Real Estate Investing: Serious Question - What Good are Realtors? |
- Serious Question - What Good are Realtors?
- Can I sell the “right to buy” a property I own, similar to a ‘Call option’?
- Do FHA standards typically tighten in a recession?
- “Did you request forbearance in 2020”
- Broad Array of New Multi Family Real Estate Investor Questions (leverage, laws, landlord rights, etc..)
- I think I have a solid plan for my first property but I wanted to see if any of you see some pitfalls I should watch out for. Buying in St. Louis and living in nyc.
- Finding over leveraged properties for short sales
- New Investor Looking for Advice with Management
- Previous owner hid defects
- Third house and financing options / advice
- Can my RE LLC that invests in projects apply for EIDL $10k loan?
- How does interest rates affect Adjustable/Floating Mortgages?
- 4 units on 2 tax lots
- buying land: what to factor in for upkeep?
- Can I list owner-occupier unit before two year mark?
- Investment strategy and question
- Refinance appraisal during COVID w/ tenants
- Buying land with easement problem
- Buying a multi family with a family member. How does it work?
- Is right now the best time to buy?
- If you buy a house in North Carolina right now, how long do you reckon it will be until you can find a tenant?
| Serious Question - What Good are Realtors? Posted: 11 Apr 2020 07:58 PM PDT I am not trolling. Can anyone truthfully and objectively explain what good a realtor is? I'm extremely tech savvy and resourceful with regard to finding the exact info I'm looking for, and quickly. Thus, in the age of social media and ubiquitous information, I have found myself better and faster at finding properties than any realtor I've worked with. That isn't meant as a dig, just that their (main? stereotypical?) service of providing leads isn't of any tangible benefit or utility to me. Literally the only service that I've benefitted from is them opening the door so I can walk through, and in the age of COVID and/or long distance investing, providing the ability to do so via FaceTime (which is legit and something I would struggle to do on my own from afar). Is there a whole bunch of behind the scenes paperwork I'm not seeing? Is it expected that investors graduate to not using realtors anymore, because realtors are really for people who can't bother to learn to find their own leads or do their own networking or understand the numbers? And I certainly don't get the "industry standard" 3% of the purchase price. For the same amount of paperwork, a $100,000 property nets $3k in commission whereas a $500,000 property nets $15k? 😳 If this ruffles your feathers because you are a realtor, then you're who I want to hear from because I truly don't get it. [link] [comments] |
| Can I sell the “right to buy” a property I own, similar to a ‘Call option’? Posted: 11 Apr 2020 09:16 AM PDT I own a property that I bought to "buy and hold". I am of course always trying to selling at a profit, but am in no rush. I have a friend who wants the property in cash, but is not ready to buy just now. They want to buy the property in the latter half of 2020. The buyer is very adamant about wanting this property and does not want to risk loosing the opportunity. Neither of us are super experienced in real-estate so we are not sure the best way to make this work. Here is what we would like to do, but we are not sure how to achieve it legally/contractually: (1) Buyer pays me $X a month to retain the "right to buy" at a pre-agreed upon price up until an expiration date. Essentially a "call option" on the property if you are familiar with equities (we are both finance guys). Each payment extends the "right to buy" by 30 days. (2) As long as buyer pays each month, seller cannot sell, list, or market the property in any capacity. (3) Buyer can choose to stop paying at any time, at which point they loose the "right to buy" and I regain the ability to sell, list, market the property. Seller clearly gets to keep whatever was paid thus far. (4) Buyer can choose to execute the "right to buy" at any time up to the expiration date. They can buy the property in cash at the price we pre-agreed on. Is something like this possible? I was planning to take it to a lawyer but wanted to vet the idea first. Alternatively, is there some other pre-established way to achieve something like this? [link] [comments] |
| Do FHA standards typically tighten in a recession? Posted: 11 Apr 2020 06:44 PM PDT I was originally hoping to buy my first property, a multifamily house hack, this summer with an FHA loan. Given the current state of things, I've decided it's best to delay that until things straighten out. I understand conventional mortgages will tighten significantly, and the days of 5% owner occupied conventional are gone for right now. But do FHA loans tighten as well? I can't find any information on how FHA loans behave during a recession, particularly how the down payment, minimum credit score, and DTI ratios are affected. [link] [comments] |
