Real Estate Investing: Can someone explain this cottage industry of buying/selling cheap raw desert land? |
- Can someone explain this cottage industry of buying/selling cheap raw desert land?
- Is it worth obtaining my real estate broker license (including property management) as part of a long-term plan in real estate investing?
- Looking to invest in my first property
- "Hundreds of Washington Landlords Break Eviction Moratorium" - Seattle
- Low and no money.
- FHA -> Cash-out refinance
- [UPDATE] The worst thing that could have happened just happened. Looking for advice. (Baltimore, MD)
- Sample Rental Property Partnership Agreement
- Is a homestyle loan right for me?
- Construction - Single Close Loan
- Cant pay rent due to COVID. In need of some advice.
- Down payment
- Blogs
- Tax on private lending
- Need some advice!
- At how many properties do regular people think you're a serious player? When doubters start to believe.
- Option in a lease to rent for an additional 5 years
- How do REI analyses change for SFH v. MFH
- rental condo refi issue
- LIHTC Development Model Feedback
- Do I have to let in potential buyers even though there is a stay in place order in my state?
- Qualifying for a multi family loan outside of your income
- Was set to close friday
- Data - First REIT reports Q1 earnings. Negative (-0.19) EPS. Typically they typically avg +0.45 EPS
| Can someone explain this cottage industry of buying/selling cheap raw desert land? Posted: 13 Apr 2020 07:49 AM PDT For those not familiar, there are lots of land available in Western US (CA, AZ, CO, NV) for dirt cheap prices. Prices are generally under $1000/acre. The land is usually un-useable, meaning: no water, no power, no sewer, restrictive zoning laws, and hours from civilization. I'm not questioning why the land is cheap, I understand that these are generally garbage unusable bits of land. What I don't understand is the cottage industry that seemingly revolves around buying and selling this land. There are hundreds of these small private land companies generally owned and run by one person. They may own 5-20 of these land properties, and have them listed for sale with the option financing via the seller with very generous terms. The entire transaction is done online and they generally take credit card.` Who is buying this land from them? I have seen parcels bounce between multiple re-sellers, which implies they sometimes sell to each other? How is there possibly enough sale volume to sustain hundreds of these little land business year over year? I just don't understand from a business perspective. Presumable they must be making a decent return, otherwise why would they continue to exist and turnover property? Is there some kind of other purpose for these businesses that I am not seeing? Maybe tax advantages? Here is an example of one, seems sketchy/scammy to mehttps://www.wglands.com/property/?sort=&loc=&beds=&baths=&terms=&status=available [link] [comments] |
| Posted: 13 Apr 2020 04:36 PM PDT I have been going back and forth on this. The initial expense is reasonable. After application, course work, testing, and licensing fees it's looking to cost about $1000. I am wondering if the time invested is worth it (150hr coursework + testing + 30hrs CE every 2yrs). I work in the healthcare field, and do not intend to make a full career change. But my partner and I are starting out in our real estate investment and rental property endeavors, and we have been advised that this could be beneficial for us to have our own real estate licenses. Some suggested benefits:
EDIT: In our state we would have to actively work under a principal broker for 3yrs before applying for our own principal broker license. [link] [comments] |
| Looking to invest in my first property Posted: 13 Apr 2020 10:05 PM PDT I'm looking to purchase my first property to rent out to people. I'm still quite young with little to no experience in the real estate market, but I'm eager to learn. Would this be an appropriate time to purchase property? I'm assuming the pandemic would result in much cheaper property prices. What are your thoughts? [link] [comments] |
| "Hundreds of Washington Landlords Break Eviction Moratorium" - Seattle Posted: 13 Apr 2020 11:55 AM PDT Landlords in Washington State are following through with charging late fees and starting collections proceedings against tenants. The attorney general's office claims they are receiving complaints faster than they can respond. "What landlords need to hear is that we understand that they're struggling, " said Ferguson. "The federal government has taken action to help out landlords, so they're not facing their own foreclosure issues. But, at the same time, they need to follow the governor's proclamation. We're all in it together." Thoughts? [link] [comments] |
