All Forum Posts by: Trevor Richardson

Quote from @Carlos Ptriawan:

Quote from @Bruce Woodruff:

Quote from @Trevor Richardson:

Quote from @Bruce Woodruff:

I know nothing so just curious. Why would someone buy a Tesla truck? Just to be cool, or are there other advantages...?

It’s a semi truck, made for fleet operators like Wal-Mart. It hauls cargo just like diesel semi trucks. Except it’s electric, which gives it certain advantages probably except long haul. For regional operators moving cargo within the 500mi range it’s going to be pretty effective. One of my clients is an engineer for Tesla, it’s pretty exciting.

Im not an engineer or fleet operator, I own a real estate brokerage in Reno. I just know they are going to be building a lot of them which will require people and those people will need other people for services. People are going to move to the area. Then there may be other companies that more to the area to provide supplies to the semi truck factory, which will require more people.

All those new people are going to require housing which is going to be sparse. Full circle haha!

Check out Jay Leno learning about it.

https://www.google.com/search?q=jay%20leno%20semi%20truck&am...

But will it really be more 'green' or save money? Given that the electricity needs to come from fossil fuels anyway? Why not just stay with what we have?

 Ya be careful with innovation as well.
Toyota now developing battery a battery that can last 1,000 miles.
When it's commercialized Tesla is wiped out if they can't enhance their product.

And the job loss would be significant enough LOL

I never thought this post would be so controversial! In Reno, we've been through the "Tesla fails" scenario so many times, but the outcome is always the same: another manufacturer buys the facilities here. Redwood Materials is next to Tesla and is building a battery recycling facility, and Panasonic runs the Tesla Gigafactory. So even if Tesla fails (which is unlikely at this point), someone like Toyota or Ford would likely acquire and absorb the massive infrastructure and hub for electric battery manufacturing here.

Quote from @Bruce Woodruff:

Quote from @Trevor Richardson:

Quote from @Bruce Woodruff:

I know nothing so just curious. Why would someone buy a Tesla truck? Just to be cool, or are there other advantages...?

It’s a semi truck, made for fleet operators like Wal-Mart. It hauls cargo just like diesel semi trucks. Except it’s electric, which gives it certain advantages probably except long haul. For regional operators moving cargo within the 500mi range it’s going to be pretty effective. One of my clients is an engineer for Tesla, it’s pretty exciting.

Im not an engineer or fleet operator, I own a real estate brokerage in Reno. I just know they are going to be building a lot of them which will require people and those people will need other people for services. People are going to move to the area. Then there may be other companies that more to the area to provide supplies to the semi truck factory, which will require more people.

All those new people are going to require housing which is going to be sparse. Full circle haha!

Check out Jay Leno learning about it.

https://www.google.com/search?q=jay%20leno%20semi%20truck&am...

But will it really be more 'green' or save money? Given that the electricity needs to come from fossil fuels anyway? Why not just stay with what we have?

I work in housing and help real estate investors. So that’s not my argument.

I will say that if it’s not an effective product, does not save money companies like Wal-Mart won’t buy it. It’s a pretty cool American manufacturing story and good for jobs and innovation. 

Quote from @Bruce Woodruff:

I know nothing so just curious. Why would someone buy a Tesla truck? Just to be cool, or are there other advantages...?

It’s a semi truck, made for fleet operators like Wal-Mart. It hauls cargo just like diesel semi trucks. Except it’s electric, which gives it certain advantages probably except long haul. For regional operators moving cargo within the 500mi range it’s going to be pretty effective. One of my clients is an engineer for Tesla, it’s pretty exciting.

Im not an engineer or fleet operator, I own a real estate brokerage in Reno. I just know they are going to be building a lot of them which will require people and those people will need other people for services. People are going to move to the area. Then there may be other companies that more to the area to provide supplies to the semi truck factory, which will require more people.

All those new people are going to require housing which is going to be sparse. Full circle haha!

Check out Jay Leno learning about it.

https://www.google.com/search?q=jay%20leno%20semi%20truck&am...

Quote from @Chris Seveney:

@Trevor Richardson

Amazon to northern Virginia was to bring up to 65,000 people to the area. 3.000 jobs is not a lot

There are a lot of other things that can have a greater impact

It’s a minimum of 3,000 jobs. If built it will have a tremendous impact on our small market. We already saw what the Gigafactory did to Reno housing. It’s well documented. Plus we have stopped new multifamily construction which will show up in 18-24 months.

Im curious what other things you know about will have a greater impact on our N. Nevada economy?

 https://www.theverge.com/2019/11/13/20962317/tesla-gigafacto...

It’s a $3.6b investment into the Giga Nevada and is going to bring 3,000+ jobs.

Walmart and some other major retailers are going to be large buyers of the Tesla Semi. 

It’s going to have a major impact on Reno’s economy. 

https://www.nytimes.com/2023/01/24/business/tesla-truck-fact...

