All Forum Posts by: Michael G.

@Anu G.

What is a "brrr?"  

Update: Never Mind:  Buy, Rehab, Rent,  Refinance, Repeat...

Thanks @David P. 

I remember when PatchOfLand first pioneered the concept of a 'Bankruptcy Remote' legal structure, it was a big deal for us investors... Realty Shares soon followed suit within a couple of months, as well as iFunding (I think) + a few others.  I'm heartened to see that this has now become "industry-standard" ... 

Personally, I can't speak to extensively or intelligently about Queens as I am mainly Brooklyn focused... except to say that Ridgewood (adjacent to Bushwick Brooklyn) and Astoria are both awesome...

Here's my take:  (Warning: Long post)  As a RECF site that focuses only on Real-Estate Debt, they seems to be just a newer, carbon-copy of PatchOfLand.com, as far as I can tell...   I haven't done extensive research, but I noticed 4 main differences:  (Please weigh in if you know differently... I promise not to take it personally)

1. They don't appear to pre-fund to their borrowers - which essentially means that a.) they don't have skin in the game, and b.) the lenders/investors don't begin accruing interest right away
2. They don't appear set-up investors up with a 'Bankruptcy-Remote' legal structure which protects investors in the event that PeerStreet goes bankrupt. This is an important one because if you invest in a borrower whose project is going well and is paying on-time, but then Peerstreet fails, it would be a cryin shame!
3. They don't source their own borrowers.. They appear to buy pre-vetted, pre-underwritten loans from others... While this may save them Marketing costs to acquire new borrowers, I worry about the concept of "adverse-selection."  Why would someone else sell their best loans, rather than their worst?
4. Their returns appear to be lower. Not sure if they are pocketing a few %'s more than the industry, but their yields appear to be consistently lower for what amounts to the same risk assumed vs. PatchOfLand or Realty Shares.

Like PatchOfLand, PS seems to also allow investors to review all the details of all previous loans. To the extent that as much transparency as possible is good, I definitely like this. (Not sure If they post info on their defaulted loans, as invariably, if you do enough loans, some % of them will eventually go into default.)

As I said above, I don't hold myself out as an expert by any means so please don't hold me to the above or take it as scripture. They are only my initial observations so far.  If I missed any differences, please add to my comments too!

As it happens, I genuinely like ALL of the above names - PatchOfLand, RealtyShares, and possibly even PeerStreet too (although they are a much younger newer entrant to the market, so I would like to see if they are still around in a year or two).    Others top players in the market are Real-Crowd and LendingHome.

Would love to hear feedback from neutral others on what they think are the +'s and -'s of each of the above names (but if you're affiliated with any of the above, please stay away!)

Thanks!

Hello!  Thanks for the interesting Queens insights above...  

Curious: Why no mention of Astoria in the Queens posts above? 

Or even Ridgewood...

Did anyone here talk about South-East Bushwick? (Say, south of Myrtle Ave... Specifically, anywhere near or around Irving Square Park )

This seems to be where a lot of attention is directed lately and justifiably so.  Really impressive new developments are springing up within a 4-5 block radius of this park... As an example: This beautiful Church preservation Project , or this cool old time Theater conservation & reconstruction Project  as well as numerous beautiful architectural Brownstone & Limestone low-rise 2 & 3 Family Homes that are being renovated... I like how many of these renovations respect and pay homage to the neighborhood, its architecture and history.

Better still, this area has good Subway access (L,J,M,Z ans A, C, E) and, unlike North Bushwick or Williamsburg, it's not beholden only to the "L" Subway Line.

I think this SNL Bushwick Video hilariously sums it up.

Anyone have similar experiences with this area, or any other?

Thanks @Remo F. !

I certainly didn't mean to get  into the benefits & drawbacks of the term "Gentrification..."  or even what the term really means, or how it can even best be defined...  so you'll get no argument from me on that...      This is a Real-Estate investment site, after all. 

That said, I will  state one thing:  Sometimes,  it can be unclear which is scarier/better,  or more frightening/more exciting:  

1. A neighborhood in-transition and undergoing [sometimes rapid] change, or 
2. A neighborhood that doesn't ever change and literally remains the exact same for decades upon decades, from one generation to the next.

U should check out this thread: 

 https://www.biggerpockets.com/forums/52/topics/109391-advice-needed-residential-tenant-w-a-daycare-insurance-headache-help?page=1

 
This one's easy as pie.... a No-Brainer:  Answer:  NO. You're not overlooking anything.  

It really is that simple. It's called RUBS billing and there's absolutely nothing wrong with it. (Google it) It's perfect for duplexes, triplexes or 4-plexes and even more. (Although it would probably get a little stickier if you were managing a building with over 20 or so units in it but that's another discussion)

I've been doing it for years and have had zero issues.  Everything you wrote above is correct. (Send out the entire bill together with a spreadsheet breakdown like the one I sent you. (Please share it with BP)

Implement it for your next new incoming Tenant (you can't change your utility policy in the middle of a Lease) and explain it clearly before he/she signs the Lease. In the Lease, just make sure the wording is descriptive & crystal clear, and worded in simple, plain english. 

Then, off you go. 

Kevin: You can keep asking BP over & over looking for someone to give you a reason not to do it this way or why you should  spend $10k (gasp!) to do something else, or you can just implement RUBS for free and start saving thousands & thousands of dollars per year.

If anyone on BP wants to contact me, i will gladly send them a redacted copy of what I send out each quarter for my Water Bills. (Concept is the same for Gas/Electric)

Good Luck.

Re: Prospect Lefferts Gardens: I wonder if the Caribbeans were accused of gentrifying out the Dutch during that transition...