Real Estate Simpleton

I can’t spell IRR

[Real Estate Simpleton @RESimpletonIRR]

@EllliotttB Why isn’t anyone talking about how this is going to impact the tertiary self storage market?

[Real Estate Simpleton @RESimpletonIRR]

https://t.co/V0gOlERGAL

[Real Estate Simpleton @RESimpletonIRR]

Bought a building at a 6.6% cap. Spent $200k fixing it up. Now it yields 6.0%.

Threw a 2021 interest-only loan on it and the cash-on-cash came out to 12.7%.

I am a genius (the loan is the genius)

[Real Estate Simpleton @RESimpletonIRR]

Suppose chasing another $50/month in rent causes a $1,800 turnover, including lost rent.

That's three years of the increase just to recover the turn cost.

But the rent roll looks tremendous.

[Real Estate Simpleton @RESimpletonIRR]

@melvindvivas No it isn’t. I’m being charged $100/hr the last 5 hours. Absurdity. And it’s dumb as a stump.

[Real Estate Simpleton @RESimpletonIRR]

@seandsweeney I’ve built 3 websites in a few days that would be probably $50k to design and build. Design world and many other creative fields are going to get hit hard.

[Real Estate Simpleton @RESimpletonIRR]

@mattyp @bot I just spent $100 in one hour 20 minutes ago. Nothing has changed.

[Real Estate Simpleton @RESimpletonIRR]

@ChrisTwiggsPM I was going to eat the usage cost because Grok Bot was so good. Now it is unusable. Tons of mistakes and forgets everything. Ultra pre-paid a sunk cost.

Going to try Rakazo + Claude. Supposedly a Grok Bot replacement.

[Real Estate Simpleton @RESimpletonIRR]

The 1986 Class C building that’s never been rehabbed watching me budget $250/unit/year for CapEx.

[Real Estate Simpleton @RESimpletonIRR]

Dave: “You bought a 1970s Class C building?”

Me: “Yes.”

Dave: “And budgeted $250/unit/year for CapEx?”

Me: “Yes.”

Dave: “What happens when the original roof needs replacing?”

Me: “I’ll refi out all the value add equity I’ve created from adding tile backsplashes and stainless appliances.”

[Real Estate Simpleton @RESimpletonIRR]

I use Grok Bot for everything. Only thing a human does for me is reconcile bank statements (bot can do it but I still have a human do it), make payments (I won’t give it bank account access), approvals.

Any application you’ve ever used and wanted to modify to your business process and couldn’t, Grok Bot can build it. Yardi and the rest will be out of business soon. That is next on my list to tackle.

Set up various bots just like you would a real staff doing specific roles while minimizing bot to bot interaction to reduce inefficiency (no hallway talk or community room with cold brew needed for bots).

It’s easy. Just tell it what to do and it does it.

Price has recently gone bananas but it’s worth it for me.

[Real Estate Simpleton @RESimpletonIRR]

@TAYVAY_ @nithyavraman Become?

[Real Estate Simpleton @RESimpletonIRR]

I was taken to the cleaners by a seller who kept her books on yellow sticky notes and had a homeless guy installing water heaters.

But sure, let me teach you about real estate.

[Real Estate Simpleton @RESimpletonIRR]

Featured this week: @EllliotttB @robbiehendricks @realEstateTrent @moseskagan @shawngorham @chasedownleads @bankertobuilder @iononrecourse @jayparsons @LeylaKuni @BarryRoland19 @CXCarroll @ClarenceWongCRE @alykatzz @Civixplorer @NRNonline @UrbanCourtyard

[Real Estate Simpleton @RESimpletonIRR]

This Week's Best of RETwit/X is up.

I scrolled past thousands of terrible posts so you don't have to.

Best of the Best goes to @heIpfullandlord for tenant screening that actually works. Plus a capital call that tells on the GP, and the weekly Bonus waiting at the end.

Link below.

[Real Estate Simpleton @RESimpletonIRR]

Read it here: https://t.co/KjXxaSYZPd

[Real Estate Simpleton @RESimpletonIRR]

@johnaspinallai @spacexai @poteto I used all my Ultra allocation this week in the first 4 hours and spent $900 the next 2 days. Worth it for me relative to what I’d pay humans but ridiculous how they didn’t even communicate the change.

[Real Estate Simpleton @RESimpletonIRR]

It’s more fun when we just keep lying to ourselves, though.

[Real Estate Simpleton @RESimpletonIRR]

https://t.co/2Djd1vqQq7

[Real Estate Simpleton @RESimpletonIRR]

New Substack: Five years ago I said buy for cash flow, not appreciation. So I graded myself. Link below.

Spoiler alert: Cash flow is still king and chasing cap compression is still a fool’s errand.