Real Estate Investing: I have a feeling that a lot of people on this Reddit are over leveraged and they are just now starting to realize that. What is your favorite risk mitigation strategy? |
- I have a feeling that a lot of people on this Reddit are over leveraged and they are just now starting to realize that. What is your favorite risk mitigation strategy?
- I closed on a rental with a mortgage under my name right before Corona, can't find tenants, what are my options?
- I was in contract to sell before CV. Tenant is month to month. No appraisal or financing contingency. I’m worried if tenant doesn’t leave - what can happen to me?
- What are your thoughts on the housing market's future in expensive cities like San Francisco?
- All you need to know about the ethics of auction.com
- What does our future have in store?
- BRRR.. new option 100k 401k loan
- How do I help my friend avoid a potentially vapid decision regarding unrealistic flipping returns.
- How to get financing for rental property without rental history
- Any South Carolina Investors In Here?
- Question about rent
- As a renter in a building of renters: what kind of rent relief can we agree is fair and realistic?
- Most tax efficient properties via tax segregation?
- Umbrella policy
- Title Insurance on Refinance vs Purchase
- How Do you guys go about finding PRE-FORECLOSURE
- Is RealtyTrac worth it?
- Will there be an opportunity to buy investment properties due to COVID 19?
- Foreclosure auction... inspection?
- SBA Loans
- Any experience/insight with renting a home by bedroom (vs entire home) in a non-college town?
- I found a pretty smoking hot deal off-market. Should I proceed in these uncertain times
- Mortgage Calculator accept extra payments?
- What REFI interest rates are you seeing on investment properties today?
| Posted: 24 Mar 2020 07:08 PM PDT I think when it comes down to it you as the landlord is who is guaranteeing the bank will get their money and take on risk for property damage/vacancies [link] [comments] |
| Posted: 24 Mar 2020 11:15 AM PDT Slowdown of house showings. Haven't had luck finding a quality tenant. I have the means to pay the mortgage on that rental for 2 months but after that, it will be tight. I don't have an LLC on the property. How can I get assistance from the fed govt in this situation? What are my other options? [Edit] thank you for all the advice! This is my first week in this sub and already seeing the benefits! At this moment, I don't need to defer payments just yet but will use it if I need to. I will lower the rent a bit and get more aggressive with advertising. I had professional photos already but the virtual tour may be useful. I am in the NC area, I had several showings but didn't work out. Hopefully, I will find quality tenants soon. [link] [comments] |
| Posted: 24 Mar 2020 07:46 PM PDT I am asking a house and the buyer has come back with some credits in lieu of repair. If I sign this the deal has to close since there are no financing or appraisal contingencies. Only issue is I need to vacate the tenant. Tenant is month to month and I will offer some incentives to move. My worry is any legislation that pops up that would impact my ability to vacate tenant. This isn't for non payment. The lease is over and I have the right to give 30 days notice. It's 45 day escrow with a 30 option to extend if I give a 500 dollar credit at close. If the tenant pushes this matter past 75 days. What legally are the downsides for me? I'd be happy to sell. I'm not gonna try to back out. Thanks! [link] [comments] |
| What are your thoughts on the housing market's future in expensive cities like San Francisco? Posted: 24 Mar 2020 02:07 PM PDT I live in SF but DO NOT invest here because the prices are so insane. An average SFH is currently going for about 1.5million. Burned down or destroyed homes even sell for 1million because of the high value of the land. I'm thinking that logically, this cannot continue. The prices for housing in SF, (and to a lesser extent Seattle, LA, NYC) have gotten to the point where normal people simply can't afford them. Most of the houses in SF at least are being bought by investors with briefcases full of cash looking to flip and sell them to the next buyer. There has to be a point where it all comes crashing down. Then again, SF has a ton of great, high paying jobs. Same goes for the other expensive cities. Surprisingly there is actually a lot of demand for million-dollar homes. I recently met someone who dropped a mil on a surprisingly average 2BR out here. And they're not rich. So, I'm wondering what your thoughts are on this. Will prices keep going up until the end of time? Will they level out, or is it likely that some event could a fragile market to collapse? Let me know what you think. [link] [comments] |
