This Week's Best Of RETwit
Compilation of the best posts on Real Estate Twitter from the past week
Welcome to This Week’s* Best Of RETwit where I spend hundreds of hours scrolling past millions of terrible tweets to compile only the very best of the best from real estate Twitter. Some will be informative, some will be “hot takes”, and some will be general idiocy or snarky (my favorites).
Each week I will choose what I think is the very best of the best, followed by the rest of the best. Comment on your favorite or post great tweets that I may have missed. DM me on Twitter with candidates (especially from lesser known accounts!) you think deserve a mention in the next week’s article. Enjoy!
*Last two weeks since I skipped a week being busy wrapping gifts that will be thrown in a closet within a week.
This Week’s Best of The Best
I know of a business where the sponsor makes money off fees whether deals are good or bad but only the OPM loses if deals bad https://t.co/Pw9lKe8AvX
Orlando Bravo @OrlandoBravoTB
The Rest Of The Best
Cheat code for starting & growing a property management business. This is a complete list of our software stack. This is how the magic happens & how we can calmly and effectively manage ~600 units.
Always feel embarrassed about my niche when talking to commercial folks about what I do but then I think about ppl that do Timeshares and that immediately lifts my spirits.
Property mgmt is unavoidably a “people biz”… you need ppl on the ground to service buildings & tenants.
& people are expensive.
So, if you get an unusually cheap PM bid, be aware they are likely just operating more units / person, w the lower service level this entails.
Want to become a Real estate investor? A framework for people who are serious and committed ...
1) Go work for someone you admire. Minimum 18 months. Do as much as possible for them. Structure compensation 100% based on performance. Dedicate next 18 months solely to this.
You always remember your first.
In addition to all the normal DD, here's a few screwups that I've had so you don't have to:
1/11
10th St Retail @10thStRetail
In 2014 when somebody invested $5k with us I thought,
"wow, I didn't know people had $5k free to invest in real estate."
Same in '16 w/ $50k.
And '19 w/ $500k.
Get started on your path, whatever that is right now, and watch the possibilities grow over time.
🧵 Here's a tip worth $100K minimum to CRE buyers in Texas, Utah, and 10 other states
Make sure the recorded documents don't specify your loan amount
Your attorney WILL NOT do this for you!
Got a few DMs asking about lien waivers, so quick primer:
In construction, anyone who hires anyone else can receive a lien on their property if they don’t pay the contracted party for work performed.
Building more units in a community helps with affordable housing. Was just on a zoning RCO zoom.
Do y’all want rents to continue climbing?
Neighbors: No
Great, so we get approval to convert this single family to 3 units?
Neighbors: Also no
Made this little diagram to help a client understand the players/contractual relationships in a typ project. Built-in checks/balances, frictions, etc aren't necessarily bad things.
Obv many ways to deliver a project, but good to understand the reasons for the traditional method.
// HOW TO HIT A HOME-RUN //
A basic framework for finding deals that have the potential to be home-runs (3x+ return in 5 years or less)
Most people think it’s impossible but it’s actually quite simple (but not easy) once you master the framework. Here’s how it works…
1/ I promised you all a thread about how I'd approach purchasing off-market multifamily properties in Cincinnati, OH.
No brokers. All direct-to-seller.
I have no connection to Ohio, but it is a place attracting a lot of out-of-state RE investors.
Part 1 🧵👇. Part 2 tomorrow.
How to get started:
Mix some optimistic naïveté with a deal with a fat enough projected return that it’s ok if things get a little rocky.
Bravo (& follow @DonovanBuilds).
Donovan @DonovanBuilds
John Belitsky (🏢,🏢) @JohnBelitsky
Firmly believe CRE has made so many wealthy because it's a forced savings account with decent frictions to sell and no daily marking to market.
Let's take an example of buying an asset for 10-years at 75% LTV. Over the first 10 years with a normal 25 year am you're averaging a
While @realEstateTrent maintains the "Real Estate Twitter" list, I maintain the "Self Storage Twitter" list.
AFAIK this is every self storage GP/owner on this bird app. So far about 75 of us!
Let me know if I missed you. Just added @harperajones today.
https://t.co/Iv18YsQlPx
Case Study: The World’s Worst Real Estate Investment:
When I was 24 years old, I was an arrogant know it all. It certainly didn’t occur to me that Macro/Micro economics DOES matter when investing in Real Estate. After building a portfolio of student rental properties,
A Major Cheat Code to reducing stress in real estate is never having the expectation that stuff will flow smooth! I ALWAYS expect stuff to happen… I expect issues so when they show up, I don’t get rattled! Focus on the solution not the issues!
Hard costs for our Company to build a new single family home are up 35% YoY.
My guess is prices for labor and material will rise double digits next year as well.
I do not see these prices coming back down. Housing is not getting cheaper from a construction standpoint IMO.
Good thing to ask when looking at an asset is, "who is selling this to me? Are they smart? Are they divesting for a structural reason?" If the answer to the second is yes and the third is no. Really think about it.
The beauty of Real Estate is the 10,000th best investor in the country is still ridiculously wealthy
@seandsweeney Hi Sean, have you considered building a structure that caters to everyone and 100% of the units are accessible with an elevator on every corner with a 24 hr concierge to walk all tenants dogs and 3 car garage per unit that anyone working 20 hrs a week at McDonald’s can afford?