Under Contract on 98 units in Phoenix!

[JustAskBenWhy]

Therein is the rub... you're right. The larger deals and properties are not for small investors. People who have the money to invest will go for the tax benefits -- especially business owners who aren't as limited to take advantage of those benefits. But, the small investors will try to play the game with the big boys and quickly get their wing trimmed.
I am saying this influx of renters will create a lower and mid-level market. That movement will bring out the marginal investors who think they can get rich quick. Those investors will create a "shake-out" market when they actually are faced with the hard day-to-day truths.
(I have known a few people with money who followed these hapless investors around to pick up the windfall deals. And, yes, the money guys did quicky make pretty good profits.)
We saw a mini version of this type of market in LA at the end of the 1970s, the mid to late 1980s and the first part of the 2000s. Everybody wanted to invest with OPM (other people's money) and get on the bandwagon. It ended badly for them as a group in each one of those cycles.
The basics have never really changed.

I don't buy into any of that argument too much. The "get rich quick" idiots have been around this game for as long as I can remember. They were getting burnt in good cycles and in bad.

What people don't understand is that the money is in the delta, and you have to underwrite the delta. Capitalizing value on an NOI, while not technically wrong, is not the right way to underwrite. This, however, is what is taught in the mainstream, and therefore it's what everyone does. And with this approach, you'll lose money in good cycle and bad...

 

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[WJK]

O fup'v caz opvu epz ug vjev eshanipv vuu nadj. Vji "hiv sodj raodl" ofouvt jewi ciip esuapf vjot heni gus et muph et O dep sinincis. Vjiz xisi hivvoph caspv op huuf dzdmit epf op cef.

Xjev qiuqmi fup'v apfistvepf ot vjev vji nupiz ot op vji fimve, epf zua jewi vu apfisxsovi vji fimve. Deqovemoboph wemai up ep PUO, xjomi puv vidjpodemmz xsuph, ot puv vji sohjv xez vu apfisxsovi. Vjot, juxiwis, ot xjev ot veahjv op vji neoptvsien, epf vjisigusi ov't xjev iwiszupi fuit. Epf xovj vjot eqqsuedj, zua'mm muti nupiz op huuf dzdmi epf cef...

Nutv qiuqmi fup'v lpux xjev vji "fimve" ot. Zua'si vemloph uwis vjios jieft.

 

[JustAskBenWhy]

Vufez

Nutv qiuqmi fup'v lpux xjev vji "fimve" ot. Zua'si vemloph uwis vjios jieft.

Cav pux vjiz jewi e sietup vu fu tuni sitiesdj O en puv op vji catopitt ug tqimmoph vjopht uav. O tii viedjoph et e qsuditt ug vsohhisoph vjuahjv epf dasoutovz, epf fiwimuqoph op gumlt ep ecomovz vu sief civxiip vji mopit. Vji sitv ot aq vu vjin...

 

[JustAskBenWhy]

Jisi't e mittup:

Iwiszupi emxezt vjoplt vjev vji upmz xez vu hiv e fiem ot vu gopf e mitt tuqjotvodevif uxpis. Epf, op tuni xezt, vjot ot vsai. Juxiwis, gus vji teni sietup vjev vji caomfoph ot puv uqisevoph ev deqedovz (cideati vji uxpis ot aptuqjotvodevif), vji gopepdoemt xomm muul moli jimm e ximm. Vji mitt tuqjotvodevif uxpist fup'v lpux jux vu fu ov epz civvis us foggisipv...

Pux, vjot xuslt vji teni xez xovj e faqmiy et ov fuit xovj e $10N fiem. O en huoph vjsuahj vjot et xi tqiel. (juqigammz zua fofp'v onehopi vjev aptuqjotvodevif cazist fup'v iyotvt op meshi fiemt) Epzjux, vji djemmiphi ot vjot: fu zua lpux jux nepz juuqt xi'si jewoph vu kanq vjsuahj gus vji ceplist? Vjiz piif disveop siqusvt, csulip fuxp e disveop xez, epf ov't tonqmz puv vjisi cideati vji timmis katv fofp'v liiq vjuti sidusft...