| All you need to know about the ethics of auction.com Posted: 24 Mar 2020 07:27 PM PDT I'll lead this off with saying auction.com sucks. Sucks terrible. Pardon my language but they committed fraud and tried to fuck me. So anytime I get the chance to share, I like to make people aware that not only is the "auction" process a scam, the company themselves have both unethical employees and management. That rant over. The following was just received by auction.com CEO. To our Auction.com Community, To keep our employees and partners updated in this environment of rapidly changing circumstances and information, I'd like to share the following updates from Auction.com. We are in the midst of a national emergency and I am committed to making decisions that are not only in the best interest of our employees, our sellers, and our buyers, but also ensuring that those decisions are in the best interest of our national health and security. Our Communities – I'd like to start by applauding the rapid action of our industry partners who have ordered the postponement of evictions and the foreclosure of occupied homes, along with offering payment forbearance to those deeply impacted by this crisis. Giving all parties time to work through the confusion will ensure that every homeowner and tenant is given the support and shelter they need. In support of these efforts, Auction.com has launched a 'community stabilization pledge' by which all buyers of our REO homes will be required to refrain from commencing any eviction proceedings during the 60-day federally mandated moratorium. While it is always our hope that our buyers first work to lease occupied homes back to the residents living there, during this time we will be requiring our buyers to sign our Auction.com pledge mandating no evictions. I know our buyers will understand and support this temporary directive. Our Employees – Auction.com has a wonderful community of dedicated employees who care deeply about our mission to serve our clients. At times like this, it is equally important that Auction.com take care of its employees. Given the moratoriums and postponements and our desire to assist our employees through this period, Auction.com has committed to protecting the jobs and incomes of all our employees. As the market unfolds in the coming months and years, Auction.com and our employees will be there to bring liquidity and order to the sale of real estate. In the interim, we will continue to stay safe and fulfill our responsibilities to our offline foreclosure sales and postponements and support the robust and vibrant online marketplace for REO that continues without delay. Those employees who are idle during this time will be encouraged to use this time to assist those most at risk within their communities. Transformation – Over the last year, Auction.com has invested heavily in digitizing courthouse sales through our Auction Sync technology, which is being deployed in both Judicial and Non-Judicial counties. The goal of this investment is to allow our buyers to purchase homes remotely, through the Auction.com App, from the comfort of their homes and offices. This week we increased this investment, with the expectation of rolling out this capability to major metros, within 60 days. To our buyers, we hope that this new technology will support the ease of your investments as you work to revitalize distressed homes and bring stability to neighborhoods. I don't think any of us know what the coming weeks will bring. What we can commit to is focusing on making the right decisions as challenges arise and continuing to help, as opportunities present themselves. Our employees stand ready to answer your questions and support your needs. Just as I know that this crisis will pass, I am certain that our industry will stand proud of how we rose to the challenges and put our communities and each other first. With gratitude, Jason Allnutt CEO of Auction.com Tldr: after waiting until everyone else responded to this crisis, we are responding to this crisis by saying "we demand you follow federal law because we are good people". Glad to see you are making the tough choices Jason, how very big of you. [link] [comments] |
| What does our future have in store? Posted: 24 Mar 2020 01:38 PM PDT With everything going on in the world and economy, what does the future have in store regarding the real estate world in the next few weeks/months/years? Are we going to see a transition into a buyers market, and if so, how long will it take for it to get there? Are housing prices going to tumble? Have they started to already? It looks like landlords are in serious danger of losing lots of money with people unable to pay rent and government banning evictions. [link] [comments] |
| BRRR.. new option 100k 401k loan Posted: 24 Mar 2020 11:49 PM PDT There are rumors that the recently passed bill will now allow 401k providers to offer up to 100k loans.. I suspect someone on here will figure out a way to make use of this... please share your plan... [link] [comments] |
| How do I help my friend avoid a potentially vapid decision regarding unrealistic flipping returns. Posted: 24 Mar 2020 09:53 PM PDT My close friend is trying to loop me in on a scheme he has to purchase cheap land in northern Tennessee. He wants to put his life savings of ~$10k - $20k into a piece of land or run down real estate that he has not yet found, and "turn it into $60 - $90k in a year by fixing it up as a "side project". He's been hooked on the concept of "flipping", and talks about it as if it's as easy as selling pogs on the playground. He also has an affinity towards a lot of YouTube personalities and folks online promising unrealistic returns that I perceive as having pyramid-scamish tendencies. I have concern that he's not thinking straight. He's always had an issue with working a regular job, and is constantly looking for a get rich quick approach to generating revenue. Is he bonkers to believe he can get a 60 - 75% ROI on a side project like this in under a year? I'm trying to edge him in the direction of a rental property or something he can generate a little passive income from instead. It just saddens me to see him put all his eggs in the baskets of false internet promises. I know this likely reads as an idiotic post for most here, but can someone help clear the air for me on "flipping" in 2020 so I can help this guy. [link] [comments] |
