All Forum Posts by: Matthew John

Yes. My very first deal I bought with 5% down conventional loan with the intention of it being a future rental. At first, I didn't know I needed to pay all cash for a BRRRR so I did it this way.

Purchase Price - 57k

Rehab - 15k

After 6 months I had an Appraisal to remove the PMI, it came back at 115k. I removed the PMI and instead of refinancing I just did a HELOC since it was still considered my primary residence. I could have refinanced for a slightly lower interest rate, but the downside to that is paying another set of closing costs and an immediate higher monthly mortgage payment. The HELOC cost virtually nothing and I wasn't rushed to go find another deal right away.

All around Detroit in the 30-60k range!

@Andrey Y. Aside from the several Crypto debit cards out there that can connect directly to your Coinbase account (which you can use anywhere that accepts VISA), there are also services like https://purse.io/shop which allow you to purchase ANYTHING on Amazon, with Cryptocurrency, at a 5-33% discount. 

You can also use something like https://www.bitrefill.com that allow you to use Cryptocurrency to buy gift cards from thousands of retailers and use their services, many have discounts too. 

You can't pay for things because YOU haven't done your research. You're waiting for the Olive Garden to accept Bitcoin directly which probably won't happen for at least a few yrs. 

You need to understand that this is only a 10yr old asset class and it's still in it's infancy. Do really think every single business in the US should accept a 10yr old asset class that the US Gov doesn't even understand yet??

By the time you get stability and global, consumer adoption, the profit potential won't be there and you'll have likely missed out in the once in a lifetime opportunity that Crypto provides.  

I don't 'feed my family' with it (anymore) because every time I've pulled out a significant amount of money out of Crypto, it's gone up...a lot. 

You could have bought Bitcoin ANY TIME in it's lifespan (aside from December 2017 and January 2018) and you'd be in PROFIT right now. 

I'm a technical trader working with a community of over 70,000 members. I've heard any argument you can come up with as to WHY Crypto will fail. I see what the issues are and what needs to be fixed. I also see a highly intelligent community of people building solutions and working towards Adoption. 

"If you don't believe me or don't get it, I don't have time to try to convince you, sorry" - Satoshi Nakamoto

@Andrey Y. I don't need to think of the problem, lol...

There's several decentralized & even centralized projects out there offering these services. 

I said 1 BTC ($10,000) because that's the estimated price right now. It hasn't been $2000 since 2017 and is currently up 250% YTD. 

Do some research on these projects...

 https://nexo.io

https://saltlending.com/

https://ethlend.io/

https://coinloan.io/

https://www.kambo.io/

https://blockfi.com

https://celsius.network/

There's plenty more out there. And no, I don't 'feed my family with it', the cash flow from my rental properties pays my living expenses so I don't have to withdraw Crypto. 

I run one of the largest Cryptocurrency Trading communities in the world. Love to engage and interact on BP, but geez are some of the people here ignorant when it comes to Crypto! Even listen to them hate on it on nearly every Podcast.

I got into Real Estate to add stability and cash flow to my portfolio, but I've made the majority of my wealth trading equities and Cryptocurrency. I'm an early adopter of Cryptocurrency and I am active in the space every day. I've traveled, spoke, and hosted conferences with thousands of attendees all around the world. 

I'm believe all property records will be kept and stored on the Blockchain. Every single transaction will be recorded and information will be easily available. This will reduce fraud and disputes, making the job of title companies MUCH EASIER. 

We are already able to get get LOANS on our Cryptocurrency holdings without a credit check or going through a 3rd party, central authority. If I put up 1 BTC ($10,000) as collateral, I can use a multitude of platforms to get a 30-70% LTV of cash in my bank. This helps bypass taxable events of selling Crypto and realizing profit while also giving you the opportunity to access capital for whatever you need.

In the future, I believe there will be little need for Real Estate Agents and Mortgage Lenders. These are unnecessary middlemen that slow down transactions. The entire Real Estate industry will become much more efficient and I believe Blockchain will play a key role. 

We are in the early stages of seeing tokenized assets. Imagine dividing an apartment complex into 10k tokens and investors could buy/sell/trade those tokens with each token representing REAL EQUITY in the property...this is all just starting to happen. 

I'm an investor, trader, and business owner. I love all different types of asset classes, but Crypto is that 'once in a lifetime' opportunity that you should not be sleeping on!  My advice is to at the very least have *some* exposure to this emerging asset class and start to dig down the rabbit hole. If you haven't noticed, we are moving to a digital world. Anyone under 30 grew up as the internet was getting built and kids under 20 are totally emerged in a digital life. 

Pay attention to where the world is headed and be 1 step ahead of the crowd! 

@John Aloisi @Ronald Rohde Good questions & I'm not sure. Struggling to get a commercial broker to even return my messages to ask. I've been doing residential for awhile, but trying to break into commercial. 

I do know, however, that she was operating her business out of the 1 unit. Maybe she didn't want 2 other businesses operating right next to her in the same building since she was owner occupier? 

I'm looking to get an opinion on it from a local broker who knows the area, just need to find one who will work with me. 

@Chet Mazur After the sale, it wouldn't be producing any income. There's 3 units, but only 1 is being used right now by an owner occupant. The other 2 are vacant. Once they sell, they are looking to move out of the building and it'll effectively need 3 new tenants. 

Ideally, I'd like to find new tenants and set up a NNN lease or at least find tenants to cover taxes/insurance.

@Cason Acor Finding a broker will be key. No comps for this building, hardly anything in this area is even for sale. Only 22 properties in this city and all are priced higher than this. It's also right by the beach/water which I believe will only help the long term value. 

It says 'general retail' could be good here or a pizzeria/carryout restaurant. I'm just not sure the expenses and I'd ideally like a NNN lease so I don't worry about that.

@Greg Dickerson Thanks for the reply!

Just trying to figure out an appropriate offer without income. I suppose talking to a local broker would be best.

I find it difficult to guess building expenses if the current owner is only using 1/3 of the total property and there’s only 1 tenant.

I've been looking at Commercial Properties in my area recently and I've been noticing it's hard to find those value add plays, especially those listed on the market. 

However, I recently came across a property where the owner is 'highly motivated to sell' and really wants someone to just make an offer. 

She runs a Salon out of the property now, but she's done with it and wants to move on. She's only using 1 unit of the property for her business, but when she sells it she'll be moving out. The property has 3 separate units. 3 separate utility rooms each with their own Furnace, A/C and separate meters. 

The problem is when she moves out, the property will effectively producing 0 income. 

There's a massive value add opportunity there, but I would have to find 3 tenants to fill the vacancies. 

Based on the location, this property should be no problem to rent, but I'm really unsure. There's only a handful of properties for lease right now in the same city. 

How would you guys analyze this commercial property that effectively will be producing 0 income at the time of sale?