Real Estate Investing: help me understand why a bank would lend an 80 year old widow $2.2M for a $1.6M property for FORTY years? |
- help me understand why a bank would lend an 80 year old widow $2.2M for a $1.6M property for FORTY years?
- Pros and Cons of getting real estate license for first property? (NY)
- For people who almost exclusively invested in Stock market but then bought investment property what was your reasoning?
- Is it too late?
- Using a mortgage taken out as your primary residence for you rental?
- Looking for advice - 1031
- Initial capital required before hopping into RE world
- Should I get an associates degree in real estate?
- Need advice, selling two homes to buy one larger home with income producer?
- Mandatory COVID Carpet Cleaning Fee?
- Advice
- First deal - sticking points and questions
- Cleveland, OH. Anyone care to give insight?
- Next move. Rental or sell and upgrade.
- Best corporation type for a small-time landlord in CA?
- New Investor Introduction, Looking for Direction & General Advice
- Just closed on a deal on a house in Los Angeles (Watts area)!!!
- Assuming VA Loans
- Starting an investment group
- Unique situation with mobile home
- SHORT SALE NEEDS LOTS OF WORK !!!
- Where is the best place to store the cash until we find that 2nd home investment?
- Purchasing first potential rental would like advice/criticism.
- When purchasing a rental property are there any benefits for paying more than the required down payment? For example maybe 50% down, It seems it would make it much easier to yield a higher return?
| Posted: 27 Aug 2020 11:43 PM PDT https://i.imgur.com/0AKDrvE.jpg ^^This is the property. It's smack between a big busy street and the freeway directly behind it. I know this place, and because of these location defects, the property is at most worth 1.6M, even though it's over 1 acre. I can't make sense of it. Did this owner get a reverse mortgage and essentially give her house to the bank? She only has maybe 10 years left to live. But the bank is betting 40 years on this property in a bad location. What's going on here? [link] [comments] |
| Pros and Cons of getting real estate license for first property? (NY) Posted: 27 Aug 2020 03:04 PM PDT Hello all, I'm in my early twenties, and I am thinking about buying a SFH with the 3.5% FHA loan in the future. It is to my understanding that if you act as your own broker, you can use your 3.0% commission toward your down payment on this type of transaction. This would be my primary reason for getting my license, but I also read about ongoing expenses related to continued learning, disclosure hassles when negotiating and other liability exposure. How do the negatives of disclosing that one is a licensed realtor manifest themselves in the real world? How expensive can keeping your license be? Given that I am young and don't have a lot of money saved up, If I can save 15k, 10k, or even 5k on the down payment, and it only costs me 1-2k to acquire a license, is it not a no brainer? what am I missing? [link] [comments] |
| Posted: 27 Aug 2020 08:04 AM PDT I am 24 and have been trading stocks for 2.5 years now. I made well from buying puts back in February and then reinvesting that money back into market. I know that was lucky and don't expect to make that again. My question is for people who had primarily traded stocks for years before buying real estate investments. Was it to diversity?, Get away from market volatility? or something else? I currently own no major assets aside from an 8 year old pickup truck. I was wanting to buy property for myself, but I hate the idea of giving up capital right now with no return. I have been looking into some multi-families to buy to at least have cash-flow, but even then giving up capital significantly hurts my buying power in the market. I'm just wondering how others came to their decision to move most of their money from market to real estate. PS. I understand stock Market is risky and majority people don't recommend "day trading." edit: People seem to be confused about my wording. Yes I am talking about investment property. I brought up personal property because I had originally decided against buying something strictly for myself because I didn't want to give up majority of my capital at this moment. Sorry for the confusion. [link] [comments] |
| Posted: 27 Aug 2020 04:34 AM PDT First time poster here. Dragged ourselves out of poverty and finally doing ok. 46 & spouse is 49. Thinking about purchasing a duplex or triplex to get into the RE market. Own a home, mortgage is 220- assessment value is 500k. He works full time(currently trying for a much better management job) I am self employed. Is it too late for us to get into purchasing property for rental units? I feel like we've missed the boat in many ways due to our age. [link] [comments] |
