Real Estate Investing: Refinance - valuing the Loan Officer relationship? |
- Refinance - valuing the Loan Officer relationship?
- A few quick facts why we won’t have a RE crash anytime soon.
- PMI Insurance
- Looking to Aquire Rental Properties (Beginner)
- Any advice to give to a teen?
- What incentives do you offer people who give you leads?
- How to help appraiser include rehab value without being a dick?
- Recent Graduate with some excess cash
- Would buying a foreclosure single family home be a good way to start investing?
- What questions should I ask when vetting a potential mentor and investment partner?
- How to connect with investors in a COVID19 world?
- Cash transaction then cash-out loan?
- Hi there! Seeking some advice on structuring an in-family home purchase
- Anyone ever *intentionally* go cash-flow negative?
- Funky 3 family in a good location
- Seller not including maintenance and repairs in financial statements.
- Vacancy tolerance
- Has anyone worked as leasing agent? What are your thoughts about this job?
- Refinance Now or Wait?
- How much does an investor take home after factoring in all of the real estate tax incentives/depreciation?
- What are my chances of getting approved for a 100k loan
- I Don't Know What To Do...
- How would you invest 50K?
- Impacts of an investment home loan vs buying for your own
- One bedroom rentals and determining the rental potential of a property
| Refinance - valuing the Loan Officer relationship? Posted: 09 May 2020 03:48 PM PDT Background: Currently in the process of refinancing my mortgage and received an estimate of 3.375% that my current loan officer was not able to match. The best they could do was 3.75%. One of the things I see here is that relationships are heavily valued. My current LO works extremely hard and gets back to me ASAP even on weekends and weeknights. During my last refi, they helped monitor the rates, reached out without me asking, and let me know when was a great time to lock it in. They even checked up to see how life was going when the COVID madness started. LO with the better rate replies once a day and seemed in a rush when I called them. Definitely completely different vibe. Ultimately, the difference in rate results in about ~$200 per month saved. So the questions is... do I value the relationship or take the better deal and never look back? [link] [comments] |
| A few quick facts why we won’t have a RE crash anytime soon. Posted: 09 May 2020 04:27 PM PDT "Real estate crash incoming!!" This is all I hear lately. On Reddit, YouTube, all the clickbait news sites. Let's take it back to 2008 (before a truly epic real estate crash) 25% of US homeowners in negative equity position. 20% of mortgages were subprime NINJA, adjustable rate garbage. Now for 2020 Less then 5% of homeowners are in negative equity positions. For a "crash" to happen, we would need a large quick influx of supply, in 2008 this came from foreclosures since no one had any equity and just walked away. We won't get this large influx of supply from foreclosures this time around, sure maybe some, but far too much equity out there. For those that think a crash is coming, where will the glut of supply come from? Only a larger supply then demand can send prices falling. If anything all the damage points to lower supply. One could better argue that real estate prices have a better chance at rising then falling in the next few years. [link] [comments] |
| Posted: 09 May 2020 04:56 PM PDT |
| Looking to Aquire Rental Properties (Beginner) Posted: 09 May 2020 07:58 AM PDT Hi guys! A bit about me: I'm 24 years old living in Boston and have a job in tech. I'm not quite through my first year (around 10 months in as of now) of full employment after college, but I've always been a huge saver, and have a bit saved up to invest. I've put roughly 15k into 401k/IRA already and have around 25k to invest in real estate. Given the recent global and economic turmoil, I've been looking for ways to add a second stream of income that would be (relatively) low effort and long term. As such, I was looking into buying a rental property or two for the following reasons: 1- Builds equity (this is key, since I'm young) 2- It's an investment vehicle that offers a high cashflow relative to other asset classes (in the example below, the monthly rental income is 2% the value of the home) 3- I could set it up as an LLC (or other entity, if that's recommended) which would look good on my future grad school applications 4- My plan is to hire a property manager, which would lessen my overall time commitment. In essence, this would be almost completely passive income. 5- This one is big: The company I work for is owned by a bank. This means I have tight restrictions on investing in traditional assets like stocks, indexes, bonds, ETFs, etc. I hate dealing with the compliance side of this. Real estate is not so regulated by my employer, so this is a big part of it. I grew up in the Detroit area, have family there, and I know that real estate markets there are pretty undervalued (I think median home price is around 45k, with median rental price in the mid 800's) so I was thinking of: A) Waiting another 3-4 months and buying a house debt free to rent B) Waiting another 3-4 months and buying a house with a mortgage and a high down payment to have more equity/lower monthly mortgage costs. C) Waiting another 3-4 months and buying two or three houses on mortgages, with a parent co-signing on one of them. For all three of these options, I'd hire a property management firm to collect the rent, deal with the tenants and manage the properties so that I could essentially just coast. I'd be more than happy allocating the 10% fee that seems industry standard for these services. Let me know what your thoughts are on this, definitely looking for guidance as this would be my first big investment venture. Thanks guys! [link] [comments] |
