Real Estate Investing: Explain like I’m 5: how does real estate investing beat the stock market? |
- Explain like I’m 5: how does real estate investing beat the stock market?
- Please talk me out of buying a multi-Family in Florida.
- Do you think real estate investing is oversaturated?
- Anyone looking at Mexico? Puerto Vallarta, Cabo, Rosarito, Ensenada, Tijuana
- Graham Stephan talks about structuring tax returns to be a strong mortgage candidate
- Hey smart people — can someone explain how an 80-10-10 loan works?
- Recommended podcasts
- Need help w/ structuring offer on prospective duplex purchase w/ inadequate rent
- Renter disconnected the smoke detector...
- Does anyone have experience dealing with old/stained tubs?
- Hard Money For Flipping First Home
- Refi the BRRRR during covid banking? What are the options?
- Private money loan structure for new construction rentals
- [Looking for advice as a beginner]How do you shop around for conventional financing?
- FEMA Questions
- What to do with inherited land (low-value and no planning permission)
- Once you've established an LLC and have it up an running with you as sole owner, can you make contracts with investors while not changing anything with the LLC?
- 1031 exchange: possible to use sale proceeds to pay down mortgage on currently owned rental property?
- How do I turn my current home into a real estate investment
- Financing
- 1099-Misc
- First investment property, yes or no?
- Programs to apply for??
- BRRR in Canada
| Explain like I’m 5: how does real estate investing beat the stock market? Posted: 20 May 2020 10:53 PM PDT From the data I've seen, I don't really see it. Someone please enlighten me. I'm interested but the returns I see seem to be lower and it's a ton of work. Leverage? Tax rules? What am I missing? [link] [comments] |
| Please talk me out of buying a multi-Family in Florida. Posted: 20 May 2020 07:25 PM PDT If it weren't for ol' 'rona, I'd be on my way home from my first exploratory expedition to Florida for real estate. I've run the numbers over and over and I seem to find good deals that come up all the time, but I feel like there has to be a catch! I'm from the west coast, and times not really sure I'd want to live in Florida, but I might give it a shot. I have done enough research to be a danger to myself in terms of investment strategies, and I would really like someone to run counterpoint to my plan other than "what if they wreck the place" or "you have no idea what you're doing" Here's the play. I work roughly 30 days on 30 days off for work, so I have plenty of free time. 1st contact, an exploratory two week trip to investigate neighborhoods in the Tampa Bay area, as well as the Fort Lauderdale area. I'm leaning towards Tampa, but I might as well see the sights. 2and contact. A 30 day trip with the intention to purchase a property in that time. Plan A is to get an investment loan and purchase a multifamily at 20% down. Hire a property manager to rent all units. Based off my math I've certainly found enough meat on the bone for this to work. My biggest concern is due to the nature of my work, I have plenty of income and good credit, but in paper I have like 8 W2s, and only recently landed a permanent job with one company. And I'm only 24. I feel like I just need to find a lender that has worked with people from the maritime industry, and this could still work. Plan B involves me moving across the country for a year to qualify for an HFA loan, getting my hands dirty and gaining hands on landlording experience. I'm not 100% sure I want to move to Florida, given my friends and Family are all on the west coast. My friend thinks this is incredibly risky given I dont know anyone in Florida, and I dont know anyone I could rent a house to in Florida. I think my friend is a pussy, and as long as i don't become emotionally attached to a proper ty, and hire the right people, it could definitely work out to be a worthwhile investment, even doing so remotely. If you passed on Florida, why? If you bought in Florida, why? Edit to add numbers. Due to the nature of my work, I dont have any specific unit in mind at the moment, but the price range I'm looking at is 200,000 to 300,000, putting the downpayment around 50-70k of the properties I've considered, fair rent averaging 900-1200/month, say average gross of 26,000 for a duplex. Of what I've looked at they'd net about 8.5k per year, with a ROI between 16% and 20%. I Beleive my math is conservative and I am rounding down on rents and rounding up on proce. [link] [comments] |
| Do you think real estate investing is oversaturated? Posted: 20 May 2020 08:43 AM PDT From my novice perspective, it seems like the real estate investing industry is way oversaturated. I can't help but notice all these Youtubers and bloggers dedicated to real estate investing. I mean, look how much forums dedicated to landlords there are. What other business has that much engagement online? What's this due to? For my business, dry cleaners, there are maybe 2 forums that I know of. Neither are very active. And there's no Youtubers sharing how much a dry cleaner makes and how to buy one. It makes me think real estate might be too oversaturated, maybe it's always been like this? [link] [comments] |
| Anyone looking at Mexico? Puerto Vallarta, Cabo, Rosarito, Ensenada, Tijuana Posted: 20 May 2020 05:18 AM PDT I'm really interested in Baja, some of the yields were looking better than most American cities before COVID. With cruises and airlines being hit I could see a major resurgence in BC. Anyone looking at Puerto Vallarta? or any resort towns. In 2008 prices went down in correlation to the USA sub-prime mess. I'd like to pick up a few units for personal use there. [link] [comments] |
