All Forum Posts by: Costin I.

Hey'all, you been all baited by OP with his ChatGPT generated post. Here is a rebuttal to his "deep thoughts on the collapse of SVB", also thanks to ChatGPT in 3 seconds:

While I understand and appreciate the sentiment behind your argument, I must respectfully offer a counterpoint to your position on the collapse of Silicon Valley Bank and the possibility of government bailouts.

Firstly, it is important to note that not all bank failures are solely the result of risky investments by the bank. Banks can fail for a variety of reasons, including economic downturns, unforeseeable events, and mismanagement by the bank's leadership. In such cases, it may be appropriate for the government to intervene to prevent a systemic financial crisis.

Secondly, depositors who exceed the FDIC limit may not necessarily be responsible for the bank's failure, and thus should not be penalized for it. Many individuals and businesses are unable to spread their deposits across multiple institutions due to various reasons such as practicality, convenience, or preference. The fact that FDIC insurance exists in the first place is a recognition of the importance of protecting depositors and their money.

Thirdly, the argument that bailing out banks creates moral hazard overlooks the fact that banks are already subject to numerous regulations and oversight measures designed to prevent reckless behavior. Additionally, it is not necessarily the case that all banks will engage in risky behavior simply because they know that they will be bailed out. Furthermore, the alternative of letting a bank fail and causing widespread economic damage is not necessarily a preferable option.

Lastly, while it is true that a market downturn can create buying opportunities for real estate investors, it is important to remember that such downturns can also have significant negative consequences for individuals, families, and businesses. It is not necessarily appropriate to view economic crises solely as opportunities for personal gain.

In conclusion, while responsibility and accountability are important principles in the financial sector, it is also important to recognize that there are times when government intervention may be necessary to prevent a systemic financial crisis. Additionally, depositors who exceed the FDIC limit should not be automatically penalized for a bank's failure, and it is not necessarily the case that all bank bailouts create moral hazard or encourage risky behavior.

@J Scott @Paul Sofia @James Hamling @Bill F. @Carlos Ptriawan

@Reid Smith - are you assuming that just because an unit/property is vacant you will not have maintenance, repairs and capital expenses? 

The roof will not degrade and need to be replaced, the mechanicals will not surprise you with a break/leak/replacement? Good luck with that!

What are the those expenses that are variable on Occupancy? Maybe some of the utilities, if you are the one paying for them for the tenant(s). 

@Chris Schorre - Be careful when choosing to use a Quit Claim Deed:

A person receiving a purported real estate interest via a quitclaim deed may receive no legal right to the property whatsoever. If the person seeking to transfer real estate with a quitclaim deed has no legal interest, nothing legally is conveyed. In the absence of title insurance--which is not available for a quitclaim deed--the person receiving the quitclaim deed has no legal recourse because the deed itself states that only the interest of the grantor, if any interest exists, is conveyed.

Whether title insurance terminates by transferring real property depends on the type of policy, and how “insured” is defined in the policy. You take a risk which could result in cancellation of your title insurance and complete loss of your real property without compensation in the event that a title issue regarding your real property arises.

Contact your title insurance company to determine coverage and if your policy does cover transfers , and when or how.

https://www.biggerpockets.com/...

Another reason, from the mouth of the "expert" Clint Coons himself -  go to YouTube and search for "clint coons when You Shouldn't Use A Quit Claim Deed".

@Jeshua J Snyder - and if you need partnership and JV advice:

PARTNERSHIPS / PARTNERING
How to Effectively Conduct Joint Venture Agreements as a Real Estate Investor
https://www.biggerpockets.com/...
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Partnerships and joint ventures are tricky. So, my first suggestion is...don't do it.
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https://www.biggerpockets.com/...
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If you decide to proceed, I think you should have an LLC formed going in a limited partnership with your(s) partner(s) LLC. There are so many areas where things can go wrong with a simple partnership, and you want to be protected from an asset protection perspective. I can provide you with more info on that and give you a referral to a good attorney specializing in asset protection and partnership structuring.

