All Forum Posts by: Ujwal Velagapudi

How about investing into an opportunity zone, or a fund that does? This could be an alternative to a 1031, or possibly combining both. 

I love learning. I think of something I've always wanted to do, been too afraid to do, etc. and just go and learn it. I join a class, hire a coach, etc. I've done a year of improv, horseback riding, learning Spanish, and planning for dancing lessons next. I've got so many things I want to try on my list, so I'll keep hiring the best coaches & trainers to learn from the best. 

Travel is a huge component as well, something I've prioritized. I set up my RE operations & businesses to be able to operate as I traveled abroad so much out of the year. 

Also, attending (any) live sporting events (when they existed). Have seen ping pong, fencing, rugby, and a bunch of other unique sports which were super cool. 

I would suggest you to still keep an eye on the market, analyze deals, build relationships, etc. If you are a brand new investor, it may be better to hold off especially when so many additional factors are at play now, not just a simple property that you're assessing. 

I wouldn't be quite as worried about what the housing market will fare (of course, but at a later time), the more important issue is how the governments are reacting to the covid situation, how the markets (equities) are reacting to the government & covid, and then also the news of a potential political landscape shift on November 3. 

I would try to start that relationship with a lender now. Better to be one step ahead, too many times I've put myself in a bind with lenders being the bottleneck, so I've learned to have them ready. I'm sure you have a criteria to purchase, so with those parameters you can present that to a lender and see if that along with your personal financials will be something the lender can provide. Brokers will be willing to talk to you as well if you share the same details. Just make sure to take everything with a grain of salt, lenders may over promise (or won't promise at all) until they see the actual application and underwrite, and same goes for brokers. You most likely will need to create some account for most banks that do lend to you, but I prefer not to. I still bank with a large national bank, and only if required will I open another account with the specific lender. 

You can make offers in your personal names, that is fine, especially if it is just verbal/via email. If it is a formal purchase agreement, I've had them drafted where it is my personal name, but it states "A _______ based LLC to be formed later" or something to that effect. The blank is for the state you wish to incorporate in. LLC's can be done in a second, focus your efforts on the property & getting at least a verbal acceptance. If you're 100% sure you will make a purchase together, then sue, doesn't hurt to start one, but again this takes a few minutes and is in my opinion a non-issue.

Also, I would suggest closing with the entity you wish to own it with. If you want it under an LLC, then close under that LLC, do not close on your personal name and then transfer later on. This is just an unnecessary extra step that'll just waste your time.

As for the loan, you can still get a residential loan via your LLC, but most likely you'll have to personally guarantee it. I'd check with potential banks on their guidelines beforehand.

I don't see it on here as much, but streamlining your operations is crucial. It is assumed that REI is innately passive, but it is not. You have to make it passive. The process of doing that from marketing, unit turnover, managing your PM, software, collections, applications, background checks, maintenance, taxes, etc. in an efficient, digitized way is the key to making it a truly "passive" asset that you can operate from your phone sitting on a beach somewhere. I still see too many inefficient operations.

It would depend on your time horizon. If you think you'll hold onto it for the long haul (min. 10+ years), then sure, you can fare alright if you buy something where the numbers make sense today.

Personally, I wouldn't touch anything today that was turn-key, especially on the MLS, selling at a premium. I'd only purchase where it was under market value and likely where there is a good value add opportunity, which more than likely means it'll be off-market. This would be my philosophy during any market, but even more so today.

I definitely would be frustrated & would seek some action immediately, but I may not necessarily call it a scam (yet). The process in entirety seems normal, aside from the delayed release of your deposit. Every broker alters a PA to some degree for their firm. Seller/buyer disagreements on format, verbiage, terms, etc. on a PA will differ.

Now the worrisome part is of course him not providing your ED back, and that too the timing. Check your local laws because some do require that a broker give it back within a certain timeframe. I would definitely contract the broker(s), the local real estate board, and get a RE attorney. If they are local, I'd go to that office in person as well. Regardless of what happened, there is absolutely no excuse for zero communication (especially after a week) and it needs to be escalated asap.

@Pratap Koppula is working on building one that can do that, maybe can try out a beta version & help each other out. 

The executive order moratorium was only for government entities (~12M rentals), so there will still be tens of millions of units that aren't covered by this. When the senate pops back into work in a few weeks, they'll most likely extend the unemployment benefits.

Regardless, have any of y'all seen an eviction go through its general course of process yet?? I don't think courts at local levels have started to process them, and even if they have they're starting all the way from the March filings on a first come basis. By the time they get to the potential evictions in Q3 of this year, we'll probably be in 2021 already. Curious to see if anyone has had any progress with evictions. 

Going back to the original question, I used to automatically reject an application for having an eviction. Now I will have to take a much harder look at things. If they still don't have a job (assuming that's why they couldn't pay), then it's a no brainer. If they had a $1200/mo rental, lost their job & got evicted, and found another job at a reduced salary, but the rent is only $800/mo, then it's something to definitely consider. It'll be a case by case basis. But realistically, I still don't see people getting slapped with an eviction this year in most ordinances.