All Forum Posts by: Matt Groth

@Jay Hinrichs he lost me at "annuity" as well. I wonder if he knows a place I can invest if I sell all my re in a panic???

@Nick Coons I agree with Steve, and with your response....here is the part only you can decide....you can mitigate the risk, and potentially not get the deal, or do the short term hml, calculate your theoretically downside, and be ok with that. There is no correct answer, but you don't get to have both.

@Gabriel Fairman I don't know your market, but most of the stuff I see can't be built for less. New construction, especially a subdivision, are very expensive to pull off. Everything needs to go well. The advantage is everything is new. I'm a gc, and the costs now are are substantially higher than 2 years ago. What I see is that existing is still a value over new, unless you have a competitive advantage.

@Diorca Gonzalez don't take this the wrong way, but if you have been at it for a year, and haven't done much, maybe real estate just isn't for you. Buy index funds, or reits. There is nothing wrong with that path. I think a lot of people like the idea of real estate, but not actually like it. If I'm wrong, pick the 1 thing that scares you the most, and do that. RE is about problem solving, so start solving

@Kristi Tietz my only question is if you are "extremely paranoid", will that also include your tenants? You certainly need to protect yourself, but if it is true paranoia, this probably isn't the area for you to invest in. I have had a few people over the years ask me questions about what we are doing, and those questions are usually about tenants or guests breaking stuff...those people are still on the sidelines.

@Canesha Edwards not saying I disagree with anything you have said, but if you see an item "on sale", but wait a week, and pay full price, nothing has fundamentally changed, other than the price. 2008 was a huge sale, and things didn't snap back in a week. The value of a dollar has eroded, so houses are not worth more, it is that the dollar is worth less, we just see it through a different lens. If McDonald's used to pay 10, and now pay 18, they are not paying for 80 percent more output. I'm a gc, and the labor squeeze is real, if I pay more for labor, every house in the neighborhood goes up in price. I have no idea where it ends, but demand has not yet been met

I don't know that,  but feel that we are close. I don't think that means prices drop, it just means fewer people will own more assets. We haven't had a new listing in market in over a month. Come to town with unlimited cash, there is nothing to buy. Waiting lists for rentals...I hear similar stories from other areas. Just got back from Quebec, similar stories there. There is simply not enough supply, and not enough people that know how to make more. I have had people argue "bubble", but I disagree. Lots of cash buyers, 0 sellers. I have no idea how this looks 10 years from now, but 20 years ago, I was one of the young guys, and at 48, I still am. 

@Jay Hinrichs builder here, and I agree. I live in a small town, but the number of kids entering the trades is virtually 0. We simply don't have enough labor. I'm booked 2 years out, got another call last night wanting to give a down-payment just to be on a list. I'm not a permabull, but I don't see a reversal anytime soon

@Champ Leong I wouldn't consider a fence a renovation, but depending on where it is located, you may need permits. Same rules apply though...work done properly is rarely inexpensive. If you are putting the money into it, you want it to look good 20 years from now, not just the day of completion

@Champ Leong there has been enough Saud already about any aspects of this. I'm a gc, so you already know where I stand. I say this is the nicest way possible, you likely DO NOT know that he does quality work. Many homeowners I deal with have a very superficial view of quality work. I have a very high standard building custom homes, so I see stuff you won't. If you are not comfortable buying a house without an inspection, you likely are not in the position to grade quality of workmanship. General handyman stuff, maybe, but if you are doing full renovations, licensed all the way.