Before proceeding, I suggest to have all or most of following questions clarified:

Joint Ventures – checklist / questionnaire

Before you can start to set up the legal framework, there are various issues that need to be addressed. These can be summarised as follows:

What are the objectives of the joint venture?
- general trading principles
- what will the business actually be doing

Who puts what in?
- cash
- other assets
- services
- are any existing contracts of either to be taken over by the joint venture
- who actually does / will do what

Will any external funding be needed?
- who will it be raised from
- who will borrow it
- who will guarantee it

Who gets what out?
- sharing of revenue profits or losses
- sharing of capital gains or losses
- is any payment to be made to either other than as share of profits, eg for ongoing services
- will the participants be operating a ‘salary/dividend split’ – ie taking their month by month requirements by way of low salary, balance as dividends?

What, otherwise, will be the policy in relation to dividends – to what extent is it intended to distribute / retain surplus profits?

Who controls what?
- responsibilities for day to day running, in all relevant areas of activity
- tactical decision making (day to day)
- strategic decision making (longer term policies)
what things can only happen if both parties agree
what will happen if you can't reach agreement on some major issue - ie deadlock

What happens if either party 'wants out'?
- on what kind of notice will this be permitted
- does the other have 'first refusal' to take over the whole venture? - if so, on any favourable terms?

To what extent will the parties be free to carry on other businesses
- while the joint venture subsists
- if one party pulls out

Is it intended that spouses/partners should also be shareholders, to allow for tax advantages from a broader split of dividends?

Is there a vision that any others will become shareholders (or be granted grant options to acquire shares) in the company in the future?
- Who?
- Staff?
- Others?
- On what terms?

Participation in dividends?

Voting rights?

Are there any offshore angles:
- Is there potential for overseas sales or operations?
- Does anyone involved in the venture have any overseas connections?
- Does anyone involved in the venture have any plans to live overseas in the future?

Is there yet any written:
- business plan?
- marketing plan?
- cashflow projection?

Is there an ‘exit strategy’? If so, what is it – which of the following most closely hits the mark?
- ‘lifestyle’ business – ie simply intended to be run by and to provide an ongoing source of work and income for the proprietors, no clear vision for the long term future?
- possibility of future sale at some point?

A core object of the venture is to create an asset with a view to sale or flotation in 5 years?

Which aspects of the above do you feel most important at present? Which aspects concern you most? (NB each of you may have a different view here, the question is asked to help understand where each of you is coming from)

If I'm your private investor, I'll want to know what your plans will be when things go horribly wrong. When repairs cost way more than you expected. When you can't find a decent tenant as quickly as you hoped. When the market tanks and prices retreat 25%. When you can't refinance as soon as you expected.
I can guarantee you won't have a great Plan B for all of these disasters, but just the fact that you have considered them and have begun formulating some kind of plan will earn you their respect, and hopefully their business.

@Jeshua J Snyder - if you need motivation and years of RE wisdom:

MOTIVATION
Know why you're doing everything you're doing. AKA Know your WHY.
Good things may come to those who wait, but only the things left by those who hustle. -Abraham Lincoln (?)
Some people want it to happen. Some wish it would happen. Others make it happen.- Michael Jordan
"Things don't happen to you, they happen because of you."- Grant Cardone.
The only way things will change for you is if YOU change !
"Fortune Favors The Bold."

YOUR NETWORTH IS YOUR NETWORK
The richest people in the world look for and build networks. Everyone else looks for a job.
You are the average of the 5 people you spend the most time with. If you want to elevate your life, improve on who you spend most of your time with.
"If you are the smartest one in the room, you are in the wrong room."
"People don't care what you think until they know how much you care."
"50 percent of a deal is better than 100 percent of no deal."

ACTION, PROGRESS, NOT PERFECTION
"The best time to start was yesterday. The next best time is now."
"You should have started many years earlier."
To Avoid Criticism: Say Nothing, Do Nothing, Be Nothing + You miss 100% of the shots you never take.
"Learn to forgive yourself for the things you didn't know before you knew them."
Don’t wish it was easier ... wish you were better! + "If it was easy, everyone would do it."
"On paper every strategy is easy, in the real world every strategy is hard"
"What you know is your greatest wealth.. What you don't know is your greatest risk.. There is always risk, so learn to manage risk instead of avoiding it"
“Action beats preparation, and over preparation is the Achilles heel to success”. + Luck is what happens when preparation meets opportunity.. + The harder you work the luckier you get!


