All Forum Posts by: Dan Sayre

@Aigo Pyles seller is a doctor that moved to a city 5+ hours away. Bought the property for his son and wife back in 2014. Son and wife left before Christmas. So now he’s the owner of a duplex with no tenants. One unit has a lot of incomplete remodeling and the other unit is dated (1980s). The property is located in a B+ neighborhood with this property being the eyesore of the neighborhood. I was considering house hacking it but the amount of renovations is substantial. The dated unit is livable.

Placed an offer for a duplex with conventional loan financing. Seller told his agent that he’s only accepting cash offers. Disclosure report shows three main issues:

1)No AC

2)basement leaks every time it rains even though they have had a professional apply multiple coats of black waterproofing spray

3)the contractor that they used to remodel left them with unfinished electrical work, unfinished bathroom remodel, unfinished kitchen remodel, and preliminary wall construction for a finished basement in an area where the water doesn’t come in.

Both units are vacant. Just trying to figure out what to put in my counteroffer. I can pay cash but it would be 80% of listing price. Plus I would only have $50k to use for remodeling from my partner. Any suggestions would be appreciated.

Welcome back to Pittsburgh. What requirements do you have such as minimum contribution?

A source for the banking sector said that lenders have given a significant number of borrowers forbearance to get through Covid shutdowns.But forbearance is ending. 

And borrowers will need to pay all the back payments over the next 12 months. This is on top of the normal monthly debt payments. This could spell disaster for undercapitalized SFR and small MFH borrowers.

Many simply won't be able to do it, and as a result, a wave of foreclosures is on the horizon. Borrowers will sell for the price of the loan, just to get out and avoid foreclosure. If they can't, future borrowing will be more expensive and more difficult for them.

Wave breaks in April and crests in the fall.Any truth to this or...?

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The US has 20% more money in circulation than in the past year. This should cause inflation. A lot of it. But the counteracting force is technology. Technological improvements create deflation. Think of how real estate technology has increasingly changed in the past 20 years: upwork, propstream, buildium, podio, redfin, trulia, docusign, BP, etc. What an individual or a small group can achieve now would have taken a well staffed real estate office in 2000. Plus inflation is also determined by commodity prices. Oil is at an all time low this year. Copper, steel and wood have only increased in price due to supply chain issues. Once those are resolved the prices will head lower too. 

Contrarian Real Estate POV: Looking at China post-COVID19, I just don’t see the mass exodus of people leaving any of the 47 cities that are as large or larger than Houston. Cities in China have problems with pollution, education, childcare, etc. Not unlike US cities. And they have rebounded since the virus. They have recovered. In a couple of years, the people that buy and invest in the American cities now where prices are dropping are going to look brilliant. Please convince me otherwise.

@Steven Westlake - I do cosmetic stuff. I have a partner that’s a GC and does the majority of the work. When I drywall a bathroom it takes a week and doesn’t quite look great. When he does it, it takes at most two days and he talks to a bunch of people on the phone and takes lots of breaks between taping, slapping mud, and sanding. Always looks nice too. I stick with PM and other office duties.

I am interested in the position. Let me know what you need me to do to start the next step. 

Interesting to see how this post has aged when we are in the beginning of another shift in the economy 

Welcome and good luck. I'm a newbie myself.