| How to get financing for rental property without rental history Posted: 24 Mar 2020 08:23 PM PDT A neighbor urgently needs to sell their home due to medical issues & moving out of state. They want to sell for around $235,000. It's a 2 bed / 1 bath historic home near central Phoenix, AZ. My home is also historic & I've done a lot of work on it, which I don't mind. The home needs work, maybe $15,000 in repairs. A recent appraisal was $275,000 in it's current state. Homes in our neighborhood that are move-in ready sell for around $310,000, so it seems to be a good price. I want to get into the real estate business to own rental properties long-term. I want to offer $220,000, make the $15,000 in repairs and rent it for around $1,650 per month. Cashflow will be about $60 (Mortgage $1,143 – Taxes $183 – Insurance $80 – Vacancy 5% $83 – Repairs/Maintenance 3% $50 – Management Fees 3% $50 Total Expenses $1,589). This looks good for the area and I want to hold onto it for the long-term as well as acquire more properties each year. The problem I am having is financing. I can get a hard money loan for the few months it takes to rehab the property. But when it comes to refinancing, how can I refinance it? My debt to income ratio is already being used up for my own home's mortgage and student loans, so it doesn't look like I could afford another mortgage unless the new properties' rental income is counted. I talked to a lender and they said in order to count rent as income to help with financing I need a 1 year rent history of a property. I plan to open an LLC to establish a rental property business. I am willing to get very creative and I know I'll probably pay more because it is my first property. Is there some way to count projected rental income as income? Could I get a renter in during the hard money loan period and extend it for a few months to prove income to take to a bank? How do regular people actually get started in this? Should I bring a plan to a regular bank to see what they might do before I get under contract? [link] [comments] |
| Any South Carolina Investors In Here? Posted: 24 Mar 2020 03:51 PM PDT Just wondering! I'm active on other sites with investing, but just joined this sub. I wasn't aware of it for some reason! I'm looking forward to contributing. I'm a BIC in SC, so I hope to provide some good information for anyone who has state specific questions for my market. This isn't meant to be promotional! Just want to provide some value with all this downtime. [link] [comments] |
| Posted: 24 Mar 2020 01:15 PM PDT If my tenant can not pay this month's rent can I just say I will keep his deposit and use that as this month's rent? [link] [comments] |
| As a renter in a building of renters: what kind of rent relief can we agree is fair and realistic? Posted: 24 Mar 2020 06:58 PM PDT My fellow tenants and I are having discussions (over webchat, naturally) about how we should approach our landlord about rent relief. We're in Oakland, a VERY expensive place to rent, and many of us are suddenly without income for potentially months. Our landlord sent us an email saying if we pay on time, we'll get a 20% discount on our next months rent. Or you can pay every two weeks. While a step in the right direction, this seems woefully inadequate, as many tenants are incapable of making THIS months rent. Orders have been given to prevent evictions in Oakland. Landlords of Reddit, what kind of compromise can we all come to? We CAN NOT continue paying at a slightly discounted rent. We can't even leave our apartments. What say you? [link] [comments] |
| Most tax efficient properties via tax segregation? Posted: 24 Mar 2020 09:53 AM PDT I am looking for properties that are efficient vehicles for tax purposes via cost segregation. What type of properties would give me the biggest tax incentive per dollar spent? How would I focus on finding these properties? Any reading recommendations would be amazing as would any personal stories and lessons learned from cost segregation. [link] [comments] |
| Posted: 24 Mar 2020 03:19 PM PDT Who do you guys go through for your umbrella police's and how much does it cost? I only have 1 rental but was thinking of trying for a $million. Does the policy include my wife and kids? Edit: I heard there is insuance against vacancies? I'm sure this would be outrageous right now, but what is that called and how much? [link] [comments] |
| Title Insurance on Refinance vs Purchase Posted: 24 Mar 2020 02:46 PM PDT I'm working on a refinance right now, and I'm getting a bit of sticker shock on title insurance. I looked back at the closing disclosure from when I purchased the property in 2018. Lender's title policy was $275 on a loan amount of $258,000. On my refinance, the same title company is charging $655 for the lender's title policy on a loan amount of $252,000. They, and another company that I asked, say that refinance deals price based on the loan amount. I don't understand what's going on. Is this typical? [link] [comments] |
