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David Dardashti – Real Estate Investing and Lessons From UC Berkeley

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David Dardashti - Real Estate Investing and Lessons From UC Berkeley

David Dardashti

A man who has been all around the media lately is David Dardashti. Born in Iran, David moved to the U.S at the age of 12, fleeing racist persecution in his home country.  Residing in Chicago, he and his family had a difficult time in their first few years in America.  Not knowing much English and coming to the U.S with barely any possessions forced David’s family to start fresh, as they left their home and almost all their personal belongings back in Iran.  Fast forward around 6 years and David was accepted to the prestigious University of California Berkeley, a school he dreamt of attending.  Still struggling with English and adapting to his life in America, he pushed through and graduated from UC Berkeley with the class of 1998, moving back to Chicago right after.  Ever since then, he has been working at precious firms in Chicago’s famed financial district, learning market trends and making his clients wealthier along the way.

While David enjoys his day job and has worked in the financial industry for 2 decades, he tells us real estate investing has been one of his passions in generating more income and building wealth.  It gives him a lot of control over his investment versus stocks, allowing him to customize his properties and decide specifically what he wants to own. When talking to David, he tells us that real estate is misunderstood by the general public.  It is seen as a time-consuming task and not the “passive income” we all dream of.  Additionally, people don’t see how amplified returns in real estate can get using different tools such as tax write-offs and leverage.  In this article, we are going to outline the different ways David tells us he amplifies his real estate returns and how it’s completely possible to make a 30% or more return per year on a good deal.

First, David recommends getting preapproved for a loan with hopefully good credit.  It isn’t very difficult to build good credit nowadays, all it takes is monthly on-time credit card payments for about a year and you’ll get the best loan possible.  The reason you need a loan is to leverage your money.  With 20% down and the rest as a loan, a $100,000 investment can buy $500,000 in real estate vs only buying $100,000 without leverage.  Once you found a property and have the loan set, it is time to find a deal.

David tells us that a lot of the money in real estate is made in the deal itself.  Compared to stocks where the price between buyers and sellers agrees for the most part and is easily determined, real estate has inefficiencies in the market.  Properties aren’t like stocks with thousands of buyers and selling giving it a perfect price, allowing investors like David to take advantage of these inefficiencies.  David likes to find off-market properties and the so-called worst house on the block in a great area that is increasing in population.  A “fixer-upper” he says.  This allows him to buy it below market value, but some work into easy renovations, and immediately increase the value of the property over what you paid for it plus what is owed on it.  Even better, this is simply equity in the property that increases your net worth and is not gained as ordinary income is.

The next way you are making money is in property appreciation.  Real estate on average returns around 3% per year historically, but properties in well-picked areas tend to increase more.  While many people may think this is a mediocre return compared to the average of 7-10% of stocks, this is where our leverage comes into play.  A $100,000 investment in stocks that makes an average return of 7% will increase your net worth by $7,000.  However, we leveraged our $100,000 to buy a $500,000 property with a loan paying for the rest.  Therefore, a 3% return on our property, while less than the 7% in stocks, works out to a $15,000 return, more than double in the stock market!  Appreciation works heavily in our favor because we have a set loan amount that doesn’t increase as the property value increases so over time, the property value increases and we only put $100,000 of our own money into the investment.  This might raise the question of what happens to the loan, and this brings us to our next point.

David puts tenants in all his properties who pay rent and consequently pay down the mortgage out of their pocket.  In all good investments, the rent charged to the tenant should cover all expenses, including the mortgage, property taxes, insurance, and repairs, with a little additional money left over known as cash flow.  This money is cash in your pocket and should be saved for any surprise expenses or just spent as regular income.  Every month, the tenant will pay down the loan for you and after 30 years, the mortgage will be paid off, leaving you with a fully paid-off house.  In this specific example, let’s use our $100,000 down payment and assume the tenant pays down the whole mortgage over 30 years and the property increases 3% per year.  By the time the mortgage is paid off, our initial investment will turn into a fully paid off property worth $1.2 million, 12x our initial investment.  This does not include the cash flow and all the tax advantages that come with real estate.

David tells us this is why real estate is his investment of choice.  He says a lot of this learning has come with experience investing but the foundation of what was taught at his classes at UC Berkeley.  He is very grateful for his education and says the tips he got from professors and classmates have stayed with him to this day.

