Real Estate Investing: CARES Act - Final Interim Rules |
- CARES Act - Final Interim Rules
- Why do sellers post listings on loopnet without details about actual rents, tax and vacancy ?
- Thought I Was Diversifying!
- So does this mean that we can truly freeze our mortgage payments now and not have to pay a lump sum? new article
- Has anybody on the young side(25 or younger) invested in real estate successfully? I’m thinking about house hacking once I have enough saved up but I’m really nervous about it.
- How Do I Properly Calculate This Hard Money Deal
- How necessary is a property survey?
- New forbearance question. Can I get my mortgage payment reversed or sent back to my account?
- Please help me with my numbers to make an offer
- Is there a chart for the housing market as a whole? (Rookie obviously)
- Tax Deed Redemption
- If I were to put my mortgage into forbearance under the CARES act will I be eligible for new mortgages say, next year?
- First time real estate investor here. Under contract on a house right now. Need renovation advice.
- How realistic is the 1% guideline for rental properties?
- Working with difficult tenant
- What other apps or websites/databases do you use to view Commercial/ Multifamily properties?
- Interesting statement about our local real estate investors group in Raleigh, NC (allegations of money stolen, illegal take over of group with hundreds of thousands in cash)
- Need advice on a home I'm buying
- Would I be over leveraged buying another property?
- How to best invest $15,000
- If you refinance then sell how much do you pay taxes on?
- Rental Late fees
- How drastic would the effect be on the housing market at a whole, should rental income stall for say 3-6 months?
| CARES Act - Final Interim Rules Posted: 03 Apr 2020 05:23 AM PDT Good morning, The SBA released its final interim rules (what an oxymoron) last night around 9pm EST. A couple of key changes from what has been widely reported over the last few weeks: 1) the loan terms will be set at 2 years, not 10 years; 2) the interest rate will be 1%, not 0.5% (or the 3.75% some outlets have mistakenly transferred from the EIDL loan terms); 3) Independent contractors no longer qualify for the purposes of calculating monthly payroll costs - this is significant. The SBA is suggesting that independent contractors seek their own PPP loan. For many businesses that run primarily on the backs of 1099ers, this will greatly limit the relief available. 4) Most attorneys and CPAs I've talked to over the last week have been using the 100k cap on compensation in Section 1102 of the Act as a cap on salary/wages, THEN applying retirement benefits, medical insurance premiums, and state and local taxes on top of that 100k figure. The interim final rules are not especially clear, but it looks to me like the SBA may expect people to apply the 100k cap to compensation, generally, meaning the salary + benefits + retirement + state and local taxes figure. It seems like a small difference, but it actually lowers the loan amount my firm will be eligible to take since we give our highly compensated employees significant retirement and health benefits that would have carried over the cap. Pinnacle bank, at the least, interpreted the guidelines in the same way in their Excel spreadsheet. Best of luck in this rapidly changing landscape. [link] [comments] |
| Why do sellers post listings on loopnet without details about actual rents, tax and vacancy ? Posted: 03 Apr 2020 02:44 PM PDT Some listings in loopnet mention "rents range from $X to $Y". They don't mention anything about actual rents, tax and vacancy in the past year. Why would a seller's realtor not post these details in general? Is it because there is something shady about these properties? Is it to deter non-serious investors and encourage calls /mails from serious investors asking for details? I get that we can get tax details from the county website, but, it is easier for a seller to provide that information about a property he/she is trying to sell. It is harder to get an idea about the rents in the area, search for rentals posted for that particular property historically. Whenever I see such a listing, it annoys me because they are not putting the facts out there enabling the prospective buyers to make an informed decision whether to pursue it further. [link] [comments] |
