Home Buying & Real Estate Thread

That’s dope I’m in Boston where it’s pretty much all multi fams until you’re in residential areas. Wanted to get a rental possibly but I can’t afford one anymore..That last house here would easily be 750k
These aren’t even in that good of areas
Note to self.... Never move to Boston lol.

Gotta invest in other states my guy.

For 750 in Milwaukee you could easily have 8-10 units.
 
I will say that student loan debt is a drag but the interest rate is low enough and there are enough "excuses" that can make it manageable if you're smart.

My real world example is probably my sister and I. My sister chose to pay off her Student loan debt as early as possible. She literally spent everything she had for her first 5-7 years post grad school paying it off as a teacher (I think the debt was only 15-30K). I spent that same time actively acquiring real estate.

My investment properties easily cover my student loan debt and their respective mortgages. I recently sold my first home (a duplex that was primarily used as an investment property for the last 5 years). The sale made enough to pay off my student loans (60k+) in their entirety without having to interfere with my day to day life at all.

I once again declined to pay off my student loans since the debt is manageable and I was able to get another investment property for 30K down, I'm making 1500 a month profit on this purchase (a business is using the property as an adult family home). I made 4.6K back in the very first month of ownership.

I'm actually working with my sister now on her first investment property and I had to explain that there is really no benefit in aggressively paying off a manageable debt. She'd still like to make an extra payment or two a year but the chances of her owning any of these places for more than 5 to 10 years is unlikely. Why spend the extra money for something you will only hold temporarily.

Sorry for the rant. I need to visit this thread more. I also smoked a joint prior to writing this so sorry for rambling lol.
The mindset of paying off debt versus investing it is tricky….
Me n wifey just refinanced our primary and pulled cash out to purchase a beach condo that we’ll rent out and use for our family several times a year. My plan is to live in our home for like 11-12 more years cuz once my youngest is grown, I don’t want this 4.2K sq ft home in the suburbs lol. I know my wife is thinking next year we should begin throwing money at our house to reduce what we owe…It feels crappy (emotionally) to know we just went from owing idk, like half of the value of the home, to owing 80% of the value in the matter of some days. But like antidope antidope preaches, math is the math….
 
Closed on the condo out in SF earlier this month. Expected to be done by end of December, but seller was motivated to move quickly. Nice spot out in Pac Heights.

Anyone have experience with real estate property out in Hong Kong or Switzerland (and/or Scandinavia)? Really looking to "shield" my wealth outside of traditional investments. Alternatives have really become the wave for me.
 
The mindset of paying off debt versus investing it is tricky….
Me n wifey just refinanced our primary and pulled cash out to purchase a beach condo that we’ll rent out and use for our family several times a year. My plan is to live in our home for like 11-12 more years cuz once my youngest is grown, I don’t want this 4.2K sq ft home in the suburbs lol. I know my wife is thinking next year we should begin throwing money at our house to reduce what we owe…It feels crappy (emotionally) to know we just went from owing idk, like half of the value of the home, to owing 80% of the value in the matter of some days. But like antidope antidope preaches, math is the math….
You're gonna sell the crib in 11-12 years anyway and it will appreciate in value even more over that time.

If it's not a forever home why rush to pay it off. Especially if the debt is manageable and you aren't underwater. You possibly could've done a HELOC instead of straight refi but it seems like you invested the money wisely either way.

Now you have two assets that will appreciate in value, 1 of which will earn you passive income that can once again be reinvested over the course of ownership.

Seems like a solid play to me.

By now means am I telling anyone to big down their life with debt but you my friend have very good debt asset wise.
 
Closed on the condo out in SF earlier this month. Expected to be done by end of December, but seller was motivated to move quickly. Nice spot out in Pac Heights.

Anyone have experience with real estate property out in Hong Kong or Switzerland (and/or Scandinavia)? Really looking to "shield" my wealth outside of traditional investments. Alternatives have really become the wave for me.
Put me on big homie!
 
Put me on big homie!

I invest in early-stage growth, distressed, mismanaged companies. Usually I will help them go public, or improve their business operations via strategic advisory and/or venture capital funding. These investments are usually illiquid within a 5-7 year time period.

Think of companies like Harry's, Casper, Lyft, Bumble etc...
 
do you buy fix and flip?
Or buy nice ones and rent them out?
Depends on the project and price. I always buy and hold but I will use the BRRR method when the opportunity presents itself. Currently in the middle of a refi as well for my 3 unit.

Mortgage will probably end up being like sub 300 (without taxes and insurance), and I should get back a good chunk of change. I currently make 2100 out of that place (did no work to unit that was already rented, and kept his rent the same).
 
I invest in early-stage growth, distressed, mismanaged companies. Usually I will help them go public, or improve their business operations via strategic advisory and/or venture capital funding. These investments are usually illiquid within a 5-7 year time period.

Think of companies like Harry's, Casper, Lyft, Bumble etc...
I've seen you hint at what you do before. Serious question can this be taught or would it require a degree of some sort. I'd seriously consider a career in it depending on requirements.
 
Man this kitchen place I'm using is a joke... talk about killing my vibe from yesterday... they told me today go pick out your granite since the one I'm looking for black pearl has different finishes... so I call the granite place to make an appointment to pick my granite and of course it's out of stock and they said other vendors can't get it either ... mind you this is the second time I called... I called in November to schedule an appointment and was told the same thing... I told my kitchen company and they said they can get that color from another vendor no problem... but here we are and it's still on backorder....
 