| “Did you request forbearance in 2020” Posted: 11 Apr 2020 12:48 PM PDT This will be the number one question loan officers ask in 2021. Don't pretend like there will be no consequences. [link] [comments] |
| Posted: 11 Apr 2020 11:12 PM PDT Hello, I've been very interested in real estate investing for years, I just never pulled the trigger because I've been so overwhelmed with the magnitude of everything that goes with it (I never felt confident) Im confused over so many things, but I have an okay understanding. I want to invest in multi family real estate (preferably 5 or more units to get corporate funding opposed to residential lending with it being reliant solely on my assets and personal income etc..) A few off the bat questions I'd like to ask are how do I secure loans to actually purchase the units? (id imagine through a bank like I got my mortgage for my house? Are 5+ units easier to get as the banks look at the cash flow potential of the property and if so how do I get an idea of how much I can borrow? How do I determine if a property is a good deal or not (I think I look at cap rates for this but I dont understand what else.. ideally I want to be able to crunch all the numbers myself to build confidence and knowledge so I can rely on myself.. are there like practice sheets you can do with mock buildings to get the hang of it? I feel this is probably the most important thing to know? Would it be best to start with a 5 unit building or go right to like a 10 unit? How do I know im actually getting a good deal if im still brand new to this and not knowledgable enough? how do I know the investment style to use such as flipping, buy and hold, fixer upper etc.. I feel I'd be the type to buy it and just hold it and keep collecting rents, so why do ppl buy some properties and sell them after like 2 years (wouldn't it be better to just hold the property and keep collecting?) I have a lot more questions like landlord laws and how and when you can evict a tenant and collect unpaid rent etc but these questions can perhaps be answered once we get a discussion going since they aren't priority right now.. ideally I want to know how basic knowledge so I can finally pull the trigger and get on it.. im currently investing in the stock market but want to start with multi family.. all help is appreciated.. there's probably a lot of things that I do not know that I do not know so feel free to add things I haven't asked here.. I want to turn into a great real estate investor so please help me get started! Thank you so much!!!! [link] [comments] |
| Posted: 11 Apr 2020 02:50 PM PDT So I'm 19 right now and I'm saving aggressively. I'm a student but I will be graduating in 2023 with no debt. If all goes well I will be moving out to nyc making over 100k a year after graduation (tech job). I'll have high credit by then too. I realize it's not feasible for me to invest in nyc property, but I'm from St. Louis and I know the area quite well so I planned on investing in my first property there right before graduation and then moving out to nyc and having a property manager manage it. I estimate that by the time I graduate I will have about 65-70k in savings with a 10k emergency fund additionally. I'm relatively new to this, but I plan on getting a cash flow property with the 1% rule, I'm not overly focused On appreciation but living there I have a good idea of what neighborhoods to look into and which ones to watch out for. Any advice would be appreciated. Thanks! [link] [comments] |
| Finding over leveraged properties for short sales Posted: 11 Apr 2020 06:57 AM PDT I had a thought/theory, so please poke holes where possible.. I am happy to hear I am wrong to save the time/money/trouble... Backdrop: Based on the bull market we've been in the past few years, inventory in the market(s) I want to invest has been limited and I am anticipating significant inventory becoming available in the coming months. I have enough liquidity to buy and hold and am comfortable incurring some levels of risk for the long term gain of building a strong real estate portfolio. Theory: My thinking is there are investors who are significantly over leveraged, or will be very soon, and who (to no fault of their own) are now racing against time to minimize long term exposure and liquidate their investment property(s), even if that means falling below their break even point, providing ample negotiation power. Question(s) - If this holds true (over leveraged sellers will need to liquidate assets), what are some of the best ways to identify these investments? - If not, why not? Would love to hear what I am not considering to stress test my theory and triangulate with those who are much, much smarter than I am... Morally/ethically, there are considerations here, but Buffets adage of "Be fearful when others are greedy. Be greedy when others are fearful" is what is prompting this thought pattern. thanks. [link] [comments] |
