All Forum Posts by: Rich Weese

Lots of changes since I was active here on BP. I have a "score" of 6.88 as a contributor , What is that? Am I posting too much?

It doesn't matter which party is in power. They all seem to be after the same thing:

Make more money  and contacts for themselves and

Take more money from us.

If either party decide to mess with Depreciation rates or disallowing interest write offs, we're dead.

@Mike Nelson

I'm glad you enjoyed my book .  

Thanks 

I'm sure most of you are laughing at the label on this thread. Hear me out.

I started a thread several days ago about how high can real estate prices go. The majority of the responders have all acknowledged that we are due for at least a correction in most markets. I realize this is regional. But what if we cause the problems. I heard from so many that have decided to not purchase single-family homes at the present time. I believe that lowers demand... I have always had the feeling that when everyone is getting on the train, I get off. When everyone is getting off the train, I get on. We all know which train is on the tracks currently.

Many people are currently paying much higher prices for flips than they ever had to pay before. This results in a much smaller profit. Will we ever reach the point where so many people have decided not to purchase single-family residences, that the demand will drop below the supply. Everyone knows what happens at that time.

There are more and more of the college kids that are not taking the conventional route to get a job, buy a home, and maybe get married. That will also reduce the demand on the supply of single-family residences. It also helps to increase the number of apartment renters, whatever the level of apartment might happen to be.

In the long range, there are fewer children being born per couple. I believe it takes 1.9 to keep the population rate the same. Japan is going through a period of time right now where they are not even keeping up with the population due to fewer births.

The average life expectancy came down in the most recent numbers for the first time in many years. Is this also a trend?

I guess time will tell whether we have anything to worry about…

@Erin Shine, @Will Barnard,@Jay Hinrichs,

Erin-I did the Canadian Rockies train trip this summer, and spent some time in Vancouver before the trip. Investors were buying homes on an entire block and tearing them down. They weren't bad houses. You could drive down the street and see houses being plowed down. And in the next block, see large condo buildings being built. I do mean large!

Will-thanks for the welcome back. It looks like you have taken over Joshuas' spot as the boss LOL. I'm trying to learn all the new rules, so please take it easy with me as a moderator.

This is weird. I can't disagree with almost anything you said! That is really weird. We used to have only contrarian views.

In regards to your thoughts on apartments, I want to give an example. I purchased two buildings outside Dallas 18 months ago. They were well over 100 units in a class C neighborhood as was the building. I checked the records just yesterday because I think I needed to answer another post. I have raised rents 21 to 24% on the two buildings! We are still running 98% occupancy. With that type of rental increase, I have plenty of space for a minor correction. I have also decided I am going to sell the building I purchased in 2009 and not do a 1031. I think I would rather take the cash, pay all taxes, and wait to see what happens in the near future. I now have three buildings in the Dallas area and all have been fantastic. There is so much demand now, that I can sell and take a profit that I am very happy with even after all expenses. I think I can make up the growth by waiting several years. I'm too old to take a chance of having an economic setback because I purchased properties that were so overpriced. I don't have the number of years to wait for the recession and then wait for the recovery, if there is one. I have also done cost segregation on the buildings, which is providing tremendous write off for the first few years. I will decide what to do when that has run its course.

I have been selling my single-family residences for several years. I am now down to under 30. I owned most of those free and clear and have been selling them with owner financing. There are a tremendous number of people, especially in South Texas, where qualifying for institutional loans is difficult for a myriad of reasons. They have businesses or high-paying jobs but can't pass the muster for a loan, if you know what I mean. They are not high-priced homes and the people are willing to pay 9- 9 1/2% interest amortized over 30 years with a 10 year balloon. I may even use some of my cash out from the apartment sale to do owner financing on homes that I do not own. I'll have to see what I decide on that when I have the cash in my hands.

I'm not doing much in real estate currently. I did buy a few lots and build a few homes here in Florida, when we moved here three years ago, but then everyone else started doing the same thing. Profit margins went down quickly and quality of product went down also. It was kind of like the rehab or flip market when it becomes inundated with demand....

I understand there was another convention. Did you speak at it? I remember the first one is being great fun. for someone in my situation where I am not very active in purchasing things, are there still benefits to me being a PRO  other than advertising my apartment building and book? There are so many new people on bigger pockets, I think I can help answer some of their questions and concerns which I probably would not be doing in the PRO arena.I guess it would be fun to be called a PRO.....

@Jay Hinrichs

You are talking apples and I am talking oranges.I see where the single-family homes worked out great for you in Georgia. I have owned quite a few single-family residences in SouthTexas purchasing most of those in 2009 at extremely discounted prices. I have been surprised they have not gone up much in valuesso my experience shows you are accurate in regards to Texas, at least in my area.

Apples – this relates to SFR's for you and multis for my oranges. I don't know whether you paid cash for the homes in Georgia. If you did, and doubled your money, I can't compete with that. If you doubled your down payment, I can.

Oranges – I purchased two apartment buildings. Approximately 18 months ago in Texas. I have realtors. I am working with. At the present time but would love to list either one of those. I will come close to tripling my down payment on either one. I think that is a 300% in 18 months or 450% annually. I hope my math is correct, but correct me if not.

You like apples and I like oranges. All fruit like that taste really, really good.

I purchased a storage facility in Bonita Springs in 2009. I moved to Fort Myers and lived there for two years to rehab the storage facility. I think I know the area you are talking about. There were literally hundreds if not thousands of homes built in one area with most unsold. I even bought a couple out there after I had them tested for Chinese drywall. I must have gotten there too late because I was never able to purchase one for $20,000. You did well.

Where are the real estate salespeople, spec builders, flippers and wholesalers? They usually join a thread like this stating the sky is the limit and things will never change, LOL. I wonder what their motivation is for thinking that way? 

Thanks Rolanda. It has been awhile!

Thanks for the compliments.

@Will Pritchett

I'm also glad you enjoyed my Book. 

I agree with Greg. It will be good for you to see how the court operates and find out why this is the third visit to court on the same matter. I would double my suggestion if this is not small claims court.

I am afraid it is too late to do adequate research, so I would say it is too late to purchase. One mistake can damage you for a long time. I already added a post to another thread with two examples of that. Check those out before you add yourself to that category.

Good luck