| Using a mortgage taken out as your primary residence for you rental? Posted: 27 Aug 2020 07:03 PM PDT Anybody have experience using a home as their primary residence and then renting it out later? Are there any issues if the mortgage paid by rental income was taken out originally as one for your primary residence? I know mortgage rates for rental property are often a little higher than if it's a loan for your primary residence. I'm wondering whether I should anticipate any issues renting out what is currently my primary residence without letting the bank know that the property is now a rental etc. [link] [comments] |
| Posted: 27 Aug 2020 10:07 PM PDT Hello all, Posting as a 9-year landlord, but still consider myself green and new to the game. Currently selling a rental property and considering doing a 1031 rather than eating the ~$15k in capital gains. Looking to have ~$80k cash after the deal is complete, and considering a $250k 3br/3ba 1700 sqft townhome 3 miles from home, with projected rents $1.8-1.9k/mo. Plan to not use a property manager at this time. Medium COL area. No other debt, stable financial situation, etc. Here's the numbers I came up with. Again, I'm super green. Questions:
Thanks all. [link] [comments] |
| Initial capital required before hopping into RE world Posted: 27 Aug 2020 04:51 PM PDT I've recently been convinced that RE investing is more my cup of tea and will accelerate my potential gains when compared to just buying VOO every month. Currently I'm still in the educating phase where I'm reading books on RE and BRRR but would like to know what capital amount you guys started off with on your first rental? I live in Vancouver, Canada where a shity townhouse can cost a million so I'm looking to invest from a distance with a property manager to handle things. I'm looking to save up ~75k to serve as a down-payment +rehab+misc fees before I buy. Is this reasonable? I understand this depends on what area I start off but I'm unsure weather buying something "cheap" just to get started while likely being out of province/state is the best idea. Cheers, [link] [comments] |
| Should I get an associates degree in real estate? Posted: 27 Aug 2020 09:33 PM PDT I want to get more into real estate and learn I believe educated is never a bad thing What are your guys opinions on it? Do a lot of realtors have degrees? Thanks Edit: should mention I have a bachelors already so another associates degree would take me about a semesters worth of classes lo l [link] [comments] |
| Need advice, selling two homes to buy one larger home with income producer? Posted: 27 Aug 2020 09:26 PM PDT My scenario: I own two small 2 bedroom homes outright. One home has been a rental for 8 years and brings in $1400 a month, it is currently rented about $200 under market. The other home I live in, it's small and a little cramped but it's just me and my kid and we make do. My neighbor is selling their larger home and I am interested for many reason. One, that is has an 4 year old ADU on the property that rents for $1500 a month, 2) it is a larger home by about 2000 sq feet and the additional space would be nice and 3) having the rental on the same property would be easier in both legal and other ways. I would lose some of the hassle of my rental being about 45 minutes away and could keep a better eye on things. Cons I see: I'm looking at $2000 more a year in taxes, the house is in desperate need of paint, peeling and exposed wood in areas so I'm thinking at least 10-15k for paint if no major rot repairs/lead issues. I imagine a larger home will have higher maintenance and utility costs so those will need to be factored in. The roof was replaced last year. I've been told there's water intrusion in the main home in the unfinished basement and it has had mold remediation. Of my two homes I have invested about $400k. In today's market I see them selling for a combined total of about $800k or little less. The home for sale is $765k. All of these homes were built in the 1920's. The owner of the home is willing to wait for me to sell both my homes for the cash offer. Of the two smaller homes I know what maintenance I did which is a new roof/furnace/paint on the rental and a water diversion system/finished basement/pipes/paint/new sewer on the home I live in. It will probably need a new roof in the next 5-10 years. As far as capital gains for taxes go I'm in the lowest income bracket. I need advice on whether selling the homes would be a sound move. I am in my mid 40's and make under 30k a year if its relevant. I do not qualify for a mortgage. If I left out some vital info please let me know. Appreciate the advice! [link] [comments] |