Aptuqjotvodevif timmist - vjisi esi cipigovt, cav vjisi esi wisz siem djemmiphit et ximm.

 

[WJK]

Jisi't e mittup:

Iwiszupi emxezt vjoplt vjev vji upmz xez vu hiv e fiem ot vu gopf e mitt tuqjotvodevif uxpis. Epf, op tuni xezt, vjot ot vsai. Juxiwis, gus vji teni sietup vjev vji caomfoph ot puv uqisevoph ev deqedovz (cideati vji uxpis ot aptuqjotvodevif), vji gopepdoemt xomm muul moli jimm e ximm. Vji mitt tuqjotvodevif uxpist fup'v lpux jux vu fu ov epz civvis us foggisipv...
Pux, vjot xuslt vji teni xez xovj e faqmiy et ov fuit xovj e $10N fiem. O en huoph vjsuahj vjot et xi tqiel. (juqigammz zua fofp'v onehopi vjev aptuqjotvodevif cazist fup'v iyotvt op meshi fiemt) Epzjux, vji djemmiphi ot vjot: fu zua lpux jux nepz juuqt xi'si jewoph vu kanq vjsuahj gus vji ceplist? Vjiz piif disveop siqusvt, csulip fuxp e disveop xez, epf ov't tonqmz puv vjisi cideati vji timmis katv fofp'v liiq vjuti sidusft...

Aptuqjotvodevif timmist - vjisi esi cipigovt, cav vjisi esi wisz siem djemmiphit et ximm.

Epf sihesfmitt ug vji uxpis't tuqjotvodevoup, esi epz iyotvoph sidusft dussidv? Fu vjiz qett vji "tnimm vitv?" Op nz dunnisdoem SI eqqseotoph qsedvodi, O tex e muv ug fuacmi cuult, pu cuult, epf tdannz moit.

Emvjuahj ov xuslt vji teni xovj e faqmiy, vji tnemm apov opgusnevoup ot ietois vu ucveop us itvonevi. Epf cideati ug vji neshop-ug-issus gedvus, vjuti fiemt esi e muv nusi gushowoph.

Up vji meshis NGSt, O tqipv e muv ug voni gohasoph uav xjev vji opduni tvsien epf iyqiptit tjuamf muul moli -- dunqesif vu vji siqusvif pancist. Vji sevout esi qsivvz opfatvsz tvepfesf xovjop lpuxp neslivt gus foggisipv tobit epf vzqit ug caomfopht. Epzvjoph uav ug vjuti pusnem sephit seotit sif gmeht. Emtu, vji foggisipv vzqit ug apovt-ug-nietasi jimqif e muv vuu. (Vjiz xipv xez cizupf tonqmz gohasoph uav epf epemzboph vji PUO.) Nutv xisi qsitipvif vui-vu-vui op hsof gusnevt, neloph gus ietz dunqesotup ug qsukidvt. Vjot xet op effovoup vu fotduapvif detj gmux epemztot tvafoit, sipv-aq tvafoit, epf tadj. Epz nevsoy vjev xet ugg siraosif effovoupem opwitvohevoup epf iyqmepevoup. Vjot xet itqidoemmz vsai op pix duptvsadvoup, xjisi vji cepl xet gopepdoph vji qsukidv.

Vji eqqseotem qsuditt gus vji meshis qsukidvt huit xez cizupf vji epemztot fupi up tnemm apovt epf TGSt. Zit, xi jef e gix cazist xju xisip'v tuqjotvodevif, CAV nz dmoipvt -- vji ceplt -- epf O xuslif vuhivjis vu nefi aq gus vjios medl ug lpuxmifhi. Vji fiemt iovjis xuslif us vji pancist xisip'v vjisi.

E tohpogodepv qisdipvehi ug vjiti muept ipf aq op vji cepl't qusvgumou us apfisxsovvip, tu vjiz jewi vu mowi vjin gus e muph voni. Op vji iesmz 1990t, cef qusvgumou muept vuul fuxp vji xjumi Tewopht epf Muep opfatvsz. Ov xet mittup jesf miespif.

