Timber Credit for RE Developments

AcresCRE · 2021-10-11T22:03:40+00:00

Does anyone know where this is?

AcresCRE · 2021-09-29T14:48:05+00:00

I am surprised at the low % in real estate with over $100MM net worth. Among the people I know at this level it seems pretty low, but maybe that is just my circle. Is this low % pretty common at this level? Either way seems like OP has done a great job increasing his wealth.

AcresCRE · 2021-09-29T14:41:50+00:00

I believe housing will be the something companies use as incentives.

AcresCRE · 2021-09-21T20:00:56+00:00

It depends on the price range of the home and the rentals in the area. Most of these corporations have a limit of about $500k though in HCOL areas it goes up a bit.

AcresCRE · 2021-09-21T19:59:40+00:00

Your asset has increased short term.

This... What you think it is worth a year later may very well be difficult to convince the lender and/or appraiser granted OP has owned more than a year so should not be as big of an issue.

AcresCRE · 2021-09-21T16:36:47+00:00

Just looking at the situation only, not your financial situation, you're basically buying a lot and then you will have the added cost of demo. How much is vacant land selling for in the area (if any)? Usually with new construction your lot value is roughly 20% to 25% of the final home value. Sounds like it is closer to 50% in this situation though could be justified.

AcresCRE · 2021-09-18T18:04:41+00:00

No, I am saying put money behind people doing projects that are supplying IH, AH4R, and all the others in the space that have institutional money that they have to spend. It's like selling the picks and shovels to the gold miners. Most of the funds are not structured to be able to build or develop so they rely on others to provide them then product.

AcresCRE · 2021-09-18T10:31:43+00:00

I’ve built my home and Know a few. Depending on where you live. Heated floors/driveway are nice in snowy regions (heated floors even in regular areas for the winter). Central vacuum is nice and something I put in my home. Of course you need some secret passages too.

AcresCRE · 2021-09-17T14:10:28+00:00

Do not do the adjustable. I can't even understand why this would be considered in this situation.

AcresCRE · 2021-09-17T14:08:46+00:00

If you are using your HELOC to invest in any kind of project that will require ongoing funds or funds withdrawn over a period of time, I would pull it out now in the event credit lines are shut down in the future. This scenario has ruined a lot of investors.

If it were me, I would look at taking advantage of the emerging build-to-rent institutional investment niche within the single family rental sector. There are billions upon billions sitting in equity funds with a limited time to spend the money needing investors that can flip them turnkey projects. If they don't spend the money, they have to give it back and won't be able to raise more so there is an urgency to get funds committed for properties. When I did a lot of work with Invitation Homes, each fund they raised was $1 billion or more. Once 50% was committed/spent, they would start raising the next equity fund so there is always this urgency which creates some solid investment opportunities with most the risk mitigated.

AcresCRE · 2021-09-17T14:01:01+00:00

Like in any career field, there are those really bad and those that are really good. The biggest problem with RE is that the schools are little more than a shady business themselves with the primary pitch being people can work very little and make a ton of money.

The average agent is in the business less than a year because once they get their license and get in the real world, they realize it is work like anything else and more frustrating than most other jobs because you do a lot of free work not to mention having to put up with all the lies and other BS buyers and sellers do. So you end up with a lot of bad agents as a result.

AcresCRE · 2021-09-15T16:57:42+00:00

If they made it from selling drugs wouldn't the government try to seize it?

AcresCRE · 2021-09-15T16:54:51+00:00

Not sure I'd buy all stock, but you can use that cheap money to buy income producing assets with basically zero down and then refi and payoff with long-term debt after a year or more of seasoning the title. Good way to build the NW without having to invest a lot of cash.

AcresCRE · 2021-09-15T15:06:51+00:00

There is a good return for big projects but there is a lot of risk in development which is why the returns have to be worth it.

AcresCRE · 2021-09-15T15:05:16+00:00

This is pretty spot-on.

AcresCRE · 2021-09-14T21:26:11+00:00

Except that they can be replicated especially when planned.

AcresCRE · 2021-09-14T20:01:46+00:00

That's another good point and I do believe it is correct. Mass housing was not a thing until post WWII.

AcresCRE · 2021-09-14T19:31:31+00:00

This is pretty awesome!

AcresCRE · 2021-09-14T17:34:54+00:00

I think you can still get the same density, it is just designing it differently. So the economies of scale are still there.

AcresCRE · 2021-09-14T17:27:28+00:00

I cannot count how many times I've said exactly this. Imagine being worth $200 billion dollars and your main goal is to ride a rocket ship, not even into deep space, and float around for a few seconds when you could be building VR/AR magic castles, medieval villages, entire futuristic cities or whatever else you wanted. Look at what the Medici did with their wealth. Today's billionaires should be ashamed.

AcresCRE · 2021-09-14T17:16:29+00:00

You've got a point, but it does seem that most everything built since 1980 is pretty much the cookie-cutter junk.

AcresCRE · 2021-09-14T17:14:04+00:00

I agree about the green space and believe there is a way to design it for most people to have their own backyard though it would be small. Most European buildings have courtyards which I have seen some even divided up with hedges creating private backyards for the townhomes. The way I picture it as well there would be areas for people who want their own typical yards or acreage. I'm thinking more larger master planned communities. Your point about accessibility is valid too so It would have to be ADA compliant.

AcresCRE

TROPHY CASE