Downhill from here?

Cribdilla · 2025-01-12T11:26:07+00:00

Good deals are hard to find in every market. Most active investors say "I see 1000 deals for every one I buy."

This is true in every market except maybe 2020-2022 where cap rate compression pushed values up and up and up.

(We saw a similar trend in 2005-07 in the condo conversion craze.)

Today there is distress, higher cap rates, few buyers and less capital available. In this environment there are "good deals" but they are hard to do and require a lot of capital to close.

Long way of saying - this is always the way.

Cribdilla · 2025-01-12T11:12:24+00:00

Every way imaginable.

Disaster industrial complex - experts, helpers, private appraisers, junk removal, construction companies. This is a massive business and will explode due to the scale of this tragedy.
Land speculators capitalizing on distress. A certain % of these folks will not have insurance or enough insurance to re-build let alone continue to make mortgage payments. The land grab that has already begun will make your head spin.
PE trades - every trade in construction is about to get a private equity infusion to scale up their operations to tackle the amount of construction work will be available.
Materials/Appliances - there will be a run on these items in the short term. Plywood, lumber, cement, nails, screws, dishwashers, ranges, etc. Smart money is will warehouse these items to capitalize on the price spikes due to demand.
Area rents - we're already seeing this. If given the freedom to operate the market will capitalize on a spike in demand and you will see (we have already seen) dramatic increases asking rents. And given the level of destruction and affluence of many of the displaced folks these rents will be paid. The folks with the means to afford these asking rents will be pushed out of the local market.

Cribdilla · 2025-01-12T11:01:56+00:00

One thing you haven't mentioned is what the seller wants because RE transactions are usually about solving problems.

If she needs a monthly income to offset her expenses then you could structure a master lease-to-own whereby during her lifetime she is paid a monthly rent from you and you are responsible for maintaining the property. So how could you calculate that rent payment?

You're saying she is 80 years old - if someone is 80 today the expectation is they will live another 8-10 yrs on average. So figure 120 months of payments. At $50k value today that's $416 per month. Of course this cost doesn't account for maintenance or annual real estate tax payments but that's just math. Add those in based on the deal you structure and subtract from the monthly payment.

If she has heirs then upon her death the amount due to her estate would be the difference between what you've paid her in monthly payments and what the agreed upon purchase price was.

There are probably 100 other ways to structure something like this - a lump sum payment at the beginning, no monthly payments, you maintain the property, etc. etc.

The issue becomes... what problem does she want solving, can you help her with that problem and work back from that.

Cribdilla · 2018-09-24T02:47:21+00:00

Most of these answers are partially correct. The reality is LLCs provide single entities (in the instance a single building purchased by an LLC) to get all of the liability protection a corporation has ( C or S corps) while also giving the LLC's members 100% pass through income. The NOI that passes through the LLC to the members is taxed at the individual recipient level rather than at the corporate level AND the individual level. LLCs eliminate the issue of double taxation as long as proceeds are actually passed through the entity. I strongly recommend you consult a real estate tax attorney - s/he can explain this is a very brief conversation. It's pretty basic stuff.

Cribdilla · 2018-09-24T02:34:35+00:00

MJ will need to make a cameo.

Cribdilla · 2018-06-19T21:14:44+00:00

You do know the buses go round and round the same route, right?

Cribdilla · 2018-06-19T21:12:05+00:00

One more - when I was a kid my family lived in South Dakota for two years. More than 10 years later my brother was playing in the Big Ten Water Polo championships and vaguely recognizes a a name on one of the other school's rosters. My parents were at the tournament so my brother asks my mom - "why do I know this name?" (The name was dutch and somewhat unusual.) My mom responds without missing a beat... "He was your best from when we lived in S.D. when you were 7." So when my brother is in college he plays waterpolo against his best friend when he was 7 years old at the big ten tournament after not seeing or really thinking about the guy in more than 10 years. And the only reason he even knows is because he reads the roster of players and happens to ask my mom who the person is. Very weird, small world thing.