I've seen you hint at what you do before. Serious question can this be taught or would it require a degree of some sort. I'd seriously consider a career in it depending on requirements.
It doesn't require a degree, but breaking into VC without some form of "formal training" is next to impossible. It requires a ton of money, tens of millions of dollars if not hundreds.
 
I've seen you hint at what you do before. Serious question can this be taught or would it require a degree of some sort. I'd seriously consider a career in it depending on requirements.

Well there's really 2 practical options into getting involved into a career like this. And no, you do not necessarily need a degree, but it's almost impossible to do so without one.

1. You can go the traditional route. Which would require someone to start their career in Investment Banking (this usually happens right out of undergrad), transition over to Private Equity, build relationships and contacts, build personal wealth, and then start principally investing with a group of individuals or just yourself. This is the simple way of explaining it, but there's a lot of things that are involved between each step. A lot of it is centered around the ability to properly and accurately determine company valuation, debt-to-repayment analysis, Leveraged Buyout analysis and expected return multiple (and/or ROI) analysis'. Usually it takes an entire career to get to this point. I'm 33 now, and started from the beginning back when I was 20 (the very first deals I did was helping Facebook acquire financing to purchase complimentary strategies. This eventually lead to them buying Instagram which I've helped them do as well as their IPO back in 2013). So, you can imagine this does take some time to develop.

2. This option is a little more straight forward, but requires the person to have their own wealth already established. They've made their money already from their primary wealth generation tool (career), and they begin to invest in companies themselves which they find from listings (Angels list, Pitchbook, Prequin, Yieldstreet, etc). Now, you can stop here, and just work on your own, but without the proper knowledge of evaluating these companies, you're almost investing blind. Usually, once you get to a certain net worth, you have managers that do this for you (of course with a fee attached). Or you grow big enough and build out an investment company yourself. Guys like Steve Nash, Kobe, KD has all done this. Nas does this as well (he invested early in Ring, as well as Shaq).
 
I invest in early-stage growth, distressed, mismanaged companies. Usually I will help them go public, or improve their business operations via strategic advisory and/or venture capital funding. These investments are usually illiquid within a 5-7 year time period.

Think of companies like Harry's, Casper, Lyft, Bumble etc...

What are characteristics of "distressed" private co's?
 
What are characteristics of "distressed" private co's?

Usually this means Distressed Debt.

Think of like this...You own a a 1962 Ferrari GTO. But you're underwater with the payments. You can't afford to keep the debt afloat. So, if I offer to "buy" or pay off the debt, essentially that means I now own the car. Obviously, my goal now is to improve the car up to selling conditions with my own capital to reap the profits. The same applies to buying "beater" homes. You can buy a beat-up home for under market value off the hands of an owner who cannot keep up. You go in, buy his/her debt, own the home, fully renovate it, and then either sell for profit, or create an income generation tool (rental property).

This works the same way with companies.
 
Well there's really 2 practical options into getting involved into a career like this. And no, you do not necessarily need a degree, but it's almost impossible to do so without one.

1. You can go the traditional route. Which would require someone to start their career in Investment Banking (this usually happens right out of undergrad), transition over to Private Equity, build relationships and contacts, build personal wealth, and then start principally investing with a group of individuals or just yourself. This is the simple way of explaining it, but there's a lot of things that are involved between each step. A lot of it is centered around the ability to properly and accurately determine company valuation, debt-to-repayment analysis, Leveraged Buyout analysis and expected return multiple (and/or ROI) analysis'. Usually it takes an entire career to get to this point. I'm 33 now, and started from the beginning back when I was 20 (the very first deals I did was helping Facebook acquire financing to purchase complimentary strategies. This eventually lead to them buying Instagram which I've helped them do as well as their IPO back in 2013). So, you can imagine this does take some time to develop.

2. This option is a little more straight forward, but requires the person to have their own wealth already established. They've made their money already from their primary wealth generation tool (career), and they begin to invest in companies themselves which they find from listings (Angels list, Pitchbook, Prequin, Yieldstreet, etc). Now, you can stop here, and just work on your own, but without the proper knowledge of evaluating these companies, you're almost investing blind. Usually, once you get to a certain net worth, you have managers that do this for you (of course with a fee attached). Or you grow big enough and build out an investment company yourself. Guys like Steve Nash, Kobe, KD has all done this. Nas does this as well (he invested early in Ring, as well as Shaq).
Looks like option 2 is more likely my path. I'm still a ways away from the tens of millions of dollars but eventually I could see this happening.

Thank you for sharing bro. Congrats to you on your success man.
 
Usually this means Distressed Debt.

Think of like this...You own a a 1962 Ferrari GTO. But you're underwater with the payments. You can't afford to keep the debt afloat. So, if I offer to "buy" or pay off the debt, essentially that means I now own the car. Obviously, my goal now is to improve the car up to selling conditions with my own capital to reap the profits. The same applies to buying "beater" homes. You can buy a beat-up home for under market value off the hands of an owner who cannot keep up. You go in, buy his/her debt, own the home, fully renovate it, and then either sell for profit, or create an income generation tool (rental property).

This works the same way with companies.

After redeeming the debt, do you have to provide additional funds for a spot on the cap table? Or is the debt convertible?
 
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