All Forum Posts by: Robert C.

@David Krulac @Dave Foster, thanks for the feedback. Very helpful!

@Dave Foster (and anyone else who wants to chime in). This is an old thread but it answers my initial question. I have some follow ups, if you can help out.

Based on the response of the 1031 experts, it would be okay to 1031 exchange from a NOO single family into a 4-unit building where one unit is used as primary residence, so long as the 3 rented units are equal in value to the exchanged NOO single family. (Please correct me if I'm wrong) So...

1.) What documentation is needed to prove that the value of 3 units is equal or greater than the exchanged property?

2.) Any ideas how to show this is a legitimate process to a bank in order to obtain an owner-occupied loan (lower rate)? I'm encountering lenders that won't do owner-occupied loan on a 1031 because they assume you are taking the new property as a rental and not as a primary residence. 

Thoughts?

@Edith Alvarado de Cortez, The biggest opportunity California investors should be looking at is the newly streamlined ADU laws that went into effect January 1st.

@Joe Splitrock, I agree that Zillow needs to be replaced as the go to place for tenant leads. Aside from this incident, they are definitely getting away with a lot of shoddy practices because of their growing market share. @James Wise has it right that they are unstoppable as long as they receive the eyeballs. I did their paid advertising for Zillow rental manager once, and you can tell that their internal technologies are jacked up, and their monetization practices are sneaky. I'm pretty sure they are re-selling tenant data any way that they can. 

I'm hopeful that there will still be competition in the market place in the future. And I'm glad that some of my apartments don't need anything except a "for rent" sign in the front yard to attract renters. I used to be in online advertising, and in that business you were always doing business at the whims of google and facebook. I really don't want that type of situation happening with leasing.

@Chris Clothier, Thanks for your comments Chris. I found the way this thread unfolded pretty interesting, too! I tend to be curious about people and their motivations. And clearly, there are a lot of reasons people stick around and contribute - for sure more than I'd assumed. 

@Daniel Han, hey Daniel, when I say stimulus causing money to come to the Bay Area, I’m not referring to unemployment checks and the actual payments from the bill. I mean that on the macro level, when the federal government injects tons of money into the economy, a large portion tends to end up in places like the Bay Area (Silicon valley, VC, stocks) and New York (financial center). I would argue it’s part of why we did so well after 2008. 

@Ivan Barratt, In answer to your original question, I don’t see how Bay Area prices go up on MF without the massive inflation and wage growth on all socioeconomic levels. People can’t really afford higher rents without making more money. It’s plausible though, since I imagine much of the stimulus money/debt will end up in the Bay Area. Still too early to tell though. 

@Ivan Barratt, The argument I’ve read/heard from the real “doom and gloomers” is that 2008 was supposed to be the big one, but the government did not allow the market to correct itself by bailing out banks and printing money. Therefore, the argument goes that the bubble is now bigger and therefore will crash harder this time. 

What I wonder is - what’s actually changed in the government response this time around? If anything, the US reacted faster to print MORE money and bail MORE people out. So wouldn’t that lead to a further delay of the big depression that some people are expecting? 

@Charlie MacPherson, I just posted that the flip side to all these good vibes is about people paying attention to what advice they are getting and who they are getting it from. One element I've been bothered by is when teenagers post questions on BP. I'm fine with giving words of encouragement, and a few general ideas. But, I think there's a line there regarding how much direction to offer - especially those ones about whether or not to go to college... I think it's great for young adults to even be thinking about REI at that age, though - totally amazing.

@Jerryll Noorden, I certainly agree that people shouldn't be treated as unwelcome. As to why some posts get traction versus others - I'm not sure. And this is actually the first I've started that has taken off like this for multiple days. Can you just let me enjoy my fifteen minutes (or seconds)?? ;)

Honestly, though, I'm just trying to have a conversation. If there's a point to this thread, I think that BP members should be more careful about who they are taking advice from, who they are putting on a pedestal, and training themselves to be more independent thinkers. Don't get totally caught up with the forums, and also seek monitorship and expertise outside in the real world. In addition, there's good advice here on how being known on the forums can help your business and investments by creating a virtuous cycle. 

It probably doesn't come through, but the tone of my title was supposed to have a tinge of sarcasm. That doesn't take away from the respect I have for folks who've replied and shared their experiences.