All Forum Posts by: Zachary Dosch

The thing is there is so much demand that nobody has a problem finding buyers or renters in a very short amount of time. Actually, yesterday, I stumbled across an old public schools administration building that has been on the market for a while. Im heading over there at lunch with a contractor to see how much it would take to turn it into apartments. Ill keep you guys updated as Im sure I will have plenty of questions.

Are you altering your business plans at all?

I'm curious - as the real estate climate is changing (more strict underwritting, local economic factors, law changes, ect.) are you adapting your business plans and if you are, what particularly are you changing?

Personally, where I live an invest is a very healthy, groing, sellers real estate market. Apartment complexes are going up like crazy and home prices are really starting to increase at a faster than normal pace. While I would like to get my hands on a solid 4-12 plex, they often times sell before they even hit the market so I have been doing a different direction - SFH.

There are only 2 foreclosures in my entire area and they go for full market value so they aren't worth the hastle. There really aren't that many great deals out there.

The logical real estate investor would say that its time to sit on the sidelines for a little while but the rents may be increasing faster than the prices of these units so the numbers still work.

The deals that some of you are coming across are making me jealous but the more I think about it, the more I like a real estate climate like mine.

Thoughts? Comments? I would love to hear how each one of you are adapting to your situations.

Tom - I totally echo your thoughts on this board. I love how people don't sugar coat anythign and just tell you like it is. I can appreciate that.

Im not totally sure how the capital gains works on a short sale. If anybody can fill us it it would be greatly appreciated.

The reason why I knew so much about the Wells Fargo situation is that I actually used to work for them for a little bit out of high school. I wasn't trying to defend them or anything, just telling you they way they approach the situation. I know Wells Fargo really isn't subjective about anything. Everything is according to policy. Smaller and in particular, newer banks will be more subjective with the situation and if you can develop a good relationship with them, they could give you the benefit of the doubt.

I wouldn't give up - just learn from the mistakes and don't repeat them.

If there is a charge off at all for any one of the major banks, particulary at the one that you are trying to borrow from, you goose is cooked. Its the scarlet letter. The only way to mitigate would be to completely pay them back for what you cost them. You don't have to do that so almost nobody does that. Even if you charge off an auto loan, its almost impossible to overcome.

In my opinion, this type of situation is exactly why the term on a loan should never be longer than 5 years at which time the ability to qualify for the loan should be reevaluated. 30 year terms are insanity from a banks perspective.

My guess is to find a newer, smaller bank and develop a relationship with them.

Wells didn't actually need the bail out money - All of the banks were forced to take it whether they needed it or not. Wells actually paid 6% interest on the money plus a prepayment penalty because they paid it off early. Sounds to me like the tax payers got a pretty good deal.

You can't expect a company, especially one like Wells, to want to lend you more money after you just stuck them with the bill for the last one. Why should they?

I think your best bet is going the route of the smaller local banks, move all your depository relationships to that bank, and start rebuilding with them. Wells has a very low incentive to business because the interest rates are so low and they already have 1 in 4 mortgages. Find some lending institution that has a higher incentive to do business. Newer banks are usually the answer.

Don't get me wrong, 401(k)s are great. I wasn't meaning to bash them specifically. In fact, Ive maxed my business sponsored Roth 401(k) and my individual Roth IRA every year since I have started working and its great because of the automatic return the company match brings and the flexibility the Roth IRA brings. What I was referring to is the average worker that retires with about $750M and draws more than the interest for living expenses every year. Living off of a depleting asset would scare the hell out of me. I have 1 grandma that is about to outlive her money and the other that doesn't even have the slightest clue what she is worth and will never have to worry about it because my grandpa owned a bunch of real estate.

Also, I guess there is the factor that I don't trust the stock market as much as I know and trust the housing and rental market. Stick to what you know I suppose.

Just a quick question - how do these people get those incredible amounts in their 401(k)s? Aren't there contribution limits.

OK, Im done - didn't mean to hijack the thread. Sorry.

Just think about all the people that are going to try to retire on their 401(k)s alone... very scary if you ask me. Why buy an anuity? Why not a nice rental property?

Absolutely! It might be the one thing that I know that you don't! haha
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What a great thread for people in my situation. You guys are really an inspiration and supply plenty of motivation.

Current age 25

Retirement age: I actually really like my job as a business banking officer and commercial lender so Im not one of those guys that is counting down the days until retirement. Its very flexible and has great benefits which is perfect, in my humble opinon, for raising a family. Being there for them is my main focus - my father has been a CEO for some time and has dominated most of his life. That isn't something I aspire to retirement is something hard for me to define. My guess is I will keep my day job until the last kid graduates college but only be working part time basically to keep the benefits.

I guess the short answer is I don't ever plan to completely quit working because I love investment real estate so much. Hopefully, my retirement will be more dictated by my family situation rather than my financial situation so lets say 55-60 but backing off working full time at around 45ish and hopefully I have enough real estate at that point to be managing it full time.

I actually completed a spread sheet of a snowball projection last week it has me at roughly $5-8MM with a monthly income of roughly $20M. That is way, way more than I need but I have some ideas of philanthropic work that I would like to do which this would fund.

There is just nothing else that I have found that comes close to what Investment Real Estate can do for a guy's family and financial situation and that doors that it can open. I can't get enough of it.

Jon - If you want some ideas of what to do in North Dakota I would be more than happy to share some ideas with you. Being born and raised in North Dakota, I know just about everything (which isn't much - ha)!