Real Estate Investing: Will decentralized housing technologies affect real estate investment? |
- Will decentralized housing technologies affect real estate investment?
- Just a reminder, Illinois extended eviction restrictions through mid October.
- Is it worth getting a real estate license solely for your deals and people from your circle?
- What is the industry standard for bringing a deal to the table?
- How many months/years worth of expenses do you keep in cash reserves?
- Better to buy 1 property in full or multiple with mortgage?
- Small amount of equity after sale but huge tax bill...any other options?
- Is a downward price change for a relisted property after a pending sale falls through a red flag (e.g., HOA more than disclosed, inspection showed defects,etc)?
- Anyone with experience building multifamily homes?
- Auctions or doing wholesale?
- Do you use your SSN or EIN for taxes?
- PM to CM
- Keep a reserve
- Farm Ground vs Rental Properties (Appreciation vs cash flow)
- What are the best metrics for evaluating whether a city’s real estate will appreciate in value, and where do you find them?
- Sell or rent?
- How do I find a good broker?
- Interested in buying my first property. Local HCOL area vs out of state LCOL?
- At what point is a personal corporation helpful?
- Sourcing tenants on my own vs using an agent?
| Will decentralized housing technologies affect real estate investment? Posted: 22 Sep 2020 03:59 PM PDT I was watching some Real Vision videos recently that talked about tokenizing real estate on Grand Cayman as well as the impact of COVID on commercial real estate and I started wondering if anyone else is working on decentralizing real estate investments. They talk about its potential to reduce the rich/poor divide when it comes to real estate investing, which I think is pretty appealing, so I was curious if anyone else was working on this problem, and I came across a couple companies. Divvy seems to be kind of getting at this by modifying the rent-to-own model a bit by letting renters choose not to ultimately buy the home but still receive a return on their "investment" while renting, but it's not fully decentralized. Brickx is definitely aimed at partial investment in individual properties (unlike a REIT) but they don't seem to offer any incentive to home owners or social impact since it keeps property ownership in the hands of those who can afford it. The Whole Half wants to decentralize investment in homes while also creating an opportunity to open up home ownership to those who wouldn't have been able to afford it without the support of other investors, which to me sounds like the most interesting idea, but they seem pretty early stage. How does everyone feel about decentralized investments and their potential for social good? Do you think these decentralized tools will bring more people into real estate investing who aren't currently able to participate? Any thoughts on whether it's "crypto all the way" or can this be done in a more traditional way? I, personally, am hopeful about the concept, especially with how COVID seems to be opening up the real estate investment arena to some new tech, but what do you think? [link] [comments] |
| Just a reminder, Illinois extended eviction restrictions through mid October. Posted: 22 Sep 2020 11:18 AM PDT It was extended from September 19th into October 17th. Although I am sure it will probably be extended again just like it has since April. This makes it sound like evictions are restricted, but from my experience it makes it almost impossible. The guidelines are for non payment of rent, and it even says other reasons for eviction are still valid. But if you call a courthouse, police, or lawyer, they will all tell you nothing is happening at the moment and won't do anything. The majority of my problems being with the courthouse. I had a squatter who was treating it as a vacation to not pay rent. They shouldn't have been protected under this order but they couldn't be evicted regardless. It was to the point where I called state officials and spoke with a number of them. While they sounded sympathetic, and a few did look into more options, ultimately the conclusion was nothing was going to happen. Be careful and be prepared. [link] [comments] |
| Is it worth getting a real estate license solely for your deals and people from your circle? Posted: 22 Sep 2020 06:29 AM PDT Plan to get into multi-family investing and house hacking within the next year or two. Is it worth getting a real estate license to keep up with the market and represent myself in my deals? I'm wondering if the money I save in commission fees would outweigh the fees of continuing education and broker fees every year. Also would ideally be an agent for people in my circle if desired. Does anyone else do that? Any advice or insight is welcome. Thanks! [link] [comments] |
