All Forum Posts by: Chris Martin

Sounds like you have some experience. Is there a reason you don't use a 'traditional' lender, like the commercial side of the dozens of area banks that lend to local builders? 

Another alternative: buy US treasury bills from treasury direct. No fees or middleman, and the buying/redemption/reinvestment process is simple and intuitive. They rate has dropped in the last month to just over 4% (from ~4.25%) annual rate but not bad for a 4-week commitment. 

I couldn't find an equivalent for euros, but for US markets the treasury direct alternative is what I prefer. 

A quick follow up on the GRM (Greensboro-Randolph Megasite). First, Toyota appears to be moving forward. This 7/25/2025 article, Toyota's first batteries manufactured at Greensboro-Randolph megasite have shipped, says the company has already started shipping batteries and currently employs 2,000 of the projected 5,000 target. That's good news. Today, however, Natron Energy, according to the Raleigh News and Observer article Natron Energy, company behind $1.4 billion NC project, is going out of business, that they are shutting down tomorrow. Natron Energy makes sodium ion batteries and looked to have promising potential. 

The Raleigh area hasn't been affordable for a while. As someone pointed out, low-leveraged or un-leveraged property will cash-flow. Your un-leveraged return will be in the ~3.8% to ~5.0% range, depending where in Wake County you buy. Those numbers aren't compelling enough for me to invest, especially when T-bills will offer a better return with zero risk.  

As an example, I have a property in Fuquay Varina I am planning to sell for about $300,000. Here's the best-case scenario, assuming a 6%, 30-year loan, if this property were sold to an investor (as opposed to an Owner-Occupant):

Just don't become a motivated buyer. That's where you can make big mistakes that aren't easy to correct. 

Art, that really sucks. This post is meant to be constructive. 

I am not a lawyer either. In my RE career, I've attended (as plaintiff) 44 summary ejectment hearings as managing member of my LLC. All of my evictions were handled under Chapter 42 of NCGS. I was very lucky to have a seasoned RE 'mentor' to help me through the first few cases in the 2004-5 timeframe. I also had zero cases appealed. In my world, an appeal would automatically mean for the plaintiff (me) to 'lawyer up'. I knew at least three other REI who had the appeal experience, and for all of us (as managers/members of an LLC) we were required (as of 2017 at least, assuming no law changes) to use a lawyer. Appeals are held in District Court, and managing members CAN NOT represent the LLC, unless they are lawyers. The changed venue (small claims to District Court) changed everything.

So, the comment “Talk to a lawyer,” multiple times resonates with me. I believe this was good advice. 

Your second sentence, BTW, threw me. The "rents out my property on Airbnb" statement set my expectation that this property was a short-term rental, subject to NCGS 42A. From the filed Complaint in Summary Ejectment, that appears to be the case, but I'm not a lawyer. I've never done a one-month rental. The magistrate appears to agree that NCGS 42 applies. Way outside my pay grade, BTW. 

The eviction process is completely different between NCGS 42 and 42A. A good attorney would have been an asset in court. 

Sounds more like a political decision, not a financial decision. But, whatever. 

In general, I try to market to the largest audience I can. I wouldn't, personally, offer such a discount because it may give a negative impression, deserved or not, of political bias. I have, though, in the past provided discounts (in renting and in selling) to vets and civil servants (fire fighters, police, etc.) which I perceive to give a more positive impression. 

My 2 cents. 

Yes, you can. It's done all the time and called an installment sale. See Publication 537 (2024), Installment Sales for details. I have one in process now that will help with my capital gains tax planning. The assumption is you have a capital gain, which is required by IRS rules. Just make sure your note and recorded deed-of-trust are prepared by an attorney and marketable to a would-be note buyer in case you want to cash out some day. 

Methodology Center - Gallup

Ask homeowners and you get the desired results. 

I am not a tax expert, so the tax people can comment. If you seller finance, the result is likely an installment sale. 

"An installment sale is a sale of property where you receive at least one payment after the tax year of the sale. If you dispose of property in an installment sale, you report part of your gain when you receive each installment payment."

https://www.irs.gov/taxtopics/tc705

The big tax plus could be this: "Under the installment method, you include in income each year only the part of the gain you receive ..."

My understanding is that if you spread your LTCG and depreciation recapture out over, say, 15 years, then your tax liability could potentially be reduced significantly (under current tax rules).

Tax pros can comment, but I contend that in the next 10+ years this will be a strategy used by a lot of boomer rental owners as they exit the market and trade rentals for nursing homes. It may be, though, that in some number oy years, if the homeowner affordability index remains distressed, there may be a tax holiday for property owners to sell their properties to 'younger' buyers. You never know in this dystopian world. 

Depends on the situation. I could buy a property (seller financed) on TERMS from an aging baby-boomer that would be much less than rent payments, and over time I would OWN a property for much less than RENTING a property. To defend his (Buffett's) statement, he would need to find thousands of such investments, if not millions, because his minimum investment is in the billions and finding single homes would be a management nightmare. Hence, Berkshire didn't become the analogy to American Homes for Rent (AMH).