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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

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A Guide for Interstate Moves: Avoid Common Mistakes and be Well Prepared

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A Guide for Interstate Moves: Avoid Common Mistakes and be Well Prepared

Interstate Moves

Shifting houses or workplaces can be complicated, especially when one is moving interstate. There are too many things to take care of when moving to a new city/state for whatever purpose. The process of organizing and packing things are the most crucial and taxing steps in the entire process, of course, after the main steps like taking the decision and finding another house to move to. Packing and moving create a lot of pressure for the people moving, especially when people try to do this independently. It is where interstate removalists come to the rescue, making the entire process stress-free and super easy.  

Before we go into how these interstate removalists function in making the process easier, one needs to be aware of what he/she needs to do beforehand. These interstate moves on a personal basis usually occur due to better opportunities and ways of life than the current city/state can provide. But for whatever reason the action is happening, most people forget to go through all their stuff beforehand and categorize them based on their needs. It is often during moving when a lot of things that the beholder has forgotten show up. They could be valuable and something he/she wants to hold on to. There could be stuff that renders useless to them in the future that could either be donated or put away if they are in bad condition. Sorting out things into these categories is the first and foremost thing to do. One needs to put away the things that need disposing of, and the stuff that needs to be donated needs to find their respective future homes before the removalists arrive. 

Once they arrive to pack and transport one’s belongings, often everything that is there in the house is usually filled and shifted to the new place – small or big. As much as one can think this first step of sorting out necessities is not essential, leaving behind unwanted stuff makes up a lot of space both mentally and physically to adjust to a new place. One should dedicate a day or two to declutter one’s belongings. 

The right time to schedule a removalists’ service is when the new place is ready to accommodate its new family and belongings. Never make appointments way before the house is prepared, and things can be unpacked and placed in their respective places. 

Why should one choose a removalists service? 

Choosing a good removalist service will help a degree incomparable to regular ones or do it on one’s own. A well-established service will 

  • Be prepared with the necessary equipment to pack, lift and transport fragile and heavy things.
  • Ensure the safety of one’s belongings: one should take the necessary steps to cover fragile items protecting them from breakage.
  • Take care of disassembling, handling, and loading appliances, furniture, etc., onto vehicles ready to transport one’s belongings to another city/state. 
  • Include special crates for appliances, furniture, etc. 
  • Come with a moving ensure, giving the owner of the belongings an additional affirmation of its safety. 
  • Be available at reasonable pricing because sky-high prices only make the process stressful and not stress-free as it is supposed to be. 

One should put aside the worries of packing and moving and focus on resolving into a new life in the new city/state.

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The Blossoming: Five Plants You Can Grow In Your Garden

Umar Nisar

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The Blossoming: Five Plants You Can Grow In Your Garden

Planting is an activity that anyone can take part in. Most homeowners plant because it can be an excellent addition to the overall aesthetic of your home. Some turned it into a hobby and found peace in doing it. Moreover, you have complete control over your garden and pick the plants you wish to grow.

In addition to this, there are roughly 650,000 plants that exist on earth. Learning about your desired plants and waiting for them to grow is one of the most exciting parts of planting. If you plan to grow new plants in your garden, here are a few plants you can look into.

Anthurium

Anthurium does not need much attention and is very easy to look after. It is part of the Arum family with about 1000 types of flowering plants. This plant is a herbaceous perennial with waxy, bright red heart-shaped spathes. It also has evergreen foliage that can attract a lot of attention. For this reason, people used this plant as an ornamental and planted them on pots to put inside their homes.

In taking care of Anthurium, keep in mind that this plant loves a humid environment and appreciates the warm sunlight. Too much exposure to direct sunlight can burn the leaves, so place them where they can get enough indirect light. Also, please take note that it blooms with fewer flowers and grows slower when in low light. 

Heuchera

Heuchera is popularly known as Coral Bells, which can be identified by its feathery spikes and reddish flowers shaped like a bell. It has much variety, and they are primarily in deep purple and colors from red to lime. This lovely flower is colorful but not flashy. That is why you can place them in hot, dry, empty locations to fill the areas. It, at the same time, attracts lots of birds, hummingbirds, and butterflies.

Heuchera can grow well even without regular watering. This plant is a very low-maintenance flower to grow and is tolerable with the sun. Though this plant is considered a shade plant, it has no problem being under full sun. So if you are also new to gardening, you can consider Heuchera as an addition to your plants. You can visit GardernersPath.com to read more about the proper care of this plant.

Pansies

Pansies have oval leaves that grow from their stem and heart to round-shaped leaves from the base. This plant is an annual perennial that you can plant during spring. They grow well in locations where they can receive direct full sun. You should plant them in well-drained soil that is high in organic matter. Though they can tolerate cool light temperatures, they still prevent planting them in below freezing levels.

You can easily discern a Pansy because this flower makes “faces”. The petals of Pansies are heart-shaped and overlap each other. Their colors range from orange, gold, yellow, white, red, white, and almost black. Additionally, his plant symbolizes free-thinking and consideration. It represents the sympathy of someone’s pain and sadness.

