All Forum Posts by: Tanner Crawley

Quote from @Rob Kishi:

@Account Closed Bitcoin is a decentralized ledger run and constantly updated across hundreds of thousands of distributed unidentified actors in real-time all around the globe. Each node on the blockchain is essentially "checking the work" of others to ensure validity, and anyone with an internet connection can participate (with or without bitcoin). The greatest hack risk to the bitcoin network would require gaining control of at least 51% of the computers managing the ledger and having them all carry out malicious actions at the same time (double spend, 51% attack, sybil attack, etc.). 

This is not impossible but it's highly impractical, improbable and illogical as the nodes/miners wouldn't crash their own network and the cost of executing something like that from outside parties would far outweigh the gain. It's secure because of the decentralization and incentive models, not magic. It's a cryptographic proof called the byzantine general's problem (byzantine fault tolerance) that bitcoin solved with proof-of-work consensus (mining).

There is a lot of content online if you'd like to learn more. A google search "can bitcoin be hacked?" or "what makes bitcoin secure?" should point you in the right direction.

Rob, nice high-level explanation for those unfamiliar with the security of Bitcoin. I am not sure how it is countered by a flimsy analogy to the titanic.

But again, a RE forum is probably the last place to find educated discussion about high-risk assets. RE is after all on the opposite end of the spectrum. 

Quote from @Joe Villeneuve:

Quote from @Eliott Elias:

Quote from @Joe Villeneuve:

Quote from @Eliott Elias:

Break even on mortgage and hope for appreciation.

 That's not investing...that's speculating.

 Not if your'e in Austin 

Yes it is.  Austin might just might have a bigger shiny object of distraction. 
Anytime there are two sentences used to describe an "investment", and the key word in each are "break even" in one and "hope" in the other, that's not investing...that's speculating. 

"Austin might have a bigger shiny object of distraction"? What a ridiculous oversimplification that overlooks market fundamentals. Surely you would consider these things more than a "shiny object of distraction":

-Extremely rapid population growth
-Extremely rapid income growth
-Growing tech sector
-Concentration of educational institutions
-High quality of life (high scores for food, weather, leisure, music, parks, etc)
-Relatively low cost of living (compared to other high-income metros)

Underwriting with appreciation and rent growth in Austin is not speculative. It is the status quo. To argue otherwise while overlooking it's strong fundamentals is frankly ridiculous. I wish everybody shared your thoughts though. Then I would be able to purchase properties in areas with incredible fundamentals without paying a premium!

@Joe Villeneuve

@Steve Vaughan

I don't understand why cash flow investors are so smug and dismissive of other strategies. Not everyone lives in B or C markets and has access to high cap rate properties. I've bought two properties in class A areas that "break-even" in the last few years. Why? Because I had the expectation (by your definition speculation) of appreciation and rent growth. These properties have appreciated by 14% and 17% annually and have had comparable rent growth. Now they are both cash cows and I have a deep pool of quality and high-income renters to choose from. 

One property appreciated 100k in just a year. I imagine a single door of yours would take two decades to cash flow that much. 

I am not writing off your investment style as there is obviously merit to buying a property that cash flows from the get-go, but I would ask that you both consider the merit of strategies that might not match yours. 

Quote from @Ben Einspahr:

@Sam T., yes. I believe BOA is the only one that offers it. And yes no brainer indeed. On the flip side of the coin, they are a very large bank so they only offer standard closing option of 30 days. Can make it challenging in this current market with other investment friendly lenders offering 10-14 day closes. The quick close option is what got me into my HH back in 2019. 

We were buying a new build with the BOA program and BOA actually let us close before COO which helped as rates were increasing. I was surprised by the flexibility, but yes the BOA lender asked for a 35 day close.

Love the BOA program. Bought a $575,000 property and took a commission and walked away with cash in my pocket and instant equity. All with no PMI.

Lots of speculation with no data behind it in this thread. Buckle up for some fundamentals and data folks!

Mortgage Origination Health
Mortgage Originations are looking VERY healthy and they have been for some quite some time. You can probably rule out cascading defaults as a potential risk:

Supply vs Demand
We are way behind on homebuilding. We have been chronically underbuilding since 2008. Pair this with supply chain challenges, expensive materials, and labor constraints and it only gets worse. We are already behind demand by 5M homes..

Inflation Risk
Real estate is seen as a safe-haven asset for inflation risk. After all, one of the biggest factors in inflation is rent, and if rents are rising it will help real estate values.

Political Direction
There have been suggestions of removing PMI, federal down payment assistance, and excluding student loan payments from DTI calcs. Each of these changes will drive real estate higher.

Don't wait to buy now, it will likely backfire as housing costs continue to grow.

@Alan LeMay

Are there utilities at the lots? Is there proven demand? Are these lots remote? Is it going to be cost-prohibitive to manage? Does a tree-house type rental work within the IBC?

@Ronald Morris

Nice! If I were you I would capitalize on this period in which you don't have income. With your wife's salary, you would qualify for some pretty great down payment assistance programs and subsidized interest rates on your primary residence. You could buy your primary for 0% down and with no PMI.

Then with the 800k-900k you would have plenty of options. You could buy several 2-4 unit properties, or a larger multi-family. I also like luxury townhomes as they have a pretty high cap rate.

Originally posted by @Cameron Fowler:

I am planning to potentially move to the state of Colorado for post-secondary schooling. What are the best places to live for Real Estate in Colorado? Where are the markets the highest? Lowest? I currently am looking into the Steamboat Springs, Denver, and Boulder areas, any advice on any of these markets?

Depending on your goals likely Denver. If you are working in RE and are focused on creating income through RE Denver is the clear winner:

• Highest Real Estate Brokerage Volume
  Most Development Activity

However, if your intention is to house hack you can likely get a higher return in other markets as Denver has a pretty low cap rate currently. CO Springs would be a good choice as there has been a flight to tertiary cities as remote work opportunities emerge. Some of the ski towns are interesting as well and will likely see huge appreciation as a lifestyle market. 

Originally posted by @Account Closed:

Glad you are making progress but its not kosher to count LP syndications as "doors". Even if you are a GP you own a small fraction of those "doors". So if you own 1% of 300 doors as a LP its just one door really and not even that as you dont have control of when to sell it. Otherwise I am the proud owner of several thousand doors and I really dont feel that rich!

Thank you! I was going to write this post exactly. Your point about really owning 0 doors is an important one. Giving up control so that you can claim more doors is a really dangerous move for many investors. 

What if you find an incredible deal down the road and your capital is tied up in an LP syndication?