All Forum Posts by: J. Martin

@Patrick C. , saw the plan a while back, and not surprising they are going to float debt backed by the collateral.. With money so cheap and the collateral viewed as sound with the upswing in real estate, they'd almost be foolish not to! I believe some of the SFH residential pools have already been spun off into REIT's, but I wouldn't be surprised to see that more often in the future. For now, they are just layering the leverage. They borrow for internal purposes, supporting overall equity contributions, they borrow directly against their collateral, they borrow and lend securities under custodianship.. That's what pushes the ROE up when the underlying collateral is standing still!

Not endorsing or commenting on "morally" whether or not big investment firms and P/E treat tenants right, but the same happens with individual landlords sometimes. These firms will almost certainly receive more attention though if they have landlording issues, which have already popped up.. @Bill Gulley I guess they are the enemy of investors because they are buying our inventory?.. and stealing our investors?..

@Justin B. , I knew it! Like any system, you have to participate in it to make it work though! Set up a wallet and I'll send you some bitcoin. Not enough to put a downpayment, for sure! But enough to have some and send it around to friends if you want..

Go here for the easier, quick, more anonymous method to set up a bitcoin wallet (I assume that's what you prefer). https://blockchain.info/wallet

Or go here if you may want to buy a few bucks worth in the future.. (have to connect bank account/confirm identity) https://coinbase.com/

PM me your bitcoin address (the public one) or just post it on here! It can't access your coins! For example, one my public addresses is below. (Feel free to send over bitcoins anyone! lol)

132Fb5GzEpQqKgv7GuK9YcQVjKHt785bMS

Hi @Allen Denham , if you can get past pinching pennies and pay full retail to get it done correctly, I recommend using a highly-rated company from Angie's list, Yelp, or super-solid BBB rating. That way, they have their reputation on the line and will do whatever it takes to keep you pleased. However, you also need to clearly communicate what your expectations are, and be willing to pay for that level of service.

Another alternative is to use someone who has a vested interest in getting more referrals or would be ashamed for your connection to hear that they didn't do a good job. I used my handyman's roommate, and he said that he would do any additional cleaning if she wasn't good enough.. (this was basically him "vouching" for her - because now she knows that HE is going to have to do touch-up if she doesn't do a good job..) You may also want to have the person confirm upon arrival and looking at the unit what your expectations are, that they can do the job at the specified price, and that you will not pay for the job until it is completed (assuming you're hiring on a job basis and not hourly). Good luck! Try, try again!

@Justin B. , I'm with you on the Fed, which is why I like 30yr fixed rate loans! lol We'll see how they do on tapering,.. But if the shadow inventory comes to fruition, more buying opportunities. I don't think it will be the end of the world. Even with the PE and hedge fund buyers gone.. There are plenty of investors out there to sop it up, although I''m sure some localized areas will have their ups and downs..

So how much Bitcoin do you own Justin? lol I have some myself, but mostly just for wild speculation rather than the distrust of government aspect. I already distrusted them.. lol

I work with Bill's former FDIC colleagues in CA as a bank examiner, so have some RE and lending background before starting to invest in real estate. So looks like 2 engineers and 2 bank examiners so far.. hmm...

Honestly, anyone can do it though. From the most exhaustingly analytical, to the more free-flowing artistic types, I've heard of all kinds of success stories. @Jason Lee , I think 'buy and hold' income would be a great complement to the less even/seasonal restaurant business.

The right time to buy was yesterday! Next best was 3 years ago! Just kidding.. To me, it's more about the right DEAL than the right time. You can find a good deal in any market if you take the time and energy and network to find it. They were just much more plentiful during the crisis..

As an old Chinese proverb goes, the best time to plant a tree was 10 yrs ago - the next best time is today..

Congratulations! An important strategic partner to have! And maybe just the first of many!.

@Will Barnard , I like your quote about 50% of something rather than 100% of nothing.. Reminds me of "shark tank" and talking about growing a business with equity injections... I'd rather have 25% of a pie factory, rather than 100% of my own pie.. lol

If you have more deals to do, I would use the leverage, to the extent that you are comfortable. I wrote a blog about these risks and rewards recently... Keep in mind you're also gaining leveraged exposure to price increases (and decreases) - so this greatly magnifies your returns (or your losses) when prices move.. As long as you have the CF and reserves to cover the risk, I like the leverage..

http://www.biggerpockets.com/blogs/4579/blog_posts/32645-if-ca-h-is-king-then-leverage-is-god---loans-cash-roe-roi-and-risk

I agree, no violation for taking pictures from off of the property. The neighbor would be the only one with recourse in this circumstance, for trespassing, but good luck on getting him to care.

You violated the lease. They can ask you to cease violating the lease by having your pet there, or quit. If you really want to stay there AND keep the dog (and can afford it), offer a higher deposit. If that doesn't work, try a little extra rent too to make it worth his while.. Otherwise, why would your landlord want to deal with the extra potential wear and tear without extra deposit and/or rent?

There's the technicalities. And then there's making things work. Just my 2 cents..

@Daniel Miller , @Bill Gulley is right that Fannie Mae is only quasi-governmental and they are in the business of guaranteeing mortgage pools (mostly residential MBS) in exchange for a premium. So it wasn't all paid out of the government's pocket. However Bill, they ARE subsidized to the extent than they FNMA and FMC ended up guaranteeing an enormous chunk of the market, paying lots of dividends.. then ended up falling under the Treasury's auspices as a lifeline until they're finally back to paying it off now. But US taxpayer was still the backstop.. Just like the rest of the "SIFI's"

People are buying up the FNMA preferred's that were trading near pennies, because there's a renewed speculation that the government will keep it alive as a private entity that continues to guarantee a large part of the market.. We'll see if it winds down somewhat or remains the colossus that it has been in the past..