Real Estate Investing: Tomorrow I'm having lunch with someone who went from zero units to over 100 over the past twelve years. What should I ask him? |
- Tomorrow I'm having lunch with someone who went from zero units to over 100 over the past twelve years. What should I ask him?
- I legitimately don't understand how Real Estate will increase in price forever
- What websites do you use to view property?
- bUt LaNDlorDs aRe EvIL (+ deal breakdown)
- Is it a smart idea to start real estate investing when I am about to transfer to a university?
- Lost vacation rental income due to COVID19
- Should I buy?
- Interested in Learning more about military real estate investing.
- Auctions being cancelled
- Corporate Relo, "we pay your closing costs on both ends" --> can I sell my house to myself?
- Refinance
- Property management
- Should I use my family’s real estate agent (great agent but doesn’t own any rental properties herself) or try to find an agent who is familiar with long-term real estate investing?
- Tiny Houses!
- Quotes 4.375% for 30yr fixed. What shall I do?
- Are home loans based on appraised value or closing price?
- Renovated a house... Do I sell or rent?
- I need your expertise to help critic my plan.
- Give this YouTube Channel on Real Estate a look! Watch the most recent video, its very interesting!
- Simple math, Real Estate is way better than Stocks
| Posted: 01 May 2020 07:49 PM PDT I've accomplished a bit less than ten percent of that over the same time frame and I want to step up my game. If our discussion were a YouTube video, what type of questions would you want to hear answered? (Atlantic Canada) [link] [comments] |
| I legitimately don't understand how Real Estate will increase in price forever Posted: 01 May 2020 09:07 AM PDT I don't know if I'm the only one who thinks this way, but it's extremely difficult for me to comprehend how real estate prices will continue to go up (and outpace inflation) forever. Everyone I talk to in real estate believes that to be the case. If prices continue to outpace inflation forever, then eventually no one will be able to own a home except a few people. Eventually it has to hit a point where it levels out. What makes it more difficult is that investors will continue to invest and eventually there will be no homeowners -- only investors and renters. Let's take coronavirus for example. The people getting hurt the most are the renters, they are the people losing their jobs. Because of this, they are way less likely to ever buy a home meaning that they are way less likely to buy a home and those homes will be bought by investors. In addition, the homes that get foreclosed on will be bought by investors as well. Is anyone else concerned about this? I really don't know the end in sight but it doesn't seem good. Maybe I shouldn't be saying this on this sub, but a system where people continue to gain passive income without providing much work to society doesn't seem sustainable. Thoughts? [link] [comments] |
| What websites do you use to view property? Posted: 01 May 2020 07:53 PM PDT I'm new to real estate investing and there are many things I'm trying to understand about searching for property. First, what's the best, most accurate websites do you use to browse markets and find property? I keep hearing about MLS, so I tried going to MLS.com but wasn't impressed with the interface, I think Zillow looks nicer but people have said zestimates aren't accurate. What is the best site to visit? [link] [comments] |
| bUt LaNDlorDs aRe EvIL (+ deal breakdown) Posted: 01 May 2020 03:37 PM PDT Just thought I'd share a nice text my tenant sent me.
This is my third rental property. I used a HELOC and a loan from my dad to purchase a house 30 min west of Midtown Atlanta. Bought it from a wholesaler for $75k cash. The house was not in good shape. The first thing you notice when you walked in was the curiously strong stench of...dog food. And maybe dog piss? Ceiling was missing in a bedroom. Some plumbing missing. A/C stolen. Pretty gross. My contractor gave me a rehab estimate of $40k to do floors, painting, new kitchen, new bath vanities, new deck, etc. Its now a brand new looking, very spacious 5 BR/ 3 BA. I ended up being $123k all in, and it was appraised at $156k a few months ago. I had a refi rate of 4.25% but then sh*t got weird (thanks COVID!) and my rate went up to 5.25% at closing. I could have waited for the rate to go back down but I wanted the cash out ($110k) to pay my dad back. What went right? I nailed my ARV. I think I picked a good contractor in terms of quality work. I ended up driving around the neighborhood and saw him working on a house and asked him for a quote on mine. I think I have good tenants - they have paid on time since they moved in October, and seem to care very much about the home. I got very lucky with my dad willing to float the purchase price as a no interest loan. What went wrong? I won't buy a corner lot again, I don't think. Its just more land, more litter (although that burden is shifted to the tenants). Went over budget with new roof and other unexpected items. This was my first major rehab and I let the contractor control the scope. I also should have stuck to my guns on my original offer of $70k to the wholesaler. COVID jacked up my PITI by $100. Instead of shopping around for another lender I just ate it. Another side effect of this side hustle is that it takes away from my W2 and I tend to fall behind. But this is way more fun so oh well! [link] [comments] |