| What is the industry standard for bringing a deal to the table? Posted: 22 Sep 2020 09:18 PM PDT I introduced two associates to each other with an idea to put together a really large development. One friend owns the land, the other is the developer. Total build is approximately $120M. There's a lot of hurdles to jump, but, I've been told I'll be well taken care of for putting this together when escrow closes, and I'd like an idea of what "industry standard" is on something like this. I'm heading to the table to negotiate and I don't want to walk in blind. [link] [comments] |
| How many months/years worth of expenses do you keep in cash reserves? Posted: 22 Sep 2020 02:00 PM PDT And if you want to, say why you think that amount is appropriate [link] [comments] |
| Better to buy 1 property in full or multiple with mortgage? Posted: 22 Sep 2020 02:34 PM PDT Hey all, just getting into real estate and this is something I've been wondering but can't really find an answer to. Let's say I have $400k and am looking to buy a $400k property (all in costs), would it be better to buy that one property in full or to put in the down payment, take out a mortgage, and use the remaining funds to do the same with additional properties (dp + mortgage)? For arguments sake, let's say each property is $400k, with 20% down payment, and 3% mortgage if that matters. Also if you could please provide your reasoning it would help with understanding my particular case and for future usage. [link] [comments] |
| Small amount of equity after sale but huge tax bill...any other options? Posted: 23 Sep 2020 03:02 AM PDT I've owned a multiplex for 15 years. I bought for $215,000, and have an offer for $450,000. We refinanced and owe just under $410,000. (No agents involved so I should net close to $40,000) I've done lots of 1031s in the past but I don't see how I could take $40,000 and use it on a $450,000+ property. DSTs are min $100,000 purchase that I've seen. Is there any options I'm not thinking of? I could hang on to it I guess. [link] [comments] |
| Posted: 22 Sep 2020 06:33 PM PDT Nothing more to add. I'm generally interested in red flags on Zillow listings that aren't obvious to someone reviewing them. Thanks! [link] [comments] |
| Anyone with experience building multifamily homes? Posted: 22 Sep 2020 03:41 AM PDT I'm in the DC metro area and finding anything out here is difficult, let alone multifamily. I've been kicking around the idea of buying land in another metro area and building duplexes, triplexes, or four unit buildings. Has anyone done anything like this? [link] [comments] |
| Posted: 22 Sep 2020 10:12 PM PDT Which one do you prefer to obtain property from? Also any good books on auctions or wholesaling? [link] [comments] |
| Do you use your SSN or EIN for taxes? Posted: 22 Sep 2020 11:36 AM PDT I bought my first rental this year and was wondering if it's a thing to use an EIN instead of SSN for tax purposes. A while back I read that it's a good idea to have an EIN. So I requested an EIN for my "business" and asked my property manager to use that for the 1099 at the end of the year. Now I'm wondering if I'm creating unnecessary hoops to jump through for myself come April next year. Where can I read up on this? [link] [comments] |
| Posted: 22 Sep 2020 06:32 PM PDT Iv been working at a big general contractor and have been exposed to numerous projects. Iv been blessed with the opportunity to build high rises and low rises. Together Iv been able to work on and oversee about $200,000,000 worth of construction. Iv been allowed to manage budgets, buy out contracts, develop project schedules, and write contracts. Iv been exposed to the field and delt with owners first hand as well as senior city officials. All in all, I knew I wanted to "go to the farm" to learn the building process. I realize you'll always have more to learn but don't want to wait till it's to late. At the end of the day, I want to be in commercial real estate development. My goal long term is to own my own properties and negotiate deals to fund projects (I'm 24) . I realize that doing so will take knowledge that would probably best come from working for a commercial developer. What are some things that developers look for when hiring property acquisition employees / is this the right position to be aiming for? What jobs working for developers give you the best exposure to help me later down the road? [link] [comments] |
| Posted: 22 Sep 2020 04:29 PM PDT I see many posters on real estate talking about how they budget 20-25% for CAPEX improvements, and emergency funds. Is there anyway to hold these funds without paying taxes? Or is this a discussion only and not practical advice because each year these reserves/capex amounts are taxed at ordinary income rates. It would be helpful to stow away funds to repair the eventual 5k repair needed or roof replacement so what are strategies on doing this? Rather than get taxed every year and then when you need the repair you don't have the funds. [link] [comments] |