Follow David on twitter@DavidDardashti_:

Also Check:

David Dardashti UC Berkeley- Chicago Businessman With A Passion For Finance

David Dardashti- Buying Cash Flow Positive Rental Properties

Home improvement

What To Do With Old Office Furniture?

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What To Do With Old Office Furniture?

if you have old office furniture, disposing of it can be a cost-effective way of sprucing up your office. It may even help you save money and time by allowing you to operate your business more productively. 

You can sell it on your own or hire a professional furniture removal company to dispose of it for you. Learn more about furniture removal from one of the best companies in the biz. Here are some tips for handling old office furniture with care:

Things You Can Do With an Old Furniture After a Furniture Removal

Sell The Furniture

It would help if you also considered selling your old office furniture to a furniture removal company that deals in disposing of office equipment. It is not easy dealing with old furniture from office to office and each time you move the furniture, it costs you money.

A professional company will make sure that all your items go to the proper disposal and give you full value for the money you pay them. It helps you to have peace of mind. You can no longer complain about how much you are paying in finance charges, interest, and taxes on top of your original purchase.

Rent Out The Old Furniture

The second option is to rent out the old office furniture. Renting out old office stuff after furniture removal is one very easy and free way to make extra cash online. It would help if you were careful before renting out your old furniture; you don’t want to end up damaging it.

Ensure that you check the items over very carefully before you even put them on the rental store’s shelf. Many people end up seriously damaging their old office furniture when they rent it out. Suppose you find that something is damaged. Then you should probably try and get it repaired before you put it on the store’s shelf.

Some agencies help you rent out the office furniture, and others help you sell the old office furniture. You can use the rent-to-own method to earn money for transferring the old office furniture into your name. It would help you save on expenses incurred while maintaining the old stuff after furniture removal.

Donate To Charity

Donate old office stuff after furniture removal to charity and help those in need. There are many reasons why you should consider donating your old office furniture. It may be that you have excess stock at home and would like to get rid of it.

You can also give away used books or even furniture that is in good condition as you will get a tax write-off when you donate the items. Charities will give you a receipt at no cost. You can then give it to the person you donated to, who will then give it to a needy person in your area.

Give Them Away To People In Need

Donate to needy people. Another reason you might want to donate old office junk after furniture removal is that you have become too far-flung on your travels. Maybe you’ve been to many countries over the years. Or maybe you work overseas now, and every time you travel, you take some of your business furniture with you, and that’s okay.

But when you’re coming back to your home country, you find yourself not needing some items you previously had in your office. You might as well give those away.

Even furniture you have that is in good shape. You can give to someone in need, so you help your community and help out those who cannot afford to buy new things.

Recycle Centres

It might not be clear at first, but some furniture is indeed recyclable. It can be tricky at first but it’s possible to sort them out. If you want to take an extra step to recycle an old chair of some sort, recycling is an amazon option

Some recycling centers do not accept furniture as a form of recyclable material, while others do.  So you’ll want to make sure they are on before placing any materials in them to do your research. Make sure all recyclable materials are placed in the proper recycling center.

Additional Tip

When you donate old office furniture, be sure you remove any identification labels from the pieces you donate. In most recycling programs, you are also asked for a street address so they can track the recyclable materials down to the right recycling center. Don’t worry too much about the address as long as you provide it when you donate.

The address will be updated on the donation, and you can have it forwarded to the correct place. It would be best to ask for a collection service number to be connected with anyone up for recycling. Many large office recycling centers have separate departments just for recyclable materials.

Conclusion

Things you can do with Old Furniture: Sell old office furniture to a specialist company that deals in disposing of office equipment. Renting out old furniture is one very easy and free way to make extra cash online.

Some agencies help you rent, and others help you sell the old office junk after furniture removal. And use the money to fund other needs.

There are many reasons you should consider donating your old office junk after furniture removal. Charities will give you a receipt at no cost. You can then give it to the person you donated to, who will then give it to a needy person in your area.

Also, you can also give away used books or even furniture that is in good condition.  You will also get a tax write-off when you donate. Even furniture you have in good shape, you can recycle into new items to help your community.

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BUSINESS

Exterior Painting Contractors in Chicago

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Exterior Painting Contractors in Chicago

It seems that homeowners are no longer happy with the light and neutral color of the facade combined with the darker shade of the roof. There is a clear trend in demand for more unusual and bold house colors in the private sector. However, the desire to stand out from others does not always lead to the desired “wow” effect. 