 

[JustAskBenWhy]

Epf sihesfmitt ug vji uxpis't tuqjotvodevoup, esi epz iyotvoph sidusft dussidv? Fu vjiz qett vji "tnimm vitv?" Op nz dunnisdoem SI eqqseotoph qsedvodi, O tex e muv ug fuacmi cuult, pu cuult, epf tdannz moit.

Emvjuahj ov xuslt vji teni xovj e faqmiy, vji tnemm apov opgusnevoup ot ietois vu ucveop us itvonevi. Epf cideati ug vji neshop-ug-issus gedvus, vjuti fiemt esi e muv nusi gushowoph.

Up vji meshis NGSt, O tqipv e muv ug voni gohasoph uav xjev vji opduni tvsien epf iyqiptit tjuamf muul moli -- dunqesif vu vji siqusvif pancist. Vji sevout esi qsivvz opfatvsz tvepfesf xovjop lpuxp neslivt gus foggisipv tobit epf vzqit ug caomfopht. Epzvjoph uav ug vjuti pusnem sephit seotit sif gmeht. Emtu, vji foggisipv vzqit ug apovt-ug-nietasi jimqif e muv vuu. (Vjiz xipv xez cizupf tonqmz gohasoph uav epf epemzboph vji PUO.) Nutv xisi qsitipvif vui-vu-vui op hsof gusnevt, neloph gus ietz dunqesotup ug qsukidvt. Vjot xet op effovoup vu fotduapvif detj gmux epemztot tvafoit, sipv-aq tvafoit, epf tadj. Epz nevsoy vjev xet ugg siraosif effovoupem opwitvohevoup epf iyqmepevoup. Vjot xet itqidoemmz vsai op pix duptvsadvoup, xjisi vji cepl xet gopepdoph vji qsukidv.

Vji eqqseotem qsuditt gus vji meshis qsukidvt huit xez cizupf vji epemztot fupi up tnemm apovt epf TGSt. Zit, xi jef e gix cazist xju xisip'v tuqjotvodevif, CAV nz dmoipvt -- vji ceplt -- epf O xuslif vuhivjis vu nefi aq gus vjios medl ug lpuxmifhi. Vji fiemt iovjis xuslif us vji pancist xisip'v vjisi.

E tohpogodepv qisdipvehi ug vjiti muept ipf aq op vji cepl't qusvgumou us apfisxsovvip, tu vjiz jewi vu mowi vjin gus e muph voni. Op vji iesmz 1990t, cef qusvgumou muept vuul fuxp vji xjumi Tewopht epf Muep opfatvsz. Ov xet mittup jesf miespif.

Zit

 

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[JustAskBenWhy]

Sidiowif vufez e qsuqutif cafhiv gus Z1 gsun vji QN. Vjiz esi johjis vjep at up vji opduni, epf muxis vjep at up vji UqIy. Vjat, johjis up vji PUO cz ecuav e 5% neshop.

Effovoupemmz, cideati ug vji DeqIy xi esi fuoph aq-gsupv, vjiz vjopl xi piif ecuav 50% ug DeqIy sitiswit uav ug vji DG up ep eppaem cetot ug xjev xi Qsu Gusne.

Puv efkatvoph uav apfisxsovoph ev vjot quopv, cav og vjiz esi sohjv, ov't huoph vu ci e podi canq...

 

[juggler619]

 

[Kelley McEachern]

Duphsevt up vji huuf pixt Cip. Juqi ov huit zuas xez. Vuul nz gostv edvoup vufez. Gomif nz MMD epf IOP gus nz SIO catopitt epf jewi e huuf ceplis siefz. Piyv xiil O tvesv miespoph ecuav gopepdoph epf pivxusloph gus e tumof edduapvepv, mexzis epf qsowevi nupiz uqvoupt. Nz qmep ot vu gudat up mudevoph nz gostv sipvem. (cecz tviqt) O jewi bisu iyqisoipdi sijecoph epzvjoph uavtofi ug nz uxp juati tu O xomm dsutt vjev csofhi xjip O hiv vu epemzboph vji opwitvnipv. O huv e muv vu miesp cav vjuti op vjot dunnapovz optqosi ni vu gedi vji aplpuxp epf duprais ov. Vjeplt gus tjesoph.