| How Do you guys go about finding PRE-FORECLOSURE Posted: 24 Mar 2020 10:20 AM PDT I hope this isn't a basic question, hopefully mods will forgive but I am having a tough time. Right now I have tried bandit signs (didn't work), mailing campaigns (no calls), and have been trying cold calling for a few months with very little luck (I outsource cold calls). I invest in properties and know plenty of ppl who invest so get properties sold or bought is not a problem but finding people who need to sell due to divorce, death, debt etc is HARD. I tried some prospect sites that claim to list pre foreclosure but I didn't get any. I started going to auctions as well. Idk I feel like a pre foreclosure/short sale would be sooo much better because in the end won't it be cheaper? Please let me know how you guys find properties? Also are we allowed to share information if we are both in the same state on this sub? Thanks anyway!! [link] [comments] |
| Posted: 24 Mar 2020 01:54 PM PDT |
| Will there be an opportunity to buy investment properties due to COVID 19? Posted: 24 Mar 2020 04:58 AM PDT Does it make sense that some investment properties may hit the market as people need to raise capital due to economic downturn? I think most owners primary residence will be safe, but want about second or third homes they may have? I know it won't be fish in a barrel like a decade ago, but I'm hoping to find a deal on a vacation rental in the next year or so. [link] [comments] |
| Foreclosure auction... inspection? Posted: 24 Mar 2020 12:51 PM PDT I recently won an auction for a property in my area. I was under the impression that the property was "as is" since it was cash and I was aware that I would not be able to have it Inspected. The auction company just emailed me asking if the property "will require an inspection in order to close?". I think this is referring to if someone was getting a mortgage that required the inspection? Even though I'm buying in cash is this an opportunity to have it inspected anyways? [link] [comments] |
| Posted: 24 Mar 2020 12:44 PM PDT Has anyone tried to apply for an SBA loan for economic injury due to Covid 19 for a vacation rental? I understand that it does not cover lost profits but I have some debts and future costs that will amount to around $50,000. Any advice would be appreciated. Is it possible to qualify for this type of loan for a vacation rental? [link] [comments] |
| Any experience/insight with renting a home by bedroom (vs entire home) in a non-college town? Posted: 24 Mar 2020 12:13 PM PDT I own a 3 bed/2 bath single family home - I occupy the master bedroom with a private bath and currently have 1 tenant occupying another bedroom, with the 3rd bedroom being occupied within the next month (who will both share 1 full bath). I'm a young male professional looking for similar tenants (ages between 22-35 with stable job). I plan to move out of my home within the next couple of months and will advertise my master bedroom for rent. Ideally, I will have 3 separate tenants occupy my home - 1 tenant per bedroom. Pros of this setup in my mind: - There will be 3 separate tenants paying rent, limiting vacancies - Collected rent will be 40-50% higher than renting the entire home to a single tenant or family Cons / concerns: - What if roommates don't get along - Finding qualified renters if this is an unusual setup Perks I'm willing to offer at no additional expense to tenants: - Furnishing bedrooms, if needed - Discounted rent for birthday months - Offer a cleaning service to come by every 2-3 months to clean and make sure everything is looking good Does anyone have any insight into this type of setup? Experience or resources would be extremely helpful. My goal is to prepare so nothing essential is missed on the front end. [link] [comments] |
| I found a pretty smoking hot deal off-market. Should I proceed in these uncertain times Posted: 24 Mar 2020 08:19 AM PDT This is a 3/2 duplex in a hot city in an A- area. I actually would really want to live in this neighborhood. I had sent out direct mail 2 months ago, and this guy contacted me because now he wants to sell immediately. I'd be purchasing with FHA 3.5% down. Purchase price: $265,000 (Recent sales on same street are $300,000+. most recent exact comp was $325,000) Down Payment + rehab: $30,000 Total Rent amount: $2500 Monthly payment: $1600 Maint/Vac/Capex: $375 Monthly Cash Flow: $525 COC ROI: 21% If I had seen this deal 2 weeks ago, it would have literally been the best deal of all time for my city in this specific area. Should I proceed? I would be buying it for literally at least $40,000 less than it would have sold a few weeks ago. probably more like $50,000 less than it would have sold. [link] [comments] |
| Mortgage Calculator accept extra payments? Posted: 24 Mar 2020 11:59 AM PDT I am selling a house on a contract for deed. The buyer told me that sporadically that they would like to make extra payments when they have bonus checks at the end of the year from their job. I am looking for a mortgage calculator where I can apply the extra payments and the amortization table changes automatically updating balance, principal and interest. I found an Android app called 'Mortgage Payoff Track' that does this. However, does anyone have an Excel spreadsheet or mortgage calculator software that can accept sporadic extra payments of various amounts for Windows 10? [link] [comments] |
| What REFI interest rates are you seeing on investment properties today? Posted: 24 Mar 2020 07:57 AM PDT 1) for single family investment property 2) for duplex investment property [link] [comments] |
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