All Forum Posts by: Tyler Stephens

I attended a RE trends class put on in December. While rents do have to plateau at some point, I don't think the number of units has caught up with the influx of people. According to the State Demography Office, Metro Denver's population is expected to grow by 50k a year for the next 2 years, and slowly tapering off to 40k a year by 2030. Even though multi-family building is in a frenzy right now, I can't seem them keeping up with that kind of demand.  There are other factors in play that may be affecting rents, possibly including seasonality. I always take news from sources whose purpose is to get you reading and clicking (read: sensationalism) with a grain of salt. 

The article says that in 2016, 9,962 new apartments came online, which is an insane amount. But it also acknowledges that the drop in prices could be caused by landlords trying to fill their units quickly to satisfy the higher expectations of investors and banks. It also says that banks are tightening their capital requirements and demanding larger down payments, which will have a negative impact on future apartment growth, driving prices back up. Those two factors point towards this downturn being temporary. But who knows. from what little I've learned it seems trying to predict the future is at best a risky strategy and at worst a terrible, terrible idea.

I'm not personally in a position have need of your skills, but I admire this approach. I hope it works out well.

Interesting tidbit that is only mildly related. Under HIPAA laws you arent even allowed to know if a tenant is smoking medical marijuana (think doctor-patient confidentiality). People put it in their leases but if a tenant took you to court for trying to evict them or prevent them from moving in for using MMJ you would probably lose quickly.

I'm halfway between the erie meetup and the denver meetup, so why not both?

I'll see you there!

I am almost done reading J Scott's The Book on Flipping Houses, and in it he mentions that you can't technically say you can make a cash offer unless you literally have the cash in your account ready to spend, and brokers will usually ask you to prove it. 

I don't quite have cash to offer, but I do have a private lender who will pay for the property in cash (either give the money to me and I pay, or write a check directly to the seller (If anyone has any advice on which way to go on this point, that would be well-received also)).

My question is, since I can't technically call that a cash offer, would it be beneficial to show some kind of promise to lend from my lender and a financial statement showing funds are available in his name? Would that help to get me better consideration than someone with more traditional financing?

I don't have any rentals myself, but I look at it this way: Better safe than sorry. It wouldn't be a bad idea to set aside all of your cash flow at least for the first few months to build up a cushion because when you need a new HVAC, its not going to cost x/month, its going to cost x all at once. The idea of saving monthly only makes sense if you manage to save up enough before you have to spend it. Better to get that cushion now and readjust later, especially since you only have one. I think the repairs budget percentage makes more sense with multiple units to spread your risk across and lots of repair data to create an accurate percentage to set aside. 

@Rob Grove The snobbish native in me wants to say "No, stay where you are, we don't want anyone else moving here" but really Denver as a freakin awesome (underscored) place to live. I've lived in or visited most of the country and maybe I'm biased but Denver is the best. Best of luck whatever you decide, and hopefully we'll see you at the next Denver meetup.

Welcome @Dillon Iarussi! You sound like you're on the right track. If you get a chance to go to a meetup, they are solid gold. I went to my first one last Monday and was so busy talking to people I didn't even a chance to say hello to @Dan Mackin (Hey Dan!) I made a few contacts though that have already proven to be immensely helpful.

I can't speak as to whether or not you can do this, but I wonder if it makes sense. If you are loaning your money out to a friend or relative who is counting on you for their continued business, you might be putting a lot of strain on that relationship, and have to ask yourself if its worth it. You could also just explain the situation and renegotiate your rates. If you are simply playing the role of HML then couldn't you just charge more for your money? Even if you cant get 12% +4 points, you might get closer. And once you factor in the percentage your friend's business is going to take, you might actually make more doing it yourself. Without knowing more specifics, these are just some hypotheticals to consider.