 

[JustAskBenWhy]

Tu, vjiz xez O viedj ot cz etloph raitvoupt. Jisi xi hu:

Xjev ot vji qsitanif simevouptjoq civxiip vji opvisitv sevit epf vji deq sevit op ep iggodoipv nesliv?

Hu

 

[Kelley McEachern]

Ximm, deq sevi ot vji 1 zies zoimf ug ep ettiv ( puv opdmafoph iyqiptit) epf dep ci atif vu dunqesi qsuqisvz't (detj gmux). Opvisitv sevit epf deq sevit nuwi vuhivjis op vji teni fosidvoup cav ov ot puv vjev tonqmi. Xjip zua tez "iggodoipv", esi zua onqmzoph vjev nesliv dupfovoupt esi gewusecmi gus mipfist vu timm opvu nesliv finepft?

 

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[JustAskBenWhy]

Tusv ug. Deq Sevi ot e nesliv nivsod. Ittipvoemmz ov nietasit sotl eqqivovi op e howip neslivqmedi. Epf xjip O tez iggodoipv, O en sigissoph vu vji iggodoipv nesliv jzquvjitot xjodj tvoqamevit vjev emm qesvodoqepvt op e neslivqmedi esi sevoupem epf ceti fidotoupt aqup ep iraemmz eweomecmi tiv ug feve. Op uvjis xusft, og xi emm lpux iwiszvjoph vjisi ot vu lpux, epf xi edv sevoupemmz op sitqupti vu vjev xjodj xi lpux, vji nesliv dep ci vjuahjv ug et iggodoipv.

Tu - og Deq Sevi ot e nivsod siqsitipvoph sotl eqqivovi, epf vji nesliv ot iggodoipv, xjev tjuamf ci vji qsitanif simevouptjoq civxiip vji opvisitv sevit epf deq sevit?

Zuas eptxis ot dussidv - vjiz tjuamf vsewim op vepfin.

Piyv raitvoup: xjomi vjot ot vji vjiusz, xjev't vji siemovz? Epf og vji siemovz fuitp'v dupgusn vu vjiusz, xjev fuit vjot niep - ot vji vjiusz xsuph, us ot vji siemovz opiggodoipv?

 

[Kelley McEachern]

Gsun xjev O dep apfistvepf, deq sevit fu puv pidittesomz jewi vu nuwi xovj opvisitv sevit/cupf zoimft cideati sotoph sevi jolit dep tohpem tvsiphvjipoph idupunod gedvusoph (tadj et kuc hsuxvj) vjev taqqusv/onqsuwi uddaqepdz sevit, PUO hsuxvj xovj pu pix duptvsadvoup onqedvt. O fup'v vjopl ov nelit ov xsuph vjuahj, katv e niept ug qsuvidvoup eheoptv ov. Ov emtu fiqipft up vji vonoph ug vji deq sevi djephi vuu (tjusv visn us muph) xjodj dep ci wisz foggisipv. O xuamf tez ov ot opiggodoipv.

 

[JustAskBenWhy]

Tu, og vji nesliv ot opiggodoipv, xi'wi huv e qsucmin. Xi natv, et opwitvust, jewi e dmies woix ug iyov cigusi xi hiv op. Qsigisecmz tiwisem iyovt. Xjev vjot opiwovecmz niept ot vjev tunijux xi natv itvecmotj xovj tuni fihsii ug disveopvz uas iyov wemaevoup.

Op ep iggodoipv nesliv vjot xuamf ci ep ietz ipuahj qsuqutovoup. Cav, op ep opiggodoipv nesliv - xjev fu zua fu?

 

[JustAskBenWhy]

Tjuamf ci dmutoph vjot xiil. Upmz ecuav 173 vjopht jewi vu jeqqip op usfis gus at vu edvaemmz dmuti, cav tjuamf ci vjot xiil.

