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    Real Estate Investing: Is there a life cycle to the development of cities that can be extrapolated to other cities?

    Real Estate Investing: Is there a life cycle to the development of cities that can be extrapolated to other cities?


    Is there a life cycle to the development of cities that can be extrapolated to other cities?

    Posted: 19 Apr 2020 08:09 PM PDT

    Hear me out. I live in one of the biggest cities in one of the youngest (and relatively smallest) states in the U.S. Because the state is relatively so young, the City is developmentally much further behind larger U.S. cities. However, the city is growing exponentially.

    Can I look to the development trends of larger metropolitan cities to anticipate how my city might grow... the thought being that this would help me with real estate investment and development? If so, would you recommend any reading?

    Thanks!

    submitted by /u/CrunkSammich
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    Proposal to cancel mortgage and rent payments

    Posted: 19 Apr 2020 05:21 AM PDT

    Anyone read this?

    https://www.google.com/amp/s/www.forbes.com/sites/zackfriedman/2020/04/17/cancel-rent-mortgage-payments-coronavirus/amp/

    I find the proposal a bit disturbing. Complete stop on rent payments and mortgages for primary residence for up to 1 year. Looks like landlords would eat the cost, but a fund would be set up where they CAN be reimbursed IF they agree to all sorts of terms.

    As someone who has been through government relief funds in regards to severe hurricane damage, it was a mess. Everyone competes for a limited pot of money, there is lack of oversight on how to fairly disperse funds, there were endless hoops to jump through and each step had to be repeated multiple times because they kept losing documents... etc. In the end, my family did receive some relief, but it was many years after the fact, and certainly didn't come close to covering the cost of what was lost. In fact the final number they received was about half of what they were originally promised several years earlier.

    Overall, this would be very concerning for the rental industry. I am sure a lot of people couldn't float the cost of their rental units for 6m-1y while waiting for reimbursement, if it came at all. I am guessing this won't pass anyway, but definitely something to keep an eye on.

    submitted by /u/sailphish
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    The current state of this sub???

    Posted: 19 Apr 2020 08:01 AM PDT

    I'm not sure how much traction this will get and I might be in the minority here.... Also bear with me, I'm on mobile due to the power going out.

    Anyway, I subscribed to this sub to see posts about real estate investing, people's numbers, their spreadsheets, ideas and strategies. As of late, there are numerous posts that are just political circle-jerking. Many articles are being shared that are little more than opinion pieces on proposed legislation that the OP then gets their jollies off calling "leftist commie ideas". I get it, legislation affects what landlords can and can't do, but posting about and discussing legislation is different than posting about "wild crazy ideas" only to be like, "man wtf are they thinking".....

    And I'm proud of a large percentage of you guys that generally correct the OP or give an alternative view of things.

    Again, I realize a lot of this is being inflated by what's going on with Covid and the media overall sensationalizing everything.... Sorry for the rant.

    submitted by /u/RandoReddit16
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    How do you avoid conflicts of interest with your contractors?

    Posted: 19 Apr 2020 02:45 PM PDT

    I just bought a duplex last September. I moved into one unit and the other unit had an inherited tenant. They moved out last week and I wanted to get contractors out to fix up a few things before I get new tenants, as I only plan to live here a year, after which I'll be an out of state owner with less ability to keep a direct eye on the place.

    So far, most of the estimates I have received are calling for total replacements. The deck guy says I need a new deck, the roof guy says I need a new roof, the HVAC guy says I need a new HVAC. Their bids add up to tens of thousands. Now before you say that I probably do need all those things, I had a home inspector write up a report during the due diligence phase. He wrote things like "the deck has a couple loose boards, I recommend calling a qualified contractor to make any necessary repairs", or "there are a couple of nail pops on the roof, I recommend asking a qualified roofer to evaluate and repair as needed."

