All Forum Posts by: Joseph M.

@Account Closed , Where are the Chinese and Russian investors taking their money to? I know China has been putting pressure on some of the big companies like Wanda to sell their U.S properties  , but I don't think it's affecting the smaller/individual investors as much at least now. 

U.S still seems like the most stable place investment wise or at least one of the most stable. 

What would the investment play in Greece be for a U.S investor? Investing in real estate there? Stocks of greek companies?

@Account Closed , You've gotten some good advice so far . I know you are eager to invest, but even if you did get into a deal somehow without money,  you'd want to make sure you have reserves when something happens. 

How is your credit score? I'd start building credit now if you haven't already.  Apply for a credit card and pay it off every month so you don't get charged interest. Credit Karma and Credit Sesame are two free sites to check your credit. 

Have you considered getting your real estate license? There is a cost but it is minimal under $1000. There are some brokerages that will pay for your training if you work with them after you receive your license. It's a competitive business of course but there are advantages of course of having the license and no ceiling on income. 

Having the license can also open up some salaried (non commission) type jobs like property management etc. 

Type in real estate license as a keyword in indeed job search and your city and you'll see various positions. 

@Ben Leybovich  @Sam Grooms 

Was this syndication offered only to accredited investors or both accredited and non? 

Also hope to hear some updates as things progress. 

Are you looking for other deals only in Arizona or any market?

That is interesting, I didn't realize in NYC that rent control does not apply to 4units and under. In L.A it applies to anything over a single family house. So even if one has a duplex it's under rent control if it's build before October 1978 I believe. Most multi is older than that in L.A so most of the rental property does fall under rent control. 

Originally posted by @Matt R.:

It appears rent control, market manipulation, has that potential side effect of creating inventory shortages which then makes todays market rents and values go sky high. Best intentions at work I guess, and increasing inventory might work better than RC.

 Both major contenders for CA Gov have said they want to ramp up building in CA massively, but I don't see how that works if rent control covers every residential property. Right now there is an incentive to build a new apartment building due to rent growth, but with more rent control that incentive goes away ,right?

Same in NY too. 

Originally posted by @Account Closed:

We have Prop 10 on the ballot and its scary. It repeals Costa Hawkins which currently prevents rent control on Single Family units as well as new construction apartments. It also explicitly allows rent control units to be brought to market rent upon vacancy. Repeal of that would leave cities able to pass any version of rent control they want. We own two homes that are rentals in California. If prop 10 passes I would probably either sell them to owner occupants or convert to short term or corporate rentals before cities like Berkeley and San Jose start passing ever more restrictive rent control. So that means two less rentals in an already tight market. And I'm sure I'm not the only landlord who will react that way. Rent control is a universally BAD idea because it helps no one except a group of existing tenants. It restricts availability and removes any incentive for landlords to invest in their property. And discourages new construction. It causes a spiral of reduced availability and even higher rent for the few available units and deterioration of the units under rent control.

 Yes, exactly I agree. I had an old teacher when I was younger that spoke of people that are "well intentioned, but ill informed" I see the pro rent control crowd like this. They base their policy pretty much all on emotion rather than economics or reality. 

I agree with you it's likely we will see a lot of single family landlords selling. Some people also rent out their personal residence with the idea that they might move back some day. With rent control extending to single family homes this would likely be eliminated. I suppose this could be a win for more out of state markets as people are motivated/pushed to sell their CA homes and invest out of state. There will be consequences for sure. CA isn't the only game in town but sometimes those making policy here act like it is. 

California has a rent control Proposition on the November ballot , Prop 10. https://ballotpedia.org/California_Proposition_10,_Local_Rent_Control_Initiative_(2018) I haven’t seen rent control being a positive for cities, the cities with the strongest rent control seem to have the highest market rents . It’s kind of funny because we hear there is a housing shortage yet there is a push for rent control which is likely to disincentive new building, but a lot of people don’t seem to make the connection . Interesting times .

Congrats @Ben Leybovich and @Sam Grooms Thanks for sharing the details of this deal! Much success on the repositioning/value add .

@Kenneth Stump curious about what you mean about someone snatching the property. Are these properties off market deals? Do you have the properties under contract or more verbal discussions with the sellers? 

Have you tried to work with any hard money lenders? 

If it's a solid deal you should be able to even wholesale it for a nice profit , better than just letting it go if it's a great deal. 

@BJ Ralphs , 7.75% sales tax in the O.C is  cheap...in "ugly" L.A it's 9.5% ! 

Also went somewhere to eat a couple weeks ago and there was an additional fee of 2% due to the increase in the minimum wage it stated on the menu.