Dylan Pettijohn

I invest in multi-family properties both commercial and residential and share what I learn here.

[Dylan Pettijohn @DylanPettijohn]

@sethdstevens How it is phrased makes all the difference!

[Matt | the mojo mindset @themojomindset]

Real Estate Investing: Avoid Getting BLOWN UP! (Fixed Rates Save Lives)

@F_I_R_E_Fighter
@DylanPettijohn

[Dylan Pettijohn @DylanPettijohn]

@the_mojomindset @F_I_R_E_Fighter If you can maintain good fixed rate debt you’re golden.

[Dylan Pettijohn @DylanPettijohn]

@sethdstevens I remember the first time I got a rent check and I could never go back. Being paid for past work I’ve already done is amazing!

[Dylan Pettijohn @DylanPettijohn]

@sethdstevens Exactly, like I don’t need surface level information about real estate anymore I need to hear experiences of investors in different categories.

[Dylan Pettijohn @DylanPettijohn]

@sethdstevens I’d say #2 is my favorite, no need to put up a facade just share what you’ve done, your experiences and mistakes. That will resonate with a lot of people that are working on the same things as you and build trust with your audience.

[Dylan Pettijohn @DylanPettijohn]

@sethdstevens I like the $ per hour buckets method of the work you’re actually doing.

Really puts into perspective how much time is spent doing the high level activities.

[Dylan Pettijohn @DylanPettijohn]

@RensingTrades I would not consider a 16 PE a deal for PFE, they are a struggling company with a lot of issues. I would do a little more DD before you decide to buy this company.

[Dylan Pettijohn @DylanPettijohn]

@sethdstevens Count me in!

[Dylan Pettijohn @DylanPettijohn]

@sethdstevens Wait until you start adding in value add and investor capital and you can easily surpass that number by 15-30% or more!

[Dylan Pettijohn @DylanPettijohn]

Interesting, great points, intrinsic definitely is subjective because it changes based on the model you use to calculate it.

For stocks there like a million different models that could be used lol.

Then there’s the question that’s layered on top of that which is “what am I willing to pay based on my desired return?”

I know people that are fine investing in properties at a 6% cash on cash while I have partners and we need to achieve a minimum of 8-10% cash on cash.

That completely changes the values we perceive properties to be worth.

[Dylan Pettijohn @DylanPettijohn]

@F_I_R_E_Fighter @the_mojomindset 💯

[Marc - Financial FIRE Fighter @F_I_R_E_Fighter]

Increasing Rents and Adding Value to a Commercial Property

@DylanPettijohn
@the_mojomindset

We talk about increasing rents by 30% on a commercial property with 50 units. The owners are often 'mom and pop' investors who don't maintain the properties well, so we need to raise rents to cover our costs. We've seen a lot of value added to the property just by increasing the income, which can significantly increase the property's valuation based on cap rates. We prefer commercial real estate over single-family homes due to the potential for value-add opportunities. #RentIncrease #CommercialRealEstate #ValueAdd #CapRates #MultiFamily

[Dylan Pettijohn @DylanPettijohn]

@jeremy__taggart @F_I_R_E_Fighter @the_mojomindset Couldn’t agree more 💯

[Dylan Pettijohn @DylanPettijohn]

Glad to see we’re on the same page haha

An inflation hedge is main use case I’ve heard most people say but nearly every asset is an inflation hedge from stocks to real estate.

We could even throw bonds in there because generally they at least have been close to matching inflation over the past few years.

I just don’t really get the draw of crypto but I come from a real estate and stocks background so I’m looking for a reason to justify a value from a quantitative perspective.

I personally don’t buy anything that doesn’t have a cashflow multiple attributed to it.

[Dylan Pettijohn @DylanPettijohn]

If holding is the use case then isn’t it just a matter of who is willing to pay more for the asset and not a matter of intrinsic worth?

I agree blockchain is a useful technology but do we really need it to be a currency?

Couldn’t it just be a decentralized ledger system that validates transactions without it having to be its own independent currency?

[Dylan Pettijohn @DylanPettijohn]

@sethdstevens Very recently, I’m currently in the process of going all in on what I want to do!

[Seth Stevens @sethdstevens]

Quit playing games you don’t even want to win.

[Dylan Pettijohn @DylanPettijohn]

It is a liability for sure, however it allows you to make significantly higher returns on a percentage basis if this is on an investment property.

I would let this kind of debt term out even if it’s on a primary residence because you can get better returns than that on your money elsewhere.