    Now, I am not against full replacements if they are warranted, but it got me thinking. How do I know if any of them are telling the truth? They stand to make a lot more money off me if I let them do a full replacement rather than just a repair, even if a repair was all I needed. And I'm no expert so I wouldn't know anyway.

    I used to have the same issue at the mechanic if my car had a problem, so I would go home and youtube the problem and find out that a job he quoted me $1300 to fix is really just a $350 part that you can get on ebay or amazon and install yourself with a screwdriver. But I can't read up on HVAC systems and roofs and decks all in the next week or two when I want to start showing the place to new tenants.

    How do you guys know when your contractor is advising too much work? Do you just get three bids and if they all advise a full replacement, you just hand them your $10,000? I could easily see multiple contractors playing the same game here, so multiple copies of the same advise doesn't make me feel much better about it. And I'm pretty new/alone in this business, so I can't get references from any friends/family.

    submitted by /u/niffurwj
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    R4R/Realestate? - New Investor Looking to Make REI Friends/Find A Mentor

    Posted: 19 Apr 2020 06:46 PM PDT

    Hello! I hope everyone's staying safe. I'm new to the subreddit, so I'm sorry if this doesn't belong here.

    Does anyone specialize in doing out-of-state BRRRRs? I would love to connect/pick your brain or just make some more REI friends. Im a new investor who's looking to buy their first property soon and would love to find a mentor or even just a friend to chat with! 😊

    submitted by /u/blondiegurl
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    BBVA real state valuation tool

    Posted: 20 Apr 2020 03:03 AM PDT

    Hi,

    When I log in my BBVA online bank account I can see a stimation of the price of my home.

    Every month I write down the price it says.

    Yesterday I logged in and the stimation was around 60% lower than the last price I saw about month ago.

    I'm from Spain.

    Do you really think the price has dropped this much? I went online and looked for some prices in my zone and I couldn't see this huge devaluation happening yet.

    Any thoughts?

    Thank you and I hope I have explained myself correctly. Stay safe out there!

    submitted by /u/osc2505
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    New Build Questions?

    Posted: 19 Apr 2020 08:51 PM PDT

    TLDR; Thinking of buying undeveloped land to build units to either hold or sell.

    The market that I invest in has grown substantially over the last 10 years, to the point that finding a good deal is incredibly hard. I have thought about buying a tear down with the right zoning, or buying completely undeveloped land to build.

    I have never gone this route before. Currently I have 13 units over 5 properties. These buildings range from late 1890s to 1970s builds. I have done extensive structural repairs and renovations, but never scraping or developing.

    I found an undeveloped property in a good location - B neighborhood - that is large enough to be 5 lots where I could build 5 duplexes. The property zoning allows for almost anything, as long as it is approved by the city planning board - PUD <Planned Unit Development>. Property is listed at $100k, but I believe I could reasonably snag it for $85k.

    As I have discussed in other comments in the community, I am in the middle of refinancing my portfolio to grab some cash. And I will be selling my primary residence as soon as social distancing relaxes. Thanks to my VA loan, I will not need any cash to purchase my next primary residence. So, I expect to have $200k or more of cash to start a project.

    I was curious what to expect? Can someone point me to a good guide? Logistics? Last mile for utilities? Process in general? Construction loans and their mechanics? Especially if I decide its more advantageous to liquidate the properties after building?

    A cursory search and discussions with my realtor suggest that I could get modular duplexes built at $75 a square foot. This would make the project incredibly valuable. But I know this wouldn't include surveys, excavations, utility costs. But I am not sure how to get a good handle on those potential costs.

    I know there are a lot of people in this sub that have some great experiences, and probably in this domain as well. Hopefully I can get a handle on next steps to really start estimating costs.

    submitted by /u/BoltLink
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    Covid-19 mortgage forbearance

    Posted: 19 Apr 2020 10:36 PM PDT

    Has anybody here requested forbearance due to covid 19?

    Was a "remark" added to your credit report dropping by by a considerable amount?

    Did they set it up as a lump sum payment at the end and then squeeze you into a loan modification to screw up your credit?

