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TrashIsCash

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  1. I sell Class C apartment buildings in Southern California. One of my `mom&pop' clients held an open house for a vacant apartment unit located in Long Beach, CA. They had several interested people who are moving from San Francisco tour the unit. The prospective tenants were WFM tech workers who wanted to live in a less expensive, lower density area. I have a family member who owns a few small apartment buildings in San Francisco. They have two vacant units, which are proving to be very tough to rent.
  2. Are there a lot of bored, under-employed white collar professionals sitting at home trading in their pajamas? I ran into a neighbor on Monday who fits that profile. She had just scored some quick gains in Nikola. Is that a factor driving the market?
  3. Re: New homes sales, the salesperson said: -Low inventory -apartment rents keep rising, so home ownership looks more attractive. -low interest rates.
  4. re: new home sales in Orange County (coastal Southern California), I stopped by several sales offices at the Great Park on Saturday, May 30th. Here are some notes: -May was a very busy and successful month for them. -One sales office was so busy that they had to hire a temp to assistant with walk-ins. -Homes in the $800,000 range are selling very well. -Buyers were looking to close escrow quickly (within 45 days), rather than waiting 90+ days for their home to be built. -Homebuilders were not offering concessions, other than some money for closing costs, etc. The Great Park is located in Irvine and is owned Five Point Holdings (FPH), which was spun off from Lennar in 2017. BTW, I own stock in FPH.
  5. I have extensive expertise in researching pictures of women in bikinis on the internet. I also know the assets of Five Point Holdings, a land development company in Southern California. I'm a decent bird dog and have found a few off-market real estate opportunities. I have also found a few small cities with a good economic profile in the flyover states.
  6. Thanks for posting this. I am a private individual and trade very infrequently. I do buy small and micro caps though, both in the US and domestically. I value simplicity and ease of use. What platform do you recommend? Thanks!
  7. Has anyone else traveled for business post-Covid? Two weeks ago, I flew from Southern California to the Midwest to visit some properties I own there. The trip was extremely productive from a personal and business standpoint. I met with employees, vendors, tenants, scouted new properties to buy and put together some capex plans. I got waaaay more done in 48 hours of boots on the ground than a month of texts, emails, phone calls, etc. I would be curious to hear from others who have traveled recently as well.
  8. I own a mobile home park in the Midwest. Many of the tenant work at a nearby Tyson Foods beef processing plant. I visited the property on Saturday and spoke to a ton of my tenants. The tenants are concerned about CV, but are definitely not panicking. The plant is operating at about 85% capacity, the workers are having their temperature taken before starting their shift and they are practicing social distancing, etc. Other than this, it was business as usual.
  9. So, other than the misalignment of interests, overpaying for acquisitions, tons of short sellers (who are smarter than me), I may have found the perfect investment. All kidding aside, thanks for your feedback. And, no, I am not an investor nor will I be.
  10. Hello, I am looking at a company, Concrete Pumping Holdings (BBCP). They are a former SPAC, Industrea Acquisition Corp. Can anyone comment on the skewed (Or screwed) incentives for the original sponsors or shareholders? EG, are the original sponsors paid a success fee upon the acq’n of a company, then they bail as shareholders? Or are incentivized to be long-term shareholders? The SPAC bought the formerly private company, Concrete Pumping Holdings, from a PE firm, Peninsula Pacific. So, I assume that they did’t get a bargain price or were paid to do a deal quickly. BBCP has a ton of debt, but their outlook for 2020 is generally positive and their # priority is to deliver. Thanks for your help, Peter
  11. It looks like a homerun to me... If I understand you correctly, you’re buying $120,000 of NOI for $250,000. Self storage facilities are valued on Cap Rates and Price per Sq.Ft. If the facility is in a location that is at least decent, then it would trade for under a 10% cap rate. So, that additional $120,000 of income adds $1.2MM of value to the property.
  12. I am looking for ideas for companies that are priced like options (not stock options themselves). EG, they will either go to zero or will be up 5X+ and not much in between. For example, some of the lower-quality mall REIT’s are priced like they are going BK tomorrow. If they are able to sell a some non-core assets to raise cash or if the malls re-open, the upside could be huge. If malls stay closed for a while longer, these companies will default on their debt and the equity will be wiped out. I’m thinking of WPG & PEI. Thanks, Peter
  13. I sell apartment buildings owned by mom & pop investors in Orange & LA County, CA. Rent collections so far in April are OK... Down by 5% or so. I will know more by next of next week. There are a few cases of slimey lawyers contacting tenants and telling them not to pay their rent, even if they can afford to do so. According to the attorney, there is no downside for the tenant.... Our state has an eviction moratorium and courts are closed for at least 6 weeks. Regarding apartment financing, JPMorgan Chase was one of the go-to lenders in our market. As of late March, they are completely out of the market. They miiiiight to do a loan for one of their best customers, but it will be 50% LTV. Fannie & Freddie are lending, but they are asking for 12 months of reserves for P&I, Taxes, Insurance, etc.
  14. re: Midwestern Mobile Homes parks: 1) Most towns where I buy are economically stable. They were not hit too hard by GFC. 2) At the time, not a ton of competition from PE firms, wealthy private individuals, etc. It is now more competitive, but I was able to find a good opportunity. 3) Prior to CV-19, cap rates were 5.5% for institutional-quality, larger assets to 7% for lower quality stuff.
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