757000+ entries in 0.515s
the20year2: When I got into real estate, i didn't believe
the statistic
they
told agents. So, I individually
tracked dozens of properties in my area
that were listed without realtors, vs
those listed with
them
the20year2: But , for every dollar you spend on marketing/fees, you
typically get 2x or 3x back
the20year2: Compared
to say offering just 4%
to
the seller's agent, which would result in just $2k
to
them
the20year2: So, with say a $100k property @ 3% selling agent comission
they're gonna get $1500, with
the $2500 bonus
they end up getting $4k
the20year2: And for most new agents,
the cut is 50/50 , so
they only get half of
the 3%
the20year2: almost all brokerages in
the US have clauses
that if
the selling agent comission goes above
the 'area norm' ,
the remainder passes
through
to
the agent directly
the20year2: If I have control what I do is usually 2%
to
the listing agent and
then 3% + $2500 for
the selling/buyer's agent
Chris_Sabian_: what is a
typical comission for a realtor when selling?
the20year2: I don't know how many foreclosed houses I've been in
that were 2nd
time foreclosures in a 3-5 year period where
the buyer had bought a foreclosure in
the hopes of doing it
themselves,
then never completing repairs
Chris_Sabian_: and we
trust
that you can do
that. I
trust
that you can do
that....
the20year2: for a owner occupant,
they don't want
to lend on a property
that might have $5k in repairs, or $15k
the20year2: That's why I did
the stock offering instead of just going
to a local bank and asking for a loan.
The bank wants
to see properties in good shape with 3-6mo of cashflow before
they'll lend
the20year2: Anymore , banks refuse
to lend
to people who want a property
that needs work. From 2004-now one of
the highest default categories is wanabe investors/DIYers who buy a house, screw up
the rehab and cost
the bank money
Chris_Sabian_: So if a property is 30k and needs work, why cant a renter just put
the 5-6k down with bank loand instead of going
through you?
the20year2: It's proven
that you're
the sum of
the people you hang around. Facebook makes it pretty easy
to figure out if your renter is just a redneck, or a druggie
Chris_Sabian_: i would assume
that you have some kind of background, fiance or history check with renters before you rentent?
the20year2: Correct, and after 3-4 years,
the renters are looking at up
to $10k in loss from
their damage
Chris_Sabian_: makes sense, $0 means
the people have no incentive
to make sure
the property is kept up
the20year2: The quality level of people
that have substantial downpayment is much higher
than your $0 down
types
the20year2: Correct, and you're still allowed
to require
them
to upkeep
the property or face default on
the loan/rent-to-own
the20year2: So, in
that scenario we clear still $100-$150 a month in income off
the property, still collect appreciation if
the rent-to-owner decides
they don't want it anymore (Which is
the most likely scenario), AND have $65k-$68k back in our pockets
the20year2: With
the scenario of #4, we'd still be eligible for financing on it, which means
the new rent-to-owner has paid us anywhere from $5k-$8k in a non-refundable down payment, plus monthly payments of $500-$600 per month. We still are eligible for financing it from a bank (A cashout) and could also get another $60k from
the property
Chris_Sabian_: september
to december was ~ 1000%, december
to now was down ~50%, september
to now ~550%.