    Did it prevent you from getting other loans or refinance in the future?

    submitted by /u/jomtienislife
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    Hard / Private Money Loan Terms

    Posted: 19 Apr 2020 08:54 PM PDT

    I'v been learning more about hard and private money loans for real estate. I'd be on the lending side. Curious what kind of terms are you all lending or borrowing at? What type of projects have you been lending or borrowing them for?

    submitted by /u/simulationlife
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    Seeking unbiased advice for Renting vs buying

    Posted: 19 Apr 2020 07:42 PM PDT

    Not sure if this is the right sub to ask, but here it goes.

    I'm a 23 y/o living in Southern California, with a good job that I've had for about 6 months. I have been lucky enough to live with my parents for a while, but it's time for me to get my own place. I have an apartment that I can move into in less than a week, but I recently started looking into purchasing a house. The idea scares me because I'm not ready for it. The only reason I could possibly swing it is with a CA first time homebuyer program. I have money in savings, but not as much as I want and I don't want to completely empty it. Is there any other advice on what I need to look for when comparing the two.

    The apartment is ~$1472/month and a mortgage on the house that I like and have toured is ~$1664/month. I don't plan on staying in the area forever and plan on moving in 2-3 years, but considered renting out the house if I decide to go that route. My parents offered to help pay with closing costs and some of the mortgage until I can build my savings again. What are some things that I need to consider?

    Ultimately I just want my own place to be my own person.

    submitted by /u/beeroqueen
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    Creative Ideas for Getting a Mortgage at 20

    Posted: 19 Apr 2020 06:51 PM PDT

    With the sudden covid-inspired drop in interest rates and the likely incoming wave on properties on the market, I'm starting to research the possibility of buying my first investment/rental property. This would be particularly helpful as some of my businesses are growing right now and the write-offs would be quite meaningful.

    I've identified a few markets that I'm interested in, have more than enough cash on hand for the down payment (can pay 25%), excellent credit (750+), and no concerns about meeting payments in the future.

    The main obstacle I'm running into is that, since I'm only 20, my documented income over the last couple of years is extremely low and I don't have any real collateral. Especially with the relatively low number of banks willing to lend at today's low interest rates, it seems very unlikely that I'll be able to qualify for a mortgage and the online pre-qualification systems I've gone through have all turned up blank.

    I do have a parent who is possibly willing to co-sign, but they don't have much income to show either and have worse credit.

    In terms of other evidence that may or may not help, I have a couple of businesses I can show paperwork for, but as they're also quite new they don't have historically consistent cash-flow to show. I'm also currently a student at a top undergrad in the US with high expected starting salaries, but not sure if that matters at all.

    Does anyone have any creative ideas about how I might be able to get approved for a mortgage sometime in the next 3-9 months? Any suggestions would be warmly welcomed.

    submitted by /u/mfabasicaf
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    How to invest with VA loan?

    Posted: 19 Apr 2020 09:44 AM PDT

    Hello guys I am a military guy and I am just wondering if any of y'all are also current military/veterans who have used the VA loan to invest in real estate to increase their net worth/income? If so how did you go about doing it? A little info about me to help you understand my situation. I'm 24, single, no kids, and debt free.

    submitted by /u/mrblue722
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    CRE investors: what software are you using to manage real estate transactions?

    Posted: 19 Apr 2020 03:36 PM PDT

    Hey folks,

    I'm working as a transaction manager for a real estate company here in Vienna, Austria. As this sub is super diverse, I hope to learn about how you guys organize and manage multiple deals at a time.

    Mostly it is a real hassle to keep everyone in the same information loop and to make sure all internal deadlines for contracts, calculations, etc. are met by the in-house team and external advisors. Keeping track of all DD-findings beeing covered in the final contracts is also hard.

    Would love to learn how you deal with it.

    I am very much leaning towards a project management tool or a CRM (e.g asana), however the deals would need a more sophisticated possibility to structure data.

