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    Thursday, April 9, 2020

    Real Estate Investing: Are you expecting to see a lot of foreclosures in the upcoming months?

    Real Estate Investing: Are you expecting to see a lot of foreclosures in the upcoming months?


    Are you expecting to see a lot of foreclosures in the upcoming months?

    Posted: 08 Apr 2020 10:59 AM PDT

    With the stock market still in the volatile territory and unemployment rates soaring due to the ongoing COVID-19 situation, are you expecting to see a lot of foreclosures in the upcoming few months??

    submitted by /u/mjatin2007
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    69% of Renters Paid April Rent- NMHC

    Posted: 08 Apr 2020 01:11 PM PDT

    Here is a link to the article: https://www.wsj.com/articles/nearly-a-third-of-u-s-renters-didnt-pay-april-rent-11586340000?mod=hp_lead_pos12

    This doesn't jive with my experience. It will be interesting to see next week's revision when payments over the weekend are factored in.

    submitted by /u/MrsNLupin
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    "No nonbank is too big to fail." - Federal Housing Finance Agency Director Mark Calabria

    Posted: 09 Apr 2020 04:39 AM PDT

    Ditch the 1% Rule?

    Posted: 08 Apr 2020 10:55 PM PDT

    For those unfamiliar, the 1% rule means only buying when monthly rent is at least 1% of the purchase price on a rental property. It's often used as a short-hand metric for a deal that will bear positive cash flow, often with a 30-year fixed mortgage and 20% down.

    The 1% rule single-family properties I find have either been expensive rehab jobs (not my forte) or in areas with a questionable economic future. So what says the group? Where do you start to worry about getting at least a modestly positive cash flow?

    Disclaimer: If your is different from my market, let's talk your market.

    submitted by /u/3FAH1H2423-1
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    COVID Reading List

    Posted: 08 Apr 2020 07:59 PM PDT

    Figured I'd post books I've been reading. I recognize that they aren't necessarily real estate investing oriented, but real estate as a business is so dynamic that I've found that the 'how to' real estate books are more gimmicky than useful. Anyways. I'd love to get a few threads going about them/get suggestions on what to read next...

    1. The Way of the Shepherd
    2. The Like Switch
    3. Crushing It
    4. Getting to Yes
    submitted by /u/HapsTilTaps
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    Real estate investing newbie advise

    Posted: 08 Apr 2020 09:59 AM PDT

    Hi everyone ,

    I am a twenty year old male that lives in Ohio with little to no experience in real estate investing. I currently have a stable job as well as a decent chunk of money saved up. I would love to learn more on this subject as I am just starting out. Does anyone have any suggestions on where to start. I am considering taking an online course to become an agent so I may learn more on this subject. Would this information be of value to me? Anything helps! Let me know if you have any questions.

    Thank you

    submitted by /u/rooftoppussy
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    Where to find multi-family homes?

    Posted: 08 Apr 2020 06:02 PM PDT

    It seems in my area there are never multi-family homes for sale. I am wondering where can multi-family homes befound besides places like Zillow or realtor?

    submitted by /u/Icameforcoffee
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    First Deal Offer Semt

    Posted: 08 Apr 2020 09:56 PM PDT

    Long time lurker and aspiring investor, just made my first offer. Quadplex right off a major military installation. Asking price of $290k, offered $275. 3 out of 4 units rented at $750 a month. Initial projections show $1.4k cash flow a month. Plan is to put roughly $5k into each unit (laminate, paint, bathroom vanity) and up to $800-$850 when leases expire. Hope to have good news in a few days!

    Edit* Can't figure out how to edit the title.

    submitted by /u/Jabronie88
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    Multi-Family Value Add Acquisition Model

    Posted: 08 Apr 2020 01:14 PM PDT

    Hey Guys,

    Working on a potential deal in DT Sacramento. It's a value add deal, 10% of units have been renovated.

    Trying to build out a model to forecast capex spend and rent premiums gained from renovations. The way i'm thinking about it, and correct me if im wrong, is financing with project with two tranches of debt, fixed 10 year IO term debt, and some some of mezz loan/RLC that i will eventually refi into term debt.

    As far as the reno premiums how should i model those out and am i looking at this completely wrong?

    Really appreciate the help here!

    submitted by /u/HDsupplyCo
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    Any ideas for new income streams for multifamily?

    Posted: 08 Apr 2020 02:25 PM PDT

    I'm trying to boost my NOI a bit for a sale down the road. Any ideas on some new income streams worth adding to my property?

    submitted by /u/asscatchem42069
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    Should I be applying for a SBA EIDL loan if my tenant did not pay April rent?