| Farm Ground vs Rental Properties (Appreciation vs cash flow) Posted: 22 Sep 2020 07:32 AM PDT Hey all - I did a search on this subreddit and couldn't quite find the answer I was searching for. Basically I have saved up money to take the plunge into real estate investing. I am faced with a decision between two different properties - purchasing farm ground near my hometown in the midwest and renting it to a family member to farm, or purchasing rental property near in the city where I live to manage myself. The specific numbers of the deals pencil out to 16% for the rental property and 17% for the farm ground. However, the farm ground would cash flow negative for the duration of the loan (20 years). The higher return comes solely from the appreciation (and I am using a conservative estimate based on historical trends). Which deal would you prefer in your experience? TL;DR - Would you take a deal with an higher expected total return even if it cash flows negative? [link] [comments] |
| Posted: 22 Sep 2020 08:06 AM PDT If you're looking at a town/city to invest in, obviously it's worth evaluating the socio economic trends of that city to determine whether or not it would be a suitable environment for investment. At the most basic level, population growth is the strongest precursor to increasing prices for obvious reasons. Other important trends I can think of would be crime rates and median income. It would also be useful to know the best databases for finding this information, so knows where the best places to find these statistics are that would also be very helpful. So there are basically 2 questions here:
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| Posted: 22 Sep 2020 05:53 AM PDT I'm moving out of my current home in eastern Massachusetts, and I'm trying to decide whether to rent it out or sell it. We've had a seller's market here for years, and this house has appreciated at 8% since we purchased in 2017. Right now it's especially hot; houses are selling in less than a week, well over asking price and often with no contingencies. It seems likely I could sell for ~$610K with a balance of ~$400K on the mortgage. The other option, of course, is to hold it and rent it. The rental market for large single families isn't as hot, but I could probably get $3200 with PITI payment of $2500. I could let the house keep appreciating and take in a modest profit until I decide to sell. The house is in good shape and is just 15 minutes from my new house, so self-management shouldn't be too difficult. I probably would let agents vet tenants, though. I know there are lots of things to consider here, but what would you do? [link] [comments] |
| Posted: 22 Sep 2020 01:25 PM PDT I've been able to save more for investing and so far I've bought 2 SFH. I'm looking to do less of the leg work myself and find some MFH or larger properties that I just don't have access to. How do I find a good broker? I'm In AZ. [link] [comments] |
| Interested in buying my first property. Local HCOL area vs out of state LCOL? Posted: 22 Sep 2020 09:35 AM PDT Hi all, I'm new to real estate and have started becoming more interested in buying a multifamily building to rent out. The biggest challenge I face is that I live in Los Angeles, where everything is hyper competitive and expensive. For a multifamily in a poorer area(Compton, inglewood) im still looking in the millions. I can put about 200-250K cash down right now but hoping to save a little more. Another option I have is to buy a place in eastern washington(spokane) where my mother lives(along with other family). She's retired and willing to be the "property manager" and would just pay her(against her will, as i know it will take time and energy). Of course this isn't ideal given how far I am away, but I can get so much more for my money. Is this a horrible idea? I'm from San diego and have tons of family there, so that's another option, but again super expensive. Tl;dr: I'm looking to get into real estate and have options of LA, Spokane and San Diego. Which would you choose? [link] [comments] |
| At what point is a personal corporation helpful? Posted: 22 Sep 2020 12:17 PM PDT I've been researching a lot of information about real estate, and was wondering if a personal corporation is something you get as you acquire your first or second property, or something you acquire many properties down the line? Can you start without one, then "morph" any properties into one later on? [link] [comments] |
| Sourcing tenants on my own vs using an agent? Posted: 22 Sep 2020 06:03 AM PDT Hello, I recently closed on my first investment property. I am deciding between using an agent to find tenants and doing it myself via TurboTenant/Avail. An agent will cost 1 month's rent ($2500) and he will list the property on the MLS along with popular apartment sites like Zillow and others. The agent will also handle all the paperwork and fair housing documents. On the other hand, I can list the property very easily to all the available apartment sites and use both TurboTenant and Avail to manage incoming leads. The leasing documents are straight forward from my perspective. Obviously the benefit is this won't cost me more than $100. Does anyone have recommendations/advice? This is my first major property investment and all help is greatly appreciated. Thanks! [link] [comments] |
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