| Graham Stephan talks about structuring tax returns to be a strong mortgage candidate Posted: 20 May 2020 05:47 AM PDT I am curious about how others are following similar advice to what Graham Stephan mentions in his Beginner's Guide to Investing (exact time stamp is linked). The video time stamp describes how many lenders look at the past 3 years of tax returns to determine an individual's eligiblity for a loan. And Graham offers some advice in regards to this. In this video, he says that if trying to qualify for a mortgage, one must observe three things:
The part I'm particularly curious about, and that I've linked above, is when he mentions how to structure your tax returns to show more or less income in a given year. Graham says that having too low of an income will disqualify you for homes you want, while having too high of an income is not worth the extra taxes paid and offers no added benefit in a lender's eyes. He then goes on to say that he artificially deflates income by adding in write-offs, while inflating income by getting a lender to review his upcoming year's tax return in October or November of a given year, then upping his income at the end of the year by realizing more capital gains if needed to buffer his AGI for that particular year if it is not high enough for a mortgage. What do you guys think about this strategy? Is it legal, and furthermore if so what is the sweet spot for income, to stand out on paper, but not going overboard and pushing oneself into higher tax brackets? I've done some small calculations and it seems that for Single filers, always showing at least $40,000 in capital gains income a year is a no brainer. For married filing jointly, $80,000. As the 0% long term gains tax bracket should be taken advantage of if one has the ability to do so. Beyond that, at least for the federal tax brackets, one should shoot for at most $160,000 in overall income every year if they are able to. This puts them in the ordinary income bracket of 24% for single filers, or 22% for MFJ filers. The next highest bracket being well above at 32% which is a huge jump. While the bracket below at $80,000 in ordinary income is only 12%, but may be too low to qualify for a more robust loan. Eager to hear your guys' thoughts on the matter. Those with capital gains income as their primary source of income most especially. As with capital gains, one has greater control over how much of those gains they realize in a given year, and can effectively plan out what their rough AGI will be each year. So if you wanted to appear as a $100,000 earner, or a $200,000 earner, you could do so with ease if most of your income comes from investments. [link] [comments] |
| Hey smart people — can someone explain how an 80-10-10 loan works? Posted: 20 May 2020 11:16 PM PDT I heard that you can get a loan with 10% down and avoid paying PMI with an 80-10-10 loan. I did son research and there seemed to be a lack of information on the subject. I know people from this sub can explain stuff well! [link] [comments] |
| Posted: 20 May 2020 12:55 PM PDT I already know of bigger pockets. Any other good podcasts out there? I'm fairly new and still very early into research and would like all avenues of education. Thanks! [link] [comments] |
| Need help w/ structuring offer on prospective duplex purchase w/ inadequate rent Posted: 21 May 2020 01:20 AM PDT I'm 100% new to investing/property ownership and need help. Question 1: How should I go about purchasing/structuring an offer in light of the info below? Question 2: any general suggestions/comments on my situation here? Looking at a cheap rundown duplex that only has exterior photos. Asking for offer subject to interior inspection. (Working on figuring out major issues, but I suppose I could get purchase credit for major issues and do my first flip.) Current under-market rents of the long-term tenants wont cover mortgage. Market rents will. Under state law, I can't raise rent to the point of covering mortgage, so I'd prefer to take over w/ empty units. Other issue: can't evict tenants for the next few months due to COVID-19 laws. It would be best to have seller vacate tenants, BUT I also may not want the property upon inspection, and would feel terrible making the current tenants move (during these times) per my offer if I end up backing out — similarly, seller probably would have an equal concern and may not accept an offer requiring him to vacate the tenants. Thank you! [link] [comments] |
| Renter disconnected the smoke detector... Posted: 21 May 2020 01:11 AM PDT So we're looking at buying a duplex. One unit is perfectly fine and vacant, but there other has some... Let's call it "character". It looks like the tenant has been smoking in it, and has disconnected the smoke detector. I'm concerned that if they stay, they'll disconnect it again, and if anything happens that the fire insurance may be void. Is this true? How big of a red flag is this? [link] [comments] |
| Does anyone have experience dealing with old/stained tubs? Posted: 20 May 2020 01:14 PM PDT So I have recently purchased a rental and have it occupied. We did a bunch of work to upgrade the house (new countertops, etc.) to get it updated before we got tenants. The house is 1977 so the original tub is 43ish years old. It's not pretty and has apparently been painted over at least once in the past. The tenants are pushing hard to have this issue resolved and. Here are the two possibilities I've gotten bids on.
