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).
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!
This Week’s Best of The Best
The Rest Of The Best
Here’s one way to look and feel like you’re absolutely killing it in the Real Estate game. But end up in bankruptcy’s with debt up to your eyeballs.
This is a true story of an old competitor. The tale is a rather common theme in failed RE businesses.
The story: 🧵
The first few years as a new real estate investor are the hardest.
The game changes after your first win.
Positively affects your reputation in the market, but more importantly, changes your internal dialogue and confidence.
Focus on getting that first win.
Never forget how a lot of banks treated long standing clients when the SHTF in 08'-09' as pertains to CRE. Life company lenders didn't do that then, nor will they do that now. #LoanCovenants
1/4
Investors lose good deals because they can't analyze enough leads in a day.
Frankly, there is no reason to impulsively analyze every lead.
Here is a simple mental model I use to move quickly
Prepare for bidding wars and intense RE buyer competition this spring. The early data is in and it's crazier than I expected.
Inventory is at a new record low, 292,000 single family homes on the market. But that's not the real story this week.
@AltosResearch 📽️🧵👇
1/6
What is the key indicator of RE property?
Whether it is marketing data or real estate revenue reports you can easily drown in all the available metrics. While they all help tell a story you need a quick measurement.
I am looking for the "blood pressure" reading of a property..
Here is an OZ strategy that I have been brainstorming which I think displays the power of the program.
This is advanced stuff but do it right and there may be a LOT of tax avoided.
I am not a CPA or Tax Attorney. Do your own research!!
Your regular reminder that "increased costs" do not "get passed on" to renters.
No renter I've met will pay more because PVC prices have gone up 30%.
If I *could* charge more rent, I would already.
The only thing that causes rent prices to change is supply/demand.
How to get rich in real estate (DIY style)
Inherit it or marry it.
If that doesn’t work and you’re starting from zero, here’s how:
Re-upping this thread bc it’s good.
Moses Kagan @moseskagan
Credit to @somehotelguy for bringing this up.
My strategy on property tours is not to ask the PM about deferred maint. or CapEx needs; they’re trained to field those questions.
I walk the property and come up with a CapEx number in my mind, let’s say 1M. Towards the end of…
It's tempting to skimp on repair/reserve expenses in your UW in order to win deals, but with material and labor costs what they are today, no other operational expenses has climbed more over the past 24 mos.
Asset management and property management will be the most important value add in CRE for the next 3-5 years.
A great investment thesis is to pay attention to what investment thesis Blackstone is working on and then find ways to execute it in a sub-institutional way.
This played a major part in how we got into Class B Industrial in 2016.
There are so many more opportunities like this.
On a podcast the other day, @PinkPoloShorts said that you have to earn your right to the back of the envelope analysis.
Loved this phrasing.
For LA multifamily, it takes me ~2 min to do my underwriting for ~any apartment to get to a firm pass (98% of what I see).
How?
I’ve only been investing for 20 years or so but in that limited time I’ve come to understand that when this dynamic finds a particular asset class, prices continue to skyrocket indefinitely and buyers never regret it
scottyo21 @scottyo21
Saw 2 deals on Zillow, one for $500k, other for $3mm. $3mm deal had way less views, despite being a far superior deal
Oftentimes there’s a “hole” in the market in $2-$10mm range. Too big for individuals, too small for firms
Being able to operate in that segment becomes an edge
I am of the opinion that having a partner in real estate makes life a whole lot easier.
Could not imagine going alone.
Having the right partner makes your life 10X better
Having the wrong partner makes your life 1000X worse
Choose your partners carefully
How I discovered leverage and went from debt-free to owing banks $2,500,000 to buy 4 crappy self-storage properties in 14 months while:
Quitting my day job(s) 🖥️
Increasing my net worth by $1.8m 💰
Finding joy in my work 😀
The money story: 🧵
I think it’s 100% valid to question how multifamily current demand surge can be sustained. I do. And to call out current delusional u/w assumptions of 5-8% revenue growth cagr’s. But first you have to recognize the demand surge itself, one of the largest in decades. 2.6% vacancy!
Apartment rents are above pre-pandemic levels in all but two of the nation's largest 50 metro areas. And that includes hard-hit Gateway markets like NYC, DC, Seattle, Boston and LA. The only two exceptions? San Fran and San Jose, but they're charging back too. (1/4)