| Posted: 09 May 2020 07:54 PM PDT I'm 16 and I'm looking into all sorts of investing to build wealth later in life, I like real estate the best because I've always wanted to be a king, owning property and having tenants is like having a kingdom and people paying you taxes, silly I know but it's a childhood dream, I also want to build generational wealth because I don't come from a fortunate family and wish to elevate everyone around me.(can't be a king without a royal family and heirs to pass the kingdom down to) I actually originally got the idea when I was 14 because my family used to live in an apartment complex and we were paying about 1,500 dollars in rent a month (not really because welfare). And I just daydreamed about who owns this place and did some math, the person who owned the buildings gets 2 million a year from rent. WOW. (obviously didn't know anything about expenses lol) Anyway my plan is to save up as much as possible, opening some lines of credit and a IRA as soon as I turn 18 and try to house hack with a 3.5% down FHA loan while in college. Looking for something to major in that pays a lot but also gives me time to work on my properties. I'll quit once I make enough through passive income. So for the past year I've been looking at the Minneapolis Saint Paul area(where I live) on the mls just crunching numbers looking at multifamily homes near colleges( I think I'll never have trouble finding tenants if I target colleges, maybe most of my tenants will be kids who's parents pay tuition and living expenses for them with no hassle) Thanks to everyone who contributes to this sub. I've been lurking on here since I made a reddit account and I've learned a lot. Any advice/criticism you've got to give me, any mistakes you've made when starting out and sharing your experience in general would be greatly appreciated. [link] [comments] |
| What incentives do you offer people who give you leads? Posted: 09 May 2020 04:21 AM PDT I'm new to the game so I don't have any solid contacts yet. I understand that lawyers, contractors, junk guys, plumbers, etc could be great for getting leads on properties not to market yet. How would you all incentivize them if you were in my position? A finders fee? What percent? A portion of revenue generated by a rehab or rent? My intentions are to rehab & rent OR to buy in (nearly) rentable condition & find tenants. Looking at 2 to 4 units for now in mid state NY. Thanks in advance! [link] [comments] |
| How to help appraiser include rehab value without being a dick? Posted: 09 May 2020 10:16 AM PDT I live in constant fear of an appraiser coming back with a crazy low number for any rental property refinance. I recently did about $60k of work on a distressed property including a new roof for a 2 car garage, new bathrooms, kitchen, drywall, flooring, electrical and more. The house was a DUMP before. I got a bit of advice on improving appraisals and was directed to guidance from the National Association of Realtors: I have provided my loan officer with all pre and post rehab pictures, as well as our line-by-line scope of work and a signed contract with the rehab company for doing that amount of work. Does anyone here have any strategies for helping an appraiser see the value we have added? EDIT: Downvotes for an honest question? GFY. [link] [comments] |
| Recent Graduate with some excess cash Posted: 09 May 2020 04:13 PM PDT Hello all, I have become a big fan of real estate investing and am looking to now, or eventually, go the standard route of acquiring an FHA loan and putting 3.5% down on a duplex or triplex and rent out the other sides while I live in one of the units. With this being said, I have just accepted my first full-time offer from a company and begin work in about a month. I know that I want to house hack the first couple of years in order to reap the benefits (pay little to nothing for housing expenses, and on the contrary, have someone pay down your mortgage for you). The problem is that I will likely only be in the town I am moving to for 1-2 years. After that, I plan on relocating to somewhere that I will plan to stay for quite a bit longer. Would it be a wise move to try and find a duplex or triplex and begin this house hacking journey if I don't plan on staying in the area? What are the downsides and upsides? I do not have a significant amount of money at the moment but after my sign-on bonus and the excess cash I have saved, I will have about $11,000 before I begin my position. Would it be wise to do this or to instead focus on paying down my student loans (I only have 28,000 in loans and the company pays 2000 a year towards them) for a couple of years and build a solid reserve of cash? Thank you all. [link] [comments] |