We will eventually replace this tub, and frankly redo most of the bathroom because it's old and very outdated. No clue how far down the road that is but wanted to see if anyone has dealt with it before. [link] [comments] |
| Hard Money For Flipping First Home Posted: 20 May 2020 05:27 PM PDT Hello! This year has been dedicated mostly on credit repair. While credit is paid off there is still a hit I will need to recover from due to a blunder last year. I was always told to avoid Hard Money for financing. However with my score needing more time to recover to get the best loans, this may be only option. Can I have some advise on these loans? Thanks in advance. [link] [comments] |
| Refi the BRRRR during covid banking? What are the options? Posted: 20 May 2020 01:28 PM PDT What are my fellow BRRRR investors seeing on the SFR refinance during this weird time? Are you still getting all your money out? What terms are you getting? LTV or LTP (purchase amount)? Interest? Balloons? Any cash required to be left in? Any big banks offering good terms? Personal name or what type of business entity? I'll be calling banks over the next few days and will be glad to come back here and post my findings also. Details: I have several properties I am about to refinance. My time is up on my hard money loans so I can't wait much longer though I can extend for 2-3 months of I absolutely had to. I do have a W2 job that is pretty safe and my credit is >720 up to 800 depending on the month. My rentals are good >1% rule with strong leases so DSCR will be good. I have not got my max number of loans so Fannie Mae is still an option though I would like to move the credit to a business name/general partnership soon if not now. [link] [comments] |
| Private money loan structure for new construction rentals Posted: 20 May 2020 02:13 PM PDT I just built my first new construction 4 unit multifamily property, a 4plex. This one I did all cash as a test project to confirm my build cost estimates, etc. It is cash flowing very well, and I'd like to replicate this, but i'd like to use private funding to move quickly and scale. I'm not familiar with private loan structures, and I've read anywhere from 5-10% returns to the lender, with anywhere between 30-70% equity to the lender. It seems there's a variety of ways to set it up, but I've only ever done cash only or conventional loans. Is anyone familiar with private money loan structures for rentals like this? If so, how was it structured? Thanks! [link] [comments] |
| [Looking for advice as a beginner]How do you shop around for conventional financing? Posted: 20 May 2020 09:39 PM PDT I am looking to buy my first rental in the next few months. After a lot of research, I have decided on 1. The market I want to buy 2. The type of property I want to buy 3. The Price range etc. But the one thing that I cannot find a lot of information about is financing. Specifically conventional financing. Most banks/lenders that I search online show "Sorry we couldn't find any loans for you" when I pick "property usage" as "Investment/Rental". So, my question is where and how do you find conventional financing for your properties? Any specific bank/lender recommendation? Edit: I am currently refinancing my Primary residence with a local credit union and I asked my LO if they have programs for rentals. He said they can do 80% LTV. No Application/Origination fee. 10Yr term with 25 Yr amortization and 1.2 debt service coverage ratio. Are these financing terms good? Can I find better terms than this? [link] [comments] |
| Posted: 20 May 2020 05:19 PM PDT So, wondering if anyone has ever negotiated with FEMA in regards to their property being used for Emergency Actions? I currently have capacity to have FEMA use the property, and could expedite the my value-add proposition, and 10x my revenue, but not sure how to get on a "call me list" any advice? [link] [comments] |
| What to do with inherited land (low-value and no planning permission) Posted: 20 May 2020 02:01 PM PDT I will inherit some fields and other land without planning permission in a rather rural area in Europe. Do any of you have creative ideas on how to put them to a use besides renting them out to farmers? I love real estate but have no actual/practical experience with it and especially not something without planning permission and not a lot of value per m2. I would be really grateful since I dont know what to do at this point. I want to keep them because they also have family memories as in old pictures were taken there or similar things. [link] [comments] |