    Posted: 08 Apr 2020 04:46 PM PDT

    I recently purchased my first rental unit (townhouse) in October 2019 under a LLC and filed taxes for last year. I rehabed the unit and was able to rent it out February 2020 and received rent payments for Feb and Mar. This month, because my tenant's business was shut down. she was unable to make rent payment for this month, and it's looking like nothing going to be opening up for the rest of April, so I doubt she will be able to make rent for next month. Should I be applying for an EIDL loan from SBA to recoup my losses? Is this allowed under the current program or is it only for commercial landlords?

    submitted by /u/ogentrepreneur
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    Owner Financing as a bridge to traditional banking financing

    Posted: 08 Apr 2020 04:17 PM PDT

    In order to avoid having to pay 15-20% downpayment upfront in an investment property would it be feasible to get owner financing at a lower down payment and a balloon payment in 5-6 years with the intention of converting that owner financing to bank financing using equity and additional cash in that 5-6 years?

    submitted by /u/jkhallatl
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    Interested in investing in my first property... but have student loans from Uni

    Posted: 08 Apr 2020 03:50 PM PDT

    Hey All -

    I'm looking to get started with investing in my first property over the next year or so. In the meantime, I'm researching, collecting certificates, networking, and basically just becoming a sponge for everything real estate. I'm in the process of building credit and saving money for my first property, likely I'll buy in the New England area.

    The one issue is that I'm worried that financing will be difficult due to my student loan balance. I current have $40K of student loans that I've been paying since I graduated a few years ago. I make about $90K a year and am prioritizing paying off my student loans in the next few years...

    How do banks typically respond to first home buyers with student loans? Will they just require a higher down payment? Higher interest rate? Turn their shoulder? This is something that's looming over me and I always consider this to be a massive hurdle before taking out more debt.

    Any prior experience or knowledge related to this would be super helpful.

    Thanks guys -

    submitted by /u/SpinachPiee
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    Different kinds of real estate investments for different situations

    Posted: 08 Apr 2020 03:24 PM PDT

    Curious about different kinds of real estate investment types and forms especially for individual clients or a group of clients.

    Say one client wants to invest in something that will provide quick returns but is okay with a high amount of risk and would prefer to be a passive investor. What kind of real estate investment would be best for him?

    Another client wants to go into an investment with her family who wants her to manage the investment. Her family wants the investment to be highly liquid and would love to see long-term growth. What kind of investment would be best for them?

    As far as I know, there are very, very few ways to get quick returns from real estate, but the first client is willing to take on a huge amount of risk. I haven't found a suitable investment vehicle for either of these clients. UpREITS, DownREITs, real property, LLC, REMIC, I'm open to any suggestions!

    submitted by /u/lacrimosa122
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    What would you do in my situation? Real Estate Investing Please Help!

    Posted: 08 Apr 2020 02:39 PM PDT

    Dear RE Investing,

    I am so glad I found this sub as my wife and I are in a huge debacle about what to do. Been a huge follower and a lot of your posts/advice have gotten us this far. Here is the situation below:

    In my current position in my location, I make the following a year: $75k from my primary employer, self manage rental property $48k, side gig $15k, and wife makes $40k total. Total money from all income streams is around $178k in a low cost of living, but a very boring area. In addition, I also feel like the $75k I make from my primary employer will not increase, nor will my wife's job salary increase. My wife's job is very laid back and can work from home and my job can be stressful at times, but mostly pretty relaxed too. No traffic, own a fairly nice home, opportunity to increase rental property income and side gig income, but don't see any opportunity for my + wife career advancements.

    In total, we save roughly $93k a year and reinvest all of that money into real estate/side gig.

    Here is where I need help. Just last week, I got an offer for $90k to move to a large city that would be a promotion and the possibility of an additional promotion to a salary of $120k (I know talk is cheap from the employer and anything could happen but seems like a lot of growth opportunity). The huge pro as our personal families live very close by this city and now we live fairly far apart. I would still be able to keep the rental properties, but the income would go from $48k to $35k from having a property manager in place. My wife would not have her salary, but in this new larger city, we believe there would be a lot more opportunity for her to find a new/better job and also opportunities to grow our side gig, but they would be $0 in the first year. The cost of living is more, but the quality of life seems to be a lot better, plus our family is in this new city and they are getting older and we want to be closer. Regardless of the promotion/job we would want to live in this new city. Total income streams year 1 in this new city would be $125k which would be a huge loss of income for us :( but not everything is about money, right?

    In total, in this scenario, we are projecting to save roughly $51k a year and reinvest all of that money into real estate/side gig, but a huge opportunity as this does not include savings from wife's salary, or side gig earnings. In this new city, I see huge opportunity for commercial/multifamily investment growth, whereas today we mostly have been investing in SFRs.

    If you made it this far, I guess what I feel in my current position, we are making really good money, but only have the opportunity to grow our rental property income/side gig. But, in this new location, we would have an opportunity to grow all of our income streams (hopefully), but would need to start from $0 while we find places to feed into that opportunity.