LONG TERM VISION & DELAYED GRATIFICATION
I skate to where the puck is going to be, not where it has been. - Wayne Gretzky
The day you plant the seed is not the day you get the fruit.
Discipline is choosing between what you want now, and what you want most. - Abraham Lincoln
Discipline equals freedom - Jocko Willink

BUYING and SELLING
When’s the best time to plant a tree? 25 years ago.. When’s the second best time? Today!
Don't wait to buy real estate, buy real estate and wait.
"Buy at the funeral, sell at the wedding" + When investing, pessimism is your friend, euphoria the enemy.. - Warren Buffett
"Fearful when others are greedy and greedy when others are fearful" - Warren Buffet
The Best time to buy real estate is NOW.. The Best Time to sell real estate is NEVER.
"Never ever sell real estate. Ever. [but never say never, so...] Unless it's to buy better real estate"
You make your money when you buy a deal.
Know when to walk away - the numbers don't lie! + If it’s not a Heck Yeah, then it’s a No! (keeps me from jumping in on so-so deals/properties/etc)
This holds especially true when starting out: The best deal you can do is the one you decide to walk away from.
First three rules of real estate investing: location, location, location. + Location: the only thing about a house you can't change.
If your offer has a bunch of zeroes in it, it will be shot down like the balloon it appears to be. Make it at least appear like you did a detailed analysis.
It’s not the quantity that matters it’s the quality! And due diligence for the latest deal is more important than the deal itself!

FAILURES / MISTAKES
Failure to conduct proper background checks on tenants.
Failure to properly vet contractors.
Over-improving rentals and replacing things too soon (I like nice things – but my rentals don’t need them!).
Two quickest ways to lose money in real estate:
- Overpay for a crappy property
- Overpay for an awesome property
"A rising tide lifts all boats.. You can't tell who's lucky and who's good, unless you watch what happens when the tide is receding."

BUSINESS
Being an entrepreneur and starting up a business is like diving off a cliff and building an airplane on the way down.
"Look at dollars, not dimes" --- in reference to spending money/paying fees to grow
Identify what you do best, and hire the rest. [Do your best, forget the rest]
"Learn to work on your business, not in your business"
Don’t do business with people you can’t sue” .... different way of saying “don’t do business with friends and family”.
"Sophisticated investors get 12% at least.. Average range of stable returns are 12-20%...once you fall below that, you reposition/sell/refi."
"ABC..... Always Be Closing"
“Speak softly, and carry a big portfolio!”

After 30 Years of Real Estate Investing, THIS is What I Regret or Would Do Differently
0. I Regret Not Starting My Real Estate Business Earlier
0. I Regret Not Delegating Tasks Sooner
0. I Regret Not Using Leverage in a Bigger Way
1. Seek OPK (Other People’s Knowledge) sooner.
2. Get serious about investing in real estate sooner.
3. Let go of wrong assumptions.
4. Learn more about the possibilities.
5. Be wary of the naysayers.
6. Surround myself with positive people, doing positive things with their lives, for the right reasons.
7. Trust in God, trust in yourself, and trust in your partner more (your life and business partner).
8. Create a strong team and delegate more.
9. Review and reflect more often.

Nothing is impossible, the word itself says "I'm possible"
"Stop talking and just go make some offers.. There's saying and then there's doing. Luck takes action!"

