All Forum Posts by: David P.

I like the thinking here. But, let's be honest, this will do.nothing to help the state's issues.  This is just a poor attempt at throwing peaniluts to the mob, trying to show progress, when none has been made.  

I'm looking to act quickly on buying a LTR property in Paso Robles and would like to find a solid investor experienced real estate agent to bring a lot of the experience and contacts to the table.

I'm an investor with 10 years experience, so they wouldn't have to do a lot of hand holding. I have other committed investors looking for the same types of properties and experience as well, so this could be a multiple-deal opportunity for the right agent.

Please let me know if you have any strong referrals. Thanks!

First republic will always be more expensive - their target audience is wealthier

Getting 4.205 at bank of america

Great ideas across the board.

For syndication investing, I'd assume you'd have to be very critical of the investment group and it's holdings.

Any thoughts on tapping equity from existing properties via cash out refi vs 1031 exchange in this market?

@Samir - you're right you want to buy with a large margin of error. That still needs to factor in neighborhood dynamics and macro ones. 

Afterall, you could by with a large margin of error, just to get sucked in to a black hole of 2 miles of investment property around you, where there aren't many differences between your house and you're next door neighbors.

It's just gotten much more difficult to buy with that margin of error these days.

@josh c. Great you used the stock market example. The only difference is you can ride things out with the market long term without flinching. a major industry leaves, natural disaster hits, leverage too high and you become that meat in the hamburger.

Don't get me wrong, real estate is a great investment, all I'm saying is that strategy and risk are key depending on the market environment.

This isn't 2009 anymore

@Thomas S-- passive investments is a pretty broad category. Specific examples?

What happens if the SFHs don't rent and lose value?

I ask this because I like poking holes in things.

I'm seeing a lot of over exuberance on maxing out leverage on rental portfolios, but not much consideration on what happens on the flip side when the market turns.

Consider this - your rental units are not the only rentals likely in your area. In fact, it's very likely that you are one of many rentals in your area. When the market turns, all of that plentiful rental demand may dry up. Then it becomes a game of supply, not demand.

The one trend I'm seeing a lot of likely is the desire to buy, rehab and airbnb. There are soooo many airbnbs. In economic downturns, travel slows considerably. 

I can certainly see how multi unit complexes are a safer long term purchase, but SFHs seem like s terrible risk reward endeavor.

My strategy is still evolving, everyday I tweak my investment thesis.

I've been looking very closely at markets that have seen steadier, less boom and bust cycles. I'm looking for more unique locations, builds and hoods with a more balanced rents to own %, if not more own. 

These hoods tend to keep their value over the long term ups and downs, as foreclosures can be less frequent and community more responsive to wear and tear on infrastructure. They also tend to be more rich in culture, demanding more loyalty.

I'm continually weighing financing options as well. For now, I still think a fixed long term loan is the way to go. Sure you could save some money short term by taking an ARM, but the future is a fickle beast.

I'll update my progress as I continue my journey, although I'll likely start a different thread.

Guess people aren't interested in how to reinvest  $1M in the real estate market...oddly enough.

Let me know how you're doing as well. Always helpful to get additional perspectives.

I'd say take a step back from all the fun equations and data and math. You probably realize that there's a whole other component to building wealth...time.

I'm guessing you don't need the money, so why does it matter if you lower your rent to still pull money in for your rental? It's a competitive market for rentals, so price it competitively.

Another thing, why would you buy a listing that big on an ARM? Unless you went into this thinking you were going to only hold for a short time. Real estate has long ebb and flow trends. While an ARM may have seemed like the right idea at the time, now rates will climb. But, by how much?

There are certainly opportunity costs being missed by selling, but I've realized there are also costs missed by not selling. You have a great dollar cost avg baked into your price, why sell?

Like the stock market, there are some long term investments that just grow overtime. Coveted holdings that scream hold me for a very long time.

I'm in a similar boat in SF and NYC, and have contemplated a 1031. I will likely do one of them, but keep the other.

There are just some investments you shouldn't sell.