    On the other hand, I really enjoy having no traffic and this low cost of living we are in now. This new city would have a lot more traffic, not a huge increase in the cost of living (I.e. Seatle/San Jose), but still would be more money. But, our families are in this new city, potentially better schools for our child, more fun things to do, etc.

    Reddit: What should I do? What would you do? This is my first job out of college that I would put a 2-week notice in and I love it here, but we miss our family. I do want to retire early and I value a good family/life balance, hence the reason why we are greatly considering a huge loss in income. Please help, any advice would be much appreciated.

    submitted by /u/Redtech2013
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    What steps are there from viewing all the way to purchase with a mortgage?

    Posted: 08 Apr 2020 02:36 PM PDT

    I've just moved to the States and im interested in buying property with a mortgage at some point. It'd be great if someone could describe the process for both a house i would be living in and an investment property (residential). Assuming i did the research and found a house im interested in buying, what would the process be like from that point till the actual purchase? I would also be renovating so please also include at which stage I'd be getting an estimate from a contractor. Thanks :)

    submitted by /u/roeesta
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    Home Mortgage Forbearance Option - Approaching New Mortgage Refinance

    Posted: 08 Apr 2020 02:21 PM PDT

    Hello, looking for some input here on whether or not I should request mortgage forbearance on my FHA home mortgage.

    I have an FHA mortgage for home, money is tight temporarily, want to request mortgage forbearance... This would help me finish a rehab (~2 weeks from completion) and get the roof at home repaired (it's leaking) at the same time. I have ~$3k-$7k in unexpected income likely coming in within the next month so I have no concern about being able to catch up immediately, maybe even make my normal May payment on time. (Forbearance has to be requested by the 15th of the month ahead of payment).

    ... But I do not want the forbearance to negatively affect a new rehab/rental mortgage in 2-4 weeks, nor a home refinance immediately after.

    submitted by /u/SyncTheory13
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    Struggling to find properties in distress

    Posted: 08 Apr 2020 07:53 AM PDT

    I've wanted to flip houses for nearly 20 years now and I'm finally in a position where I can start pulling the trigger on it. The problem? I haven't managed to find any properties.

    As an industry outsider, I've been trying to rely on realtors that I trust, but it's proved less than fruitful. The first one that looked the best on paper ended up either being a flake or kept the leads for herself/other clients. I turned to someone I trust but has never worked the investment side, and she's only found one house that the price just didn't work. Six months in and nothing to show for it is proving discouraging.

    I'm hoping some of you can provide some advice on how to locate some properties that are in need of repair. My skill set is such that I will be the contractor, keeping renovation costs low or paying myself for the work. I haven't tried the "just drive around and look for dumpy houses" approach, as I'm working a full time job still.

    Thanks in advance for your help.

    submitted by /u/jamesflies
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    [Advice Needed] - Allocating stake for RE holding Company

    Posted: 08 Apr 2020 01:39 PM PDT

    Hello! Newbie here and looking for some thoughts. Myself and a couple if buddies are interested in starting RE holding company. We are trying to decide the best way to allocate % share in the company and would like to understand some best practices or what folks have done. Since we plan to buy multiple properties, should we allocate % stake per each property based on down payment each person put, and just give everyone equal stake? Would love to hear some strategies, best practices and case studies if possible! Thank you so much!!

    submitted by /u/joeantwi
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    Interested in starting real estate investing, but my country sucks at the moment - What should I do?

    Posted: 08 Apr 2020 04:33 AM PDT

    Hi everyone. I recently became interested in real estate investing and I had hopes to get going at some point in the near future. However, in the country I'm from, Ireland, housing prices are crazily high at the moment so there aren't really any good opportunities. I was quite disappointed as I don't know how I'm going to get started. Does anyone have any advice on what the best course of action is. Should I just wait for prices to become more reasonable here to begin? Should I try investing in properties in other countries or is that way too complicated? Or should I consider going abroad to somewhere like the US to get going there? I'm really not sure what to do in this situation and I'd appreciate any advice, thank you in advance.

    submitted by /u/AMac16_
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    1031 Exchange - Does my logic work?

    Posted: 08 Apr 2020 07:06 AM PDT

    Hi Guys, I was wondering if any of you see any major issues with the logic in the following. Thanks in advance:

    1) Sell an existing property, single family, and do a 1031 exchange into another, same kind of property but in a different state.
    2) Demolish the new purchase and prep the lot for 9 townhouses. Flat work, rough utilities and access.
    3) Build, via modular construction, two townhouses. They should be habitable within 5 months of lot purchase.
    4) Sell the townhouses via a 1031 exchange and use the proceeds to build 7 more townhouses on the same lot.
    5) Rent out the 7 townhouses.

    submitted by /u/traveling_man_44
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