Real Estate Investing: RIP: Jimmy Napier |
- RIP: Jimmy Napier
- Bloomberg: Loaded With Cash, Real Estate Buyers Wait for Sellers to Crack
- Verifying rental income of Seller
- Does anyone get concerned about a place just straight up not renting?
- Banks Policing Owner Occupied Mortgages
- Converting duplex property into single Airbnb listing
- Looking to buy some cheap land in the Caribbean during this pandemic. Any advice?
- What does a deflationary environment mean for REI?
- SFH $42,000 purchase price now valued at $74,000. Would you sell it or keep it for the cash flow?
- Property evaluation - Is this correct?
- Should We Refinance Our Rental Property? (3.625%, 23 years left on 30 Yr)
- Real deal or all smoke?
- Should I continue saving and build an 8-Plex, or buy when one hits the market?
- What advice would you guys give to a college student looking to make a business out of real estate upon graduation- or if you were to start all over again at 21 with no debt, what would you do?
- When will there be more foreclosures?
- Building a house with no experience.
- What's the labor different renting and owning a home?
- How to approach an off-market owner
- Where do you get your houses?
- Has anyone made any serious money from "lazy flips" or sitting on property?
- First time buyer, I was pre-qualified for the loan amount needed but the broker said they wouldn't be able to give me the loan for the type of property I inquired about.
- Vacation rental condo
| Posted: 19 May 2020 02:12 PM PDT I'm constantly baffled by the number of investors, both new and experienced, who aren't familiar with the legends of the 70's who created or refined many of the real estate investing techniques in use today. Then again, I suppose after twenty plus years of fake internet gurus selling snake oil, many of today's investors find it difficult to believe that the "real deal" ever existed in terms of knowledge. I can tell you that there aren't many of them left and Jimmy was one of the greats. Famous for his classes on Negotiation and his love of "Paper" aka Private Notes Jimmy was a Legend and he inspired many, many investors to success. I strongly recommend his book "Invest in Debt" for those of you interested in creating, buying and using private paper. I also recommend his classes on Negotiation if you can find a copy on CD in the wild. There aren't many of the greats left, most are in their 70's and 80's and few of them still teach. You can't fake forty plus years of experience. Contrary to popular belief it isn't "All on the internet". If you have the opportunity to listen to a Pete Fortunato or John Schaub or any of the remaining Legends I encourage you to do so before they are no longer with us. The knowledge is priceless. RIP Jimmy. [link] [comments] |
| Bloomberg: Loaded With Cash, Real Estate Buyers Wait for Sellers to Crack Posted: 19 May 2020 06:40 AM PDT
https://www.bloombergquint.com/markets/loaded-with-cash-real-estate-buyers-wait-for-sellers-to-crack [link] [comments] |
| Verifying rental income of Seller Posted: 19 May 2020 06:48 PM PDT I read The ABCs of Real Estate Investing by Ken McElroy and one of the things he talks about for MFH is to actually VERIFY the rental income of the property regardless if the seller discloses the current income. He talks verifying via a Pro Forma document.