| Mandatory COVID Carpet Cleaning Fee? Posted: 27 Aug 2020 09:23 PM PDT So, curious to see what others have experienced in this area. I know someone moving out of an apartment tomorrow. There was a 60 day notice given and they are waiving the early lease termination with the 60 day notice due to Covid. All that said, the day before moving out, they just sprung a "Mandatory Professional Carpet Cleaning" is required due to Covid for the carpet at the renters expense. This is in Dallas, TX. This seems like a total joke. I looked on the attorney general website and tried to read up a bit and didn't find anything in regards to this much less it being on a tenant to pay for a "professional carpet cleaning" to get the unit ready for the next tenant. I ask this as well because I have rental property and if Im missing something, I'd like to know. Thanks guys! [link] [comments] |
| Posted: 27 Aug 2020 04:25 PM PDT We are currently buying my first house as well as my first investment property, a duplex, one is already vacant for us to moving and the other one already has tenant. The duplex has multiple offer, 2 cash offers and one offer from us. 2 cash offers are already back out because the tenant on occupied unit does not want to sign the PEAD form for inspection, so no one wants to do inspection. So basically, if the tenant didn't sign the PEAD form, it means if they get COVID19 they can sue the inspector for that. It seems like that tenant does not want to collaborate with the seller for the selling process. My guess is because he is paying much less than the market rental price so he doesn't want the house to be sold. So my question is, should we take the risk of buying the house without seeing the other side? And how hard for eviction process in general (not at this point because we can't evict anyone now in CA) ? How long does it take for eviction? What is the cost for eviction process? A little bit about the duplex is: It is in Sacramento, CA. Very nice neighborhood, good school, 2500 sqrt 5beds, 4 bath, 575k. One is vacant, one has tenant with $1100 monthly. But this can be rented out for $1800 for bigger side and $1500 or more. Please give some advice if this property is worthy to take a risk. The duplex is very nice, it is the issue with the tenant. [link] [comments] |
| First deal - sticking points and questions Posted: 27 Aug 2020 05:25 PM PDT Found a first deal duplex I'm excited about, and hoping to get some input on a few sticking points: Price - 85k Rents - 1550 per month With paying for capex and water (tenants pay other bills) I see cash flow of about $400 a month. However, there are a few sticking points I'd like some advice on: -it's a 1920 build, and has a stone foundation. The owners fully renovated in 2013 with new roof windows floors and doors - It looks pretty good shape, but there is some definite shifting of the home (slanted floors, cracks above the windows, etc). The basement had some small damp areas but didn't look too bad. -the home didn't have any rain gutters (wonder if this contributes to the foundation) -the area is very rural (about 2000 people, 30 min from a growing 50k city), and no signs of future growth. I'd be managing remotely with help from a local friend doing handyman work and move ins, but no property management here. Worry about reduction in population and trouble placing renters? Any thoughts or advice? [link] [comments] |
| Cleveland, OH. Anyone care to give insight? Posted: 27 Aug 2020 11:24 AM PDT As the title reads, i have some curiosity about Cleveland. The city doesn't seem to be a sore to the eye, nice housing prices, taxes aren't nearly as bad as NJ. Obviously the job market isn't on the same level, but could it be that bad? Any natives/investors insight is welcome to share the good and the bad about cleveland. [link] [comments] |
| Next move. Rental or sell and upgrade. Posted: 27 Aug 2020 08:03 PM PDT Thoughts wanted.Own a single family home in FL with $150k in equity. Would like to move out and rent it out. Seems to be about $800 a month in profit after mortgage paid. I'm trying to determine best investment strategy as I've never been a landlord. Option 1, sell and upgrade to a nice primary residence Option 2, move out, then rent it, then find another primary residence Option 3, sell and buy a townhome outright then rent it out for $1400 a month (easier to manage as HOA takes care of a lot of maintenance) Ideal goal is upgrade primary residence, and also make a long term investment. Not sure if single family is harder to rent out, etc. [link] [comments] |
| Best corporation type for a small-time landlord in CA? Posted: 27 Aug 2020 05:17 PM PDT What are the r/realestateinvesting community's thoughts on the best corporation type for a small-time landlord in CA? My property is exempt from the new CA rent control laws because it's a single condo. I am concerned about the liability of having the property being owned by me as a natural person. But I am also unsure of the tax/legal/rent-control consequences of putting the property in an LLC for example. Thoughts? [link] [comments] |
