All Forum Posts by: Alexandre Marques dos Santos

@Chris Mills

Laws are favorable. What bother me is the yearly game to get some money from investors. Its not an expense you thought of. Adds almost like another insurance ( 400-600/ year/ house).

Leverage would get me nowhere. Return is similar to loan rate. Leverage would give me more risk just to run for appreciation, in a market that got me almost no appreciation in the last 7 years ( about 10%). Capex tends to grow from now on. It could drag even more my return.

@Bill Brandt

I wish i had such appreciation. But as the economy improved in my area, builders put a massive inventory, holding prices tight.

This is one of the reasons i decided to move out. Focus on other opportunities... maybe foreclosure properties, a development, maybe even become a lender...

@Steve Vaughan.

As i mentioned i have other investments as well.

So at this point, i am making a full relocation. Some investments were down, so i took opportunity that they improved recently and took the loss. This loss will offset the capital gain ( only due depreciation) in the properties.

That will clear tax burden.

On another note, i am focusing on a development that looks to be an excellent opportunity.

@Todd Rasmussen

Thats the point. In the course of 6-7 years i had almost none capital appreciation. Very shy indeed.

It pays broker fee and nothing much else. Total was 5-10% appreciation in each. I was making 5.5% and now dropped to 4.5%. Dont think its worthy to keep. Have other properties paying 5.5%-6%. Was better than bank, but time to rethink about this.

Now i am joining a development that gives a much better prospect.

@Bill Brandt

You got very good points.

1). Quality: i had A/c problems popping. 2 units had to change pieces. I had refrigerator problem, i had faucets, garage problems (3 units so far) and even dish washer replaced! I argue i live in an old property for 13 years, and never had such problems that most of my new units had ( now 5-7 years).

2) relocation: i am taking opportunity to sell at sellers price. Not frequently you can achieve that. I am studying new locations to invest. When i started to invest, i had rentals for 3100/3150 in some units. Same units are 2900 now.

3) taxes: over the 7 years, capital gain was scarce. Almost none. When there was, it covered broker. Not sure what you added as tax. If you could explain, appreciate

4) talking on broker fee: i have been working with a broker with much lower brokerage, than usual. Not sure if in future i will be able to do this.

5) replacement: here is where it really lies my bet. If my scenario is right, i will turn to a foreclosure market, where i will be able to buy some properties at discount.

@Rick Estacio

You are right saying The landlord can get into the property, its his right. But the problem is that the buyer does not have this right.

I dont believe the buyer will accept the landlord inspecting on behalf of him.

Maybe buyer accepts a video inspection? I would not.

Anyway, in this situation, only the tenant can allow the buyer, it has to be negotiated. On one hand tenant should be proactive, but many are not.

@Jayson Greenblatt

The only thing that comes to my mind is the odds you get approved will be higher. Do you have a pre approval letter of credit?

If not, try to get it and show him. Then will have no other reason.

@Rick Estacio

I am not a lawyer, but he is not the landlord, nor is trying to inspect the property for any repair.

I didnt see any provision that forces tenant to allow showing to a potential buyer, to enter in the property even with notice.

Again, not sure if he qualifies as a landlord prior to the closing, but with covid will be hard to convince them.

I went to PA to see a property and tenants did not allowed me to enter in the property. I turned my back and just did not close the deal.

@Lia Locarnini

All my journey i RE i bought new construction. I love the fact you can considere low capex for 7-10 years. More important, usually ex ante return is similar to older constructions, but as theres no Capex, total return turned to be much better ( talking about rental markets only).

In the past, i was able to buy properties with deep discounts. “Cash was king”. With this hot market i am not sure if you can find those great deals.

Be patient. dont let the pressure drive you to a bad deal. Year end is approaching and many builders might need to clean their Balance sheet. And after this frenetic market, they might have built more than able to sell.

So yes, it can be an awesome deal ( new construction) but the market is challenging...

@Joe Villeneuve

Got it...