| Posted: 03 Apr 2020 07:31 AM PDT I own a small business that has been shut down by a state mandate related to covid. I've been building my little real estate rental business on the side basically as a way of diversifying my income. I thought I one income stream got rocky, the other could pick up the slack. It's really throwing me for a loop to have both effected. On the plus side, one thing that I keep thinking is thank God that a global pandemic is causing all of this and not my own mismanagement of the businesses in good times. [link] [comments] |
| Posted: 03 Apr 2020 11:16 AM PDT |
| Posted: 04 Apr 2020 12:17 AM PDT I'm currently 21 years old and am pursuing a career as a electrician. I don't have very much debt (around 2k) which would be easy to pay off once I start working as a apprentice and I want to use real estate investing to achieve FI. [link] [comments] |
| How Do I Properly Calculate This Hard Money Deal Posted: 03 Apr 2020 10:29 PM PDT I'm looking at a property that has an ARV of 175k. The purchase price is 125k. My HML will only lend 70% of ARV ($122,500). The HML requires a down payment from me of 15%. On top of that, the property needs about 10k in rehab. How do I calculate this to determine how much the HML will loan and how much I would need to come out of pocket? Any assistance is appreciated! [link] [comments] |
| How necessary is a property survey? Posted: 03 Apr 2020 06:29 PM PDT I'm purchasing a duplex in an established suburban neighborhood of a large city. My realtor asked me if I'd like to have a survey done. I'm pretty sure I've never paid for a survey before when I've bought houses (I've bought a few). None of the direct neighbors have fences and nothing looks out of the ordinary. The seller has a shed in the backyard. Is it really necessary to get a survey? [link] [comments] |
| New forbearance question. Can I get my mortgage payment reversed or sent back to my account? Posted: 03 Apr 2020 07:33 PM PDT My work hours dropped from 35 to 12 due to the virus. I called US Bank early last week to see if I could waive my April payment. When I called, they didn't yet have a program in place for the forbearance and the lender took my account number and told me I would have to fill out something in the mail that they would send to me. I haven't yet gotten anything in the mail nor signed anything. The US Bank website now has a plan in place for people needing help and they offer 180 day forbearance if you are affected by covid. The problem is that I had autopay on and so the mortgage payment started on the first. It is still transferring, but it hasn't been taken out of my account yet. I'm wondering if on Monday (when it deposits I assume) I can ask to have it reimbursed because they told me I could have help. Will they reverse the payment? or do I just have to suck it up because the money was there and payment wasn't declined. Thanks so much! [link] [comments] |
| Please help me with my numbers to make an offer Posted: 04 Apr 2020 01:57 AM PDT I am interested in making an offer for a 4-plex out of state.
I would like to make a cash offer. I am not sure how much of list price I can reduce for a cash offer. I would like it to be around $200k, but, given the seller bought it at $235k, I am doubtful he/she will go lower than that. Would any seller consider a price lower than what he paid, even if it is a cash offer? I like the house from the listing, it looks fine from my online research. I am going to talk to a few agents and property managers in the area to get an idea about rentals and the neighbourhood. I don't want to lowball a figure which is offensive; at the same time, I don't want to lose my advantage of making a cash offer. I don't know why the seller is selling the property in just about one and half year. Is this something a potential buyer can ask the agent (or) is it something that is assumed by seller as "none of my business" ? If you are a seller with these numbers, what is a fair expectation in terms of offer price as well as how much of a value does all cash make for you? [link] [comments] |
| Is there a chart for the housing market as a whole? (Rookie obviously) Posted: 03 Apr 2020 11:08 AM PDT What tool can you recommend, like charts, I can use for more technical analysis on overall housing market? Is there charts for local, state, nation? I have been saving cash since 2008 and I am waiting for another opportunity to buy when housing market is low, like in 2008? [link] [comments] |