| Posted: 13 Apr 2020 03:37 PM PDT Whom of you have successfully owner financed deals in your market, whether they finance/carry the down, or the entire property? How big was the deal? I seem to be able to persuade people into it if I can get them to hear me out on it, I just have yet to close on one yet. I know there are many different opinions on this matter but I am seeking the advice of those who have done this. [link] [comments] |
| Posted: 13 Apr 2020 08:45 PM PDT What criteria do you need to meet to cash-out refinance out of a 3.5% FHA loan? [link] [comments] |
| [UPDATE] The worst thing that could have happened just happened. Looking for advice. (Baltimore, MD) Posted: 13 Apr 2020 09:42 AM PDT Hey guys, I got a lot of excellent feedback in my last post. At that time the fire had JUST happened and I was freaking the fuck out. I had no idea what to do and I couldn't even think straight. This past week has been incredibly stressful but I've learned so much and have made a lot of progress. I have some time to give you my backstory. My dad has been investing in properties for the past 20 years or so and now has a portfolio of 16 properties with 20 doors. 4 years ago he had a stroke. He's been slower and has less energy now. He was disorganized before, but had kept it together. He had slowly been letting things get worse and worse. At the beginning of 2019 I stepped in. We owed about 40k in property taxes, 30k in water bills, and 8-9 vacants. I moved to Baltimore and tried to get things rolling. I feel like I haven't made as much progress as I should have. There was a lot of false starts and getting locked in analysis paralysis. I work a full-time job as a software developer. I've also gotten married and bought a house since then. I think I'm starting to get the hang of it and things are speeding up. Things I've implemented to make my life easier:
And then the fire happened and threw me into the REI ring before I was ready. The original gameplan was to start figuring out how to do REAL REI after I fill all the vacant properties. We were just slumlording it. The fire had kicked my ass into high gear. I've been making calls, building relationships and just getting shit done. Here's what I currently have in motion:
Now I feel like I'm doing what I came to Baltimore to do. I've figured out that we can leverage all the properties my dad owns outright to finance rebuilding the burnt property. The first floor of the property is salvageable. We are rebuilding the top two floors and going to make it real nice. He was making $1200 in rent from both apartments. Once it's complete we can charge 1200 each! Once that is rebuilt, I'm going to do a cash-out refi to build another one of our properties that is in a good location, 6 blocks away from Johns Hopkins Hospital. My dad bought it for 10k 15 years ago, and now a property across the street sold for 205k!!! This may be exactly what our family needed to get things in order. I'm more excited about REI now than I was before. [link] [comments] |
| Sample Rental Property Partnership Agreement Posted: 13 Apr 2020 03:34 PM PDT We're in the early stages of forming a partnership/LLC for real estate investing. Does anyone have a sample agreement that they could send me? Anything would be helpful! Looking at 3 or 4 people to come together to buy and rent. Thanks! [link] [comments] |
| Is a homestyle loan right for me? Posted: 13 Apr 2020 06:31 PM PDT New investor here in New Jersey. Last year I bought my first primary home ever, it was $460k, after the down payment and rehab I'm close to 200k into it. I also bought my first investment property, it was $110k, that I'm about 35k into. This week I stumbled across a beat up property a few houses from my investment that has been sitting on the market for 6 months, only 2 saves on Zillow. It was a foreclosure that the bank is now selling. I checked it out and saw that it's actually a 2 family, 2 separate units with their own utilities. My real estate agent (who's also my brother) spoke to the sellers agent and she said the house was vacant for a while so the city rezoned it to a single family for some vacancy ordinance. Tried calling the city today but no one's working due to the outbreak. I'm willing to risk buying it, rehabbing and trying to rezone it as a multifamily again. If I fail there is still profit on renting it as a large single family or selling it as a fixer upper. But if I succeed I'm looking at a great ROI refinancing and renting it. The problem I'm facing is I'm running very short on cash from this last year of investments and having twins. But my wife and I have great credit scores, 800+ and strong income, about 350k/yr before stocks and bonuses. Is the homestyle something I should consider to fund this project? Is there a better option? [link] [comments] |
| Construction - Single Close Loan Posted: 13 Apr 2020 10:16 PM PDT Hi All - about to close on a single close construction loan. I have questions on the nuances of this. Here are some basic facts:
