All Forum Posts by: Evan B.

Quote from @Carlos Ptriawan:

Quote from @James Hamling:

Quote from @Carlos Ptriawan:

Quote from @Dustin Lauer:

@Carlos Ptriawan

I don’t think so. Tech allows for partial ownership and many investors of new generations will own pieces of home (likely eventually on blockchain and traceable).

I am thinking the same way, maybe future home ownership would be like what Bezos'z Arrived.com does currently. Every home can be IPOed.

Have you actually dug into this? 

It's a brilliant way to do syndication.... for the syndicator, lol. 

For the investor, lol, woohoo "as-much-as" 4% return and 6.8% if, if, if.... 

 Arrived.com way is like that ; yes Arrived is sort of GP for rental they make all the money through 20% acquisition and asset maintenance.
Retun is 3% like we expected hahahaha :-)

they divide the house into one LLC and they sell per-share of that LLC for one hundred dollars each.

In 2017, Roofstock offered the same structure but spitted the ownership into ten owners only. I believe they already sold some investment, I know both RS and investor makes money due to appreciation.

I would say James, fractional ownership when combined to Rent-to-own program , in the future could be something that's very beneficial. I meant we as investor could play in debt portion too, maybe offering 7% rate LOL The possibility is endless.

No, no, no Carlos not you too.... Oh man this REI tech-bug is like a zombie bite, lol.

Look, it's simple math. 

Take one of the closed offerings on arrived.com. It's was $2,100 rent's and almost $400k on purchase. That was "as-much-as" 4%, right. 

Now what happens when it has 100 owners. Oh, 4%. How about 1,000 people go in, 4%....... 

The more investors does not make return any better. BUT with fractional ownership it DOES make the return go DOWN. Why? Because (a) it's a security and under law and regulations there is a bunch of legal work to form, and ongoing for such. So now a "investor" has ADDED a whole bunch of additional expenses, on a VERY limited revenue source.     (b) total dependency on GP. When a person goes out and get's let's say 9 friends, family, college mates, work mates etc. together to pool resources to buy same property, when big $ decisions come, it's a talk between 10 people, simple. BUT when it's 792...... no, there completely at whim of the GP. That GP, under this construct, is just a fund manager, they get there fee regardless. The GP's motive is in keeping things as simple on GP as possible, NOT on best returns for LP's, just "fair-enough" returns for LP's. 

And notice the acquisition was NOT any kind of "deal" at all. So on top of it all your buying into a full retail priced, retail acquired property. Yeah, I read how GP brag's there so "stringent" in DD but the math doesn't lie, and result's speak totally different story. 

If people are happy with 4% net at start and ~5yr 6.8% compounded return with equitable appreciation, lol, ok how many would you like, TOMORROW?     That's such a low bar to hurdle, I very literally can get 1,400 of these tomorrow, literal #, because I can have a builder direct pipeline them no problem, that's how NOT a deal those "deals" are. 

All one has to do is get 9 others together and you'd probably double, if not more, the returns this site brag's to. With more control, with NEW built unit's, with more scalability...... 

Again, brilliant for the syndicator. It's "a" way to invest, but in no way will it replace direct investing. It's for the lazy "investor", those shopping vs other syndications or savings account's. 

Really interesting statistics here. Can you provide a source? 

It feels directionally right, but more extreme than I would have expected. 

I wonder if we will see prices normalize closer to a national median in the 2020s, with prices falling in high priced markets, and rising in the lower priced areas. Either way, until something changes, it's a hard time to buy property for first time buyers.

- Florida has fewer births than deaths. Recent population growth has all been net inbound migration, which is slowing. Migration is great. But, does it outpace supply? And is it sticky? I think Florida investors may be overconfident in this

Good post @Jim K. Yes, the internet and this forum are filled with well-meaning and ever hopeful wanna-be entrepeneurs. Real Estate is very appealing and has a magic allure all it's own....I mean you're not just buying a widget or even a car, you're buying an actual piece of dirt with your name on it....a primal desire if you will...

So once I was down in an 8 ft hole just before dark...guess why? The plumber never showed up and the Inspection was the next day....I figured what the heck, I can cut this sewer line and slip in a Tee, no big deal. I told my crew to go and tell everyone in the Condo building to not use the plumbing for an hour please.... 😂 

Well it didn't go as easy as I thought and water kept running into the hole, I had to bail while I tried to fit the Tee in between the cuts I had made. Then the people that had been at work and not gotten the notice to not flush showed up..... 😂

I'll never forget one of my guys just standing up there saying "Dude" over and over....

@Lorien Rollins, I appreciate you calling it a pet "fee" since its nonrefundable. So many people call it a pet deposit and confuse folks because other deposits they give are refundable.

First off, what is your goal with allowing pets? My goal isn't to make additional income, its to attract and KEEP good tenants. Finding pet friendly rentals is a challenge. So, a pet owner might be MORE reluctant to move and decide to stay longer. Less vacancy means MORE money for me because vacancy/turnover is expensive. So, that is my goal.

Also, for an average tenant, move-in money is a struggle because it can be a lot for them to come up with at once. So, I also charge money at lease signing in addition to pet rent for that reason.

At lease signing, I charge a $50 pet cleaning fee (nonrefundable) as I anticipate some extra cleaning at the end. I only require my units be broom clean when turned back over to me so there generally is some pet related cleaning to be done. I also charge a $250 pet deposit (refundable). That is a flat $250, not per pet. Again, I'm not trying to make money on pets.

Then I also charge $25/month per pet in pet rent. Obviously that is not refundable.

You would think I will make money on the pet rent. However, the way I look at it is that the money I collect in pet rent will offset any monies I cannot collect from this tenant OR OTHER tenants beyond what their pet deposit covered because there will be instances where more damage occurs. So, in this way the pet rent is acting as an additional insurance not only for damage by this tenant's pets but also for other tenants pets against damage.

I feel as though I do still end up ahead but I supposed on serious set of damages could swing the pendulum the other way. Overall I'm satisfied with my approach because I feel reasonably well protected and that tenants will want to stay knowing how hard it is to find other pet friendly rentals.

On a side note, I don't allow larger pets. It helps be avoid the issue where insurance companies won't cover dogs on their "dangerous dog list" living on the property. I don't have to police breeds just size which is more cut and dry. 

Equity. There is a low likelihood of cash flowing right now, what you can do is buy cheap. 

Quote from @James Wise:

Quote from @Cole Puterbaugh:

Looking at MFRs in Cleveland and suburban areas, but I'm super concerned with population decline. Some suburban communities are pretty stable, but generally, Cleveland is a fraction of what it once was. What are the caveats to investing there, or is it just a no-go altogether?

 More or less, this is every larger city in the Midwest.

Exactly all the rust belt cities that were built on steel and auto's have lost populaton over the decades just look at Detroit.. that does not mean the cities are dying.. It just means they are re configuring.  And the existing inventory gets repurposed refurbished and put back into play. I have not looked closely but where I would bet there is a downturn and will continue is in new construction since so much of the Cleveland stock can still be bought for less than replacement costs even if the land was free.. this is a given in so much of the mid west deep south and rust belt. Its why investor flock there to buy these assets.. I just sold a nice tri plex there for 170k. No way no how could you replace it for 170k at todays building costs even in those markets were labor is somewhat cheaper.