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| Does anyone get concerned about a place just straight up not renting? Posted: 20 May 2020 12:21 AM PDT I live in California so the numbers just don't make sense. Personally I want to buy somewhere that can cash flow because I don't believe appreciation can continue at the rate it has in the past. Now this leaves me to pick a random city in the Midwest and narrow in on a market. Let's just say I pick Cleveland. The numbers look great — I can cash flow well assuming the place has 10% vacancy. Now here's my concern — it just seems weird to me that people will rent these sh*tty places in the "middle of nowhere". I think it comes from me always living in big cities, but it just seems that it's possible my place will sit on the market forever. I can't imagine the type of renters that will rent these places. Who wants to live in Cleveland? I'm worried that my property can just sit there without being renter for 6+ months. Is this a legitimate concern? I think I'm scared cause I don't understand how smaller city life is lived. As you can tell, I have not bought my first property yet. [link] [comments] |
| Banks Policing Owner Occupied Mortgages Posted: 19 May 2020 08:46 PM PDT I have a multi family property with an owner-occupied mortgage. I'm not planning to live there forever... When can I move out without being in violation of my loan? I'd rather not ask the bank this question, in case this puts me on a "list". I heard banks sometimes go check if you really live there.. knocking on your door, talking to neighbors... is that true? I'd hate to move out too early and then have my loan called in... How many years into a loan is that no longer an issue? I'm in Los Angeles, if this helps. Thank you! [link] [comments] |
| Converting duplex property into single Airbnb listing Posted: 20 May 2020 02:05 AM PDT I'm in the process of moving forward with my first property purchase. This is a duplex in a high rental demand and tourism-based city. The duplex features lake views from the unit's living rooms' as well as a deck and walkout patio on each side. It's also situated above a popular public beach (although the house itself has ample privacy) I thought instead of renting out each unit as a separate listing, I could rent the entire duplex as one. I would market the property as such and maybe underline the fact that it would provide extra privacy when renting with multiple families, couples, etc. Each unit has 3 beds and 2 bathrooms. In this case, I would be able to rent this out as 6 bedrooms and 4 bathrooms (12 person/occupancy) Has anyone had a similar experience with this? Thanks in advance [link] [comments] |
| Looking to buy some cheap land in the Caribbean during this pandemic. Any advice? Posted: 20 May 2020 12:53 AM PDT Hi! I am looking to invest in some undeveloped land in the Caribbean and I think this pandemic provides for a perfect opportunity to get some land for a great price from a company or person looking to liquidate an investment. Last time I was down there I talked to some locals and apparently defaulted land sells for extremely cheap from the banks, though you will not find it listed online. I am trying to find out what islands may be best and how exactly to catch wind of these offers of people trying to liquidate real estate due to the dramatic economic impact of loss of tourism in the Caribbean. Does anyone have any idea of the best way to go about doing this? Or potentially the best island for this sort of inquiry? Thank you! [link] [comments] |
| What does a deflationary environment mean for REI? Posted: 19 May 2020 04:31 PM PDT Lots of talk of impending deflation. Makes me sad the think about it, to be honest. Money moving slower is just a real bummer, in general. Low interest loans are an inflation hedge, right? What do these loans represent in a deflationary environment? The US is opening up, so the length of the period is up to debate, I suppose. [link] [comments] |
| SFH $42,000 purchase price now valued at $74,000. Would you sell it or keep it for the cash flow? Posted: 19 May 2020 10:49 AM PDT I'm curious what your opinion is on this property and your thought process to why you would keep it or sell it. Would you sell it or keep it? Details below.
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| Property evaluation - Is this correct? Posted: 19 May 2020 06:48 PM PDT TLDR: Would you invest in a negative cash flow property (years 1-3 or 4) that's only ~1-2% of your monthly take-home in the negative for $700/month net worth add at ~50% ROI year 1. Am I even thinking of these numbers properly? My wife and I (24, and 25 years old respectively) are thinking of turning our primary residence in Charlotte, NC into an investment property upon relocating for her job (and mine going remote, so flexible with hers). She has relocated already and we are renting an apartment in Charleston, SC. My job has the flexibility to move full-time remote so I can move south with her. We purchased our home in April 2018 for $232,500. Currently we believe the home would appraise at about $255-260k with very minor repairs to get ready to sell. We still owe $218,000 on the home. I have been estimating that if we sell the home, we should expect to net around 92% of the value, or around $234,600, leaving us with around $16,000 in our pockets. Currently we pay $1437/month PITI but are eyeing a refinance that would get our payment down to $1250ish. We believe we could get from 1500-1600 for rent, with 1600 likely and 1500 a "we can rent this thing tomorrow" price. Since we currently are shelling out two payments while she lives out