It’s exciting to watch Tesla build something very practical like a semi truck. This is going to be manufactured at the Gigafactory outside Reno at a new facility.

IMPACT ON RENO HOUSING - I believe as Reno enters into vehicle manufacturing the impacts on our housing will again be tested in the coming years. For real estate investors 2023 and 2024 may be the best years to acquire rental property with the coming strain on housing. Unfortunately multifamily starts are down not only here but nationally.

For N Nevada the combination of this two punch, slowing housing starts and this bustling new factory is really going to drive all rents up for rental homes and apartments. This won’t be felt in 2023 or 2024 but it’s coming in 2025.

Quote from @Nicholas L.:

Analyzing isn't hard, what's hard is finding a good deal. If you 'analyze' most of the properties on the MLS, the vast majority will not work as rentals.

For most investors quality analysis is pretty difficult and not obtainable. They also don't have time to do it because they are busy with their own profession and life. I agree the majority of single family does not cash flow, mainly because SF sell as owner occ not as an investment. Unlike multifamily that sells based on existing or proforma cash flow. And right now we have inventory issues for single family and interest rates are horrific. So yea looking for 6.5% cap SFR is difficult.

However, when you calculate an entire market you can basically discover what the maximum yield is for the market and see top properties and outlier properties that are the best deal that a given market can produce. If an investor looks at that and does not fit their goals, then they should look at a different market. The market can only produce X rent and the prices of homes are X, so there is nothing anyone can do. The math is the math. 

Our market is not cheap yet investors still are still buying rentals. We research these transactions and what they are renting for and it’s something like a 2.6% cap? If I calculated the 100s we have tracked this year the average is probably around 2%. There is a fair amount of cash buyers out there or even folks that want to invest and are ok breaking even. Appreciation, 1031ex, tax benefits, depreciation, inheritance, are all other factors we are seeing with a huge community of SFR investors. 

To me the craziest trend we have seen lately is new home purchases by investors. Like why? Well because a lot of investors just like new property, they see that as a great investment choice. Not really how I see it but it’s a thing out there right now. 

Below is an entire market calculated.

Quote from @Jude Campbell:

Institutional, Wall Street-er, if you will, here. 

Mass market analysis is alright for a preliminary search to vet properties but scouring the market is arguably just as quick and effective once you get good at it.

Knowing how to search on Zillow or Realtor is already going to discredit 90%+ of places, then a two second look at a listing will discredit another 90%+, meaning the cream of the crop will rise in a matter of minutes, regardless of how you're searching when you equip yourself with the right tools.

Here's my beef with mass market: it's good but it misses things. Let's say the software uses the equivalent of Zillow's Zestimate to forecast rental revenue & expenses, they're off by ~10%+ - fine, it's a good start. It's not good enough to give investors important fundamentals: how CAPEX will affect IRR, terminal cap rates (TCR), area growth, crime, actual figures for vacancy, absorption, expenses, etc.

Not to mention that you're unequivocally not going to find every on- and off-market listing on mass market or a search engine like Mashvisor. 

Tried and tested, my greatest deals have been found directly from the source in which they've been listed, with conviction and fast action.  That said, there's value to be found everywhere!  Happy hunting.

Yea agree with most of that. We created a brokerage around it where we have combined mass market analysis and verification of data from investor trained agents. We don’t use Mashvisor, they are not even close to accurate, but their presentation is pretty cool. Ours is a process and model developed by us, for our clients. We have agents verifying rents.

Also ex-instructional acquisitions guy here. I worked for American Homes for Rent during their ramp up a decade ago. 

Some of the best deals I’ve done for clients were on-market. There are off market deals, nothing wrong with those. We also input those into the modeling. 

You are a yield investor. What’s very interesting when you get into mom and pop or “retail investors” one of the most popular purchase in our area are new homes that cash flow at a 2% cap maybe(!) Our mass analysis is beginning to help those investors with other things, tax advantages, appreciation, exchanges and other factors. 

Hard buy boxes and yield requirements is the primary reason we are not helping institutional or working for them. Small investors make up 70% of all rental stock 1-4 units and the process blows them away. 

The problem is this is a single property calculator. We use mass analysis where it does these calculations for thousands of listings in the market daily. 

Most guru’s do this in the background so their organization can find the actual best deals. They won’t show you that part. Why would they? They don’t want the mass mom and pop small investors out there to see how they actually do it! They want you to buy books and webinars, and their inside group. And instead they provide single property calculators. You would have to enter hundreds of properties daily to see how they compare and pick the true outliers.

Most investors don’t understand this type of mass analysis. We call it total market analysis where every single property is underwritten and analyzed every day. It’s what the institutional “Wall Street” investors do. They don’t sit there and calculate one property at a time. 

Hope this explains it a bit more. 

Quote from @Jordan Moorhead:

@Holden Mitchell we do these every month at the same time and same place! It is this evening. Every 2nd thursday of the month

How do there events turn out? Good content and networking?