| Posted: 03 Apr 2020 07:16 PM PDT I also listed this in the regular real estate forum, but am thinking maybe I should have put it here. Anyways - I am recently looking at houses that were sold in tax sales. I almost bought one today but the seller took another offer. These are homes that someone bought on a tax sale, and then are reselling with a quitclaim deed and no title insurance. The way I understand it here in indiana, is the buyer of the tax deed does not actually get the title to the home until a year after the sale for a chance of redemption. However there is never any info on if someone is trying to redeem. I was wanting to get one of these fixer uppers for myself. The two I was looking at need alot of work and the previous owners had died. Can i live in these houses until the year is passed amd I get the title? How often do people actually redeem and get their homes back with this chance? I don't really understand it completely. One home I am looking at - The original owner died in july 2019. The title transferred to the investment company in january 2020 in county record. I did some detective work and found that the woman had 3 kids. I found all 3 adult kids on facebook. Their posts from around the time of their mothers death seemed genuine and heartfelt. None of them seemed estranged from their mother. Even if there is no will, the house should go to probate and to the kids I believe. I am having trouble how all 3 kids would have let the house go to taxes in such a short time (1500 per year is all.) The only thing I can think is if the home went to probate but the mother had other debts like medical bills that if the kids took posession they would also possess her debts? The record shows it only sold for 1700 at the tax sale.... Any thoughts or advice are appreciated. I am wanting to move into one of these houses so that I can be secure in these unsure times, but I am afraid I will start fixing it up and someone will come take it back before the year is up. Thanks. [link] [comments] |
| Posted: 03 Apr 2020 01:29 PM PDT |
| First time real estate investor here. Under contract on a house right now. Need renovation advice. Posted: 03 Apr 2020 12:33 PM PDT The house is in great shape. Nothing major needs to be done. I was considering removing the popcorn ceiling and thought a fresh coat of paint would do the ceilings some good. I was quoted 3500 bucks which isn't bad considering I thought I would potentially be spending a lot on HVAC. Is popcorn ceiling removal worth that much for a house I'll be living in for a couple years before renting it out? [link] [comments] |
| How realistic is the 1% guideline for rental properties? Posted: 03 Apr 2020 08:08 AM PDT I've been looking on Redfin for quiet a while and I'm struggling to find anything that pays more than 0.6%. What gives? I'm looking in BC, but not limited to Vancouver. Looking in Kelowna, Chilliwack, Surrey, etc... [link] [comments] |
| Posted: 03 Apr 2020 02:44 PM PDT So about a week ago I reached out to all of my tenants and told them that if they have been affected by the coronavirus and have lost income that they should call me to make payment arrangements. Overall this worked out pretty well. For my commercial tenant I cut the rent in half for the next two months but for my residential tenants it was mostly a matter of giving them more time for unemployment to start. Overall all have paid except two and one has been very communicative with me and has told me when I make the payments so I'm not worried. Another one has been radio silent. He didn't pay the rent and hadn't responded to any of my attempts to contact him either. I guess reaching out to his girlfriend was enough to prompt him to tell me that he was out of work over a text message. So I told him I was sorry that that happened and have been trying to get a hold of him since and he has not responded yet. I was surprised he was out of work because he worked at a gas station and I think they are all still open here. Either way, unemployment should be an increase in income for him so I would hope that it's simply a matter of giving him more time until unemployment arrives. But he's not communicating with me at all. I told him again in a text message today that the rent was due today and that I was willing to make payment arrangements but I needed him to communicate with me. Normally I would just go knock on the door and talk to him. Thinking I might drop him a letter in the mail if I don't hear from him today. Has anybody else had luck with tenants that have gone radio silent? [link] [comments] |
| What other apps or websites/databases do you use to view Commercial/ Multifamily properties? Posted: 03 Apr 2020 06:19 PM PDT |
