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2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

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25428110 No.25428110 [Reply] [Original]

I sold my crypto and bought a 12 unit apartment complex, I close on it tomorrow.

>> No.25428300

>>25428110
nice, good job anon, solid income

>> No.25428309

>>25428110
Congrats anon.

Don’t listen to retards here saying you did the wrong thing

You made money, cashed in your chips and invested it in a blue chip asset that will ensure you are set up for life

Congrats

I’d love to know how much it cost you? It’s prohibitively expensive to buy something like that in Australia

>> No.25428349

Based af

>> No.25428386

>>25428110
dgmi

>> No.25428410

>>25428309
It was just under a million, $998k before closing costs. I live in the Midwest USA so real estate is pretty cheap compared to a lot of places.

>> No.25428423

>>25428110
You did good anon. That building will make sure you don't have to work ever again. Just pay someone to take care of it and collect cheques

>> No.25428525

>>25428110
Enjoy commie revolution and seizing property from the middle class lmao

>> No.25428632

>>25428525
We won't be alive to see that

>> No.25428654

>>25428525
quite literally never going to happen ever again.
Welcome to the world of Neo Feudalism.

>> No.25428843

>>25428410
Oh nice

That kind of money (factoring in conversion rates) might get me a block of 6 or 8 in regional Australia (like really regional and not where you would want to live) with low quality tenants

>> No.25428878

>>25428423
I actually plan to keep working my job, projected NOI on the property should be pretty high, you can buy duplexes where I live for $150k-$200k. With my income from my job and the income from the apartments I can buy a duplex every 1-1.5 years. I'm going to try and build a portfolio of those too.

>> No.25428898

>>25428632
Yeah because you will perish in the gulag

>> No.25428946
File: 225 KB, 1080x1350, voktDkp.jpg [View same] [iqdb] [saucenao] [google]
25428946

>>25428110
>Anon I just heard Bitcoin has gone up to $32,000.
>You've been bragging about those Bitcoins to me for years now! I wish I listened to you and bought some! You must be worth millions now right?
>They have doubled in value in the last couple days alone!

>> No.25428988

>>25428878
you're gonna make it far friend

>> No.25429008

>>25428110
>sold crypto
good move
>bought complex
should have waited until eoy, realestate about to crash with no survivors this year

>> No.25429024

Based and keyed and whatever other fucking nonsense is being pushed around here. Are you going to manage it yourself or hire someone? I recommend hiring someone and making sure he can do basic repairs, too.

>> No.25429046

Its good to cash out to real estate. But 100% wow..im 33% in real estate. It comes with its own head aches and a lot more jews

>> No.25429099

>>25429024
Youre the 3rd person ive ever seen say keyed on biz. So just stop before it starts. No one says that and no one wants to. A key inserts into a lock, its vulgar

>> No.25429107

>>25428946
thats a man

>> No.25429114

>>25428110
That's cool anon. If I had $1 mil I probably would quit my job and chill desu, but I am sure you could make even more.

>> No.25429153

12 apartments for 1 mill? Are those literal 30sq meters cuck pods?
Nice deal nonetheless

>> No.25429169

>>25428110
I'm glad retards like you are following boomer footsteps. I'm yield farming 14-28% apy on my stack with zero risk of nigger uprising

>> No.25429190

>>25429008
That's unironically bullish for landlords since it means more idiots getting foreclosed on and having to rent. Only people gonna get hurt by a real estate collapse are commercial real estate owners (fuck em) and home"owners" who are using their house as collateral to live it up on loans.

>> No.25429202

>>25428110
Have fun trying to get renbts from Tyrone, Jose, Pajeet, Achmed, etc.

>> No.25429219

>>25429099
That's not every penis of you anon.

>> No.25429221

>>25428110
NICE Larp Faggot haha

>> No.25429271

>>25428878
Imagine continuing to work when don't have to

>> No.25429284

>>25428946
why is he wearing a diaper?

>> No.25429306

Good job cashing out and don't let anyone tell you otherwise, but are you really sure you want to be a landlord right now? They're the government's scapegoat for their destruction of the economy, and it's probably going to get worse once the coof dies done and the economic damage is still there.

>> No.25429310

>>25429271
You will never be free pleb , forget about not working until you die , won't ever happen

>> No.25429321

>>25429202
You forgot John.