Snake Plant

Cosmos is another flowering plant that is easy to take care of in this list. This daisy-like flower also attracts bees, butterflies, and other pollinators that can benefit your garden. Its flower has various colors in red, orange, white, pink, maroon, and yellow that can grow up to five inches. Also, the plant itself can grow up to six feet tall. Furthermore, they are great bed and container plants!

You can easily sow Cosmos seeds as it does not require any particular soils. If you want to have early summer blooms, you can start planting the seeds indoors four to five weeks before the last winter frost date. Also, they bloom from summer to fall. This plant can tolerate hot temperatures, even almost drought weather.

Cosmos

Cosmos is another flowering plant that is easy to take care of in this list. This daisy-like flower also attracts bees, butterflies, and other pollinators that can be beneficiary to your garden. Its flower has a variety of colors in red, orange, white, pink, maroon, and yellow that can grow up to five inches. Also, the plant itself can grow up to six feet tall. Furthermore, they are great bed and container plants!

You can easily sow Cosmos seeds as it does not require any special soils. If you want to have early summer blooms, you can start sowing the seeds indoors four to five weeks before the last winter frost date. Also, they bloom from summer to fall. This plant can tolerate hot temperatures, even almost drought weathers.

Takeaway

If you can find the importance and amusement in planting, this activity can be a fun hobby. Picking flowers to grow is exciting especially if you are the one who will plant them. Witnessing them bloom to their utmost beauty is gratifying. Choose the plant that you are willing to dedicate yourself with.

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Why You Need Expert Residential Junk Removal Services

Umar Nisar

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If you are shifting to a new house, a hoarder, or just disorganized, professional trash removal is the way to go. When it comes to traveling, the essential thing to consider is ease. If you have a hoarding problem, you most likely have a lot of things that can be thrown away. If you’re disorganized, you can be assured that a Residential Junk Removal Service can make the dilemma their problem and fix it.

However, according to junk removal experts, the most common challenge homeowners experience while attempting to dispose of junk is deciding where to begin. The whole situation can be daunting, causing people to ignore it until it becomes out of control.

Junk removal and transporting services can fix this problem in half the time and with double the effectiveness. Check this wonderful service “House Cleaning Services in Volusia County“.

Below are some of the reasons Why You Need Expert Residential Junk Removal Services.

Why Do You Employ Professional Junk Removal Services?

Improves The Appearance Of Your Home

Your house is your castle, but it does not seem to be one. You spend a lot of money on your house, so it would make you feel happier if it was clean. A junk removal service can get rid of unwanted objects while still improving the appearance of your house. Your home would seem tidy and ordered, and you would make an effort to maintain it that way.

There Are No Legal Issues

Many jurisdictions in the United States have legislation regulating waste disposal. This is essential to ensure that all waste should be disposed of environmentally friendly and sustainable. If you violate these laws, you may impose a heavy penalty. Any neighborhoods and apartment complexes require the use of professional junk collection providers for waste disposal. It is preferable to prevent any possible legal problems and focus on the professionals to complete the mission.

Save Both Time And Money

When you plan to dispose of the trash on your own, be prepared to waste a considerable amount of time doing so. Besides determining what counts as junk and what does not, you will spend a significant amount of money attempting to move and dispose of waste.

Junk removal facilities are fairly priced and cost-effective. These professionals will not only finish the job quicker, but they will also save you money on ancillary expenses.

Efficient Disposal

As previously said, you will invest a significant amount of time determining what requires to go and how to do so. Expert junk removalists have done this countless times before because they are used to easily sifting through piles of junk and determining logistics. They are also skilled at categorizing waste and disposing of it properly. They also have their methods and tools for doing the job efficiently.

Friendly To The Environment

Remember the penalties. Those penalties are in effect for a reason, after all. If you dispose of potentially toxic waste in the wrong location, you can end up hurting a living creature. Junk haulers are well-versed in what to dispose of and how to do so properly. They are also environmentally aware, so they will be able to recycle a significant amount of the trash.

Aids In The Sale Of a Home

If you plan to sell your property sooner, it is a smart idea to clean it before showing it to prospective buyers. If a customer arrives at your home and finds it cluttered, the architectural appeal of your home will suffer, and they will be less likely to make you a bid. Professional trash removal takes relatively little time and means that the house looks neat and clear for the market.

According to security professionals, people are more likely to injure themselves when clearing out the trash than when moving homes. This is due to the buildup of garbage over time, and you may have overlooked what is in a pile.

Sharp-edged objects or broken devices can end up costing you a ride to the hospital. Expert junk removal firms use advanced tools to ensure that the job goes ahead without a hitch.

How Do I Find Residential Junk Removal Services In My Area?

Junk King provides a dependable, secure, and environmentally friendly residential and commercial waste disposal service, so you don’t have to worry about cleaning up or disposing of debris after your project is completed. Our hauling specialists should ensure that the building rubble is cleared from your route so that you can get to work, whether you use our services regularly during the construction period or only once after it is finished.

Our firm specializes in the removal of construction waste. We’ll be at your location in minutes, so give us a call right away! Since our staff is properly insured and accredited, you can trust us to dispose of your unwanted items politely and respectfully.

One of the better things about working at Junk King is that we reprocess a good majority of the products we collect. This reflects our commitment to being an environmentally conscious Full-Service Junk Removal company.

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