All Forum Posts by: Mark Dolfini

If you feel that badly about it, offer him $120,000 on a 0% loan on a 10 year term (or whatever term you can afford and still cash flow).  You'll both make out. 

In terms of 'what is best', it will depend on what software you use to account for tenant payments after you collect them.  If you're not using Property Management software, PLEASE consider getting something.  

A low-cost option is one offered by National Tenant Network.  I PROMISE your time is better spent driving around collecting rents, filling out deposit slips, and bringing them to the bank.  Their software will integrate with your website and the accounting is done automatically when they make their payments, and it hits your bank account in the next day (or so).  I have 250 units under ownership / management, and receiving payments is SO much easier than when I owned 92 units under the old-school way.  So yes, it's far more scalable, and way more effective too.  

I hear the word "crash" and words matter.  

Crashes, no matter what people will tell you, can't be predicted with any real accuracy.  However, there are market conditions which lend themselves to when that has happened.  

First off, which market are we talking about?  The rental market?  The real estate sales market?  Residential?  Commercial?  There were periods in the last 3 decades  where commercial real estate struggled while residential was expanding, and vice-versa.  Defining which market clearly needs to be the first part of the equation. 

Secondly, what defines a "crash" is almost always an oversupply of an asset class.  I am not seeing an oversupply of a certain asset type (although an argument can be made for an oversupply of some high-end multifamily, but not obnoxiously so).    

All that said, are we due, perhaps "overdue" for a "Market Correction" of most residential asset types?   I say yes.   A "crash" on the other hand?  No.  The data just don't support it.  

My advice:  Don't be a motivated buyer.  Keep your powder dry.  Make your shots count.