>> No.25429357

>>25429284
t.inceldom

>> No.25429375

>>25429024
>>25429024
The plan right now is to hire someone. The complex is kind of big and I have no experience, it's also in another city but not far from where I live.

>>25429008
This was a commercial property because of the number of units. For some reason commercial units aren't exploding the way residential are. If you go on loopnet you can find a lot of reasonably priced commercial units. I don't think it will go down in value much even if there is a crash, it's in a nice area of a relatively large midwest city. It basically breaks down to $83k/unit and the units are pretty nice.

>> No.25429390

>putting more than half of your net worth into real estate
lol, enjoy that 5% yearly return

>> No.25429444

>>25429375
how much will you be asking for rent?
when do you expect to break even?

>> No.25429461

>>25429375
>hiring a property manager for a $1M property
your 5% just dropped to 2%

>> No.25429631

>>25429271
I make pretty good money at my job and continuing to work makes it so I can still buy more real estate.

>>25429306
There's some risk in every investment, the property taxes are pretty low (gotta love the midwest), I own the complex outright, no mortgage and it's insured. I think things would have to get pretty terrible before it would come back to bite me. Even with some vacancies I would still be ok.

>> No.25429690

>>25429631
Whats your ROI?

>> No.25429709

>>25429631
enjoy having 12 slaves bro mirin

>> No.25429711

>>25429375
You can get experience over time but having a manager will be pretty great. I have a manager for my one rented house and they've already saved me from a dozen midnight phone calls complaining about dumb shit, and they handle repairs with minimal input from me.

Just don't ever accept section 8 applicants and have fun!

>> No.25429725
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25429725

>>25428110
>closing real estate on a Sunday

>> No.25429783

>>25428110
My toilet plugged, and I tried to fix it myself but I went to work and came back and it flooded the entire apartment and the downstairs unit. Sorry bro. By the way, I lost my job due to covid, and i'm not sure if i'll be able to pay rent for a while. We're cool tho right?

>> No.25429822

>>25428110
>>25428410
Very nice. How much do you expect to make from it on a yearly basis?

>> No.25429858

>>25429822
He'll be lucky to get a 6% cap rate

>> No.25429928

>>25429444
It's $1050/mo rent, so about a decade not counting equity.

>>25429725
Wait, it's monday that it closes, I thought it was sunday today. I've been off work for the last 11 days.

>> No.25430006

>>25429631
>I own the complex outright

Why? The main benefit of real estate is easy access to large amounts of cheap leverage. You could get at least 50% LTV financing on this thing (500k) and pull out equity to either reinvest into the asset (and push rents/raise the property value) or reinvest into other assets.

While owning it outright is safer, 50% LTV financing (or shit even 35%) is still safe as fuck, most private market guys will run 50-75% leverage and generate huge cash on cash yields.

Especially given the fact that rates are at historic lows right now and dollars are being actively devalued. Use the bank’s money to make money

>> No.25430012

>>25429928
>Wait, it's monday that it closes, I thought it was sunday today. I've been off work for the last 11 days.
Fair enough. It's easy to lose track of time when away from work. I've been working by VPN since March 2020 and my life has been a hazy fever dream since then.

>> No.25430043

>>25428110
Enjoy nationwide rent controls during hyperinflation.

>>25428525
This.

>> No.25430129

>>25430006
I don't like holding debt, it stresses me out, I've been reading a lot on real estate investing and watching a lot of youtube videos and everyone basically says the same thing you did. I'm afraid of over leveraging myself and losing everything in some kind of crash. If I own it outright that can't happen.

>> No.25430134

>>25430043
Eat shit commie, adults are talking

Commie parasites love to LARP about how they’re going to rise up and take back our assets. Thing is, they’re all nothing but little frail pussies who won’t ever do shit besides bitch on the internet. That’s why they vote for politicians who vow to redistribute the wealth, since they’re all too chickenshit to ever try something like that themselves. Keep LARPing, you worthless faggot

>> No.25430197

>>25430129
I would say give it a try debt free for a year or two and see how your returns shake out. If they’re adequate, then stick with it, but there are definite benefits of using leverage which is pretty much most of the reason people get into real estate in the first place.