of town, waiting a few weeks for a renter doesn't kill us since we are paying the mortgage anyway but I realize we shouldn't miss out on months of revenue for $100/month so I'd get the thing rented. The home was a flip and while things aren't top-quality, they are all updated including the roof, AC and Heat unit, and other costly upgrades so repairs would be minimal. I realize it's tight margins by typical rental standards but here are our numbers: $1250 PITI $1550 rent $300 net before expenses $150 property management $150 vacancy $150 maintenance $-150 Net monthly year-one expectations We expect rents can increase $50/month per year as it seems pretty standard in our area for single family homes. We also expect 2.5% appreciation MINIMUM, but our area should probably see 4-5%. Principal paydown would also be about $350/month. Combined we plan for: $525 appreciation monthly (2.5% estimate) $350 principal paydown $875 total intangibles So, effectively, we have been looking at somewhere around a $725/month net worth add on what we feel are conservative estimates after losing $150/month cash flow on conservative rents and adding in conservative appreciation. Our income and finances: I make about $180-200k in sales, she makes about $65k-70k salaried, so ends up being about $14k take-home monthly after 401k, insurance, and taxes. We have liquid assets of about $45k and illiquid of $25k. Our monthly expenses are about $6000 including all debts, both properties we live in, and all lifestyle expenses, plus a cushion for other expenses we may incur. I know we can easily absorb $150/month and could realistically absorb the entire mortgage on this property if need be. The way I have been running the numbers: $700/month net worth add after $-150 cash flow, which I don't mind, against $16,000 left in the property (what we would net if we sold) for total returns of over 50%. Plus, we can probably use the tax benefits. Seems like a good deal to build long-term wealth and probably would start being positive cash flow in years 3-4 so it wouldn't be a huge burden in the long term. [link] [comments] |
| Should We Refinance Our Rental Property? (3.625%, 23 years left on 30 Yr) Posted: 19 May 2020 10:32 AM PDT As the title says, but with more information. Wife and I have a condo rental that has about $103k left on the mortgage. It's a 30 year at 3.625% for a monthly payment of $547. After taxes, HOA & maintenance, it's about $1300 a month. We're renting it out at $1950/mo. I'm seeing such great rates on 15 year mortgages and am wondering what the REI collective here thinks about trying to refinance in this advantageous climate. Thanks everyone in advance for your advice and insight. [link] [comments] |
| Posted: 19 May 2020 09:31 PM PDT Need some opinions on connected investor and their "pin system". Real deal or all smoke? [link] [comments] |
| Should I continue saving and build an 8-Plex, or buy when one hits the market? Posted: 19 May 2020 02:48 PM PDT I plan on building or buying an 8 plex. I work in residential sales for a home builder in middle TN. I can have 150k-200k in capital ready in the next 24 months. Should I sit and continue saving, or look at the market? I'm asking a loaded question, but any help would be great! Thank you! [link] [comments] |
| Posted: 19 May 2020 03:47 PM PDT I am a mechanical engineering major, and I plan on graduating soon, without any debt. I'm looking to move out of state, currently in Texas, to preferably any place in the midwest or south, maybe Indiana/Alabama. My goal is to work for a few years, save as much money as I can, begin investing in real estate on the side, then quit my full time job, and do real estate full time. I have some experience with flipping foreclosed homes, but that experience is pretty much only with no-skill rehab- painting, flooring, etc. I don't have a clue on how to buy, sell, or basically the entire real estate process. My goal is to invest in single and multi family homes, that may or may not be ready for tenants, rehab them, then put them up for rent, and hopefully have a positive cash flow of about 200-300$. I want to repeat that process for 30-50 units so that I have a significant source of income so that I can quit engineering and do real estate full time (make no mistake though, I enjoy engineering, but enjoy real estate even more). So basically, when I begin my career, in a new state, with almost no money but also no debt, I would like to begin a real estate side business as soon as possible, then eventually do that full time. What concrete steps should I take to work towards that goal. I've been doing a lot of research online, but it can get pretty confusing pretty quick, and I prefer hands on experience much more. What would you guys do? edit- also I'm not so big on doing rehab myself anymore, I feel my time is better spent elsewhere [link] [comments] |
| When will there be more foreclosures? Posted: 19 May 2020 07:01 PM PDT Came across a YouTube channel of a couple who does foreclose property management and it made me think. When do you guys expect to see an increase in foreclosed properties? Looking at possibly purchasing a foreclosed home if the price is right. How do we find these as well? [link] [comments] |
| Building a house with no experience. Posted: 19 May 2020 02:27 PM PDT How viable would it be to build a basic small 2 or 3 bedroom single story house? How can inform myself more? I have tried googling and I can't seem to find advice that goes beyond "Hire decent contractors" "use quality materials" "make sure you have enough funds". I'm trying to find out more about the actual construction side of things. [link] [comments] |