The homes are expensive in Chicago. The layer of qualitative paint makes them more durable and beautiful. Chicago exterior contractors can transform a home painting it in a professional way. 

Exterior painting itself is a useful service and lots of Chicago citizens take it. Exterior painting contractors in Chicago are highly demanded. People are often looking for exterior contractors in Chicago to improve their homes and increase the value of them. Of course, exterior painting makes homes more attractive for buyers. Homeowners often order this service before selling their houses.

The tips for those who’re thinking of home exterior painting

1. If you want to paint your home in an unusual color that you love, but do not know what to combine it with, then just choose a shade that will be a couple of tones lighter or darker than the main one on the color wheel. And to make such a simple solution unforgettable, paint the front door in some bright and contrasting color.

2. Does the facade of your house have natural materials that do not need painting? Then know that if they have a cold texture (concrete, slate, etc.), then it is better to combine them with bright colors of the facades, and vice versa. So, concrete today is combined with the orange walls of the house outside, and warm wood and stone with elegant gray facades.

3. A solid color of the facade can become much more interesting if you emphasize some of its details with white or another suitable color. Thin gables, window frames and other small elements can be a very expressive decoration of your home from the outside.

4. Contrasting (in relation to the walls of the facade) shades are ideal for painting the basement, canopy over the porch, bay windows and other protruding parts of the facade. Just make sure they have interesting enough shapes to be emphasized.

5. Surprisingly, bright and bold colors are best suited for unremarkable or even repulsive facades. distracting our attention from poor quality and design details. At the same time, if your home has beautiful bas-reliefs or other attractive elements, then the color of the facade should be gentle or neutral.

6. After you have roughly decided on the color of the facade, try to paint a large enough piece of drywall etc. Before ordering exterior contractors in Chicago, read the reviews of the previous customers and discuss with the contractors all the details.

Any hue and color can look gorgeous in someone else’s photo, but in reality it may not blend in with the environment of your home. Extra checking never hurts! According to its results, it may well turn out that you need to dilute the paint to a hue lighter or darker.

Interior painting of a house in Chicago

Good weather outside provokes us to repair work and improve living conditions. Interior painting of a house in Chicago is in great demand, because it gives owners many advantages. Let’s take a look at the main advantages of interior painting in Chicago. As a result many citizens take interior painting services and change the hues or even colors of the walls of their home.

Main advantages of home interior painting 

1) Preventing the destruction of the house in conjunction with improving the appearance of the house.

External coloring is protection. Interior painting provides not only the beauty of your home, not only transforms it, but also makes the home, where you live, more durable. The layer of paint with which you renew the wall turns into a kind of shield and allows the walls to remain stronger and more durable. It’s really an effective way to save your money, because the price of a home in Chicago is high and we should let it decrease because of the poor colors of the walls and something like this.

2) Increasing the value of the house

Interior painting allows you to cheaply but effectively improve the appearance of your home. Potential buyers see that the owners take care of their home and show more interest in such a home.

Typically, interior painting in Chicago significantly increases the price of a home and speeds up the selling process itself.

High-quality interior painting lasts for many years, so it will be useful for more than one year and it is a profitable investment.

2. Cheer yourself up at home

Since interior painting is a relatively inexpensive way to renovate your home, it can be one of the best tools to make your home a happier and more comfortable place. If you haven’t painted your home recently and have old colors that you no longer like or choose, your home may not seem like a place where you really feel comfortable. Plus, many people work from home and / or stay at home more often, so creating attractive flowers in your home is a more important priority.

New colors cheer up

The color scheme plays an important role. Colors affect our psyche, affect our activities and help to relax. In our home, we can choose all the colors we love, so the walls of the house will be very attractive.

As a result, the owners of the home want to return home as soon as possible and feel as comfortable as possible.

You can consult with an interior designer and choose colors, or you can build on your own preferences.

3.Preventing damage to the walls of the house

Internal layers of paint prevent damage to the immediate walls. Walls can absorb moisture. The structural integrity of the walls suffers from moisture absorption.

Inside the wall, moisture will provoke the appearance of mold. This is the cause of various diseases. The walls will be more durable and will not create any health problems if the owners take care of interior painting.

Improving the microclimate in the house

Painting significantly improves the microclimate in the house. Many Chicagoans have a lot of frustration when they return home. Life in a big city requires you to be at the ready and be competitive.