| Is it a smart idea to start real estate investing when I am about to transfer to a university? Posted: 01 May 2020 08:13 PM PDT Hello I am a 22 year old community college student that is about to transfer to the University of Houston this fall. I started reading Brandon Turners " The book on Rental property investing: How to create Wealth and Passive Income" and am learning a lot about real estate and might try to buy a duplex and live in half while renting out the other. My family said they would give me $20,000 to start but I could also use that money towards my tuition. Should I wait until after I graduate and save up to buy real estate or start investing ASAP. Also I am still a beginner and I feel like if I do look at some duplex's my analysis might be wrong. Who could help guide me buying my first property so I don't buy a bad one or if I do not know what to look at. [link] [comments] |
| Lost vacation rental income due to COVID19 Posted: 01 May 2020 11:46 PM PDT I am curious about how those of you with vacation rental property--especially in FL--are able to weather the loss of short term rental income. I follow one popular beach community on FB, and there has been a good bit of discussion about owners who are apparently mortgaged to the hilt and possibly unable to make mortgage payments without renters. The controversy surrounds whether or not owners and management companies should refund renters who were forced to cancel due to the pandemic. Many owners/companies are refunding, but some are only offering a credit. I am a novice at real estate investing. My husband and I own our primary residence and 2 properties in a college town. We did a cash out refi to pay cash for our first property--a condo. We did a HELOC to purchase a fixer upper mobile home last year. We had 3 kids in school at this college at the time. We can cover the expenses of these properties indefinitely with no rental income. So this beach community...this is prime real estate. A 3 bedroom 2 bath home built in the 70's a block away from the beach is going to be 750k to a million. So it blows my mind that anyone who could quality for a loan on such an expensive property would not have the means to cover 3 to 6 months of expenses at a minimum. What do these people do when a major hurricane hits? I'm genuinely curious because I am very interested in investing in vacation property one day. I just assumed that all these beach property owners were massively wealthy with lots of reserves, but apparently that's not always the case. How do "regular people" --not massively wealthy-- buy beach property? [link] [comments] |
| Posted: 01 May 2020 11:28 AM PDT I am considering buying an investment property with my Father-in-Law (50/50 split on all items). I found a property in a village near me that is a very popular place to live. The rent is some of the highest in the area. The house was originally listed as $162,500 and was an old state farm insurance office on the bottom with an "apartment" on the top. The only issue with the house is that the upstairs apartment is not separated from the downstairs office. So in my preliminary research, I was looking into renovations to separate the two. Before any offers could be made, the current owner(who used it as a second state farm office before deciding to consolidate to one office), received an offer from a woman who is going through a divorce with two kids. She offered to rent the entire house for $1,700/month on a one year contract. This was $150 more than the current homeowner wanted. She also will be covering all utilities (except water which is $40/50 per quarter) and also mowing and plowing costs. The current owner pulled the house off the market but told me he would still entertain an offer if i'm interested. He originally said he wanted to put the house on the market for $185k but his agent told him he would never get it, especially seeing he wanted a quick sell. After speaking with the owner further, he mentioned that if we could come to terms, he would like to do it without an agent which would significantly cut costs. My thought on this is that I could offer $172k since there are no agent costs. Also, the taxes are currently $5,700 but that was for an assessed value of $125k so I think they will go up. Here are my questions:
Any help would be greatly appreciated. Thank you. Edit: I also have the opportunity to do this on my own with no hard feelings with the F-I-L. [link] [comments] |
| Interested in Learning more about military real estate investing. Posted: 01 May 2020 09:17 PM PDT I recently decided to attend the u.s coast guard academy and am interested in buying and managing rental properties after I graduate and serve as an officer. This past summer I had the opportunity to visit my uncle in California who manages 4 different properties. I got to visit the properties and hear some of the horror stories about some of the tenants who rented his properties. After this I became really interested in real estate. Are there any books I can read to learn more about investing while in the military? I regularly browse the bigger pockets page and took their free beginning online course, but beyond that I don't know much.. I know that one of the benefits of joining the military is being able to buy a home with zero money down. I have a lot of free time right now and would like to learn as much as I can about the real estate investing. Also if you have any advice or book recommendations i would greatly appreciate it. Thanks [link] [comments] |
| Posted: 01 May 2020 02:04 PM PDT Hey guys, long time lurker and kind of a noob. I've been trying to keep an eye on foreclosure auctions at sites like Auction.com for my area, and none of them seem to stick around very long. Are they being cancelled because of certain forbearance policies due to COVID-19 or are people running to the buyer the next day and making an offer? Any insight would be appreciated. [link] [comments] |