| What's the labor different renting and owning a home? Posted: 19 May 2020 01:26 PM PDT It's related to the renting versus buying debate, and it's something I rarely find anyone talking about. For simplicity, I will be ignoring leverage and assume that you buy the home outright. Buying and renting seems to comes down to 4 factors: Time Horizon The cost of operation (rent versus (property taxes, maintenance, insurance, vacancy, transaction costs, and marginal taxes losses)) The cost of capital (Rent and invest the different versus having it all stuck onto a home) These 3 are simple, and this calculator is wonderful in capturing these 3: https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html However, there is one factor that isn't often inspect and that is the cost of labor. Here's the question in more detail Relative to renting, how much time and energy does home ownership takes away from you? What tasks do you have to perform as a homeowner that you would otherwise would ignore as a renter? One example I can think of is additional tax complexity, which means putting more time into filling your taxes. What other example can y'all think of? [link] [comments] |
| How to approach an off-market owner Posted: 19 May 2020 12:49 PM PDT Wondering what the best/most successful way to approach the owner of an off-market property is? Obviously I can just look up their phone number, but it seems a bit odd to reach out in this way when the property is vacant due to a death. For background, I've been keeping my eyes on the house across the street from me and recently the owner passed away (looked up the obituary), and used the assessor's website to find the son. The property is fairly distressed, so kind of hoping to reach out and make a deal on it before/if they list it, and it works out a bit perfectly because I have another property I've been considering selling for a 1031 exchange. What have you guys had success with in the past? [link] [comments] |
| Posted: 19 May 2020 03:50 PM PDT I'm very new to REI, looking to do both stocks and this. I read a book on raw land investing and the author wrote that he could find vacant land for cheap on the Land Tax market(whatever it's called when a person can't pay for their homes anymore). Do most people buy stuff there? Are many of you buying properties to have tenants, resale? [link] [comments] |
| Has anyone made any serious money from "lazy flips" or sitting on property? Posted: 19 May 2020 10:18 AM PDT Say I want to get my toes wet in real estate and have a little money saved up. I can't DIY worth squat, so flipping beyond a few cosmetic touches is out of the question. Has anyone here made money by just buying up property or housing in a cheap neighborhood and then sitting on it and waiting for the value to go up? I don't want to deal with tenants either, so landlordery is also out of the question. Some people in my grandparents' generation wound up doing this; they bought up land in the Southern Bay Area on the cheap using borrowed money (having a hunch it would be worth something someday), sat on it for years, then voila, Silicon Valley happened and they retired very well off very early. I'm willing to be patient. [link] [comments] |
| Posted: 19 May 2020 08:19 AM PDT So this will be my first house/investment property. I have been traveling for work the last 2 years between 2 places and just stayed at my parents house and would rent from Aunt/Uncle in Florida when there. I am now long-term in Florida and started looking for housing. I found a place that is a multi family unit. down stairs has 1 bed/1 bath currently rented for $500, and two storage bays also rented for $500 each. The top floor is 4 bed / 2 bath thats is currently vacant. I would live on top floor, but I could also rent it out for $1200 If someone was willing and then I'd rent a cheaper place. I was pre-approved by a home loan company, but they said they wouldn't be able give me a loan for this particular property? They told me I would most likely need to go to a local bank. I was wondering what the reasoning is behind this? Is it cause its not strictly a residential Building? I am new to this and it is my first purchase, so I am trying to gain more knowledge before committing to something. I am not pressed for time and am/will continue to look at other properties for the next few months. Thanks [link] [comments] |
| Posted: 19 May 2020 06:51 AM PDT My wife and I are got into a conteact for a studio condo in the 30A/Panama City area for about 99k. We were told by the agent that we could do a conventional loan, which turned out to be false. We have to put down about 10.5k which is doable but leaves money a little tight for a month or so. We hope to start air bnbing this condo as soon as possible ( feel good about this, other units in the condo have stayed rented and are rented out moving forward) we have a lot of friends and family who own property in the area and are very familiar with the neighborhood. Even if we had to cone out of pocket for the mortgage on this place we could swing it but it wouldnt be pleasent. If everything goes well we hope to have it paid off in 3 years. Now is the make or break moment on this contract, we can pull out now or we can close the deal. I am a bit nervous if money being tight through the summer but i think it has a potential to give us a nice return...I guess Im looking for insights from anyone who is in the process of doing this or has done it in the past and can give some advice on whether or not this is worth the risk in the current economy. [link] [comments] |
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