| New Investor Looking for Advice with Management Posted: 11 Apr 2020 11:36 PM PDT Hello 22 and looking to start investing into rental properties in the near future. I was curious how you guys manage your properties? Like if you're living in one state or own properties in another? Do you use a software or do the various management companies just send the rental revenue to you? [link] [comments] |
| Posted: 11 Apr 2020 10:47 AM PDT I bought a house from someone a couple of years ago. There was sheetrock up in the basement, and I asked what is behind it. Previous owner said they didn't know; that it was up before they bought the place. I took some down and found that (1) there are cracks in the brick foundation and (2) the date stamp on the sheetrock is after the previous owner bought the place. I expect to spend considerable time and money fixing the foundation but knew the floors were unlevel beforehand. What I didn't know was that the foundation wall will likely need to be sistered and reinforced with jacks, rather than the old foundation being jacked. Thoughts on whether to sue? Note that the date stamp is from 2000, a while before the previous owner sold. Not sure how long sheetrock is stored typically before it is used, but it seemed fairly "clean" or new when I took it down. Debating specifically whether to sue and how to document. [link] [comments] |
| Third house and financing options / advice Posted: 11 Apr 2020 07:16 PM PDT Wanted some advice. I'm working towards buying a third property. Some details below: * Own a single family home which is my primary residence and have a mortgage at 3.7%. * Own a single family vacation home with a mortgage of 3.375%. I rent this home most of the time and claim this on my tax returns. * I'm planning on buying a third single family house in the next year. Goal is to move my family full time into the new house in the next 2-3 years. I plan to have my in-laws live there (low rent) between the time I buy it and when we make this new home our primary residence. * Once I move my family from my current primary residence into the new home, I'll rent current my primary residence full time. * I believe my financial situation will allow me to qualify for a third mortgage without an issue - great credit, good savings, high enough income, DTI ratio, etc. To buy a third home I believe it will be treated as an investment property and I'll need to get investment property financing / terms. My understanding is second / vacation homes have better financing terms than investment properties (e.g. investment property may have higher interest rate and require 25% or more down payment). My question is - is my understanding accurate and is this something I should worry about? If yes, should I attempt to convert my vacation home to an "investment" property and finance the third house as a vacation home? Any other options I should be thinking about? [link] [comments] |
| Can my RE LLC that invests in projects apply for EIDL $10k loan? Posted: 11 Apr 2020 03:52 PM PDT not sure the answers or the questions here. I've got an LLC that myself and 2 friends are co-owners of. We pool our money to invest in projects. Can this apply for the EIDL $10k loan? Anyone else doing similar? [link] [comments] |
| How does interest rates affect Adjustable/Floating Mortgages? Posted: 11 Apr 2020 03:43 PM PDT |
| Posted: 11 Apr 2020 07:02 PM PDT I'm looking at a feel that has 4 separate houses on 2 tax lots. All of the units are adjacent to each other. It's it possible to buy them all on one loan? I'd like to owner occupy one and rent out the others, if possible. [link] [comments] |
| buying land: what to factor in for upkeep? Posted: 11 Apr 2020 06:34 PM PDT So, I'd like to buy land in Spain during the next 2-3 years. What kind of costs do I need to think about? Taxes, insurance, and....? [link] [comments] |
| Can I list owner-occupier unit before two year mark? Posted: 11 Apr 2020 09:37 AM PDT Hi reddit, I am trying to sell my first live-in flip in September 2020, which will be the two year mark of ownership/no capital gains tax for the sale. Can I list the property before hitting the two year mark? Or do I have to wait until after the two year mark to list it? [link] [comments] |
| Investment strategy and question Posted: 11 Apr 2020 01:06 PM PDT I'm currently 20 years old looking for opportunity to invest in the upcoming months when the housing market starts becoming effected by the economy. I'm currently setting goals to save $6,000 along with 2 other partners for a total of $18,000. I am currently involved in the Real Estate Organization at my university and obtaining my license within the next couple months. My plan includes pulling an FHA loan and putting down on a property worth around $250,000, updating and then hopefully selling. I have never conducted a deal within real estate nor do I have profound education as of yet with my Financial real estate classes beginning in the near future. I need help from the community if this is a normal strategy to take and will be open to answering any questions as best as I can that are thrown at me. I need to know if using this much leverage at this age is too much of a risk. Although I didn't go into much detail, i need to know if this plan is worth breaking ground for this upcoming housing market fall. Ask me questions and thanks for helping an aspiring RE investor out! [link] [comments] |