I have never done anything like this before -its a great deal with a great interest rate. 3.5% of what is drawn during the build and automatic conversion to 3.5% fixed when the build is done. In the area of TN - the home should be done in 6-7 months. My question is what happens if the builder didn't estimate the costs correctly? Or runs into any variety of issues? Can they for example say "sorry, the cost of wood is more than we anticipated and we need you to give us 20K more?" or something like that? [link] [comments] |
| Cant pay rent due to COVID. In need of some advice. Posted: 14 Apr 2020 01:14 AM PDT Im a student who lives in an apartment complex, due to COVID I am now unable to pay my rent. The issue arose when I realized my lease requires a $200 fee to break from it, and also requires me to cover all rent charges for the remaining time (4 months) . My parents are instructing me to move out and come home (since school is moved online) and tell them (apt complex) i simply can not pay. Their reasoning being that with so many people not being able to pay rent or utilities they wont come after me specifically in a legal matter, and while there would be bad renters report on my guarantor (dad) and me, they believe the next place I rent at will overlook the fact I have a negative review because it happen due to COVID. I am afraid that this is taking a shortcut that will butterfly effect into problems later on for me... So I would like yall's opinion on this idea, and I would like to know how much a "bad renters report/history" really affects someone. Also does this affect my credit somehow? I didn't even have credit when I signed for this apt but I have been slowly working at it and am now in the mid 700s. Thanks in advance, any criticism/ advice is much appreciated. (cross posted in a few subs) I realize this isnt exactly investing however this is one of the subs I check most often so I wanted to receive some feedback from here in particular. [link] [comments] |
| Posted: 13 Apr 2020 08:19 PM PDT I was considering buying a investment property for 100k. I was wondering how much is a good down payment/closing cost amount should I save for. Also for a new landlord where should I start learning? [link] [comments] |
| Posted: 13 Apr 2020 10:01 PM PDT Who of you all have started up blogs for your business? I have one that I am building up. I would like to bounce ideas off of you all who have done so. [link] [comments] |
| Posted: 13 Apr 2020 07:51 PM PDT I recently loaned some money for a real-estate-investment to a friend. He has returned it to me and given me a 1099-INT. How do I claim it on my taxes (doing Turbo tax deluxe myself)? I know I can put it in Income/Interest part of taxes. But where I am going with this is:
[link] [comments] |
| Posted: 13 Apr 2020 07:48 PM PDT Okay, I have a unique situation. I own my condo in LA but I am dying to move back to nyc. I want to finish school. Question is would it be smarter to buy or to rent? I have access to pay outright but not sure what to do. I would rent out my LA apt 2200-2600/month and if I bought I would definitely be there for 2-5 years. Let's just use 2years for example. Should I pull some money out of my stocks and buy outright (then only paying about 1000/month in taxes and hoa) or should I spend around 30k a year on rent? [link] [comments] |
| Posted: 13 Apr 2020 01:47 PM PDT When i first got started, my mistake was telling people that im getting into rental properties. I heard it left and right about the horror stories "they heard" about landlords losing their shirt, risky investment etc. Their doubts made me doubt myself. This includes close family members, even though im doing it for them as well. What a lonely place to be. Im nearing 5 properties within last 2 years i started. People are starting to see that maybe, i could pull it off. Talked to an older investor and said once you hit 5 properties regular people will think you are rich. But to other investors once you have 10 properties you are starting to become a serious investor. Also do some of you "downplay" how many properties you have to the public? At what point should you just shut up about how many properties you have? [link] [comments] |
| Option in a lease to rent for an additional 5 years Posted: 13 Apr 2020 05:46 PM PDT So long story short we have a property that is owned by several family members that bring in rental income. One of the units is a commercial property. My family never got a real estate lawyer involved to draft a lease so I think the tenant drafted one up. The lease states that the lease is good for 5 years at a set price, and the tenant has an option to lease it for an additional 5 years for only 200 dollars more. Also the tenant can give a 30 day written notice to cancel the lease and leave the property and the landlord can break the lease if the tenant doesn't pay 2 months in full. After the 5 years is up can we not honor the option and rent it to someone else, or draft up a new lease that is something in our favor? No 30 days written