All Forum Posts by: Luka Milicevic

@Matt Bogosian

Welcome to the forums my friend!!! Happy to see you finally joined. 

You know I'm always down to talk RE investing. 

This house doesn't even seem that bad. I mean it's ugly but based on the pictures a perfect renovation candidate.

It probably needs a bit of everything, including what looks like new sub floor in some areas. 

It's all just a matter of "how much" 

Anything can be fixed or replaced, just a matter of how much it's going to cost and is it economically feasible. 

If there are million dollar homes in this area, I'd run the comps, get your renovation budget and then make an offer. I ignore list price. I'll offer what makes my numbers work. 

This is a form of wire fraud.

In the real estate world there are about 100 forms I have to have every buyer/seller sign. Disclosure, after disclosure.

BUT...when it comes to the wire fraud warning I tell them to actually READ through it. I also re-iterate it throughout our process. When it's time to close I make them read it again, and tell them to follow the instructions on the fraud warning they signed.

A friend of mine had a buyer he was representing get hit with wire fraud on a purchase. Luckily, his errors/omissions insurance actually covered it. 

It's a serious crime and it's very much on the rise. Be careful out there!

 I'm curious as to why they are more expensive.

I've looked at these before for an apt complex and the unit itself was so much less expensive than a full HVAC unit. 

I recommend my sister in law look into mini splits when she was building an addition, but it was more expensive than the regular hvac system. I was shocked. 

Where is the extra cost involved here? The labor? 

 I bought my neighbors house about 3 years ago after he passed away. 

I spoke to his agent that was there on behalf of the family after his two sons inherited the house.

I just waited until I saw a car in the driveway to go over there and talk to someone. I would say your best bet is to wait until you see someone at the house to go talk to them. 

@Shirley Kocho

As mentioned above regarding Nashville....it is up there with prices.

Still opportunity but a lot more difficult than it has been in the past (as is the case with other markets too). 

If you do have specific questions about Nashville, please reach out!

@Heather Pabon

Paying off the mortgage makes no financial sense at the moment if you are at 2.75. 

You won't ever get that low of a rate in your lifetime, probably....

You can at the moment earn a higher return putting money in a savings account, or even buying US treasuries. 

I would most definitely go the 1031 route and continue to defer those gains!

@James Hamling

How do you find/screen a tenant base that you know are future potential home buyers? 

If you go back at any point in time in history people were asking the exact same question.

At times when interest rates were 18%, was that a good time to get in? 

When covid started and there was mass uncertainty as to what was going to happen, you would have been very rational to sit on the sidelines. You of course would have lost out on 15 years worth of appreciation in 2 years. 

When I got started in 2014, this exact same question was being asked. I've been on these forums for the past 8 or so years and every single year this question is asked "Is this a bad time to get in" 

you can always, and I mean ALWAYS find a reason not to invest. 

Unless you can predict the future, then timing the market is a fools game. 

If you invest for the long term then current market trends and fluctuations should not impact your overall goals. 

Sure, there have been better times to buy. No one can deny that, but we can't go back to 2012 when prices were much lower, and we can't go back to 2021 when interest rates were sub 3%, and we can't predict what's going to happen tomorrow. We just have to make calculated decisions based on what we have to work with today. 

@Kenneth S.

Personally, I would push for 2 properties and at 130k you should have enough. 

I would put a smaller down payment on 2 vs a larger one on just 1 property. Leverage is the whole point of investing in RE. 

PS: I love your trigger discipline in your profile picture!