| Would buying a foreclosure single family home be a good way to start investing? Posted: 09 May 2020 11:41 PM PDT Im going to be 25 this year and i just started my diesel technician job with a great company. I already have some money saved and within 2-3 years i will plan on buying my first real estate property. In my current research i have found some foreclosure properties to be undervalued and i have thought about potentially buying one when the time comes. I live in Fresno California and the majority of properties here are selling for 200k or above. However, my budget is closer to 150k-170k. I have seen some foreclosure single family homes prices around 170k with 3 beds, 2 baths, and above 1,000 sq ft. These types of homes at that price range is exactly what im looking for. What are your thoughts on a rookie investor buying a foreclosure property in order to maximize cash flow and limit start up costs? [link] [comments] |
| What questions should I ask when vetting a potential mentor and investment partner? Posted: 09 May 2020 05:37 PM PDT I have been a friendly acquaintance for about a decade of a real estate investor that specializes in government subsidized apartment buildings all over the US. I've been able to confirm that his corporation owns about 200 large buildings. We chatted for a while on the phone today because I wanted to ask him some basic advice about RI close to where I live versus somewhere that is more landlord friendly. The conversation evolved into him suggesting that we explore investing in a building together. He said that he will put in more money than I would into a potential investment so that he would take the greater risk should the building turn out not to be a 'home run' investment. He also said that I would have to be patient because it can take him up to a year to find the right new building to aquire. I'm fine with that as I'm not in any hurry. I told him that I would be open to considering it and I feel that it might be a very good opportunity for me to learn from someone who has developed truly significant wealth via real estate investing. So we talked about my vetting process where I would research everything I could to find out about him by reaching out to his various investment partners in a way to sort of check his references I guess. He also said that I would need to get my own attorney to review any contracts when and if we move forward. Do any of you guys have any suggestions for what I should ask his references? Any ideas on how else to research him? Or any other advice for me being that I am a novice and he is an expert? What red flags should I be watching for? Any advice is appreciated. [link] [comments] |
| How to connect with investors in a COVID19 world? Posted: 09 May 2020 02:38 PM PDT I am working to develop a medical & recreational marijuana grow facility and dispensary. My partners and I own the land and have the necessary permits...we just need the capital to complete the buildout. But as is the case for seemingly everyone, COVID19 has created some interesting challenges in raising capital for a project. Our team has put about $4,000,000 in to purchase the sites for the grow and dispensary, legal fees, interior demolition on an existing 10,000sq. ft. butler building, etc. The local well of qualified and knowledgeable investors has run dry, and now we must search elsewhere. To be honest, connecting with additional people/firms has been quite challenging, and that was before COVID19 reared its ugly head. In the past, we have worked with two groups for a time...one proposed a leaseback with terms that were borderline criminal, and the other constantly promised that the funding was secured only for it to never materialize. I've connected with groups I found through Google searches and they're great until they tell you that they're not interested in any kind of project that doesn't have established cash flows/sales. I know that the fundamentals of our project are quite strong and we are basically ready to begin construction as soon as the remainder of the financing is in place so to that extent we are in a good place, but finding people to pitch this idea to is a challenge. What other avenues am I missing? What other ways of connecting am I not thinking about? I'd love to hear your thoughts. [link] [comments] |
| Cash transaction then cash-out loan? Posted: 09 May 2020 03:50 PM PDT I'm about to put cash into a SFH and wondering if i can get a mortgage or HELOC after the transaction. The national banks rates are quite high and I'm also having doubts about getting 80 LTV as an investor instead of a primary home. [link] [comments] |
