All Forum Posts by: Dan DiFilippo

@Juan Correia what does your own agent think of it?

@Ryan Spearman everyone should own some gold. It has outperformed S&P year to date, it offers insurance in times of turmoil, it is *real* money in times of civilizational turmoil. The only thing that makes gold difficult for us is that it's an inflationary asset, and so, largely, is real estate. So you end up with deflation risk. But, the amount of global dollar denominated debt today is reckonable. So inflation may very well be the escape hatch.

@Wade G. You're graduating to macroeconomics. A mortgage is a dollar short position. A long term dollar debt. Your liability is fixed, but your income is exposed to the market. If you think rents will remain where they are or increase and you have use for present capital, refinance and pull it out. Increase your liability and extend it further into the future. If you think rents might go down for some reason, then you could have insolvency. Your answer to this might be to just sell a house if you need to. Not a bad idea. Just make sure you account for that house also not being worth as much when you go to sell. OR. You can seek assets that are anti-correlated to rental real estate. Fixed income assets. Which usually increase in value in a deflationary environment. Because fixed income is a kind of long dollar position. Either way, you probably want to learn more about broader money and how it moves. There's a good show on YouTube called The Rebel Capitalist by George Gammon. He's super cool and he actually does real estate investing down in Colombia. He's sort of been on this macro journey lately learning about all of the madness in financial markets. He's very relatable. And his content is very rewarding if you can listen and learn. Starting to learn about practical macroeconimics and global finance about a year ago has completely changed my life.

@Kyle Roberts hey, chief! Yeah, it's a great market down here. If you want, I'd be thrilled to have a chat for a bit. I love Triangle area, but I work down in Fayetteville. Personally, I think the market down here has a lot more opportunity for BRRRR's. If you're free this Friday night or Saturday, I will be up in Durham. Alternatively, we have networking events down here in Fayetteville maybe you'd journey out to! PM me if you want to connect!

@Shawn Spato what @Chris Stroup said about here in Fayetteville is absolutely correct. One of the best things about this city is the military presence essentially makes the economy super stable. This ultimately is expresses itself in slightly lower than average price appreciation, but the rental returns simply outclass the rest of the country. And then there's astonishing property turnover, especially from VA foreclosures. Which means there are always reno projects available to either flip or BRRRR to keep your capital rolling forward.

Tenants are either military or they work in the services that are oriented toward military. There will always be money going to, for example, the bars, the fast food places, Target, Walmart. No matter what the rest of the country is going through economically, Fayetteville is very well insulated. So there's a degree of protection against cyclical unemployment.

And if you are specifically looking for a turnkey vendor, I can definitely help you.

@Luke Johnston broker, here. No. I mean, as some people are explaining, it's not exactly determined that way. And arguably, you could ask your agent to bonus you. But asking them to take 1.5% is downright insulting. If I had a client asking me to discount them, the steepest I'd probably cut them is down to about 2.25% and they'd have to essentially write me a compensation agreement for $1.5MM in deals. In fact, $2MM. Essentially guaranteeing me $45,000 in commissions. And I'd require it in an *at most* 18 month period or I'm paid the difference. And I'd also need a share of it up front.

You have to keep in mind, we pay 20-35% of each deal in commission splits and other fees. And then there's MLS memberships, professional insurance, electronic keys, marketing costs, licensing fees, continuing education, and other incidental costs like gas and car usage. And we have to pay our employer share of payroll tax, so that erases another 15.3% in total. Definitely do not.

@Jerrad Shepherd you're describing a violation of one and possibility a second fiduciary duty. First, he surely failed to meet the standard for obedience. Second, the case can be made that this was a betrayal of confidentiality.

@Courtney M. I used to do rental management in the Fayetteville, NC area. I'm in transactional now. It's a pretty good market due to military causing constant turnover. Houses are always for rent and for sale and there are always renters and buyers so the market is extremely liquid. Always new homes to buy. There are a lot of VA foreclosures too, so there are flip or equity-add opportunities for BRRRR's.

@Samuel Liapis I've done work in hard money. We still require something along the lines of 15-25% of the total project cost as a down payment. That way in the even of a default, we have less exposure. Think of it this way. If it's a $100,000 and it needs $50,000 in reno and has a $200,000 ARV (just for example), then if we only lend out $120,000 and the borrower messes up the project and we have to foreclose and sell, we can likely still recoup our project costs. The less we're in it for, the more likely the sale can cover what we invested.

@Christina Tkacs rental real estate is a thin margin game. *Much* thinner than even many professionals realize. If you're not generating equity in your deals with a BRRRR or something, you're more or less just in a 2% yielding annuity that will mature in 30 years. Good news is if rents increase inflationarily at about 2% annually, you'll be getting farther off the ground.