All Forum Posts by: Greg R.

Market crash doesn't happen over night. The wheels are already in motion. Rates are causing buyers to shop in lower price ranges or not be able to qualify at all. In a lot of markets a vast majority of the 50-100k over value offers are gone. Starting to see price decreases, starting to see a lot of "back on market" houses. Seeing houses hang a bit longer in "new" status before going into contract. Inventory still low, which is primary reason the bottom hasn't started to fall out faster. 

$800-$1,150 + $300 for additional workshops... too rich for my blood. Would love the networking but not for that price. 

Good question. I don't have an answer, but I'm definitely interested in the topic. I've been following the markets in San Diego, Dallas/ Ft Worth, and Albuquerque quite closely. 

What makes this difficult in my mind is that the whole "work from home" model really changed the game. Tens of millions of people who were previously tied to a geographic area because of work are now able to roam freely and live where they chose without losing their job. Perhaps a large segment of people propping up the Boise market have moved there in the last two years from California, Washington, New York, Maryland, etc. These same people are sustaining and stimulating the market with jobs and wadges from California, Washington, New York, Maryland, etc. 

Therefore, when the market crashes I think that certain regions are not going to be impacted as hard as others. I would imagine that the areas that have seen more people leave than come (CA, NY) are going to be hit harder than places like FL and TX. This is because a significant amount of the CA money that was previously in the state is now supporting and sustaining a market in another state.

But who knows... 

@Paul Clements, not a fan of this at all. A realtor that I'm working with now put this in the first offer we wrote and I told her that I wasn't a fan of paying the difference between a 2.5% and 3% commission. She told me no problem, if I had a problem with that her brokerage would waive the requirement when the time came. Also, never heard of an admin fee... sounds like a complete ripoff to me. Not sure on the value of the properties you're looking at. I suppose if it's a low value deal the commission can be quite low. In mid-high end deals (500k for instance) a 2.5% buyers agent commission is $12,500. Whatever the split is between brokerage and my realtor has nothing to do with me. For writing some offers, negotiating, and putting in phone calls, etc., I feel that is a very fair compensation. 

Never heard of an "administrative fee" either. On the contrary most of my realtors have given me a credit back after closing. On my last deal my realtor gave me a $800 Mastercard gift card. On previous deals with my other realtor, he's given me as much as $2,500 cash after closing. 

If hanging out with this realtor is jeopardizing your ability to make sound decisions, you should work with another realtor that you don't have any personal ties with. 

Off the bat you're going to have no or negative equity, and a high interest rate with mortgage insurance. I would be very cautious about over paying for an average property that requires 10k over value (cash) with unfavorable loan terms. Regarding Airbnb, it's a lot of work. Search the forums, there is a lot of info on STRs. The don't run on auto pilot, they require a very high level of involvement. Or, you are going to have to pay a STR property manager who will take all of your profit. If your goal is to live in the property to save a couple hundred bucks a month on rent and avoid rent increases, great. However, if you're looking for this to be a high cash flowing investment, I recommend you exercise extreme caution.

Hi Emy, I have a very similar situation. I have a couple different SD properties with ADUs. The most effective way we've managed this situation was to specify a flat rate for water, gas, and trash. The one you need to be careful for is electricity, this is where a lot of abuse and excess cost can occur. 

For this you want to submeter your ADU. This should be relatively easy to do. We actually metered everything on one unit, water, gas, and trash. Turned out to be way too much work/ effort, more than it was worth. However, it's definitely worth it to meter electricity. I would do something like a flat rate of $100 for water, trash, and gas + electricity usage. Pretty easy to figure this out as well, just look at total electricity cost on your SDGE bill and divide the total dollar amount by the amount of kWh used. At that point you have your price per kWh... from there just multiply out the amount of kWh they used during the month and multiply the rate you calculated.

Also, there are some smart meters that self report online as well... if you can do that you're able to do this remotely. 

I would personally would ignore all the folks saying to research laws, call a lawyer, etc. For what? Waste of time and money in my opinion. You're going to pay someone to dig and find a reason why you can't do this? A ton of owners in SD have ADUs, illegal units, garage/ shed units, etc., etc. As long as you're acting in an ethical and transparent manner you should be fine. Just my .02

I recommend having a website built to market yourself. A lot of owners/ investors aren’t won this site and they are going to Google “Airbnb property manager”. I have a referral for an amazing web development company who is extremely cost effective. Let me know if you want me to DM over. 

https://www.bisnow.com/nationa...

Citing survey data from Alignable, 34% percent of small retail businesses couldn’t make rent in April, up 6 percentage points from February. 

Those surveyed cited: inflation, gas price spikes, supply chain issues, labor shortages, reduced revenues and increasing rent. Of those small businesses surveyed by Alginable, 46% said their rent was higher than six months ago.

Are rent increases a symptom of greed, or are they due to raising costs of maintenance, vacancy, other expenses?

This will not only have a profound impact on commercial real estate, but can also cascade into layoffs, inability to pay rents (residential), reduced travel/ leisure (STR), etc.

What do you think this signifies?

I was recently quoted a 4.875 with 0 points... 5.5 seems a bit high, but could be your scenario, LTV, DTI, credit, etc. Check w/ a loan broker, I've had good luck getting competitive rates working with brokers.

How good of a deal is it? Like smoking, or a full value deal that's being built up as excellent by 2021-2022 terms? I personally would need a lot of concessions from the seller to take their head ache. What is asking price, fair market value, and what is the seller willing to take? 

For the right price I'd be willing to go trough eviction court and a 12 month head ache. Key words... for the right price.