| Posted: 20 May 2020 03:47 PM PDT |
| Posted: 20 May 2020 06:53 PM PDT My dad had 2 rental houses. He sold one and used the entire proceeds to buy a new rental house in a more expensive market via a 1031 exchange. He now (2.5 years later) wants to sell his other original rental house. Can he use the proceeds from that sale to somehow do a 1031 or 1031-like paydown of the mortgage of the new/existing rental house in the more expensive market? I'm thinking no but thought I'd put this out there in case it's possible and someone knows a way to do it. Thank you very much. [link] [comments] |
| How do I turn my current home into a real estate investment Posted: 20 May 2020 06:44 PM PDT I started building my new home, and the thought occurred to me that instead of selling the one I'm in now, I can turn this into a rental property. My lender and I already worked out that I technically do qualify to hold both mortgages in the event that I could not sell my existing home before my new home was built. However realistically there's no way I could maintain that for any real length of time. I have a good friend that would be willing to go 50/50 on this property, but we're stuck on how best we should do that. I'm obviously already invested in this house as I've been living here for 5 years and the house has increased in value over that time as well. If I would sell this house, I should get anywhere between $370-390k and my loan is $213k. We were thinking maybe creating an LLC, and then selling the house to the LLC, and paying myself what I would have gotten if I sold the house, then we'd be in 50/50. But we'd also be incurring closing costs, etc, and would then have a higher monthly payment, which were not even sure we could rent the house for that much. Does anyone have any advise or can point us in a direction. I'm not even sure the type of person to be asking these questions to. Financial Advisor? Real Estate Agent? Lender? [link] [comments] |
| Posted: 20 May 2020 06:10 PM PDT Sorry ahead of time if this is constantly asked, however with reddit's search tools being horrible along with google not giving me a clear answer, i'm unable to find succinct information about this. Basically i'm a first timer looking to get into some commercial spaces with 2 friends and were trying to figure out which loans will actually work for us - neither have ever taken out a loan before we're seeing conventional, sba, and hard money, but the sba i don't think is going to work seeing as we will not be occupying 50% of the location we all have steady jobs, location is florida if that matters we're looking at areas under 1M total thanks [link] [comments] |
| Posted: 20 May 2020 05:39 PM PDT Hello this is my first year renting my house out, it's a 30 year VA loan. I inputted my 1099-Misc and it says I owe money is this usual? Is there any tax breaks or anything I should know about when filling taxes for my rental property. Any information helps. Thanks [link] [comments] |
| First investment property, yes or no? Posted: 20 May 2020 05:17 PM PDT Hi everyone, long time lurker here. Thanks to this community I learned a lot and also want to start investing. Is this a good starter investment property? I live on Long Island, NY and everything here is expensive. I look on Zillow for Hoboken and this seems like a decent deal to start with. What do you all think, pros and cons? I have about $100K saved up. Thanks a lot in advance to everyone that chips in their opinion, I really appreciate it. https://www.zillow.com/homedetails/60-Madison-St-APT-3R-Hoboken-NJ-07030/108622378_zpid/ [link] [comments] |
| Posted: 20 May 2020 04:42 PM PDT (A little background first)I'm currently in my final year of high school. My Nono (granddad) was very successful in being a real estate developer and I want to follow in his footsteps. Anyways I was wondering what would be a good program to get into to become a real estate investor. [link] [comments] |
| Posted: 20 May 2020 04:24 PM PDT Scenario: I buy a home for $320k, gets re-appraised 2 years later @ $400k. How much is the bank willing to give me upon refinancing? I'm sure there are many variables that go into it, just looking for ballpark. [link] [comments] |
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