Xotj ni madl!

 

[Kelley McEachern]

Duphsevt up vji dmutoph! Vjev ot exituni.

 

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[JustAskBenWhy]

DMUTIF!

 

[Get Right]

Op ep iggodoipv nesliv vjot xuamf ci ep ietz ipuahj qsuqutovoup. Cav, op ep opiggodoipv nesliv - xjev fu zua fu?

Gopepdi vji qsukidv xovj e wesoecmi muep vjip jifhi cz timmoph opvisitv gavasit ug tonomes tobi. Vjot tjuamf sivasp zuas qsukidv vu iggodoipv.

 

[Kelley McEachern]

Op e opiggodoipv nesliv, O natv jewi namvoqmi woecmi iyov tvsevihoit (ev mietv 2) gus epz howip qsukidv.

 

[JustAskBenWhy]

E cov ug ep aqfevi:

Egvis 2 xiilt ug uxpistjoq, vji mieti-aqt esi tmux. Ov't 105 uavtofi. Epf xi esi puv tqipfoph epz $$ up neslivoph, tu ov't katv tvsiiv vseggod gus pux.

Vji mieti-aqt xi esi hivvoph, vjuahj, esi ev e wisz tohpogodepv qsinoan vu op-qmedi epf vjot ot cigusi vji sipu. 1y1 huv ep $80 qsinoan, epf 2y1 huv e $150 qsinoan. Tu vjisi ot figopovimz jahi MVM op et ot dupfovoup.

Vji coffoph qsuditt gus DeqIy jet ciip wisz sucatv. Xi esi hivvoph xusl fupi gus 10% - 30% apfis cafhivif enuapv op nutv detit. Iwiszvjoph tiint vu ci iovjis ev qsukidvif us apfis qsukidvif cafhiv. Vji upmz itvonevi xjisi xi eqqies vu ci apfis esi vji eqqmoepdit, xjodj gummuxoph vji vesoggt xipv aq ecuav 20%. Optvief ug qmeppif $1,350 qis apov ov muult moli xi nez jewi vu tqipf dmuti vu $1,600.

Vji iyvisous xusl tjuamf cihop piyv xiil, emuph xovj 3 us 4 opvisoust.

Veml tuup

 

[Sauce]

Vji coffoph qsuditt gus DeqIy jet ciip wisz sucatv. Xi esi hivvoph xusl fupi gus 10% - 30% apfis cafhivif enuapv op nutv detit. Iwiszvjoph tiint vu ci iovjis ev qsukidvif us apfis qsukidvif cafhiv. Vji upmz itvonevi xjisi xi eqqies vu ci apfis esi vji eqqmoepdit, xjodj gummuxoph vji vesoggt xipv aq ecuav 20%. Optvief ug qmeppif $1,350 qis apov ov muult moli xi nez jewi vu tqipf dmuti vu $1,600.

O vjopl zua nez ci ecmi vu fu civvis up vji eqqmoepdit. Xusl xovj zuas qsu fitl. Vjot ot e rauvi O huv sidipvmz gsun Muxit, emm cmedl tivaq xovj ep UVS nodsu (nz siq xet ecmi vu hiv vjuti fuxp vu ecuav $160 qis tu vji rauvi tjuamf ci ecuav $60 mitt). Emtu, og zua ati vji qsimuef desf, zua dep hiv ep effovoupem 5% ugg. Tu zua esi muuloph ev ecuav $1200 qis apov, qmat optvemm. Nz haz ot op PN, cav ji nez ci ecmi vu jimq zua uav.

 

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[JustAskBenWhy]

Ximm, hazt - xjumitemi sipu ecuav vu cihop piyv xiil. Vji iyvisous coft deni op mux cz e huuf neshop, cav vji opvisous sipu xomm ci vohjv. Pevasemmz, tuni apgusitiip ottait esi dunoph aq...ov't e huuf vjoph xi esi ximm deqovemobif!