| Refinance appraisal during COVID w/ tenants Posted: 11 Apr 2020 10:04 AM PDT I'm doing a refi and have locked in a solid rate For 30 yr at 3.35% on my owner occupied 2 family. The appraisal was supposed to happen today but my upstairs tenants have concerns about an appraiser visiting their unit during COVID. The appraiser affirmed he would wear a mask and gloves and that we should too during the visit. I am in NJ by the way so everyone's taking it very seriously here. I spoke to the appraiser and loan officer, currently they're checking with the lender on what they will be ok with but am being told at this time a full house walkthrough is needed. I live in downstairs unit and it's an exact replica of upstairs. We offered to have him come and check out my unit and we could live video the upstairs unit to the appraiser while he is here. But at this time still don't know if that will be ok. Any suggestions or advice is appreciated. Trying to be conscious of the situation without losing this rate! [link] [comments] |
| Buying land with easement problem Posted: 11 Apr 2020 03:41 PM PDT Question for RE professionals/developers. i am looking at a land lot (>5acres) in a highly desirable area (1mil+ vacation homes around etc). it is a small ocean side town, not very densely populated area, the distance to the closest neighbor is around 600ft. Electricity is next to the property. land map: https://imgur.com/a/dGk3KJc The problem according to the seller is that there is an easement problem that is being "addressed": in order to get building permits for this plot the access gravel road needs to be a bit wider- by 1ft or so. the road part that needs to be wider is about 200ft long and is in between two existing properties/homes (both have plenty of land around them, see image). There is also an indication that this plot can be divided into two and both plots can be build on once the easement problem is resolved. My question is how risky is buying this plot of land as it is and obtaining the easement on my own? is this a potential disaster? Also my other concern is that the seller (who is a land dealer, they buy /sell land constantly) only had this land for 3 months, im worried that maybe they ran into issues and just want to unload it (land is underpriced). Although the seller said that they just dont have time to deal with this and if they do complete easement they'll sell the land for 2x current asking price. ideally id like to buy - devide into two plots. sell second plot and make my plot essentially free (with a plan to build on later for myself). Any help would be greatly appreciated. Thanks! [link] [comments] |
| Buying a multi family with a family member. How does it work? Posted: 11 Apr 2020 01:56 PM PDT My brother and I are potentially looking to go half & half on a two family. He lives on one side & myself on the other. Neither one of us are in the position to buy a house alone at this time. My question(s) here would be as follows: do you think this is smart? We each pay $1,000 / mo for rent right now. It would be cheaper. If one of us decided to move out is there a way to pay out the other person? Besides coughing up the money out of one of our personal bank accounts. That person could rent there side for a profit if they decided. Any red flags here? My brother and I are very close & I am absolutely not worried about him f'ing me over in any way. Just curious if legally it would be a nightmare. [link] [comments] |
| Is right now the best time to buy? Posted: 11 Apr 2020 01:27 PM PDT Hi all, I'm 20 years old living in Bucks County, Pennsylvania and have been looking to buy my first property for the past few months. I'm not looking for the greatest property of all time or something that's worth a lot of money. I just want to get my foot in the door of buying and renting out real estate. All that being said, is right now the best time to buy? I have noticed prices dropping a little bit and people are starting to liquidate their homes. Some are desperate to sell, should I take advantage of this? Would there be any cons to buying right now? Thank you in advance for any tips/info/knowledge! [link] [comments] |
| Posted: 11 Apr 2020 10:39 AM PDT Like approximately. Also do you subscribe to the ide that it is now when you buy but when a good deal comes along? [link] [comments] |
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