All Forum Posts by: Bruce Woodruff

@Bruce Woodruff @Matthew Paul How are you guys making numbers work at $250 sqft? I'd suspect high sales prices in your area? Houses in your most avg suburbs of Houston don't cost $500k. Houston has its expensive areas but pretty affordable overall.

Finding good painters is like hunting for a unicorn – it’s rare! And let’s face it, “touch-up” work often ends up looking more like a cheetah than a clean wall. This year, I’ve decided to focus on the tenant experience by painting entire walls, not just touching up! It’ll make life easier when it’s time to deduct from the deposit at lease end. The before photos will be much clearer for pointing out actual damage—no more trying to figure out what was a touch-up vs. real damage during security deposit itemization. Good luck & happy investing!

When I used to be a Realtor, I ran comps manually using a simple spreadsheet I built.  I compared other properties in terms of age, sq ft, acres, beds, baths, basement, garage and a subjective measure of interior condition.

I have a huge problem with the automated comps (Zillow, RPR, etc) because they could not account for the interior condition.  Two identical homes located next to each other would come up with the same value, even though House #1 was just renovated to a very high standard and House #2 hadn't ever been renovated since it was built in 1949.

I always tried for an identical (or nearly so) beds, baths, sq ft of living area, garage and acres.  Ideally, I wanted within 1 mile and sold within 6 months.  Then I'd push those factors out if there were no good comps.  2 miles, 6 months.  2 miles 12 months , etc.

It takes some local knowledge to know when you're pushing those parameters out too far to be useful.  If you find your comps are 10 miles away in a different town, you've probably gone too far.

To do automated comps is easy.  Push the button and hit "print".  To do them right takes a lot of work.

Good luck!

Quote from @Bruce Woodruff:

Quote from @Matthew Paul:

@Dalton Dillon Yes , building new does make sense , it is economical . Except you are not the builder  Having a house built by a builder , you are paying their profit . When you become the builder , then the numbers work 

What he ^^^^ said. And $120 SF is a price from the 1970s in my experience. Even in Houston, I would suspect you'd pay $250 SF minimum, especially with a trick build like that on stilts.....What do you think, @Matthew Paul ?

 The $250 a sq ft sounds about right . But we dont build on stilts around my area 

@Dalton Dillon Yes , building new does make sense , it is economical . Except you are not the builder  Having a house built by a builder , you are paying their profit . When you become the builder , then the numbers work 

Quote from @Bruce Woodruff:

Quote from @James Hamling:

Quote from @Bruce Woodruff:

Quote from @Nicholas L.:

@Bruce Woodruff

thanks for the predictions!  regardless of my political beliefs, i am of course still hopeful that the economy remains strong.  even the cuts to foreign aid though i don't think will bring that much money back domestically... open to other perspectives on this but i don't see it.

i genuinely don't know what will happen with interest rates.  i do think even if there is a slight decrease, it brings buyers back like you said.

one thing that doesn't get covered a lot is how many properties are owned free and clear - about 40% i believe.  so, these owners are under a lot less pressure to sell than someone with a mortgage payment.  and in my experience they'd rather leave a property vacant than sell for less than what their neighbor got.

 Taking that money that was going overseas, and keeping it at home, has got to have a positive affect. I mean, we're talkin 100's of Billions....

The #1 positive effect it has, that I never hear any talk about, is it improves the US position in global economy and trade positioning. 

How? 

Think of it this way. The US has been providing all this "free security" to ___name_the_nations___ . So those nations don't have to spend the $ and manpower on doing it themself. 

Instead, those nations can spend the $ on things improving there economies, there exports, there whatever that is COMPETING vs US exports or what-not. 

FORCE the nations to pay for there own programs, to provide and fund there own security, forcing them to stand on there own 2 feet vs USING U.S. and U.S. $ to pay for and do the things they don't want to pay for or do..... Yes, those nations have less in other arenas to infill for what they USED the US to do. 

It's like kicking a near 30-something adult child out of your basement. 

Yup, they go kicking and screaming how there just gonna starve. But you know they are 100% capable of taking care of themself, they just don't want to because the free ride was so nice. 

The US has been paying for it's own competition, just in a round about manner. 

Think of it this way. If you own a Burger joint, and across the street is another burger joint, what would happen if you pay 15% of there rent for them? 

What if you paid 15% of the rent for every restaurant on the block? 

Yup, next thing ya know your the most expensive on the street and struggling to sell anything because you can't price it as cheap as they all do. 

STOP paying there rents. When they have to cover there own bills, like magic your selling more, because they can't afford to undercut you anymore. The undercutting you paid for.... 