| Posted: 03 Apr 2020 07:21 AM PDT I had heard our local real estate investing group was the largest (or one of the) REI get togethers in the US. In the short while I've been with them, they've consistently filled up their monthly 300+ member get together. Well, today I received an email from the founder. It takes me to this website: https://www.savetreia.com/ with some interesting allegations. Also quite surprising is it had hundreds of thousands in cash. Related yet separately, with no local REI get togethers, it has me thinking that we don't have an online forum for this group. Not sure how many in the RTP area visit this sub. [link] [comments] |
| Need advice on a home I'm buying Posted: 03 Apr 2020 11:27 AM PDT Is 4.25% intrest rate with downpayment assistance good? This will be through a private lender. [link] [comments] |
| Would I be over leveraged buying another property? Posted: 03 Apr 2020 01:09 PM PDT Current Assets: Duplex: value is $265,000. I owe $160,000 on mortgage. Cash flows $500 a month after all expenses Townhouse: value is $160,000. I owe $145,000 on mortgage. Would break even cash flow if I rented it out (rent $200 above mortgage. That's why I say break even because must account for Capex/vacancy). Cash: $60,000 HELOC: $40,000 untapped personal LOC: $40,000 untapped I want to buy a duplex that will cost me $250,000 at 15% down. It would cost $35,000 to close on it + $20,000 in rehab to get up to market rent (I don't need to do all the work immediately). I know it's a good deal it it will cash flow about $675 a month after all expenses at about 15% ROI. .... So essentially the entire cost is $55,000 (acquisition + rehab). This would use up most of my cash (again, I do NOT need to do all the rehab at once), but I still have $80,000 in Lines of credit untapped and available. Is this considered too risky due to using most of my cash and it being during COVID19? [link] [comments] |
| Posted: 03 Apr 2020 06:45 PM PDT I am a college student looking to buy my first/a few properties. I have about $15,000 in savings that I can spend. What is the most efficient way to spend my cash? Houses in the area only cost 60k-75k. I could put 20% down on one property but that doesn't really make sense if I want to expand while I'm young. I have very limited income but my parents are willing to co-sign for a little bit. I talked to a real estate investor today and they said I could get an FHA loan on one property (putting 3.5% down) and go get commercial loans for another/multiple properties. Would this work? I've heard that it's easier to get commercial loans but will I still be able to get one/multiple with my limited income? [link] [comments] |
| If you refinance then sell how much do you pay taxes on? Posted: 03 Apr 2020 02:20 PM PDT One of my properties was purchased for 65k in 2012. Its worth 196k now and I cashed out for 140k. The refinance money is non taxable but if I sold would i be taxed on the 196k or just the difference between loan and 196 which lets say its about 50k? Didnt live in the home btw [link] [comments] |
| Posted: 03 Apr 2020 05:50 PM PDT My lease reads the following for rental late fees: "In the event rent is not received by Owner in full within 2 day(s) after due date, Tenant agrees that it would be impracticable or extremely difficult to fix the actual damages to Owner caused by that failure, and Tenant Agrees to pay a late charge of 10% of unpaid rent due immediately. Tenant further agrees to pay $35.00 for each dishonored bank check. All late fees and returned check fees will be considered additional rent. The late charge period is not a grace period, and Owner is entitled to make written demand for any rent if not paid when due and to collect interest thereon. Any unpaid balance including late charges will bear interest at 10% per annum due immediately, or the maximum rate allowed by law, whichever is less." How would the late fee be calculated if a $100 monthly rent was missed for 2 months in a row? Would it be the following: Month 1 $100 x 10% = $10 due immediately End of month ($100+10) x 10% ÷ 12 = $0.92 accrued interest Month 2 ($100 +100+10) x 10% = $21 due immediately End of month ($100+10+100+21) x 10% ÷ 12 = $1.93 accrued interest Total amount owed after 2 months 100+10+0.92+100+21+1.93=233.85 Am I understanding this correctly? [link] [comments] |
| Posted: 03 Apr 2020 01:37 PM PDT Would owners rush to sell and flood the market thereby driving down prices? Maybe a ton of defaults? Do you think maybe everyone (majority) would just hold, absorb and right off loses if they can to ride it out hoping values go relatively unchanged? I know there are other factors that will direct the general housing market and it's largely area by area but curious to know how most are expected to play this and the impact that will have..... [link] [comments] |
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