All Forum Posts by: Account Closed

Also, just wanted to stress that full-compliance and adherence to legal standards is valued here. With that, persistence is equally valued ("persistence pays..."). Persistence is how I was finally able to convince my wife to marry me!

Thanks everyone for your helpful input (and well-received cautions!). I certainly don't want to advocate or inquire regarding anything illegal, non-compliant, or disingenuous.

Some thoughts from a 30,000 foot level:  Is this a non-desirable aspect of the RE industry? Perhaps a marker of market inefficiency? An asset should be worth what someone is willing to pay for it. If I (buyer) see a place that I'm interested in buying and a bank is willing to provide a loan and all other matters regarding the viability of the deal are in place (ie, its financially feasible), shouldn't the supposed value be based on that sort of transaction rather than what an appraiser says (which is dependent on his single perspective)? Maybe this is just my free-market die hard libertarian values coming forth, but I can't help but see this as an impediment to maturity and innovation in the RE industry. Apologies for any rambling as I process this. Your thoughts/perspectives are most welcome. Thanks!

Holy Molly! Thanks for your input!

Has anyone encountered a scenario where it made sense to overpay? Sounds strange, but let me explain with a hypothetical situation.

- Large MF property is for sale (several million dollars).

- The property is in decent shape but is old and needs moderate attention/maintenance. Property has strong financials/occupancy (long term tenants). Rents are significantly below market level. Other value-add opportunities present.

- Buyer does not have the capital for a significant DP, but sees this as a good opportunity and wants to be creative.

- Buyer purposely offers significantly more than what is asked (the spread being the equivalent to the down payment on the larger amount that is financed). Buyer asks seller for a seller concession equivalent to the down payment to be paid at closing.

- Seller gets the full asking price. Buyer gets the property with practically no money down (closing costs are wrapped into mortgage). Agent gets a higher commission. The buyer's task from there is to manage the property properly albeit with the higher debt responsibility.

Buyer, seller, and (especially!) the agent are happy - everyone wins. Has this been done? Plausible?

Thanks! - Jonny

@Aaron Bush - It's good to consider the wider macro level of the market, but perhaps more important would be to narrow the focus on the individual deal. Even in a good market, you can get in hot water fast with a bad deal. Even though things are high now, it doesn't mean that good deals don't exist. It isn't as easy to find them, so you need to utilize the creativity and hard work that others are too lazy to display. Right now, it would be good to learn how to thoroughly analyze good deals and how to identify bad ones -invest your time and energy now in your education as a RE investor. Sharpening that skill will make you ready for when you do come across a gem and you can then act quickly. 

The comments above are helpful. Just wait until there's a slight turn in the economy and things will even out. We've been riding a very fortuitous and generous real estate wave. Once that changes fear will kick in and take its course. The popularity engendered by BP may also move traditional investors to consider other creative ways to find deals and ways to generate revenue in real estate. 

@Tanya F. is spot on!

It really depends on what you're wanting to do in real estate. If you're wanting to just get into real estate for investing, then I would say that a great mentor is an even better (cheaper!) resource and guide. It could be totally worthless...or it could be extremely beneficial. It depends largely on the school...better schools give you great exposure to other talented students for networking, connections with other large-scale investors, introductions to cutting edge ideas and concepts, and more detailed instruction regarding elects of business that are not provided in an undergrad program. An MBA could give you access to other people and other opportunities, which can be priceless.

Worth it if you can get into a really good program. Don't do it if it's a mid or lower tier school...what they will give you for your time/money/effort will not be worth it. I don't mean to sound elitist, but that's how it is.

It never hurts to try something out. If you think it could be beneficial, give it a semester or a year. Try it. If it doesn't help you then screw it and say "See ya! I'm going to go make some deals...."

Ps - I left my PhD program because the gain from it was not worth the work I was putting into it. Best choice I've made apart from asking my wife to marry me (maybe I had to convince her?). Never be afraid of quitting something that isn't worthwhile!

Regarding talk about renting out parking spaces, has anyone ever used the Spot app? (www.parkeasier.com).

@Lauren Hogan, here's mine:  Bigger Pockets has saved me tens of thousands of dollars and tremendous headache by steering me from making bad, uninformed decisions that I could have made had I not gained from the experience and knowledge of others through BP. Knowledge is power! Ben Franklin said that an ounce of prevention is better than a pound of cure!