the20year2: Correct, however you're gonna have
to see major jumps in btc prices
to compete with
the NAV growth
the20year2: It's a hybrid flip , it's
the 'get cake and eat it
too' strategy
Chris_Sabian_: but if bitcoin price > NAV property
then share price should go down
the20year2: Property #1 was $62k>$115k , #2 was $33.5k > $55k , I expect #4
to be $37.5k>$80k
the20year2: Of which, much would flow back
to investors/shareholders because
they're paying a down payment on
the repaired value, not what we have in it
the20year2: It'll start making more sense in a month or
two once we get
these properties done, and secure at least one seller financed deal
the20year2: The second option will be much better, especially if we successfully start offering seller financing on properties, as we're
trying
to do with property #4
the20year2: It comes down
to waiting for BTC price increase, or increase NAV of properties by 30%, 40%, 50% in a few months
the20year2: BTC price would have
to exceed $2500 by mid 2014 if we levered in
the next 6 months
the20year2: I agree, however it's one of
those
things, if we can reach a position where leverage is open, btc pricing will largely be irrelevant because we'll just be playing arbitrage on
the variations in interest/property ields
gribble: Bitstamp BTCUSD
ticker | Best bid: 642.01, Best ask: 643.94, Bid-ask spread: 1.93000, Last
trade: 643.97, 24 hour volume: 13390.95777424, 24 hour low: 614.17, 24 hour high: 656.95, 24 hour vwap: 634.354614252
Chris_Sabian_: 2014 will either make or break bitcoin. gox, regulations,
tax, government interest, huge boost of awarness, it will be interesting
to see
Chris_Sabian_: btc prices are low right now, i would hold off selling for $$ until
the gox crap is over
the20year2: We've utilized, or have in contract about 50% of
the given capital
the20year2: Hopefully we can get
to, or close
to full utilization of capital by
the
time 30 days is up
Chris_Sabian_: i'll see how
the next 30 days or so go. i may
throw 5 btc at rental and see what happens
the20year2: too costly
to do it with
traditional investors, with bitcoin
the startup cost was almost nothing
Chris_Sabian_: what make you persue
the bitcoin option instead of
traditional investors?
the20year2: It depends on what
the median price is leading up
to
the 30 day period
the20year2: It does
take a little while
to buy & rehab properties, so
the capital doesn't get utilized immediately
the20year2: No ,
to reach #1m we'd need
to do all 4 rounds, we just finished #1
the20year2: Really don't want
to go with
the overly-dramatic HGTV videos
the20year2: The video logs for properties #4 and #5 make me excited, since
they're both big rehab jobs and I do believe
they'll come out good. I've got part of
the #4 video edited and voice-overed. My plan is
to break up
the voice-over version between properties so I can get feedback on what people like
the20year2: I
try
to keep everyone updated.
The video logs and
the audited finaicial reports I
think will put us over
the
top in
terms of quality of
transparency
mike_c: One of
the ironies of
the stock market is
the emphasis on activity. Brokers, using
terms such as "marketability" and "liquidity", sing
the praises of companies with high share
turnover (those who cannot fill your pocket will confidently fill your ear). But investors should understand
that what is good for
the croupier is not good for
the customer. A hyperactive stock market is
the
Chris_Sabian_: The level of communication from 'Branny' is excellent. Sad
to say
that it is a rarity in bitcoinland
the20year2: Closed on property #3
today, sellers did
transfer us remaining rents + original deposits
Chris_Sabian_: does anyone know what is going on with AM? 181 from last week and only 31 coins
this week...
BingoBoingo: Thanks. I've got a piece
to sell, because fucking Dreamhost emailed me
that
the hosting's renewal is coming up soon.
BingoBoingo: Once I finish my write up on baseball betting I might give
translating it a shot.
ozbot: Moment de intimitate-n baie pe
Trilema - Un blog de Mircea Popescu.
benkay: ^^ again with
the absurdities.
benkay: american white-collar folk are generally sent
to
the hospital, where
the peeing happens in a luxurious room, in private.
BingoBoingo: From stories it seems most of
the enlisted drug
tests now happen as an absorbent patch
that collects sweat.
MAKABEakira: mircea_popescu, experian will have a whole new report
to sell
mircea_popescu: asciilifeform except men can't piss in
the company of womenz generally speaking
benkay: it's
the kind of hilariously fucked up situations you get under communism i guess
MAKABEakira: next
time i have
to do a UA (which is never) I should stock up on some methylene blue beforehand
benkay: "did you smoke pot in
the last
thirty days? oop - insurance doesn't cover
that. guess you're out an arm!"
benkay: the post-incident piss
test.
benkay: the really funny part of
the whole charade?
benkay: senior management generally being reluctant
to sacrifice
the potsmokers, you see.
benkay: if insurance companies insist on
tests actually happening, managers are discreetly dispatched
to discover who
the safe
testing
targets are.
benkay: the
testing is not random, it rarely even appears
that way.
benkay: this, as one might expect, is just another
tool
to control
the cattle in america.
benkay: net result:
test everyone. randomly.
benkay: gotta keep risk down on insuring
those line operators, and can't sow dissent in
the ranks by
testing
the operators and not
the engineers.
benkay: most american desk jockies as well, especially if your desk is attached
to a manufacturing operation.