| Hi there! Seeking some advice on structuring an in-family home purchase Posted: 09 May 2020 03:31 PM PDT Hey all, I think it generally helps to provide some financial advice before getting into the nuts and bolts of things, and I'll get into that below. For now, the main purpose here is to figure out the best way to acquire the existing family home as an investment which I can rent out, while saving for a bay area home as well (thinking I'll likely need around $200-$300k) I'm 32, male. My fiancee and I live in the sf bay area, and both have great, stable tech jobs, but are paying sf rent ($3500, monthly, 2br + parking - we got lucky) I'd say our net monthly income equals about $17k My fico score is well above 830 I have about $15k in automotive debt, intentionally (my only debt) In terms of cash assets, I have about $50k accessible cash stored away, and about 2.5x the same amount in retirement, and another $70k locked in investments (also easily accessible). We also have a joint $30k money market account that we have stashed away for a November wedding that may or may not happen at this point. Tl;Dr there we have $150k cash on hand. My father is disabled and qualifies for a very low property tax fee, and he is also in the process of separating with my mother. Text from him below: I was gonna ask you- are you really interested in taking over our house or do you wanna live elsewhere? I'm not going to make the mistake of selling a house again- I should have kept both [redacted] houses. We can transfer the property to you and you keep the tax basis ( ~$565k- taxes are $8400/year) and what I was thinking about was this: I am looking at property in the $300k range, I'd need ~$125k or so for the down and startup expenses, and that would leave a ~$1500/ month payment. The payment here is ~$1200/month. Your mother wants an apartment so she doesn't need as much, figure half what I need. We'd sell you the house for $100k under whatever it appraised for, figure $1.5M - that gives you room for upgrades or drapes or?? . You're looking at ~$250k down and ~ $5k month all in. If you're not interested, we're probably going to try and rent it out, i dont want the house leaving the family. It's too nice and it's too close to being paid for. ( $230k) I.e. I'm not necessarily in a position to outright buy dad's house, especially while saving for our own home and I'm not interested in living in my old hometown - it just seems foolish of me to pass up this opportunity. I know I can likely provide more info, but I'm not super versed in real estate, so any input would be helpful. Thank you all so much! [link] [comments] |
| Anyone ever *intentionally* go cash-flow negative? Posted: 09 May 2020 05:23 PM PDT I know it sounds strange but hear me out. Looking at a $200k property, let's assume $50k down payment. On a 30 year it's $750 a month and I pay total interest of $123k over life of loan. On a 15 year it's $1100 a month, pay $50k interest over life of loan. I expect after taxes, insurance, etc. to have income from the property of about $1025 a month. Let's assume I'm not cash-strapped and the $275 a month I'd be pocketing on the 30 year loan is NOT critical for me. Would it be crazy to talk to go for the 15 year loan, knowing that I'll be losing a little money each month (again, please assume I can stomach that cash-flow wise) with the goal of a) building a lot more equity a lot sooner; b) amortizing much more quickly; and c) (probably most important in my mind) saving $73k in interest over life of loan? I have also considered taking the 30 year but paying on it as though it's a 15. Doing that I could just pay the full $1025 income I receive each month and break even...would probably end up paying it off in about 17 years. And then if I have an extended vacancy (already budgeted for some vacancy but something more drastic) then I can fall back to paying no additional principal on the 30 year? Down side is higher interest rate on the 30, of course. Would love to hear what others think of this idea and/or if anyone does it. I know a lot of folks on here live by the maxim of maximizing leverage but I definitely lean more conservative than that. Thanks much!! [link] [comments] |
| Funky 3 family in a good location Posted: 09 May 2020 08:39 PM PDT I am a 24 year old looking to purchase a small multi family as my first home. I recently came across a 4 bedroom,2 bedroom, studio 3 family in a great location in a suburb 30 minutes from Boston. Due to covid-19 concerns I could only see 1/3 units unless I had an accepted offer. The unit needs roughly $20,000 in material (I am a carpenter and would complete the rehab myself) which didn't scare me away but I have a number of concerns:
I submitted an offer for $400,000 ($399,000 list price) which was accepted. I was able to see the studio unit today and it was unbelievably small, about 150sq ft. I had planned on living in the studio but it is just not large enough for myself, my girlfriend and our dog. My dilemma is that I would have to either live in one of the other units and be paying $7-800 a month out of pocket or plan on an addition for the studio and hope that A. The town approves it B. The town can do so in a reasonable time frame despite covid 19 restrictions. I have an inspection scheduled for Tuesday morning and I am debating on going through with it or not. It is a bank foreclosure and from what I understand they're unlikely to take less than 10% from list price, which still puts me at paying in roughly $600 a month if they even accept it. I know they say good deals are made not found but I'm scratching my head here. Any insight is greatly appreciated 4 bedroom rent post rehab - $2000 2 bedroom rent - $1400 Studio rent - $700 Monthly payment including taxes, pmi, mortgage and insurance - $2,600 Water bill - $200 Trash removal - $100 Heat for 2 bedroom and 4 bedroom - $250 (Studio is separately metered, all electric separately metered) 7% vacancy I would just find a way to block the windows but they are the only means of egress in the bedrooms. I considered a spiral staircase but I've read they're a turnoff for tenants [link] [comments] |