Interior painting creates the warmest microclimate and helps the owners to relax after work.

Paint quality

It is very difficult to choose a paint on your own. Professionals know better which paints are more optimal and how to apply them correctly. Painting is not only about the painting process itself. Before you start painting the walls, you need to prepare them and select the highest quality materials so that the work is not in vain.

As a homeowner, it is better to double the process of interior painting of a house in Chicago to professionals, rely on their experience and express all your preferences.

As a result, the owners of the house live happily in a comfortable and durable home.

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Home improvement

6 Tips For Installing A Water Tank At Home

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6 Tips For Installing A Water Tank At Home

Water tanks are available in a range of sizes and designs to meet various requirements, but they always serve the same fundamental function: to store water. Whenever there’s a need for water, a storage tank will undoubtedly be useful. 

Water Tank Installation 

Even though your home is provided with water through a well or public source, water tanks, like the ones you can find on this web site, may assist in harvesting rainfall and lowering your utility costs. They may be utilized as small reservoirs to provide a consistent supply of water for washing and gardening. 

It’s also worth noting that water tank installation has become easier over time, and anybody can do it using only a few basic tools. Here are some tips on how to properly install a water tank: 

  1. Decide Where To Install It First 

Home water tanks come in a variety of forms and sizes. Prior to installing a tank, you must first decide where to place it. You can choose to install above or below the ground. 

Below are the differences between the two: 

  • Underground Tanks: Underground tanks are more concealable and, in certain instances, offer more space for aboveground construction. Even a partly covered tank may significantly enhance views and free up room for other infrastructures. 
6 Tips For Installing A Water Tank At Home

Buried tanks are also less susceptible to temperature changes in the environment. As a result, they maintain a more steady and uniform temperature. These tanks may also maintain cool water temperatures even in hot areas, which helps minimize microbial development. 

Since these tanks are hidden beneath the earth, they’re usually protected from the elements, which may create fractures and leaks. On the other hand, buried tanks are harder and costly to install since homeowners must excavate a huge hole. In certain instances, they also need to be reinforced to safeguard against ground movement. 

  • Aboveground Tanks: Aboveground tanks are much less expensive and simpler to install than tanks installed below the ground. You’re also not required to strengthen the tank or dig the area surrounding it.

These tanks are also easier to inspect compared to those buried below the ground. Additionally, they’re considerably simpler to repair because there’s no need to dig to identify the root of a problem. However, aboveground tanks are more susceptible to damage from severe weather, which may result in leaks.

  1. Create A Base For The Tank 

Whatever type of water tank you wish to install, you need a firm and flat foundation for it to set on. While the majority of people utilize concrete for their base, others choose to lay a thick coating of compressed building material instead. The objective is to achieve a flat top that spans the width of the tank.  

You would also like to ensure that the foundation isn’t rocky or rough since this may cause the tank to rupture or become unstable. Additionally, it’s a smart option to create restraining barriers to protect the base from deteriorating or moving over time.  

  1. Build An Overflow Spout 

An overflow outlet is required when installing a rainwater collection tank. Most tanks have an overflow mechanism completely mounted, while others may need installation by you or a professional. 

Nevertheless, it isn’t a very difficult task. You just have to poke a hole, connect a gasket and, if required, put a filter. The last step is to bolt the fixture in position. This ensures that any surplus water has somewhere to go and won’t damage the critical base due to spillover water pouring on it. 

  1. Provide Adequate Covering 

The covering for tanks must be impermeable. Excluding the intake and outlet, all gateways should have tight-fitting covers. The intake should be equipped with a filter to stop debris from entering the tank. Furthermore, you should install a mesh barrier to block the entrance of insects and pests. Doing so ensures that you store clean water efficiently.

  1. Check Local Requirements 

Before purchasing a water tank, consult your local water department. Certain tanks may need to be approved before you can use them. Never install water tanks without first knowing what’s required in your location. 

  1. Consult A Pro 

Experts are the most competent when installing water tanks. A licensed plumber has the knowledge and skills necessary to install your tank effectively, providing you with the highest quality service. Also, you can rest assured that they have the expertise necessary to assist you with any water tank concerns. 

Takeaway 

Installing a water tank may seem intimidating, but they’re useful for many purposes. It’s also an effective way to save water and, therefore, save money on your regular bill. For installation inquires, consult an expert plumber.

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