 Exactly. It always bugged me about Canada. We basically provide for their national defense. Then they take the billions in savings and use it for their social programs and healthcare, which they brag about (it's actually pretty bad) I say make them pay for their own defense and we spend the money on us for once...

We're the strongest, wealthiest country on the planet even giving away all that dinero, imagine what a force we'd be if we kept it? And really it's better not to prop up these other countries, they'd be strobger if they had to provide for themselves...kinda like when you enable a person, it's really not good for them or you....

I bought a home in BC and spent a year there between my logging days and starting my lending days.. the health care U hit the nail on the head.. it maybe free but you get what you pay for. Also there is far less middle class there.. you have pretty to very well off and you have those that live on small wages given the tax structure and the PST and GST. 
on the health my golf buddy there his daughter had a brain tumor ( benign thank god) but because it was not going to kill her or so they thought) took her almost a year to get into surgery and by that time she was pretty much blind.. Surgery worked she is fine and got her sight back.. If that had been the states that child would have gotten in and the survery done in a matter of weeks or months.  Also hip replacements for elderly most pass before they get in to get it done.. the wealthy come to the states for medical. And in BC were I was Kelowna and north its very rural so hospitals are only in the major cities so folks are driving hundreds of miles to see a doctor.. I will take out system and all its faults any day.. But I love BC its a specail part of the world no doubt.

Quote from @Bruce Woodruff:

Quote from @Nicholas L.:

@Bruce Woodruff

thanks for the predictions!  regardless of my political beliefs, i am of course still hopeful that the economy remains strong.  even the cuts to foreign aid though i don't think will bring that much money back domestically... open to other perspectives on this but i don't see it.

i genuinely don't know what will happen with interest rates.  i do think even if there is a slight decrease, it brings buyers back like you said.

one thing that doesn't get covered a lot is how many properties are owned free and clear - about 40% i believe.  so, these owners are under a lot less pressure to sell than someone with a mortgage payment.  and in my experience they'd rather leave a property vacant than sell for less than what their neighbor got.

 Taking that money that was going overseas, and keeping it at home, has got to have a positive affect. I mean, we're talkin 100's of Billions....

The #1 positive effect it has, that I never hear any talk about, is it improves the US position in global economy and trade positioning. 

How? 

Think of it this way. The US has been providing all this "free security" to ___name_the_nations___ . So those nations don't have to spend the $ and manpower on doing it themself. 

Instead, those nations can spend the $ on things improving there economies, there exports, there whatever that is COMPETING vs US exports or what-not. 

FORCE the nations to pay for there own programs, to provide and fund there own security, forcing them to stand on there own 2 feet vs USING U.S. and U.S. $ to pay for and do the things they don't want to pay for or do..... Yes, those nations have less in other arenas to infill for what they USED the US to do. 

It's like kicking a near 30-something adult child out of your basement. 

Yup, they go kicking and screaming how there just gonna starve. But you know they are 100% capable of taking care of themself, they just don't want to because the free ride was so nice. 

The US has been paying for it's own competition, just in a round about manner. 

Think of it this way. If you own a Burger joint, and across the street is another burger joint, what would happen if you pay 15% of there rent for them? 

What if you paid 15% of the rent for every restaurant on the block? 

Yup, next thing ya know your the most expensive on the street and struggling to sell anything because you can't price it as cheap as they all do. 

STOP paying there rents. When they have to cover there own bills, like magic your selling more, because they can't afford to undercut you anymore. The undercutting you paid for.... 

Quote from @Bruce Woodruff:

Quote from @Nicholas L.:

Anyone have a real estate related prediction?

Finally, back to the topic, whew....Well although not any kind of expert, merely a long-time spectator and participant, here's my humble take...

The economy takes off to higher levels sometime later this year as the new policies (and tariffs) kick in and we regain the US economy and stop throwing money all around the world. Infaltion returns to 'normal' levels, partially due to the renewed energy push.
Now to the real question for all of us - Real Estate (and interest rates)....The market should/will pick up as interest rates lower to around 5% by years end.

There. I said it. What does anyone think?

I personally dont see investor interest rates down to 5% end of year and maybe not for a very long time.. Owner occ adjustables maybe.

@Bruce Woodruff

thanks for the predictions!  regardless of my political beliefs, i am of course still hopeful that the economy remains strong.  even the cuts to foreign aid though i don't think will bring that much money back domestically... open to other perspectives on this but i don't see it.

i genuinely don't know what will happen with interest rates.  i do think even if there is a slight decrease, it brings buyers back like you said.

one thing that doesn't get covered a lot is how many properties are owned free and clear - about 40% i believe.  so, these owners are under a lot less pressure to sell than someone with a mortgage payment.  and in my experience they'd rather leave a property vacant than sell for less than what their neighbor got.