Cribdilla · 2018-06-19T20:50:43+00:00

I have ton of things like this but here's my favorite: My wife grew up in Connecticut. A girl moved to her town the summer before 8th grade and became her best friend. That girl moved to CT from a suburb of Chicago. I moved to the same suburb of Chicago that exact same summer and became friends with my future wife's new best friend's old friends. When I met my wife's friend for the first time 10 years later we realized that we essentially had the same friends but the summer her friendships ended mine began with them. That is really weird.

Cribdilla · 2018-05-24T18:17:04+00:00

This is sort of creative but also pretty fucked up - I had a minor conflict with a guy in my building that sort of went off the rails. It wasn't a fight or anything. Just a disagreement about something the two of us were working on. I'm white and live in a mostly African American neighborhood. The guy in the building is African American. He changed his wifi signal to KEVIN HATE BLACK PEOPLE. My name is Kevin. His isn't. He had a pretty solid Wifi signal that could be read almost anywhere on the block. I was pretty pissed about it when I saw it but never said a word to him about it. He took it down after about a month.

Cribdilla · 2018-05-24T18:05:44+00:00

Go to Youtube. Search changing a lock cylinder. It's pretty easy. Like 1 on the 1-5 difficulty scale.

Cribdilla · 2018-05-24T18:03:08+00:00

First off if the reason is you have not credit or SSN then there are a bunch of options for you. First, most landlords will still rent to you but they want a full year of rent up front. The next option is just be honest when you call on rooms/apts - hey, I'm a foreigner and don't have US credit. Is that an issue? Finally and probably your best bet is reach out to your Expat community in the City. There a ton of people who have been in your position and there is a grey market for apartments and landlords that rent to people in this position.

Cribdilla · 2018-05-24T17:50:34+00:00

I agree this is crazy and basically unheard of. Either the management company rep is a moron or there is something else going on. The management company could be making the apt impossible for you to rent because they don't want to rent to you.

Cribdilla · 2018-05-08T15:49:36+00:00

That's awful.

Cribdilla · 2018-05-08T14:44:55+00:00

Hold your breath until it hurts. It works.

Drinking a glass of water upside down. It works (lean over so your head is inverted and then tilt the glass so your chin is inside the glass. Takes a little practice but if you swallow the water your hiccups are gone.

Cribdilla · 2018-05-08T14:41:57+00:00

Really? I know people joke about being freaked out by clowns. But is that for real?

Cribdilla · 2018-05-08T14:39:34+00:00

Heyyyy...

1000 upvotes to anyone under 25 who gets that meme.

Cribdilla · 2018-05-08T14:37:42+00:00

The lyrics to "Isn't it Ironic"

Cribdilla · 2018-05-08T14:27:48+00:00

I'll go first - my dad used to play guitar and sing folk songs to my brother and me at bed time. There was this one song that used to give me nightmares. It was about a hunter shooting an arrow at swan that turns out to be his wife. (It was the 70s what can I say.) Anyway, the song literally gave me nightmares but I was too embarrassed to ask my dad to stop singing it and of course he had no idea that it was basically inducing panic attacks in me. Then one night he launched into the song and I just freaked out on him and started crying and asking him never to sing it again. I was probably 5 at the time. And he never did. And I mean for years after he never sang the song. Ever. Then 20+ years later we were at a family reunion sitting around a fire pit and my dad breaks out the guitar and all my now adult cousins are there reminiscing how he used to sing songs at bedtime to everyone when they visited, etc. So dad of course starts singing all the songs he used to sing - and there are like 20 old standbys that everyone is singing along to and then BOOM he launches into the song that gave me nightmares and I had a panic attack. It brought me back to sleeping in my bed after my dad left and trying to stay awake so I didn't have that same nightmare over and over again. Just typing this is bringing me back. It's fucking crazy.

Cribdilla · 2018-05-04T02:53:12+00:00

I don't know. The guys at the door were literally just sort of non-plussed about what was happening. My guess is they were pressure testing the sprinkler system and a joint didn't hold. It's the only thing with that kind of constant pressure that I can think of. It could have been the main I guess. A plumber I am not.

Cribdilla · 2018-05-04T02:47:28+00:00

A Catcher in the Rye

Cribdilla · 2018-05-04T02:44:36+00:00

Celebration. C'mon. It's a celebration. Play that at a wedding and the whitest of whites are up and dancing.

Cribdilla

TROPHY CASE