All Forum Posts by: Clayton Silva

Quote from @Joe S.:

Quote from @Clayton Silva:

Networking is very important but to your point it can feel like a lot of "sifting".  I've been to countless events and meet ups, and some are great, and some are colossal wastes of time.  I have found that, for me personally, I like large multi-day conferences where I can meet a lot of cool people and the more niche the conference, often the better.  Rather than a "real estate conference" I would target like a "fix and flip conference" or something along those lines.  I have made very good working relationships from conferences and even lifelong friends. I would just get really clear with what it is you are trying to achieve and then see if the event helps you achieve that end.  

On the flip side of that coin, most people go to conferences to learn from others or get something out of them.  I think it is important to also be willing to give of your time to the "newbies" and helping them get started.  It's a give and take and really depends on what you hope to achieve.

Good points. I can also see that as a Lender /loan broker such as yourself networking would be more beneficial than someone that simply buys properties for themselves.  

 Yeah, my net is definitely a lot wider, but you can target specific meet ups that meet your goals.  I would niche down as much as possible.

That is honestly one of the best ways to start.  It's exactly how I started, and I wish I would have kept house hacking to this day.  (I got married and my wife did not share the same vision lol). 

House hacking is a great way to start and reduce living expenses, build equity, learn the game with a pretty low risk threshold, and get your feet wet.  

One house hacking tip that I recommend for a lot of people is live in it for 2 years rather than 1.  (I know people like to get new primary mortgages every year, but we forget the taxes.)

If you live in it for 2 years, then rent it for 2-3 years, and decide you want to sell, you can still get the $250,000 capital gains tax free ($500,000 if married) as long as you lived in the home 2 out of the last 5 years. It just gives a bit of flexibility in case your portfolio goals shift.

Networking is very important but to your point it can feel like a lot of "sifting".  I've been to countless events and meet ups, and some are great, and some are colossal wastes of time.  I have found that, for me personally, I like large multi-day conferences where I can meet a lot of cool people and the more niche the conference, often the better.  Rather than a "real estate conference" I would target like a "fix and flip conference" or something along those lines.  I have made very good working relationships from conferences and even lifelong friends. I would just get really clear with what it is you are trying to achieve and then see if the event helps you achieve that end.  

On the flip side of that coin, most people go to conferences to learn from others or get something out of them.  I think it is important to also be willing to give of your time to the "newbies" and helping them get started.  It's a give and take and really depends on what you hope to achieve.

We should connect, I am constantly brokering out private lending options to clients.

Generally speaking, unless you have a huge bankroll and a verrrry long time horizon, rent control buildings ought to be avoided.  Most investors do not have the ability to eat the short to mid term losses long enough for the purchase to be worth it.  As a general rule of thumb that is.

While anything is possible, I would connect with builders in the Sacramento area.  There are a couple of decent real estate meet ups where you would be able to meet some developers and pick their brains on the do's and don'ts.  I am not far from Sacramento and can send you a few of the meet ups in the area that I attend personally.  As for building, it can be a very good way to get into a deal for below market costs of existing inventory but it's all about the numbers, location, and your ability to get the property built well and efficiently.  Honestly, I think the hardest part is going to be finding the right lot in Sacramento in the right area with the right zoning and the right size etc.

We made it smaller and more "bite sized" and we do some unique stuff with the fee itself to make it much more affordable and give the "little guys" as you put it an advantage!

And same here, I am always learning new things and new ways people are expanding their business!

Quote from @Jay Hinrichs:

OK got it..  I dont think I could ever qualify for that.

But thankfully we did not need to give any concessions of any kind.. I had folks ask what are your builder incentives  IE window coverings Refer washer dryer ( like Lennar does) or buy downs etc etc.. just about half of our clients either paid cash or put very large down payments we were 50% empty nesters who sold larger properties 1 to 3 mil and were down sizing to our 750 to 1 mil..

As we simply did not have to give any concessions since we allowed these folks to customize so we took those buyers from the other builders .. We simply built a far superior home with all sorts of extra's that they cant get from the production builders.. Different product. WE were totally blessed  And my wife gets the credit.. I just do what I am told.. and of course I made sure we had the funds to close on the dirt and banking relationships for horizontal and vertical vertical is pretty easy but getting Horizontal NOT so much. 

Anyone can qualify for it, and doesn't have to be for new builds either.  Rental property owners can do the same thing if they own a couple of rentals and wanted to offer it to their prospective buyers.  Typically the cost gets somewhat reincorporated into the property.  Since you can offer a lower rate, you can justify a slightly higher price.  

 And yes horizontal financing is much more difficult indeed haha I feel your pain there!

Quote from @Jay Hinrichs:

Quote from @Clayton Silva:

Do you guys utilize forward commitments?  Can be a great way to attract a larger buyer pool and offload inventory more quickly.  Right now, buyers are just struggling to find value and affordability and forward commitments can be the key to creating those win wins for developers and buyers.

whats a forward commitment ?  is that a loan commitment or a pre sale not heard that one before .. thank you 

 When DR Horton or Lennar are able to offer "builder rates of 5%" and want to get around the seller concession limits to offer competitive rates, increase the buyer pool and offload inventory they purchase what is called a forward commitment or a hedge before going in Escrow to be able to offer their buyers those rates. Happy to chat more about them 👍🏼

Step 1) get pre-approved and see what you even qualify for.  If you don't qualify for anything in NYC, it might be a moot point with your money better saved and invested elsewhere.

Step 2) Get familiar with tenant/landlord laws in your area.  I know NYC is wildly difficult to be a landlord in.  Make sure you understand the risks of being a landlord there and that you have the income and capital to float for a long time in a worst-case scenario.  KNOW WHAT THE EVICTION PROCESS looks like.  As someone who has had to deal with it in different states, it is wildly different state to state.

Step 3) Understand all the costs associated with a condo. Each HOA is going to be drastically different in terms of cost and what they actually cover in terms of repairs, maintenance etc.

Step 4) Know the rental market in the area and assess whether the rent is high enough to justify the PITIA.  Also make sure you refer to step 2 and know what price controls are in place, and what rent increases are allowed.  This will help you project your numbers out into the future.

These are just the first things that came to mind to help you frame your decision making and hope they help!  Definitely talk to other landlords in the area and get a feel for the environment.