>> No.25430318

>>25429928
Son, you really should not have got into real estate you're clueless. At that level of rent you're not going to break even for MINIMUM 15 years, looking more like 20-25 if you want to be realistic.

>> No.25430453

>>25430129
Lol is this a larp or did you really not consult anybody serious before dropping 7 figures in cash on something you know little about

>> No.25430475

>>25430318
$1,050/mo * 12 units * 12 months/yr = 151,200 in top line revenue annually

Assuming 50% NOI margin (probably conservative) that’s 75,600 in NOI per year. OP has no interest expenses but will need to pay a property manager. Not sure what that runs, but your 7.5% cap rate on the $1m asset isn’t too bad (before management costs)

However if management costs get that down to like a 3-4% yield that’s not too hot. Hence why leverage is such a major factor in RE

>> No.25430491

>>25430129
I have never, in my life, heard anyone lament that they didn't go into debt.
Don't trust financial planners and "experts", their entire business model is to confuse you so much about what the right thing is that you give up and give them money.
And remember, the reasons that banks and large corporations can run massive leverage ratios is because they can count on the government or bankruptcy court to bail them out. You can't.

>> No.25430507

>>25430475
This also doesn’t factor in what OP will need to reinvest into the asset on a regular basis to maintain competitiveness. I would estimate maintenance capex at something like $1000-$2000 per door per annum.

>> No.25430510

>>25428110
This is my plan too, though I want 40 doors. Congrats anon.

>> No.25430519

>>25428110
smarter move would be to sell half and buy a 6 unit apartment complex

retard

>> No.25430549

>>25428525
if that were to happen, crypto and cash would lose their value too

>> No.25430562

>>25430475
damn. real estate is such complete shit. why does anyone even deal with this shit?

>> No.25430576

>>25429858
absolute cope

>> No.25430582

>>25430475
You're assuming a lot of things, such as the fact that OP will constantly have 0% vacancy. You're giving the absolute best possible scenario, reality is never that good.

>> No.25430602

OP unironically sold his BTC which will only keep 10x-ing for a literal boomer bag of depressing real estate

>> No.25430626

>>25430576
cap rate above 4% is good in real estate
it's a relatively low risk investment, which means low returns

>> No.25430633

>>25430562
Easy access to large amounts of cheap leverage. That return profile looks a lot more attractive at 50-75% LTV

>>25430582
Yeah that’s probably true just doing simple back of the envelope stuff

>> No.25430649

>>25430129
What YouTube channels do you recommend?

>> No.25430658

>>25428110
Did you try and asset based loan first? You might of been able to buy the apartment and not sell your coin. I don't know though I just heard saylor talking about that

>> No.25430679

Nice

>> No.25430697
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25430697

>>25428525
>middle class
#notmycomrade
#onlytwoclasses

>> No.25430740

>>25428110
Enjoy getting fucked over by shitty tenants while bitcorn dildos to 100k.

>> No.25430755

If this is true good job. Don’t be a leverage Jew. Just collect your checks from the wage slaves.

>> No.25430762

>>25430562
Because you can use the property as collateral to get a massive loan and then invest the loan and make massive returns and then use more collateral to get more loans. Real estate is worthless unless you're using it as leverage.

>> No.25430763

Real Estate is really good, until the socialists come.

>> No.25430795
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25430795

>>25428110

>> No.25430919

>>25430318
I'll figure it out, I'm a quick learner.

>>25430453
Not a larp. Very real.

>>25430491
I mean it makes sense. I keep thinking about the guy on Queen of Versailles who is their limo driver but was a real estate millionaire who over leveraged himself. I'd probably kill myself if I wound up like him.

>> No.25431225

>>25430919
I get buying a smaller property with cash up front but why would you not get a mortgage at historically low rates when purchasing a 7 figure property. There is good debt which is the main benefit of real estate.

>> No.25431371

I have $37k in crypto and may cash out because I just lost my job and I am worried about a flash crash.

>> No.25431492

>>25428110
Happy for you my man,

>> No.25431525

>>25428110
either perfect timing or retarded. we'll know within a month

>> No.25431595

>>25428410
what city you in? got a few mates looking for a place to rent in NE or CO

>> No.25431611

>>25430576
yeah i have 5% on my real estate but that's still comfy af

>> No.25432615

Bump