@Jeshua J Snyder - Here is my "starting up" collection:

Read ideal-vs-desperate-investor (http://greeneincome.com/index.... Dave Ramsey book "The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness." and complete the baby steps there.
Read Scott Trench’s book “Set for Life.”
Finish the school and get your degree - you'll need it later, especially if it's business management.
Get a job first where you have W2 income. Save 50 percent after tax income. Find deals in your market. Buy at discounted prices. Rehab. Rent. Refinance. Repeat.
Work slave job with W-2 documentation for 2 years to gain favor with banks. Freddy/Fannie conventional loans want to see those 2 years. Keep same job no matter how crappy. It's only a stepping stone to break free.
While you are slaving, eat ramen, roommate up or live in trailer, avoid Starbucks and tuck every dollar you can squeeze out into a bank account. need 20% down and money for materials. so for 80K home (trashed), you will want 35K banked to get started, just a rough idea.
Then, get pre-approved. Buy property. Buy another and another until you have enough equity to refinance one for large amount of cash. Take cash and start BRRRRR process (read up all you can on BRRRRR). Give boss notice. (sorry about all the school time you invested). Your free. Done.
Find a mentor to help with the process.
Doing an internship with someone that is serious about their business, and then making sure that you're just as serious about their business as they are, is an awesome way to gain invaluable experience and support for yourself in the long run.
Intern with a flipper. Intern with a wholesaler. Intern with Rental Investor. Then decide what you want to do long term. You have a long journey ahead.
Aggressively save money and buy a Multifamily 2-4 units with 3.5% FHA loan and house hack. Find a duplex/triplex that needs a little work, live in one unit rent out the rest. Raise the rents to market values and rehab to force equity and sell in 2 years to avoid capital gains. If you decide to keep the property you can refinance into a conventional loan and hopefully you have enough equity to eliminate the PMI/MIP. Then move out and repeat the process. Repeat. Do this four or five times and you'll never have to work again if you choose. [Beware = https://www.biggerpockets.com/renewsblog/house-hacking-drawbacks/]
I would look for a 2-4 unit too house hack. You can get into these with 3.5% down for an owner occupied FHA loan. Great way to get started FHA makes sure its a cash flowing deal before they allow you to buy. And house hacking allows you to make a little off the property, and seriously subsidize your rent. And lastly, you gotta live like a college kid. Rent out rooms, go the cheap route. Having those cheap expenses will really catapult you forward financially!
Income from RE investing is slow and boring (in a good way). The RE investing that makes fast money is not really “investing” - it’s a self-employed RE business. For example, flipping, deal finding, wholesaling, syndicating.
Boosting your credit score is the no-brainer investment. Go on My Fico and learn the credit hacks. Do them!!!
[Biggerpockets] is notorious for the no and no money down niche, but you really need to have a good financial runway prior to investing otherwise you will lose your bottom when it goes sideways.
Read all the usual books. But to be honest with you, If you do not learn some construction skills, your progress will be a lot slower as contractors will be raking in the majority of your profits.
Get a pro account on this site so you can access the PRO only blogs and avoid all the goofy stuff that can confuse you sometimes.
Take NO advice from salesmen such as realtors/brokers. Not because they are wrong, but because they are salesmen.
Take NO advice from anyone who does not own more real estate than you do. Why chance it.
Just keep reading, saving, researching your target area. Know the rents! Know the values.
Do all this and you'll be on a very good path. Just remember, there are no secrets and shortcuts in real estate investing, just slow and steady progress. You want fast, you are closer to speculating than investing and your risk skyrockets​.
"Ignorance is bliss. Knowledge is power, but also a burden, leading to analysis paralysis. The cure to both - the 4 ions: education, action, progress(ion), not perfection".

Learn to use BP to its whole potential:
Subscribe to BP blog and podcasts and start reading posts and listening to their podcasts collection.
Find and connect with other BP members that are in your area: http://www.biggerpockets.com/m...
Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/a...
Read Beginner’s Guide: Real-estate-investing (http://www.biggerpockets.com/real-estate-investing)
+ Actionable-steps-to- reach-investing-goals (https://www.biggerpockets.com/... can find a glossary of some acronyms here: https://www.biggerpockets.com/...

You might also want to read: The Ultimate Beginner’s Guide - https://assets2.biggerpockets....
...actually the entire section on Guides - https://www.biggerpockets.com/...

BP has a whole section dedicated to education and starting up - https://www.biggerpockets.com/...