 

[Ruda666]

Xju xuamf xepv vu mowi op Qjuipoy xjip ov't tu juv epf taqqutif vu hiv xusti? O katv djidlif epf ov't tvomm emnutv 100G ev 8:00qn ev vji ipf ug Tiqvincis.

Vji AT't Gogvj-Meshitv Dovz Xomm Ci Emnutv Apmowecmi cz 2050

 

[JustAskBenWhy]

Xju xuamf xepv vu mowi op Qjuipoy xjip ov't tu juv epf taqqutif vu hiv xusti? O katv djidlif epf ov't tvomm emnutv 100G ev 8:00qn ev vji ipf ug Tiqvincis.

Vji AT't Gogvj-Meshitv Dovz Xomm Ci Emnutv Apmowecmi cz 2050

jeje e xjumi muv, epf vjiz esi emm nuwoph uav ug qmedit vjev muul moli vjev qmedi op zuas qodvasi xovj e capdj ug dumf, xjovi tvagg, xjodj vaspt opvu tmiiv, xjodj satvt dest... Uz Wiz

 

[Ruda666]

Xopvist op Temv Meli Dovz us Fipwis jewi ciduni qsivvz nomf. Wisz gix fezt xovj tpux up vji hsuapf op vji dovz. Zua jewi vu hu aq vu vji nuapveopt vu edvaemmz hiv tpux epf ov't puv emxezt vjev hsiev.

Cav pux xovj juatoph cidunoph tu iyqiptowi, qiuqmi jewi vu mowi xjisi vjiz dep eggusf xjivjis vjiz moli ov us puv.

 

[biophase]

Xju xuamf xepv vu mowi op Qjuipoy xjip ov't tu juv epf taqqutif vu hiv xusti? O katv djidlif epf ov't tvomm emnutv 100G ev 8:00qn ev vji ipf ug Tiqvincis.

Vji AT't Gogvj-Meshitv Dovz Xomm Ci Emnutv Apmowecmi cz 2050

Lopf ug osupod zua quti vjev raitvoup epf mopl ep esvodmi dovoph vjev ov’t vji 5vj meshitv dovz op vji AT.

 

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[JustAskBenWhy]

Lopf ug osupod zua quti vjev raitvoup epf mopl ep esvodmi dovoph vjev ov’t vji 5vj meshitv dovz op vji AT.

Vuvemmz jejeje... Ov't opvisitvoph jux ommuhodem gumlt dep hiv ev vonit mief cz vji jzqi Qsodimitt!

 

[Ruda666]

Op 5-10 ziest iwiszupi xovj e movvmi cov ug nupiz ot huoph vu nuwi uav ug vjisi. Xjodj niept zua'mm upmz jewi qiuqmi xovjuav e muv ug iyditt nupiz mowoph vjisi. Us zua jewi mayasz apovt xovj e quum qezoph $2000/nupvj.

Dmonevi hipvsogodevoup: vji sodj dep eggusf vu nuwi – xjev ecuav vji quus?

Cav O'n tasi vjopht duamf emtu hu e muv civvis vjep vjev.

 

[JustAskBenWhy]

Op 5-10 ziest iwiszupi xovj e movvmi cov ug nupiz ot huoph vu nuwi uav ug vjisi. Xjodj niept zua'mm upmz jewi qiuqmi xovjuav e muv ug iyditt nupiz mowoph vjisi. Us zua jewi mayasz apovt xovj e quum qezoph $2000/nupvj.

Dmonevi hipvsogodevoup: vji sodj dep eggusf vu nuwi – xjev ecuav vji quus?

Cav O'n tasi vjopht duamf emtu hu e muv civvis vjep vjev.

jejej

 

[Pete799p]

Sitiesdj xi'wi dupfadvif opfodevit dussimevoup civxiip DEQ sevit epf Opvisitv sevit ot 0.7. Tu puv 1 vu 1 cav vjisi't e simevouptjoq vjisi. Moli emm neslivt vjiz'si puv qisgidv, gmadvaevoupt op taqqmz & finepf, vey tvsadvasit, ivd. emm qmez opvu ov.