    The US always seems to adopt new ways of working with SaaS quicker, even within the slow machinery of Real Estate. That's why I am asking you guys here for recommendations.

    Thanks for your input. Stay safe.

    submitted by /u/_ewii
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    Buying a run down house with a mortgage

    Posted: 19 Apr 2020 03:13 PM PDT

    So I saw this house and it's like 200k (375k neighborhood and 175k house) cheaper than the neighborhood because it's a piece of shit.

    Bad roof Mold Holes in walls Built in 1928 Lots of unpermitted work

    I don't know all of this for sure but just based off of the images. It's also 1bed1ba. Anyway it went under contract but then fell through (not with me). It's off market now because of Rona. Is the only option for this house to buy cash or seller financing? Will any bank give a mortgage on the house?

    A few details I found online. Some one died and his property is owned in a trust

    submitted by /u/AvatarAlex18
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    How unethical is it to renegotiate a deal or pull out? Corona has PUSHED our closing dates BACK by weeks on weeks!!!

    Posted: 19 Apr 2020 02:29 PM PDT

    This is NOT our fault and the house values have dropped by 8-10k

    Already!!!

    What would you do?

    submitted by /u/DetroitCam2
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    Cabin for use for veterans PTSD getaway without going 501c3

    Posted: 19 Apr 2020 10:34 AM PDT

    I had a friend of mine a marine stay in my cabin in TN and he said it really helped him unwind and he suggested I made it available for ptsd help. BUT I'm not in a position to give away weeks and weeks for years and years but don't want to make it a 501c and all the headache. So any idea how I can rent it out and somehow get donations to giveaway weeks or how to do this to not just help the vets but also to be able to pay the mortgage, cleaning and management fees too.

    submitted by /u/bourbonborn
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    Self-employed, don’t claim much income, but have cash for down payments. With my rentals, my debt to income is about 25%. How have you guys gotten loans in this situation?

    Posted: 19 Apr 2020 06:47 AM PDT

    I only claim around $50k in personal income, but on two rentals and a primary home, I owe about $220k. Great credit, but traditional banks shy away from me. Have you used more creative sources like Luxury Mortgage or is that bad news?

    Can you help me with some ideas?

    submitted by /u/Recampb
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    State/city housing market

    Posted: 19 Apr 2020 08:20 AM PDT

    Anyone like to share where they are investing? Looking for a good housing market to start investing in, first buy will be a triplex or fourplex. What % is your house yearly appreciation? Thanks

    submitted by /u/freeme101
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    Any advice on using my Mother-In-Law's Primary Residence to obtain a HELOC for Real Estate Investing?

    Posted: 19 Apr 2020 12:10 PM PDT

    My wife and I (25F & 27M) are working towards financial freedom by investing in real estate. As we have been saving up cash of our own to invest in real estate, we came across an opportunity to utilize her moms primary residence to pull a HELOC to invest (possibly 80 - 100k). We pitched the idea to her mom and she loved the idea. It turned out her mom didn't have a good enough Debt-to-Income to touch her homes equity. Additionally, we noticed that her mom doesn't have retirement savings. Therefore, investing in real estate can be a good way for her to begin her savings and be able to tap into emergency funding.

    As everyone agreed to this win-win situation, I am trying to take the next steps forward in mitigating as much risk/challenges after obtaining the heloc. The tough part is that, it is her homes equity that we are tapping into and my name that we're putting the heloc under. Therefore, what are some challenges we may face utilizing this method for real estate investing? and what actions should we take to mitigate as much as possible?

    Two things my wife and I took into consideration so far is;

    1. All parties should come to an agreement that the HELOC money can ONLY be used for real estate investing and possible emergency funds (if necessary).
    2. The roles and responsibilities that everyone has when it comes to the investing in real estate part. E.G - My wife and I are specifically looking to do the BRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy and would love to gather her moms feedback without overshadowing the strategy.
    submitted by /u/DonAnomaly_
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