| Seller not including maintenance and repairs in financial statements. Posted: 09 May 2020 08:23 PM PDT A listing agent I contacted in regard to 6 unit apartment building only supplied me with a total expenses and rent number when I requested their financials. I asked if I could get a more detailed break down of the operating income with all the lines items for expenses and they only provided lines for insurance, water, taxes, landscaping, and management as the only expenses they had. I inquire further so that they could include their annual maintenance expenses and repairs for the property and they replied they "rarely have any maintenance issues, the properties are in good condition, the electric, plumbing, AC and roof are all in working good condition." This seems very abnormal for a seller to do so how should I go about getting the information that I need? [link] [comments] |
| Posted: 09 May 2020 08:15 PM PDT I'm brand new at this so apologies if this doesn't make sense. How long should I be able to tolerate a vacancy for it to be a smart idea to purchase a property? What I mean is that presumably it would be a bad idea to purchase a property, intending to rent it, if I would be unable to afford the mortgage payments after a month or two of vacancy. But presumably I also would not need to be able to afford the mortgage payments indefinitely with a tenant. What's a reasonable middle ground between these two extremes? 6 months? A year? [link] [comments] |
| Has anyone worked as leasing agent? What are your thoughts about this job? Posted: 09 May 2020 01:32 PM PDT I'm thinking of getting a job as a Leasing Agent helping the property manager and I was hoping to see some insight on this position. My ultimate goal is to learn about the renting industry. [link] [comments] |
| Posted: 09 May 2020 11:48 AM PDT Currently have a mortgage of 230,000 at about 4.3%. Current refinance rate for 30 years is 3.5% at our bank. It was closer to 3.3% a month ago. I've tried convincing my father to cash out refinance already but he is waiting for the rate to drop WAY lower. He is being very stubborn about it and I feel like the rate is only gonna go higher. He says he will only think about it after July or August after filing his taxes (cause the bank needs to see his recent taxes to refinance). Is he right to believe it will go lower? Can't we lock in a rate now and then just see? What would you guys suggest? [link] [comments] |
| Posted: 09 May 2020 04:39 PM PDT |
| What are my chances of getting approved for a 100k loan Posted: 09 May 2020 04:00 PM PDT What are the chances that I could get approved for a 100k loan? My neighbor is planning on selling their house for 80k, the house was abandoned for several years, and they're willing to do all the work and fix it up for sale of 120k. I'd like to buy it at 80k with not renovations done and fix it up myself ( I have construction experience). I have a a 622 credit score and only $1000 in my savings is there any way I could buy the property? [link] [comments] |
| Posted: 09 May 2020 09:43 PM PDT Hello Everyone, I Am 16 And I Am Massively Interested In Real Estate Investing And Probably Want To Make It A Profession. I Know The Basics Of It And Will Probably Learn More With My Brother Who Is A Realtor Too. I Have No Initial Money , So I Thought Some Of You Guys Faced The Same Situation And Got Up , So I Want To Ask You. How To Gain Money Starting From Zero To Buy My First Property And Another Thing Is I Currently Live In India And I Have Mixed Thoughts Whether To Move Abroad Or Not. If You Think I Should Move , Please Tell Me Where .I Would Appreciate If Anyone Helps Me. Thank You [link] [comments] |
| Posted: 09 May 2020 09:13 AM PDT Hey Reddit friends! 3 questions for everyone to answer in the comments – if you had 50k cash to invest...
Curious to hear your thoughts! [link] [comments] |
| Impacts of an investment home loan vs buying for your own Posted: 09 May 2020 06:40 AM PDT Are there any impacts of taking out a mortgage for an investment home as your first purchase? Will this hurt your chances if you have an investment home mortgage and then later want to apply for a mortgage of your own to live in? The information I found online isn' consistent. [link] [comments] |
| One bedroom rentals and determining the rental potential of a property Posted: 09 May 2020 01:37 PM PDT I have been trying to figure out the best way to get started in real estate investing and one bedroom units appear to be a good way to go but I have no idea on how to gauge the market for my area. What tools do people use to determine whether or not their will be a market for their rental? Are one bedroom units less desirable ? [link] [comments] |
| You are subscribed to email updates from Real Estate Investing. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment