Yossi @EdelkopfYossi Twitter profile

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Yossi

@EdelkopfYossi

1 month

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Yossi

@EdelkopfYossi

2 years

Orlando is really just getting started. By next yr you'll be able to commute MIA-Orlando in 3 hrs with WiFi and no traffic via train. Economic impact will be mind boggling

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Yossi

@EdelkopfYossi

4 years

Paint your property white.

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Yossi

@EdelkopfYossi

2 years

Just refinanced 175% of our equity. Here's the rundown👇 Original price -$1.5M renovations -$400k total -$1.9M. New loan for **$2.5M** @ 3.8%|5+5|non-recourse Got the $800k down payment returned + $600k additional tax free

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Yossi

@EdelkopfYossi

4 years

The IRS considers the useful life of residential real estate to be 27.5 yrs! That means you can deduct $100k a yr for "wear and tear" on a $2.75M investment (or $100k*27.5yrs). This can reduce or eliminate income based taxes. This is true even if the property went up in value.

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Yossi

@EdelkopfYossi

1 year

Before and After of our 44 unit deal in FL Original Gross Income: $444,000 Gross income after Renovations: $972,000

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Yossi

@EdelkopfYossi

3 years

Used to rent for $900 Now rents for $1600 $700 difference * 14 townhomes (will be) renovated = $9800 a month of additional revenue created ($9800*12mo) / a 5.25% cap rate = $2.24M of value created.

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Yossi

@EdelkopfYossi

2 years

If your thinking of creating a long term portfolio for generational wealth, here's how to do it. 🧵 Warning ⚠️ this method has very little glamour and does not work for everyone.

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Yossi

@EdelkopfYossi

3 years

What's considered a good real estate deal? There's no right answer, but to me, the question is how soon can I get at least 70% of my original equity back through a refinance. Here's a breakdown of how I project a refi that will occur years in the future ⬇️

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Yossi

@EdelkopfYossi

2 years

When adding washer dryer in a small apartment, every square foot counts. This tool is my fav hack

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Yossi

@EdelkopfYossi

3 years

Buying commercial real estate takes some basic knowledge to get going. There are generally 7 steps in the lifecycle of a real estate asset. Here is a high level starter pack thread to get going.

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Yossi

@EdelkopfYossi

2 years

When you choose real estate for it's location, tenants will need you. When you choose real estate for the income, you'll need the tenants. Great locations are more reliable than fads when measuring investment lifecycles over decades.

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Yossi

@EdelkopfYossi

2 years

Just bought a 417 monster in Haines City (Central FL) for $31.5M. Going to be spending $6M to retrofit interiors and build some amenities. By far the most difficult deal I have ever been a part of, but the price was to good to pass up on. Floor plans are outrageously big!

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Yossi

@EdelkopfYossi

3 years

Creating a private equity real estate firm is awesome and very lucrative. But it isn't easy. Here's a cheat sheet on 7 challenges that I wish I had known when I started:

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Yossi

@EdelkopfYossi

2 years

Had a huge L this week on the sale of a 49-unit property in Central FL. The brutally tough experience comes with a lot of lessons to be learned, 8 to be exact. So here it goes.

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Yossi

@EdelkopfYossi

3 years

Real estate investors barely pay the IRS any taxes. Here's how it works: The IRS considers the useful life of residential real estate to be 27.5 yrs! That's it. That means you can deduct $100k a yr for "wear and tear" on a $2.75M investment (or $27.5M*27.5yrs=$100k).

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Yossi

@EdelkopfYossi

3 years

1.58x multiple on a cash out refinance. Bought a deal for $3.03M in 6/2019, invested another $1M to renovate. Appraised at $7.1M, and today closed on a $4.97M loan. Sweetest part is that we are rolling the proceeds into a neighboring $5.3M deal. That's compounding.

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Yossi

@EdelkopfYossi

3 years

Adding washer dryer connections to this apartment costed $1,500 with the stackable machine. Achieved a $75 premium. $75 * 12 mo = $900 or 60% return Better yet, $900 / 6% cap rate = $15,000 of value

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Yossi

@EdelkopfYossi

2 years

@auniquemoniker @QuantStratTradR Although I have no idea why we cannot be like other countries that make them very fast

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Yossi

@EdelkopfYossi

1 year

One deal can change your life. In 2019 a broker randomly sent me a deal not listed. Went under contract sight unseen. 36 unit deal across the Atlantic Ocean in FL Purchased for $3M Renovated $1M 1beds were old and moldy and rented at $600 and now rent up to $1550

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Yossi

@EdelkopfYossi

4 years

A friend today: Want to buy this condo I think I can steal for $130,000, should I buy it? Me w/o hesitating: take your rental amount, subtract the taxes, condo dues, ins, RM, reserves and vacancy. ÷ that by you purchase price, every 100 bsp over 7.5% is a good reason to buy.

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Yossi

@EdelkopfYossi

2 months

Lot of these hitting the market in the low $200s in FL. And apartment building owners still want $200k a unit. No amenity can make someone choose and apartment building over a house

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Yossi

@EdelkopfYossi

3 years

Real estate is irrationally priced within 20 min walking distance to Orthodox Jewish Synagogues. Why? Ortho Jews don't drive from Fri night to Saturday night to observe Shabbat, but also need to get to synagogue. Shabbat shalom!

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Yossi

@EdelkopfYossi

2 years

Allow people to be proud of where they live

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Yossi

@EdelkopfYossi

3 years

I furnished one unit to be a model unit during lease up. Now we're all leased up. I was hanging on the couch today and decided to throw it on Airbnb. Instead of $1600 I'll get $2357 this month. Rented within 5 hours. And it's down season in FL.

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Yossi

@EdelkopfYossi

2 years

A property was marketed to us as 350 units. In reality it is 417 parcels. Apparently, 35 years ago they combined units for larger floor plans. Those 67 extra units will produce an extra $50k of NOI a month when I separate them back. $50k*12Mos / 6% cap is 10 mil of value.

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Yossi

@EdelkopfYossi

1 year

The cash-out refinance is now known as the cash-in refinance.

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Yossi

@EdelkopfYossi

3 years

My strategy is super simple. Buy the ugliest and worst properties, in all the best markets.

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Yossi

@EdelkopfYossi

2 years

It costs a lot of money to have cheap construction workers.

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Yossi

@EdelkopfYossi

3 years

One of my 1st LPs that has been involved in most of my deals offered to join me on the GP side. I accepted. New company name is Alya Equities. Going to be doing the same thing, just on a larger scale. Super stoked.

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Yossi

@EdelkopfYossi

2 years

For anyone looking to start buying real estate today and not sure where to start: Go to a local lender and find out the max you can borrow, at the lowest rate, for the longest time, and without a prepayment penalty. The is the opportunity of this cycle.

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Yossi

@EdelkopfYossi

3 years

Few new followers, so here's my intro: Buy, renovate and rent old/ugly buildings. Own 215 units. Bought and sold ~500k sqft flex Write what I'm going through that day, and only tweet about real estate. Like to simplify r/e and explain it here. Proves to myself I get it.

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Yossi

@EdelkopfYossi

3 years

Class B renters are your costumers for life. Class A will end up owning their own home soon.

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Yossi

@EdelkopfYossi

2 years

When a real estate investor sends their track record, they only send you part of the story, *the profit made on investments*. But here's how to uncover the true track record of a value add GP so you can know which are ngmi.

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Yossi

@EdelkopfYossi

2 years

2bed apt transformation: 1. Backed the fridge into the closet to add space in the kitchen 2. Tankless water heater in the closet 3. Added the stackable 4. Added recessed lighting Old owner rented at $850 We rented it at $1600 Added $750*12=$9k / 5.5% cap = $163k added value

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Yossi

@EdelkopfYossi

3 years

When raising equity for real estate, it's a rookie mistake to go to rich real estate owners. They invest themselves, they don't need you involved in the deal. If its in their wheelhouse, they'll just squeeze you out Raise equity from ppl that don't have time to do it themselves

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Yossi

@EdelkopfYossi

2 years

How did you qualify for your 1st loan when just starting out? Let's give some inspiration to the newbies wanting to get started.

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Yossi

@EdelkopfYossi

3 years

Hired our own construction superintendent to check on each being renovated at random points during the day to ensure everyone has materials and is working. Used to take 20+ days to turn a unit. Last 4 units averaged 11 days from demo to final clean.

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Yossi

@EdelkopfYossi

2 years

Disadvantage of each asset class: 🛌Hotels: Cyclical. 🏢Office: Overbuilt it. 🛍️Retail: People shop online. 🏠Multifamily: Highest pricing. 🗄️Self Storage: Consumers will consolidate during recession. 🏭Warehouse: Businesses need unique space and can sit vacant for months.

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Yossi

@EdelkopfYossi

7 months

Spending the Holiday in Jerusalem with family. Spent the morning in bomb shelters watching rockets explode overhead. Watched a mother kiss her son goodbye as he got called to duty. Terrorists chose the happiest day of our calendar to kill. Pls add one more good deed today

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Yossi

@EdelkopfYossi

6 months

2002-2007 was the condo conversion era 2012-2022 was the “value add” era What do you think 2027-2035 will be?

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Yossi

@EdelkopfYossi

3 years

Did inspection on a property. Manager wanted to show me the nicest unit. Am convinced and don't think they realize this person is re-renting this thing on Airbnb 😂 Had the remote lock, manager said the guy lives out of town, had welcome baskets etc

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Yossi

@EdelkopfYossi

2 years

Friend sold 10 acres for a million profit and never even owned the land. Here's how it's done; 1. Put land in contract contingent on plan approval. 2. Spends $250k+ rezoning and petitioning to ppl how the development will improve the area. 3. Sells the contract to developer.

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Yossi

@EdelkopfYossi

2 years

I agree with Nancy Pelosis investment strategy. Only invest with insider Intel to ensure you win. But if your not a politician and don't get fed insider tips on public co's, you can turn to commercial real estate, where inside info is perfectly legal and available.

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Yossi

@EdelkopfYossi

3 years

Airbnb money feels fake. $1600 annual lease $8,000 for 66 days

Yossi

@EdelkopfYossi

3 years

Annual lease is $1600 Airbnb raking in $3k Very little downside to doing these on a monthly basis min requirement. The guests so far have been quiet and nice with no parties. Going to test out a software to help with pricing.

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Yossi

@EdelkopfYossi

3 years

Something I've learned today on Twitter Apparently it's a normal occurrence for people to buy real estate without even seeing the asset first. How do you place your hard earned money in an asset you've never even seen? Just insane to me.

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Yossi

@EdelkopfYossi

2 years

As a GP, the first 1-5 deals you feel like your LPs are doing you a favor when they invest. Thereafter they start becoming grateful for the opportunities. Script really switches when you consistently make ppl money.

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Yossi

@EdelkopfYossi

3 years

Been 1yr on Twtr A little about myself: in 2012 flipped a few homes, became a Rabbi, worked at M&M as a real estate broker, failed/gave-up after 1.5 years. Transitioned to principal side and purchased ~$65M in flex, medical office and multifamily between 2017-2021 in FL and TX.

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Yossi

@EdelkopfYossi

3 years

It pains me to say this but how you leverage the real estate is more important than the actual real estate.

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Yossi

@EdelkopfYossi

3 years

Residential real estate is valued on recent sales comparables. Commerical real estate gets valued on how much income it produces. Would you rather invest on other ppls (sometimes crazy) pricing or have the ability to take some control over your investment.

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Yossi

@EdelkopfYossi

3 years

Every real estate owner is a seller, at the right price. But when an owner says they aren't selling, that's their way of saying that they have no motivation rn. And motivation dictates how cheap you will be able to buy it. So move on and find the motivated sellers.

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Yossi

@EdelkopfYossi

3 years

Original price was $1.5M, renovations cost $266k, closing costs was $70K for a total of $1.891M. Based on new income, will be aiming for a 10yr loan at 70% loan to value, or $2.5M with Agency. Net $600k additional on original $800k investment on a refi, so it's tax free.

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Yossi

@EdelkopfYossi

3 years

Real estate GPs are charging fees, problem arises when they are hidden. Here's an inside look at some grifting that I've encountered to help you know what to look out for 🧵

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Yossi

@EdelkopfYossi

4 years

This is how wealth explodes in real estate, over time. If you leverage your properties with a loan that pays interest and principal, in addition to the income collected to calculate your ROI, you are also paying down your principal balance and exploding your wealth. For example

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Yossi

@EdelkopfYossi

4 years

If you are looking to get into real estate in any way, following a few RE guys here on Twit can help you avoid all the beginner mistakes. There are ppl sharing on here from all over the world, in so many different asset classes and on so many sides of the game, it's incredible.

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Yossi

@EdelkopfYossi

2 years

@drgurner Wife observed my son sitting in the back of the bus in isolation rather than socializing. He said he just wanted to be alone to think. Wife was concerned. I was so proud 😂.

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Yossi

@EdelkopfYossi

3 years

Wholesaling is the best way to keep your real estate career short. No one will want to work with you. Deceiving a seller to go in contract w/o the intention of closing is gross. Just get a license and be honest.

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Yossi

@EdelkopfYossi

3 years

Small unsophisticated real estate owners can be difficult to buy from. They can conjure imaginitve scenerios of problems and hurdles that don't exist in reality, and it's tough to get past this. I've bought and brokered a few deals, Thread on some ideas that have worked for me;

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Yossi

@EdelkopfYossi

7 months

I posted a job on Indeed anonymously so my current employee wouldn’t notice. She then applied for the job. Mutual feelings ❤️

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Yossi

@EdelkopfYossi

3 years

Multifamily apartment investing is superior because of two guys - Fannie Mae and Freddie Mac. No matter how bad the market gets, you will always have cheap debt to refinance into. Conversely, commercial asset with short term debt is irresponsible bec CMBS can disappear.

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Yossi

@EdelkopfYossi

3 years

Apartment developers either build low-income affordable housing or high-end expensive housing. Class B workforce housing gets no new competition. Add land constraints to the equation and you can understand what will happen to the demand/rental pricing.

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Yossi

@EdelkopfYossi

2 years

Good times meeting up with some local ReTwitters in Miami. 90% of us moved here in past few years and have not turned back.

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Yossi

@EdelkopfYossi

2 years

Contractor gave us a price for flooring installation and measured the floors 2x what my maintenance guy measured. Measuring tape must've been faulty.

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Yossi

@EdelkopfYossi

4 months

Lender gave $7.5M for a $10M deal in 2021 Borrower stops paying But the building is only worth $7M (less the the debt amount) Lender ignores the default in hopes that market comes back That’s where the market stands today

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Yossi

@EdelkopfYossi

2 years

Screening a tenant in FL is a 2.5 min review of their income, criminal background and rental history. In CA/NY your basically marrying your tenants. Can't imagine the anxiety of screening ppl there. Especially post COVID.

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Yossi

@EdelkopfYossi

3 years

Competition for real estate deals leads investors to lower underwriting standards. The "winners" are the groups underwriting dumber than the group before. When the music stops, the blame game starts.

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Yossi

@EdelkopfYossi

2 years

Finally found the color of vinyl flooring I like. ▪️Fits in the budget ▪️Timeless ▪️ Durable with an estimated lifespan of 20+ years ▪️ Has a underlayment to reduce noise for lower floor ▪️ Underlayment fits imperfections of tile underneath ▪️Scratch and water resistant

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Yossi

@EdelkopfYossi

2 years

I don't get jealous very easily, but I can't stop being envious of Class A real estate General Partners. Outbid everyone on a fully marketed deal - walk into a high functioning business, 3rd party the management (hard part), and collect fees/promote for doing nothing.

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Yossi

@EdelkopfYossi

4 years

I buy mismanaged multifamily real estate because there's opportunity to create value. By mismanaged, I don't mean slight increase here, or decrease there etc. I buy from horrible operators. Here's an example: we just closed a deal, hand out forms for tenants to fill out...

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Yossi

@EdelkopfYossi

2 years

Everything that gets listed on the MLS, shows up on Zillow, so there's no point of a buyers broker. Skip it and be 3% ahead of competition. In fact, in commercial, especially over $5M, buyside brokering doesn't exist.

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Yossi

@EdelkopfYossi

2 years

Regardless what happens in this world, multifamily housing will always have a high demand. Aside for food, is their any other industry as close to eternally essential?

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Yossi

@EdelkopfYossi

3 years

For those that forecast rent increases in the future to make your deals underwriting work, How tf do you sleep at night?

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Yossi

@EdelkopfYossi

4 years

Delayed gratification in real estate is refinancing instead of selling.

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Yossi

@EdelkopfYossi

4 years

When raising $ for a real estate deal, it's a rookie error to go to experienced real estate owners. They invest themselves, they don't need you involved in the deal. If they like the deal, they'll just squeeze you out. Go to wealthy ppl that don't have time to do it themselves

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Yossi

@EdelkopfYossi

2 years

@QuantStratTradR That's a minimum 4hr drive with traffic and fuel, pitstops.

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Yossi

@EdelkopfYossi

3 years

100% of my net worth is in value-add income producing multifamily in high-growth locations. There are no other investments that can compete with the upside combined with the limited downside: 1/10

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Yossi

@EdelkopfYossi

1 year

The real estate in top locations lack cash flow, while great cash flowing deals lack location ⚖️ Finding markets with a little of both and incoming tailwind is the #1 key to exponential growth.

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Yossi

@EdelkopfYossi

2 years

When banks pull out from lending, they act in unison. Overnight, no more lenders.

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Yossi

@EdelkopfYossi

3 years

I sign off on every expense regardless of the check size. Can't stomach having other ppl that don't have skin in the game use companies money.

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Yossi

@EdelkopfYossi

3 years

When the real estate market crashes, the 1st assets going to the banks are those undercapitalized to cover the plumbing replacement expense. At around 1975, FL contractors moved from cast iron plumbing to PVC. If built pre 1975, you can try fixing portions of the line...

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Yossi

@EdelkopfYossi

4 years

Just closed a deal with *seller financing*. The seller bought the property 20+ years ago and had a lot of equity, so I asked him to finance the acquisition at 70% loan to value, 4.5% rate, two year term and interest only.

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Yossi

@EdelkopfYossi

2 years

Real estate in the best locations lack cash flow. Real estate with great cash flow lack location. Decent location with decent cash flow gets you a harmonious portfolio.

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Yossi

@EdelkopfYossi

2 years

In hindsight these were such rookie mistakes. But this property tested me every step. Am grateful the market got hotter and was able to make some money on a sale. Class C deals take a whole new skill set, so be prepared.

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Yossi

@EdelkopfYossi

1 year

The risk of a loan is determined by DCR not LTV

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Yossi

@EdelkopfYossi

2 years

Investors are so misguided into believing that you make money by renovating. The big money in real estate is by buying good real estate for cheap. Just be prepared that the hard work is up front versus after the acquisition.

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Yossi

@EdelkopfYossi

3 years

Landscaping before and after. There's only so much an interior renovations can accomplish if the curb apeal sucks. Get it done early on.

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Yossi

@EdelkopfYossi

3 years

Mentor is 70 years old and has been through multiple market cycles. Most important thing he's taught me is that the common denominator of every downturn is that it comes where and when everyone least expects it.

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Yossi

@EdelkopfYossi

3 years

The hardest part of underwriting a value add deal is determining what the rents will be after renovations. If that rent isn't hit, than the renovations and possibly the whole acquisition, might not be justified. Here's how I've done it

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Yossi

@EdelkopfYossi

2 years

It's naive to think ppl will work harder with equity. They'll work just as hard with good pay and appreciation. But when you give away equity for work, your expectations gets higher, resulting in serious frustration. And then you can't just get rid of them bec they're equity.

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Yossi

@EdelkopfYossi

3 years

Crypto enthusiasts want BTC to be a standard currency. And Crypto enthusiasts want to buy BTC and double their money within 30 days. But Isn't a currency fluctuating bad for the currency? Since when is a currency an attractive investment.

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Yossi

@EdelkopfYossi

2 years

Priorities of my life in descending order 1. Religion 2. Family 3. Real estate empire

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Yossi

@EdelkopfYossi

3 years

Single family home rentals is a management nightmare. Wishing all that money, the managers and the tenants best of luck.

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Yossi

@EdelkopfYossi

3 years

So you want to start buying real estate? You have to figure out your edge. Do you have access to deals? Access to cheap capital? Do you know construction or how to operate properties? The more yeses, the closer you are. If not, build one skill at a time.

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Yossi

@EdelkopfYossi

2 years

The richest real estate investors I know, generational type wealth, got rich bec the location where they invested had exploded. I don't know many investors getting there from choosing a hot product type. Can't hurt to target both the hot product-type in the best locations.

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Yossi

@EdelkopfYossi

3 years

Multifamily, tenants beg to rent from you. All other real estate, your begging tents.

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Yossi

@EdelkopfYossi

3 years

Private yards is an important upgrade to enjoy the FL weather. When I have the chance I add it to properties. I was able to add oversized yards for 8 corner homes. Spent an extra $1200. But charging an extra $100 a mo. 100*12= 1200/ a 5.75% cap rate *8 = $167k of value created

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Yossi

@EdelkopfYossi

2 years

Made a $15k mistake. During DD, via camera snake the plumber tells us that all the cast iron plumbing has to be replaced. During replacement, plumber apologizes saying that the lines are copper and have another 40 years. I'll take it!

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Yossi

@EdelkopfYossi

1 year

I met a local FL real estate investor that has a massive mixed portfolio in S FL. Asked how he got started with no capital and no LPs? Apparently in 80s and 90s you were able to get 95% LTV loans.

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Yossi

@EdelkopfYossi

3 years

Lease signed! Got a $125 premium for the ocean view. Tenant is escaping a state with a cold climate, lockdown policies and slashing their rent payments by almost 50%. I'm a pretty big fan of FL

Yossi

@EdelkopfYossi

3 years

Need some help: Does an Ocean View from across the street qualify for a rent premium? If yes, how much? Standard 2bed w/o this view is $1,575.

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Yossi

@EdelkopfYossi

2 years

For more threads like this, pray my kids have more bday parties I have to drive them to:)

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