notice bs. Problem is the tenant wants to pay only half of the rent for the next 2 months. My family said we can't do that, you can pay 2k instead of the original amount. Which he will be saving well over a thousand for 2 months if he took that deal. Or they can work out a deal where he pays half and pays the rest of what he owes when business is up and running. He is stuck on only paying half for 2 months and giving us a loss of 1 months rent. I told him no several times. He keeps trying to use the argument that if he leaves, we will have a hard time finding a tenant for a few months but the property is paid off. At the end of the day its a prime location and is essential for his business without going into too much detail. So he needs us more than we need him. Plus he is getting the place for a steal. Now my dad is pissed about the lease cause he didn't realize he put that he can give 30 days written notice and break the lease. He changed his mind and told me to tell him to pay in full or we are going to terminate the lease and evict him. I told him its their fault for letting a tenant draft that up. They should've gotten a lawyer involved. But whats done is done. [link] [comments] |
| How do REI analyses change for SFH v. MFH Posted: 13 Apr 2020 05:42 PM PDT Starting REI and wanted to check how my calculation or numeral goals would differ for SFH v. MFH homes. Currently, for SFH I look for:
Any other calculations, expenses, or generally anything I should look into that would differ from SFH? [link] [comments] |
| Posted: 13 Apr 2020 01:45 PM PDT I was attempting to refi my condo, but the original lender I attempted to use won't proceed with the refi because the following 2 conditions must be true: - "over 75% of total units have been conveyed to purchasers other than the developer" - "the control of the HOA has been turned over to the unit owners".
Also, if anyone has some leads on banks or mortgage brokers to work with in the phoenix area, that would be great. Looking to cashout refi with a total loan amount below 100k, which it seems lenders are picky about as well. Value is approx 130k, so if the LTV limit is 75%, i'll need a strong appraisal to get over 100k. Edit - updated as lender called and I got more detail/clarify on issue. Only question at this point is any leads for lenders that would hold the note or not use fannie/freddie, and either make < 100k loans, or allow > 75% LTV. [link] [comments] |
| LIHTC Development Model Feedback Posted: 13 Apr 2020 05:15 PM PDT Hi, I am working on a model for a case study. For some reason I cant get my cash developer fee to be positive even though I yield a significant rent advantage against the competition. I was wondering if anyone could take a look and provide some feedback? PM me for the model and I can email it to you. Thanks in advance! [link] [comments] |
| Do I have to let in potential buyers even though there is a stay in place order in my state? Posted: 13 Apr 2020 04:28 PM PDT Since there is a stay in place order from the governor in our state and we just got an email requesting to show the house we are currently renting tomorrow evening. I do not feel comfortable with it as there is a stay at home order mandated by the governor and my husband and I are considered high risk for the virus, ( I am also pregnant, so this is stressing me out) My question is, can I simply ask them to wait until the order is lifted so as not to jeopardize our health or is that out of line? Its not that im trying to be obstinate or uncooperative either, I just dont feel comfortable with it while there is a stay in place order for the entire state. We havent even seen family or friends for a month, so I really dont want people walking through the house potentially risking our health. [link] [comments] |
| Qualifying for a multi family loan outside of your income Posted: 13 Apr 2020 11:42 AM PDT Hi Everyone, Quick financing question. I currently co-own a multi family property in LA and am looking to get another should the market get softer and better deals become available. My question is this: Example i earn 100k year pre income. Mortage/Insurance comes to 5500, will they consider that the rents for each unit could be 2200 and will put me to the place where i can comfortably afford it? Or will i need to have the ability to cover it on my own without tenants in order to qualify. Thank you [link] [comments] |
| Posted: 13 Apr 2020 02:19 PM PDT And now the bank is saying they don't allow holdbacks on investment properties? Is this dude full of shit or is this normal? [link] [comments] |
| Data - First REIT reports Q1 earnings. Negative (-0.19) EPS. Typically they typically avg +0.45 EPS Posted: 13 Apr 2020 08:05 AM PDT https://finance.yahoo.com/quote/SRC?p=SRC&.tsrc=fin-srch
5x leverage, such a small drop in rent loss was enough to send them into negative net income. Absolutely insanse [link] [comments] |
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