Get busy with the entire Education section on BP:
property-types (https://www.biggerpockets.com/... (https://www.biggerpockets.com/... (https://www.biggerpockets.com/... (https://www.biggerpockets.com/... (https://www.biggerpockets.com/hubs/property-management) (including TENANTS MAINTENANCE)
business-operations (https://www.biggerpockets.com/hubs/business-operations) (and the sub section on REAL ESTATE MARKETING TOOLS & TECHNOLOGY TAXES & ACCOUNTING LEGAL TEAM)

One way or another you will pay your "real estate tuition" - either in time, effort or money. My suggestion - better in time and effort, and money (through the mistakes you going to make), than paying a guru.

Between BP and books and all the other podcasts and blogs available for free, you shouldn't need any paid training - don't fall for that. Just find a good mentor to shadow, someone willing to impart from his/her experience, take them to lunch and make yourself useful to them, and they will teach you.

Here some recent articles good for starters:
- one to raise you up: 3-important-questions-starting-investing-real-estate https://www.biggerpockets.com/...
- one to bring you back down to earth: dont-just-dabble-in-real-estate-investing https://www.biggerpockets.com/...
- one in the middle: cheap-free-steps-today-pro https://www.biggerpockets.com/...
- 10-lethal-mistakes-avoid-real-estate-investment https://www.biggerpockets.com/...
- telltale-signs-youre-not-ready-to-invest https://www.biggerpockets.com/...
- vital-importance-mentor https://www.biggerpockets.com/...
- get-ready-to-invest https://www.biggerpockets.com/...
- get-your-head-in-the-game https://royallegalsolutions.co...

You might want to read and follow these threads:
advice-to-your-20-year-old-self https://www.biggerpockets.com/...
financial-advise-for-getting-started https://www.biggerpockets.com/...
how-to-prepare-for-a-career-as-a-flipper https://www.biggerpockets.com/...
new-to-wholesale-real-estate https://www.biggerpockets.com/...
what-is-the-best-re-related-9-to-5-job https://www.biggerpockets.com/...

Bonus for the weekend, my collection for starters (read the comments too, and then if you like the author, go check out what else they wrote):
- stages-of-investing https://www.biggerpockets.com/...
- newbies-learn-real-estate-investing https://www.biggerpockets.com/...
- 5-ways-to-know-youre-not-ready-to-invest https://www.biggerpockets.com/...
- ideal-vs-desperate-investor https://www.biggerpockets.com/...
- how-much-to-offer-property https://www.biggerpockets.com/...
- hazardous-attitudes-of-investors https://www.biggerpockets.com/...
- 21-traits-scammy-real-estate-investment-guru https://www.biggerpockets.com/...
- youre-not-cut-out-to-be-real-estate-investor https://www.biggerpockets.com/...
- questions-new-investors-should-ask https://www.biggerpockets.com/...
- real-estate-books-beginner-investors https://www.biggerpockets.com/...
- what-separates-those-who-succeed-from-those-who-fail https://www.biggerpockets.com/...

If that's not enough, ping me and I'll give you a whole collection of blogs and podcasts to follow.

Bonus 2:
1) Read at least one hour per day every single day.
2) Remember the quote by Jim Rohn "You are the average of the five people that you spend the most time with."
3) Check for toilet paper before sitting down.

Attention all real estate investors! Are you tired of making costly mistakes and missing out on opportunities in the real estate market? Then you won't want to miss our upcoming presentation on "The 5 Biggest Mistakes to Avoid When Investing in Real Estate".

At this event, you'll hear from experienced real estate investors who have been there, done that, and learned from their mistakes. They'll share valuable insights and insider tips to help you avoid common pitfalls and make the most of your real estate investments. You'll learn about the five biggest mistakes to watch out for - some of them will surprise you!

Whether you're a seasoned investor or just starting out in the industry, this presentation is the perfect opportunity to learn from the pros and gain valuable insights into the real estate market. You'll leave with a better understanding of how to avoid costly mistakes and make smarter investment decisions.

