All Forum Posts by: Karl B.

I'm making offers, as I always have. I'm currently under contract on a commercial property that was priced stupid low and am also making offers on SF and MF. 

In my market SF/MF inventory still isn't high and so properties are still selling pretty well - multiple offers and prices really haven't dropped. 

Congratulations, Josh! It sounds like you had your first drink of alcohol today! 

Here's how I do it:

1. Sue them in small claims and win

2. Go to the prothonotary's office and get a lien against them

Most liens expire after 4-7 years depending on your local laws - you can renew the lien prior to expiration so it doesn't ever expire.

Why get a lien?

In the event they someday win a judgement (let's say they're in a car accident and receive $10,000 from an insurance company) or someday sell a home (perhaps a parent willed it to them) you (and anyone else who has a lien against them) will be first in line to receive your owed money

What everyone else said, but I would also add: leave proper reviews against the property management company VIA Yelp, Google, Yellow Pages, etc.

In the form of memes @james wise will teach you about Clayton and you will see the truth. 

I used to only buy MF but have started buying SFH as well.

So let me propose a few questions:

If you are investing in MFH is it because of the cash flow and relative proximity of doors? Therefore easier management? For me, yes. I've found that MF in my market tends to have a better cash flow. This is partly because I buy value-add and there's way more value-add value add that's worth buying VS SF value-add - a lot of SF in my market that's C-class isn't worth it. 

If you are investing in SFH is it because you are flipping, or BRRRRing out as fast as you can?  Neither. I invest for cash flow. I tend to buy value-add. 

Are MFH often time requiring repairs, or are they relatively turnkey?  Of the MF I've bought all required repairs to varying degrees as well as needed updates to maximize cash flow. 

For SFH are you thinking about moving into MFH at some point? I started with MF.

MFH's did you start with SFH and shift strategies? Where did the mindset shift? I started with MF. Bought a small portfolio that had a SF home and was more open to buying SF - not having to pay the water/sewer/trash is quite appealing, I admit. Though in this hotter market it's been harder to buy SF as the competition is people who want to buy and live in the home (that competition was and still is there). 

This is intended to be a discussion, I am not asking in regards to my personal investments at this time, just curious to know what everyone is doing and why.

Cheers!

The interest rate will rise until we get closer to 2% inflation, which is the stated target. Then the Fed will do their famous pivot. 

Quote from @Michael Gansberg:

@Karl B. - I agree with your thinking. I'm also de-emphasizing residential in my portfolio in favor of commercial, which is probably something I should've done awhile ago. Three years ago, I was 100% residential, now- depending on how you calculate it- I'm closer to 75%, and continuing to shift. If enough residential investors feel the way we do, that should have a meaningfully negative impact on future rates of return.

I understand the emotional connection to housing- everyone needs somewhere to live, right? But my sentiment is that if government wants to make housing a right, which is reasonable, then government should build and manage the housing for those who are unable or unwilling to pay, as opposed to nationalizing the housing stock by way of rent control. 

There's nothing wrong with diversifying. The Covid eviction moratorium did not affect me - thank God - but it made me realize I could have been in it deep like many other landlords with nonpaying tenants. Having commercial tenant (a lease with a Dollar General/Dollar Tree/Fed Ex, etc.) who is going to keep paying no matter what is great diversification. 

There's clearly a problem with lack of housing yet rent control = less new build. It also means more slum lords and worse living conditions as there's less incentive (and money) for landlords to maintain a property/fix it up as they cannot raise rents/are rent capped. 

They try and blame the massive, faceless companies who buy up properties and rent them out yet 70% of landlords are mom and pop who rely on rental income. 

Commercial appeals to me and I've made plans to purchase a NNN property in an investor friendly state. I'm waiting for cap rates to rise some more, which has FINALLY happened as of recent, but there will be better rates to be had, IMO.

I had posted the first reply to this thread and received over 20 upvotes. But for some reason, someone from BP decided to remove my post after almost a week. 

Why would this be? Did someone complain about it? Did I offend someone? If so, what in my post was so offensive? It couldn't have been so bad if 20+ people liked it enough to upvote it. 

If I take the time to post something and BP deletes it, why should I continue posting?