All Forum Posts by: Alan F.

 Agreed. Anyone claiming people are going to feel the pain later by "sitting on the sidelines" is completely amiss of the real problem. And that's the fact that the main entry point from an intrinsic standpoint on RE was during the outlier period.

Real estate is not an intrinsic day 1 asset. It's a primarily a utility asset, and secondarily a store of value against currency. 

Now, three things can happen. 

That ship of low rates that sailed could come back? If it does sooner than later, or really at any point, it means destruction in the economy and if you were waiting you are probably impacted by this destruction.

Rates moderate and season here for some time with opex being a persistent headwind. If you enter at this point, be prepared to ride this wave. Most on this forum can't even come up with a downpayment, you can't expect them to ride HOI/tax increases, vacanices, etc., with lower leverage and less cash flow on a property. They'll tap out in 3 months, max.

Rates can increase. I think this will be the short term realization, and anyone that did not wait on the sidelines and jumped in with the intention of a short-term re-fi might have to tap out. 

Housing supply is the other function, and my view as rates increase so does inventory in markets that are coming up to pre-pandemic levels and the inverse in the one's that are decreasing. 

It's got nothing to do with people being speculative or "sitting on the sidelines". It's got everything to do with people just not be able to afford it, even if they wanted to. That's' the resistance point.

Not really a fair question.

The reason most people could invest in 2010-2020 was because of that (outlier) environment.

So the one's on the sidelines that did not get involved, and or are not coming from a position of strength--- now no longer can invest. 

I think the view in 2022 was these high rates are the outlier environment. When in reality, what you see 2023-fwd is reversion to the mean, and folks thought 2010-2020 was the mean.

With such a high barrier of entry, the one's on the sidelines aren't really on the sidelines. They just aren't capable of investing. A minute population is capable of investing, in that outlier environment I'd say the top 40% could invest. Now maybe the top 3% can. As we push closer to the mean, and revert back with some dropback I'd say it's the top 8-10% towards the end of this decade that can invest. 

No one is "timing" the market, they just are not qualified. 

Hello, I've got a single family home in Portland, OR and the tenants began hearing rats in the attic about a month ago. Since then I have located the area where they entered and sealed it off, however I'm having trouble killing the ones currently living in the attic. Has anyone had success with Rat poison and if so which one? I've been using Rat X and am convinced it doesn't actually kill them, currently just have snap traps in place. Any advice on the matter is greatly appreciated.

 I know of nothing in ab968 that has to do with source of materials.  It is about disclosing the scope of the rehab.   I think it helps flippers as it is easy to find the purchase pricesp versus selling price.   Having to “disclose” the work in the flip basically is mandating doing something that helps the buyer recognize the scope of the change which justifies the mark up.  It is nice of the state to mandate that flippers do this.  I would do it even if I sell far outside the 18 month window.  It justifies the property selling for greater than just market appreciation

I do owner builder rehabs but sometimes use contractors for large work scope or scope beyond expertise.  The contractors who do work for me have zero issues with me sourcing the material if disclosed up front and not holding them accountable for any material issues.  Because of the relationship I have with the contractors I use, there is no material mark up when they source the material.

Basically there is not an issue.

 This is great and we definitely encourage it to everyone! However it's just impractical for most flippers unless they're doing it at mass scale. We also find that most flippers are working with contractors who are not quite large enough to get deals from distributors.

I would like to become more familiar with estimating the cost of repairs and filling out a detailed scope of work. When I ask others at my local meet ups they just reply with "I've been doing it for a while" or "lots of practice." Not exactly the answer I was looking for. What do contractors typically charge to come out to a potential property and walk through and fill out a SOW with pricing?   

Hello BiggerPockets family!

My wife and I are new to the forum and have been listening to the show over the past six months, and we have been motivated by all the success stories from you all! Congratulations to your continued success.

That said we would like some guidance on crafting a contract where we would partner with contractor to go in on a flip together. 

Context: My wife is in real estate annd we anre in the Houston market.  We have  friends that are contractors. All groups have mentioned, wanting to try our hand at flipping independently, and I thought why not do it together. 

They would be putting in some money and their service as sweat equity, and we would be putting up money and my wife’s services. 

Is there a good ratio that is fare? 

What models have you all found success with?

What were some mishaps along the way in terms of the contract?

I know you all are all very busy and I appreciate your time, and we look forward to hearing from you!

All the best,
Steven 

Hello Everyone,

I am currently 24 years old and about 8 months into my first corporate job working as an analyst for a multifamily lending firm in LA. I am a very frugal person and have been dumping what I have left over into my roth ira but want to start saving for my first real estate investment. My goal has always been to own real estate and am fascinated by the idea of house hacking.

What little steps would you guys recommend I do to start making this a reality. I know that this is a process and I am prepared to take the slow and safe route. but have many doubts/questions racking my brain in this early stage. My job takes up a lot of my time (50-70hr weeks) and I don't have the capital to fund deals passively so I'm looking for inspiration as to how I can bring other things tot the table (I've heard you either need time or money). I also find it quite daunting and to invest in such an expensive market like Los Angeles. Is it possible to invest in more affordable markets if I don't live in the area? Any recommendations on how to find mentors, meetups, and begin networking in general would also be much appreciated.

I know I can do this and am very excited to join this forum. Thank you!

I live in Arizona and homes here are sky high, youd be lucky to get %6 interest rate, I would be a 1st time home buyer, apart from being 1099 employed would Trumps real estate plans benefit the little guys like me?