| Corporate Relo, "we pay your closing costs on both ends" --> can I sell my house to myself? Posted: 01 May 2020 07:22 AM PDT Curious about this. I'm looking at a corporate relo with a job offer and it talks about paying the closing costs on both ends...selling your original house and purchasing new house. Curious about other people's experience? Ideally I'd like to keep my house as a rental property. Anyone do anything where you sell your house to an LLC you control in order to help capture some of that relo $$??? [link] [comments] |
| Posted: 01 May 2020 01:11 PM PDT With the current the mortgage rates. I want to refinance my home. FYI based in NYC, is it cheaper to refinance with my current bank to save on closing costs or it doesn't matter? Currently my bank is quoting a very good rate of 2.8% 15 year but quoting me 10k closing cost. Any ways to save on closing costs in this situation? [link] [comments] |
| Posted: 01 May 2020 03:53 PM PDT Do all coldwell banker agents offer property management services, or does it vary per agent? I ask because I live in a small city but there are a few realtors from coldwell bakers. [link] [comments] |
| Posted: 01 May 2020 11:53 AM PDT All these different pages and people say to find an agent that invests in real estate themselves. Anyone have an opinion on this? Do you use an agent who doesn't invest in rental properties themselves?? What're the pros and cons [link] [comments] |
| Posted: 01 May 2020 03:13 PM PDT I'm in the beginning stages of acquiring a flatbed trailer and building a tiny home on it to sell. What questions do I need to ask that I probably haven't asked yet? What mistakes will I probably make? I'm trying to do as much research as possible but of course I'll miss plenty of information that I'll wish I would've had. [link] [comments] |
| Quotes 4.375% for 30yr fixed. What shall I do? Posted: 01 May 2020 02:54 PM PDT I was under the impression that the mortgage rate is low recently but still getting such a quote from EagleHome (the default lender of this Lennar new homes) Shall I shop around? Any advice will be appreciated [link] [comments] |
| Are home loans based on appraised value or closing price? Posted: 01 May 2020 04:30 AM PDT Beginner question here. If a lender pays 80%, what is that based on -- the appraised value or the actual closing price? I was wondering if a home bought at a 10% discount with a 80% LTV loan would only require 10% down, and if the lender rates would still likely be just as favorable as 20% down. [link] [comments] |
| Renovated a house... Do I sell or rent? Posted: 01 May 2020 10:24 AM PDT Hi everyone. I'm in a very fortunate situation where I think I can't make a bad/terrible decision, but I realize I'm probably not thinking of all the factors. I recently bought a 2/1 (worth ~50k after down payment) in the outskirts of a great neighborhood close to the center of town. The house itself is located in a poor part and if you drive to it from certain directions you'll drive straight through the hood. I was thinking about living in it and finding a roommate, but I have a great salaried job (>80k per year) and grew up in the hood and I don't think I wanna go back to it haha. I will probably move in a year to return back to school. I've put about 8k into it and had 7k in closing costs + down payment. Total 15k. I think (from looking at what's on the market + been sold recently), I can get 85k on the low end. 85k * .93 (Agent fees) - 15k - 50k = 14k in profit. However, due to my tax bracket I'd lose close to a third of that so it'd be 10k. The housing market also seems rough right now. If I rent it out, I can net $325 a month so 4k / year. But, given its location and rental price ($700 / month), Id likely be renting out to lower income folks and could easily wipe out a good amount of that profit if they don't take care of the property. That unknown has me super cautious. I didn't make fancy repairs, but even repainting the inside would wipe out a few months rental profit. Does anyone have any advice as to how they'd approach this? Perhaps REIs who are more career oriented? Long term I want to get into larger multi family units, and I did this to dip my toes into the water. It's been a great learning experience so far. [link] [comments] |
| I need your expertise to help critic my plan. Posted: 01 May 2020 07:40 AM PDT My goal is to begin my real estate investing journey by purchasing a 4plex with an FHA loan. I believe this approach offers the most leverage because the down payment requirement in only 3.5% My plan is do this is to start working at a new company, which will grant me access to my current 401k savings which I will use for a down payment and cash reserve. I plan to rent 3 units and live in the fourth. Experienced investors, what am I missing? [link] [comments] |
| Give this YouTube Channel on Real Estate a look! Watch the most recent video, its very interesting! Posted: 01 May 2020 04:47 PM PDT |
| Simple math, Real Estate is way better than Stocks Posted: 01 May 2020 02:12 AM PDT I just finished watching Jack Bogle do an interview. I love Vanguard and think that they are awesome. But I was running some very simple math and I still don't know why stocks would ever be a better choice. Here are my constants: 10 year horizon. 25k Capital. For the Stocks; a real 6% annual growth year over year. Result: $44,771.19 Constants for Real Estate: 10 Year horizon. 25K capital. 20% leverage. 4.5% 30 YR Fixed. 3.4% real annual Appreciation. 6% Annual Return on Cash. Result: COC $15,000; Equity: $20,116.92; Appreciation: $50,000; Initial Down Payment: $25,00; Total: $110,116.92 Assuming no tax at exit for simplicity and your left with Stocks under performing by a major amount. I know that there are many more variables and that this is a huge over simplification, but am I missing something about the above math? [link] [comments] |
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