All Forum Posts by: Zachary Beach

@Carl C. Do you really believe inflation is 1.4%? Really? The CPI is a government lie. I would encourage you to look up the real inflation level.

@Alexandre Marques dos SantosI know it does feel this way but I bet that she left because she was being nice to you. My guess is she is homeless or at family now and left so she wouldn’t keep your place hostage. Don’t be mad be glad she didn’t decide to keep screwing you over she could and I guarantee she knew it.

@Kate Barry

You have only put out two offers you said. That’s the problem if you have low inventory you should offer on everything. At your price not there’s of course.

@Oscar Padilla 1how much extra are you paying for the money? looks like it was already calculated in the thread

2 what are you going to do with the extra money?

3 what return do you think the property will get?

The combination of the 3 questions is your answer. If you are going to invest the 5% in something that’s a greater profit risk adjusted to your tolerance than the extra cost do 80% if not do 75%.

@Kenton LeVay there is less supply than needed most markets. interest rates down meaning the same payments go further and the money supply was increased from 12 to 16 trillion meaning a lot of inflation. Cash is worth a lot less 10-30% less than this time last year. Both the markets I’m in went up over 20% this year and it’s not a housing bubble it’s inflation and demand increases.

@Justin G. This is the crash!

I’m a little bit joking but only a little the government does all it can to create consumers confidence (a good thing in my opinion) but the truth is 2020 was the US GDP by real outputs worse year since 1946. Prices of assets are higher but it’s because the US money supply went from roughly 12 to 16 trillion dollars. That extra money had to go someplace and that place is the real estate market and stock market. Inflation is real and much much higher than the CPI claims. Get leveraged cash flowing properties in markets that are not losing people and you will make a lot of money.

The real question is how much salaries will go up as that will determine to some degree how much the markets can go up. Alone with interest rates and loan availability.

The problem for most is that most people are not financially intelligent and so wages grow very slowly because every few people wants to pay more than they need to for something and so wages normally grow slow.

There is much more to be said as the economy has many components but I’m not trying to write a book right now.

@Shiloh Lundahl

100% leverage assuming the property has positive cash flows at TRUE COSTS and is in a market with positive Potential going forward. If not than neither I’m not trying to get any bad deals haha. Sometimes no deal is the best deal.

@Joe S.

My REI strategy that I'm currently doing is basically BRRRR with STR's in Southern California for example I bought a property for 196K Reno plus furniture 40k all in 240K refinanced out 252K revenue 64K. This was the first year 2019 numbers. Market rent was up 58% in the last 6 months it's a mountain town so it may not stay up after Covid but even if it doesn't it's a cash cow. I had to pass on over twenty deals this good because of lack of funds. Now I have a STR management business to help optimize other people's rentals so they can get double digit cash flow in an appreciating market passively. Depending on the financing 20+ percent cash flow is very doable. Also that first property I mentioned has appreciated to 390k range and should bring 100K revenue this year. Unlike what some on the thread suggest I'm not delusional to pick 500k over 10K a month and with a 30% increase in the supply of US dollars this year I don't think more  appreciation is crazy

@Shiloh Lundahl

The million liquid by a mile with my current strategy even if it was 500k or 10k a month I would take 500K. Probably not much lower. at 250k I would go with the 10 because of risk.

For the people saying a million how low would you go before you picked the 10K?

@Felix Stone figuring out how to create value the world doesn’t owe you anything. Don’t try to get a bigger slice of the pie make the pie bigger or create a new one.