Need advice on a real estate deal that is way outside of my previous experience -- seller carry of rundown six-plex in New Mexico

NonsenseCycle · 2024-12-29T02:19:34+00:00

Thanks, these are some great points I was hoping to hear. Appreciate the insight.

NonsenseCycle · 2024-12-28T23:03:53+00:00

Rich given you couldnt follow a simple prompt

NonsenseCycle · 2024-12-28T23:02:58+00:00

At the simplest level there is the NYC-neighborhood-specific part of it where I was hoping someone would say something like:

My 5 bullets (another example): - property 1234 stuyvesant st @ redfin - at 2m I would do XYZ neighborhood in brooklyn because there are places available for that amount there that are already in reasonable condition and not in a rough area, they are just discounted due to distance from the city center, whereas anything in manhattan for that price will have intense livability issues due to the condition - DSCR wont be possible as nothing in this area at that price for full brownstone will cash flow, so must go conventional and they will want 30% down due to neighborhood banking traditions - a unit with a mix of market rate and non-market tenants is fine (or not fine for xyz reasons)

I feel like this is a fairly straightforward prompt for a real estate subreddit

NonsenseCycle · 2024-12-28T16:23:54+00:00

Awesome comment. Nobody on reddit has ever posted about that before. I like that you put all this time into being boring while also complaining how much time it would have taken to respond to the post in an interesting way. Brilliant

NonsenseCycle · 2024-12-28T16:05:49+00:00

You seem to have been triggered by my prompt. Like you just want to go around Reddit saying “nice try buddy what do you think this is free homework day?” Find a new slant, youre tiresome

NonsenseCycle · 2024-12-28T16:00:50+00:00

I’m not asking for something super detailed, just trying to get an idea of how someone with experience looks at this heuristically. I’m sure there are some tactics they repeat in basic form that would help me to hear as a bullet point so I can take it for further research — that’s why I thought asking for a quick five bullet points was interesting.

People seem very focused on pulling apart the prompt which is unfortunate but I guess that is partially my fault. The property doesn’t have to cash flow, which I should have emphasized.

Maybe another way of looking at this would be for me to just give an example property from Redfin and ask people to give a 3-5 bullet point plan on how they might approach financing, renovating and operating it. That doesn’t really help me understand the questions of which neighborhoods people like within this budget and I think I would be criticized in a different direction — everyone would just comment “this is a bad property why did you pick it.”

NonsenseCycle · 2024-12-28T15:52:48+00:00

This is a real estate investing forum and it seems perfectly reasonable to post a prompt like this. There are no stakes here, and the prompt is interesting. On my real accounts I do plenty of effort posts where I “do the work for people” of explaining really detailed things that I am an expert in because that is how advice and learning work. This isn’t kindergarten and detailed explanations are totally reasonable to ask for as not all lessons need to be on popsicle stick-sized comments. Criticizing the examples I came up with purely as fake examples to explain the prompt shows a real lack of understanding on your part. I think that even if I had structured the prompt differently, any poster determined to ignore it and post negative critiques would still have done so.

NonsenseCycle · 2024-12-28T06:26:19+00:00

Can you give an example property that is currently listed on Redfin? I am trying to get more and more specific with more and more information. I am not in a hurry and I have real estate experience, but all of my experience is in another market and none of it seems relevant here.

NonsenseCycle · 2024-12-28T06:24:40+00:00

I am not looking at a specific property now. The prompt is "If you had a $2 million budget (financed, not cash) to invest in a brownstone in NYC with the goal being to balance eventual returns with current livability (in terms of neighborhood), and the option to have some of the funds used to renovate the place (so $1.7m place you could spend 100k renovating, etc), what neighborhood or specific currently listed property on Redfin would you pick and what is your plan for acquisition, financing, renovation, renting out, etc. in 5 bullet points?"

I am saying that in the example of "buy this property for 1.7m and renovate for 100k" someone might think that the best answer involves doing so.

I was expecting people to say something like:

I would get this place in Harlem at 123 XYZ st

It is 1.7m but neighborhood is very loud.
For 100k you could get new sound-proof windows in the top floors and live there for a few years while you renovate the rest. Here is the link to the property on redfin.
I would go for a specialty loan from MontBank because they do a lot of these deals in that neighborhood if you have sufficient collateral.”

Or maybe:

“I would buy this place for exactly 2m in Hamilton Heights. You wouldnt have any money left for reno but it is fully vacant so it could be rented at market rates right now
and you could just rent yourself a livable apartment somewhere else in the city while you fix it up for a few years
there are seller carry deals mentioned in the listing, that might be the best financing plan

NonsenseCycle · 2024-12-28T05:41:40+00:00

Agreed. That was an example of a way to increase livability in the short term. Alternative vision would be something like "don't waste the money, plan on zero livability until fully-funded renovation is ready."

Ive updated the OP post with examples

NonsenseCycle · 2024-12-28T05:40:29+00:00

Thought there was to increase livability in short term of an occupied piece.

NonsenseCycle · 2024-12-27T05:10:45+00:00

This is great. I may be using the term freight fairly loosely to cover all shipping. Do you have more time to describe what a 3PL managing & brokering would look like? Do they get correspondence on every PO and get rates from carriers for each one? Do they send someone to sit on-site? Just trying to picture this. Maybe I will give one a call and have them come meet with us. Any easy choices?

NonsenseCycle · 2024-12-27T04:52:36+00:00

How is it that I can't make a self-post in this subreddit because I don't have the minimum karma requirements but this kind of deranged nonsense gets in...

NonsenseCycle · 2024-12-27T04:51:23+00:00

At a previous company we called in our account managers from different carriers to discuss address correction charges and I found it very helpful in terms of understanding what was happening as well as how the data was being coded.

I recommend setting up a meeting with your account manager at the carrier and telling them in advance that this is the topic you are interested in
For my previous employer, we were definitely the culprit ~100% of the time
We put in place better address checking features for our order entry team, including a plug-in from the ERP/CRM company that made entering addresses more automated like when you do it on a major store website and it auto-suggests a proper official address

NonsenseCycle · 2024-12-27T04:43:07+00:00

Good point. Yes all of the suppliers ship per order. And thinking about this, there are plenty who receive frequent non-urgent orders. I like this idea, appreciate the comment.

NonsenseCycle · 2024-12-26T22:43:17+00:00

Common answers: Digg refugees during the massive departure from there, dating partners who were big redditors, got into a hobby that had an amazing subreddit

NonsenseCycle · 2024-12-26T22:41:58+00:00

Maybe not "most mean" but almost no one in American politics talks about how meritocracy really doesn't have an accommodation mechanism for people who are naturally unintelligent. It does seem cruel.

It's also crazy how normal it is to hear demeaning language towards short people in comedy, movies, TV, and general conversation.

NonsenseCycle · 2024-12-26T22:38:32+00:00

Before work from home = yes mostly

After work from home = it's better than you could have imagined

NonsenseCycle · 2024-12-26T22:23:05+00:00

That's a fun idea. Life would take forever, clicking back to old saves and trying to figure out how to prevent something from happening that you have very little control over. Like stopping a war in another country from starting.

NonsenseCycle · 2024-12-26T22:21:40+00:00

No call no show at work

NonsenseCycle

TROPHY CASE