All Forum Posts by: Mike Terry

Quote from @Andrew Steffens:

Love this - this combined with rate cuts will turn economy into a rocket.

I am pretty bearish on rate cutes.  I am sure they will come, but not convinced they will materially impact mortgage rates.  I am banking on rates from 6-7% for the next 2 to 3 years.  No rocket ship coming, especially in Florida.

What do you do to protect yourself from "due on Sales Clause"?  Lenders in a declining market want ehir 2-3% money back when they can relend it at 7%.  They will call the note.

Hi Bigger Pockets Community,

I am trying to purchase a vastly underperforming boutique hotel/resort property and was wondering who has any experience in this area? It is a beautiful lake front property, 8000 square feet, 5 suites, 2 RV pads, 6.6 acres, lots of room to guild additional structure, Yurts, Cabins. If anyone can provide any input and guidance I would love to connect.

Thanks,
Mike Terry

Hi PAtrick,

We are seeking the same thing for very different reasons.  I am trying to purchase  a vastly underperforming boutique hotel/resort property and was wondering if you have any experience in this area? It is a beautiful lake front property, 8000 square feet, 5 suites, 2 RV pads, 6.6 acres, lots of room to guild additional structure, Yurts, Cabins. If anyone can provide any input and guidance I would love to connect.

Thanks,
Mike Terry
330 807 2720

Quote from @Stefanie Capriola:

@Mike Terry who do you recommend for realtor? Curious on PM too.

 I use Tommy Cangelosi at Landmark Realty.  He is on here gets investors and is an investor himself.  I don't have a PM recommendation for you. There is Anchor Realty, Lincoln Realty and Lyons Property Management.

Why is no one talking about H.R.1331? 

Congress recently passed legislation that treats Hurricane Ian as a qualified disaster for tax purposes. The legislation also applies to other hurricanes, including Idalia, Nicole, Fiona, Debby, Helene, and Milton.

For investors in Florida, Georgia, South Carolina and North Carolina this is huge.  My accountant's office called me the other day and let me know that I could amend my 2022 tax return and claim losses due to Hurricane Ian to a primary residence property and a investment property.  This is why I don't lament the fees I pay for this service.  

Call your accountant if they have not called you.

i work in recruiting in banking.  Get on FDIC website under the bankfind tab search all the federally regulated deposit institutions in your target market.  Then search on Linkedin for those banks and their "Special Asset" officer.  If you can't find this person search for the bank's Chief Credit Officer.  The community banks and small regionals are more accessible and you can usually reach the right person once you have a name by calling a branch in the city the bank is headquartered in.  Good luck!

One of the things I learned early is that the margins on a deal need to be substantial. The larger the purchase price the greater the spread you need between purchase price plus holding costs plus rehab cost and ARV. 40k projected profit on a 600k project is too skinny for me. If things go sideways, you discovery greater rehab expenses, the market takes a turn for the worse, you can get in the red quickly. I am a firm believer in smaller projects with a bigger spread. The first few flips I undertook, although marginally profitable I would not touch now.

Quote from @V.G Jason:

Quote from @Chris Seveney:

Quote from @Alex Silang:

There are 11 million undocumented immigrants in the United States. If even just a quarter of them are removed, don't you think it would greatly affect housing markets? That'd be 2-3 million people not needing housing in the US any longer.

I think it will have little impact on housing for several reasons. First I do not think there will be seven figures of people removed from the country. Secondly, if it does have an impact it will be contained to areas more to the southern borders than it would in Michigan, Massachusetts or say washington dc (just using those states as an example but northern states and higher priced areas typically have lower populations of undocumented people). 

I think housing has a lot more other concerns ongoing than this, but this issue could also have a very slight impact that tied to the other 50 issues that housing has right now I am sure it will be used for political purposes. 

Housing main issues are permitting, cost to build, ROI projections, and availability in areas that have zero infrastructure to set up to acquire demand.

I read somewhere on here before about people disagreeing there is a housing short. That there's plenty of properties in the middle of the MW available & affordable. That's right and wrong.

There's a housing short, where it counts. It doesn't count if no one can qualify being there. If companies require you in office, and the companies are based in cities where housing is becoming unaffordable then inherently from a supply-demand mechanism-- there's a short. 

For housing to really be addressed, there needs to be way less tape to set up ground up construction yet stricter rules on actual build quality not necessarily code. Then a hiring increase for local regulation officials or private sector to assess housing quality & approve it. Then, there needs to be an incentive for builder and developers to build starter homes not mcmansions. This needs to happen in the cities with demand and in the cities that have no demand, but only after there's incentive for companies to grow in those cities.

If you're a small cap company with less than 5,000 employees, limited debt, then these cities in the middle of Arkansas, Ohio, some other **** state, need to incentivize you to come here and move/create your HQ here. Force a build out, bring demand!

 I live in Florida and hold properties in Southern Georgia.  We have had a lot construction work recently and all of the people doing the work are Hispanic, don't speak English, due to hurricane damage.  They do great work are very warm and friendly.  If this is representative of the construction industry around other markets in the nation and assuming many of these workers are undocumented (they may very well be legally working here, but having been through the immigration process myself, that would be difficult) the impact on construction would be massive.  So like my original post the federal government does not have the operational ability our financial backing to accomplish deporting 11MM people.

Quote from @V.G Jason:

From my understanding deportation will work this way;

1) Removal of all incarcerated illegal immigrants.
2) Removal of illegal immigrants with a violent and multiple offenses within a criminal  record
3) Removal of all illegal immigrants with any criminal record.
4) Removal of single male illegal immigrants-- no families will be deported.

Expectations are expected to be about 1.3MM of deportation--including the first 500k in 2025.

This is just the policy I was briefed on. I think expectations on it impacting inflation is overstated if this is the case, and it breaking the country's back too. It's likely we will be net positive immigrants.

Much like tariffs, from what I have heard versus what I have read are vastly different. 

I trust my sources, but then again it could be completely off. 

 #4 is a pipe dream!!! will never happen, but we will see.