All Forum Posts by: Joe Cassandra

If you can buy a house for 70=75% of ARV, you should be fine no matter what happens in the market.

Only issues you would run into: 

...you screen bad tenants, they don't pay...government won't evict

...you have a short term shark loan and banks won't refi you out in 6 months because the economy has gotten worse (and it likely will) --- make sure you have good credit

...you don't have adequate reserves to weather any repairs

"Oh, that's a lot!" 

Every investment is going to have risk. 

Putting your money in the stock market right now as stocks have gone sideways for a month (meaning, they could be setting for a drop...but volume is low which is normal for summer...so there's no telling)

I agree buying properties on spec to flip quickly with a higher ARV than comps said could pay off, or could blow up in your face.

But that's obviously what happened in 2008.

Everyone should apply regardless. You get 1k per employee regardless if you get approved or not.

that 1k is not a loan but essentially free money.

we got a 55k loan for my non re biz and got the 1k. (Sole proprietorship marketing biz)

applied with RE biz, was declined. My wife and I are 50/50, they shipped us 2k. No papers to sign

You'd really need to get it around 100k for it to be a good deal. 

When you do that, you'd likely be able to find someone better to fund it...and not be paying 7.5k at closing for a 100k house. 

In GA, private funding with no points, you'll pay 1.5k or so at closing. 

Not sure who's funding your deal, but 7.5k on a 118k house is way too high. Shop around.

Most don't think about another CON of 50/50...

Your money partner is likely going to be more vocal in the direction of the project, the sales negotiations, the rehab decisions and more. 

Sure, they may be a 'silent' partner. But if you decide to spend $10k more on rehab, a financing lender won't care as much...an equity partner may push back on decisions like that. 

To be upfront...

No direct experience on that front...I work with lenders on interest only per month

I joined a couple years ago, but only got active about 12 months ago...

Based on experience from another forum I don't frequent much anymore, there's a life cycle to every forum member (who sticks around longer than 1 day)

1.) You join to learn

2.) You stay to keep growing and learning

3.) At some point, you'll have built experience enough that you are learning less and less

4.) You stick around for the networking opportunities

5.) If no networking opps, you exit

It's like a party at Six Flags. 

At first it's fun, new...you ride all the rides. Soon, you've done it all and don't need to ride them anymore. You stick around to hang out with people. 

If no one is worth talking to...you leave the park.

I'd say, if you don't feel you're meeting other experienced investors on here anymore, then your best bet is to create an offline experienced group. 

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My hypothesis is as deals have become harder and harder to find, more gurus have emerged to 'teach' how to invest. 

That brings in a new wave of newbies to the industry, hence everyone's feeling that the 'past 2 years have changed on here.'

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Last...

And maybe this is blasphemy...

But at some point 95% of real estate questions have likely been answered on here. Real estate has been pretty similar for awhile. 

Only differences is changes in economic policies + technology. 

Unlike a stock market forum for example which is changing everyday.

Every question about plumbing, bad tenants, finding deals...etc. has likely been covered. So if you've been around enough, it'll look like deja vu. 

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(There have been more and more "when will real estate crash" posts that seem redundant, I'll give you that.)

Hey Charlotte, 

We live in Woodstock so I know the area well (and selling one of our rentals here right now). 

I'm guessing your house is around Bells Ferry, right off 92 or up off East Cherokee maybe? 

Those I would just slap some granite in the kitchen and paint the place (and make sure the flooring is okay...carpet is fine). Inserts in shower are fine. I wouldn't start tiling showers.

Should be able to fetch 1300-1600. 

I assume that based on your C-class rating. Schools are all great here so can't go wrong there.

 It's called an inheritance tax dude. Calm down. 

For people who are valued over $100 million, it makes sense to break up that wealth especially if the people receiving it have not done anything to earn it. 

The point is, African Americans have zero chance of ever moving up if the wealth gap stays so wide right now. (and it's only getting wider with the pandemic and bailouts)

If money stays in the hands of a select few and it's simply passed down (to people who did not build it aka the Walton grandchildren), then the gap will never fill. 

Pretty much impossible.

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I'm a capitalist aka if you work hard and build a business, you should prosper. Best place to do that is in America. 

But wealth in the hands of a few and it staying in the hands of the few for decades to come isn't capitalism...it turns into a nanny state where no one wins.

All wealth in America is tied to business ownership. 

WaPo reports black entrepreneurs have harder times getting financing (so they have to use cash)

Barrons reports minorities have a harder time raising money from VCs 

Property values rise where businesses flourish. 

1.) Nothing would move the needle unless the wealth gap in all of America closes. It's pretty much impossible to change not only the stats on black wealth, but most of America. That doesn't happen unless massive generational wealth is taken away. Sam Walton built WalMart. His grandkids and great-grand kids should not be born billionaires. Give them a few millions for their name, the rest needs to be reinvested in new businesses in areas that need it. 

2.) More funding available to black-owned businesses. They should be able to pay their employees with cash and a LOC like most businesses. They then can pay more and more. That money then trickles into the community who can then spend at other stores.

With interest rates and cash flowing from the Fed, everyone should be speedily approved to grow their business. 

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A byproduct of this is younger black children will see more black-owned entrepreneurs (that aren't sports or music stars).

Nice Matt! 

How long was the seasoning for your bank? 

How's Powder Springs? (haven't looked too much down there)

I'm still in the SFR space...but goal is to get to MF as fast as possible.

Reason? 

It comes down to what kind of investor are you. 

For me, I'm all about cash flow and managing my time...i.e. spend as little as possible driving around to different places. I'd rather just drive to 1-2. 

Second, your cashflow is more stable with MF. When one of my houses vacant, I'm eating holding costs...(yes, they're in reserves) but income is gone. 

So many people love reading RDPD...but don't listen to the premise. 

Cashflow is KING. Not appreciation. 

If you have a stable cashflow with MF, why do you need the asset to be 'more liquid,' Yeah, you could sell a house faster...but who cares. You can refi/LOC a MF and get cash if you need it.

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Like someone else mentioned...if you can raise rents $50-$100 per unit, the value of the asset skyrockets overnight. 

On top of that...I hate maintenance. 

I'd rather replace a couple roofs over 100 doors...then 100 roofs. 100 HVACs. Deal with 100 different neighborhoods.

You also have more control over the 'environment' of the multifamily (I"m talking bigger apartments here) where you have events for tenants, amenities, and such that make tenants want to stay to lower churn.

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This is just an opinion...but I'm betting you build more credibility around town (and with lenders) owning apartments over houses.