All Forum Posts by: Joseph M.

@Jim Thomas

Who would let you tie up their property for 30 days due diligence period ? Even if they would I don’t think it would be the right thing to do just because you can’t find a buyer. 

Originally posted by @Ayne C.:

The emphasis you'll put on appreciation will largely depend on your goals. Having said that, if you hold for 6+years what are the chances a property will NOT appreciate?

 It's definitely possible to hold a property 6+ years and not have it appreciate. Had a relative that had a house in a nice suburb area in Western NY after many years it was pretty much the same value. Of course there is inflation and cost of everything goes up every year , so if a place goes up like 2-3% in a year it shouldn't really be considered appreciation as its just keeping up with inflation. 

@Account Closed , yeah it must be very overpriced . 60 or so showings and no offers is pretty nuts. I guess since he's had it rented he isn't in a rush to sell since it's been bringing in rental income ..but who knows when the market will change. 

@Account Closed  

You mentioned 

"

AHHHHHH, but our owner is not smart, he is greedy and asking way too much for this house, and he won't drop the price, even after professional input."

I wonder if he hasn't sold because of the tenant dressing up like a unicorn, or the place is just overpriced. Has he received any offers? Market in SoCal still seems pretty hot , so I'd bet a lot of buyers would be willing to overlook an eccentric tenant.

@Gabriel Ehrlich Will all of you be working at this new company full time ? I guess I’d worry about a “too many cooks in the kitchen” situation . What expectation do they have for the first year in order to deem it a success where they will put in another million ? You mentioned that if things go well you’d be a partner but wouldn’t you be a partner from the beginning , or would you be getting paid a salary ?

@Matt Gilroy Usually these areas are really management intensive and the numbers on paper look a lot better than reality . I agree with @Sam Shueh , if you just want consistent cash flow why not look into more investing ? No dealing with tenants , toilets , etc . What kind of return would you expect in these areas ?

@Ben Leybovich Of course every deal structure and deal size is different , but theoretically if one could do a syndication deal every 6 months would it not create a nice income over time as properties are sold / as there are exits ? Also does seem like it could become more systemized as one has a track record syndicating commercial deals and then it should become easier to find deals ? It does seem there are a bunch of syndicators these days I guess since there is so much interest in investing and also the growth of these crowdfunding platforms and the JOBs act seem to have made it easier to market and raise money for deals .

@Gabriel Ehrlich Would also be interested to know what the son’s role would be . How well do you know him ? Best situation for you of course would be if the family takes a passive role and lets you make all the decisions . Does he have another job or business or does he want to work full time in this new business his family is investing in ? Does he have certain skills or education that could be beneficial for the business? You don’t have to answer these questions but some things to think about if you haven’t already . best of luck

@Ken Virzi Yeah affordablity is something Bruce Norris mentions “One of the telltale signs of an over-priced California market is the affordability number heading to 17%.” Link : http://thenorrisgroup.com/learning/files/media_manager/original/127.pdf Looks like we are at 26% for housing affordability now in CA for SFH .. but in SF for example it’s 18% Link https://www.car.org/marketdata/data/haitraditional/

@Nicole Walley Owner occupied loans are more favorable than investor loans . You can get an FHA loan for 3.5% down for a 1-4 unit property for example while with an investment property you usually need 20% down for a bank loan . I do think house hacking is a good strategy to get started . If you have equity you can pull part of that to invest in other properties so being a homeowner can make investing easier that way . Has to still be in the right area though, in L.A for example it’s super tough to find a house hacking deal that makes sense even if you go in rough areas , plus there is rent control . I don’t know much about the market in Sarasota , but have bought properties in other parts of FL, prices in decent areas are a lot more reasonable than CA