pelfrey you are correct in 2008/2009 our crash was much different but we also had inventory going into that recession.  Additionally we saw a ton of people move out of houses they never should have been able to afford into what they could pay for, but they were not homeless.  There is a lot that happens in a persons life before they actually lose their shelter, meaning that people will fight harder to stay put than the media gives them credit for.  Even those that are struggling to pay are aware that as soon as they stop paying the land lord will have 2 people waiting to take the unit as soon as it is vacated which is a bigger motivating factor in a supply constricted market like Boise and Spokane.  This economic situation that is currently disrupting our economy is certainly disrupting but the jobs are returning almost as soon as the government restrictions are lifted.  That leads me to believe that we are seeing an artificial market cycle interruption.

This article (https://bankingjournal.aba.com...)about record credit card pay downs in the first 2 quarters of 2020 would also paint a picture of consumers having additional resources for the days ahead than they have been given credit for.  Maybe rents not being paid is being over hyped by media?

Last thought on this is that while banks are requiring larger interest reserves to be brought to the deal interest rates have dropped significantly enough in the last 9 months to offer a decent exit point to most 2019 buyers regardless of the situation and I believe there will be LOTS buyers way before the bottom given the 2019 buyer is inclined to take a small loss vs total foreclosure.

We are helping clients take gains and invest in Opporunity Zone syndications to mitigate the taxes paid and after a 10 year hold period avoid further cap gains on their investment dollars.   We should chat further.

@Dan Rowley while cap rate has seen some compression its no worse here that elsewhere in the hottest markets in the nation. We still consistently see 10%+ COC and irr's over 20% on every thing we do. Of course 40 years in the market and 25 years as a builder developer helps with that.

I was never good at tests.  Real life is a different thing though,and i seem to be ok at that.

@david 

@Michael Bell  Feel free to reach out if you have direct questions about the Idaho market.  As a 40 year resident and 25 year builder and developer I tend to think I have a bit of insight on what is happening here in the Boise area.

@Sean Thompson Where is the fun in bypassing all the bumps and bruises of learning?  In the future feel free to reach out with questions.  Always glad to help.

Jack what are you looking for with specific ROI targets and COC for your investments? Have you thought about looking at brand new for all of the reasons you stated?

I am going to be honest with you guys, they are really throwing these things up, heck my kids even live in 1 but I am afraid of where they will be in 2-4 years.  They are over $300 cheaper than any other product in the market, 300 sq ft bigger and still struggling to rent.  Time will tell but I have my doubts.