You will also have the opportunity to network with other investors individually, and to pitch your deals to the whole group if you wish.

So don't wait – sign up for the From W2 to Financial Freedom via Real Estate Investing Meetup today and take the first step toward becoming a more successful real estate investor. We look forward to seeing you there!

Note: This is a recurring event. We meet every 3rd Thu of the month at 6pm.

Note: Find us out on Meetup. We are not a get-rich-quick group! We are strictly for education and networking - nothing is sold.

Would you like to learn how to evaluate potential borrowers for loans or investments? If so, then you won't want to miss our upcoming Meetup event on "How to Evaluate a Potential Borrower: Credit, Asset, and DSCR".

At this event, you'll have the opportunity to hear from experts in the field who will provide valuable insights into the evaluation process, including how to assess a borrower's creditworthiness, how to evaluate collateral assets, and how to lend based on debt service coverage ratio (DSCR). You'll learn about the key factors that lenders and investors consider when evaluating borrowers, and how to use this information to make informed lending or investment decisions.

This Meetup is perfect for anyone involved in lending or investing, but is targeted to private lenders and borrowers. Whether you're a seasoned professional or just starting out in the industry, you'll find this event to be informative and engaging.

You will also have the opportunity to network with Lenders and Borrowers individually, and to pitch your deals to the whole group if you wish.

Don't wait – sign up for the Austin Private Lender and Borrower Meetup today. We look forward to seeing you there!

Note: This is a recurring event. We meet every 1st Thu of the month at 6pm.

Note: Find us out on Meetup. We are not a get-rich-quick group! We are strictly for education and networking - nothing is sold.

I have found two common weaknesses of real estate investors are:

- the ability to quickly determine if a deal is a good deal or not

- the ability to document and communicate the basics of the deal to a lender

People bring me proposed real estate purchases all the time, and ask me "Is this a good deal?" When I start asking them basic questions (such as "What would your cash flow be if you buy this house?" or "How did you arrive at the real ARV of the property?" or "What are the annual taxes on the property?" or "What repairs are needed, and how long will they take?") I am met with blank stares. Frequently, when we start delving into answers to the most basic questions, we find that they have not found a profitable deal at all.

In the February 16th "From W2 to Financial Freedom" Meetup we will explore how to quickly and easily evaluate a potential deal. Using the techniques we will cover, you should be able to document the basic feasibility of an investment in about 15 minutes, or rule it out.

Topics will include:

1. Major factors to consider before even looking at price

2. How to Arrive at a Price

3. How to Estimate PITI

4. How to Estimate Income

The From W2 to Financial Freedom Meetup meets Thursday February 16 at 6:00 PM (and every 3rd Thu of the month) at Quest Trust Company, 100 Anderson Lane, Austin, TX. Besides the educational presentation, we will have plenty of time for networking, and for you to pitch your deals to the group if you desire.

During the next three months, we plan to cover the following topics:

This Meetup is also affiliated with the "Austin Private Lenders and Borrowers Networking Meetup" which meets the first Thursday of each month. In the next few months, that meetup will cover these topics:

We are not a get-rich-quick group! We are strictly for education and networking - nothing is sold.

In this meetup we explore strategies related to building generational wealth with Real Estate while still working a full time "W2" Job. How do you balance the demands of a career and also invest in real estate? We take the long-term view of building wealth for retirement with real estate as a vehicle. We focus on basic principles and look at strategies and techniques for building generational wealth with tried and true methods that require the minimum effort and day to day work. Some of our members have built million dollar real estate portfolios with these methods, and happily share their knowledge with others.

We usually have an educational presentation with actionable, original content and then networking. You can pitch your deals to other investors and lenders or just make new contacts. We are informal and invite you to ask questions and participate!

Whether you are an experienced investor, a beginner, or just curious about real estate investing - come and network with us! We meet at the classroom at 100 East Anderson Lane, Austin, TX 78752 (Quest Trust Company offices) at 6:00pm - but come whenever you can. Bring a friend!

Yes @Schadrac Mertishis is a recurring event. We meet every 3rd Thu of the month at 6pm, same place.