| New Investor Introduction, Looking for Direction & General Advice Posted: 27 Aug 2020 06:59 AM PDT Hello All, Excuse the expression, but I have grown hungrier recently. I have found myself 1) aggressively trying to create more passive income streams 2) digesting more investing/finance resources 3) throwing a lot of money at the market and 4) trying to get into real estate investing. I come from a blue-collar background and my parents were extremely frugal, affording them the ability to have little debt, decent net worth and real estate portfolio. They really are not investors though. Due to my interests in real estate investing and experiencing some difficulties through the real estate process (especially mortgage financing) myself, I decided to go for my real estate agent salesperson license to expand my knowledge base and opportunities. I know, I know. I read your most recent opinions on the sub. But that's why I am here. I didn't go for my license for any particular reason. I just love to learn, create things and have a business mindset. I'm finishing my teaching cert this year. I could hold a RE license by this October, and I'll probably go for a PMP cert after that. I also have a SMLLC (for various income streams through etsy, TpT, fiverr, niche blogs, etc) and I have a 50% interest in an MMLLC landscaping company I operate. I don't know what path I want to go down, want to learn more and am interested in a variety of things like wholesaling, rentals, crowdsourced REIT securities, how to properly leverage my credit, thought about developing private equity fund that invests in wholesale contracts, etc. The realtor working on my parents' open listing wants me to help her handle her properties while she is away and she works for a broker that takes nothing because they provide no resources essentially, so she buys her leads from Zillow. So much opportunity, I feel like I'm chasing my tail. What are your suggestions to someone getting into investing and real estate? I look forward to engaging with the community! Stay safe & healthy, y'all [link] [comments] |
| Just closed on a deal on a house in Los Angeles (Watts area)!!! Posted: 27 Aug 2020 12:36 PM PDT This house was asking for 389K but they accepted my offer at 365K! It's in the Watts area, so it is not a high end neighborhood but I hear it's booming. Overall, I wanted it as an investment in order to rent it out in the future or have as an asset. [link] [comments] |
| Posted: 27 Aug 2020 04:12 PM PDT Is there a way to search for properties purchased with VA loans? Also, is there a service that will provide leads for strictly VA Loan properties interested in selling? [link] [comments] |
| Posted: 27 Aug 2020 03:00 AM PDT Good morning real estate moguls! I'm here today to ask a few questions and hopefully gain extra insight before embarking on a new journey. We are in talks of starting a real estate group. A group of 5 like minded, highly motivated and hard working individuals. All of which have good credit, some capital, and know a thing or two about real estate and construction. We all have know each other for around 15 years and have family's of our own and jobs that are decently successful in their own rights. So we are looking to start a group now and structure it to buy homes and either hold them and rent or flip the ones that more advantageous. What types of things should we look for when creating this group? Should we register as a LLC with a split ownership? Has anyone on here ever done this type of thing and if so how successful have you been. Our goal is build a portfolio with about 100 homes in it. Our timeframe for achievement would be somewhere around 15-20 years. If the market is right then maybe it happens sooner but we are looking to do this long term and not burn out. TL/DR RE investment group with 5 likeminded individuals. Tips and tricks. [link] [comments] |
| Unique situation with mobile home Posted: 27 Aug 2020 11:09 AM PDT Hey all, been lurking on this sub for a while and I'd like your advice on what to do with a piece of property I have. A little backstory: I'm 22. Purchased my first home (1980 doublewide) from my grandfather 2 years ago. I joined an apprenticeship program straight out of high school, and between my typically frugal self and living with my parents, I was able to save up the 40k my grandfather wanted for his doublewide, and write him a check for it. Before you say that I took advantage of him/elder abuse, everyone involved knew it was a good deal, including my mom and aunt (gramps' only kids) who turned down the offer when it was offered to them. The house did come with the caveat of 30 years worth of deferred maintenance and they only took half an apartments worth of stuff out of the house when they moved to their retirement home, and I was left to deal with all their stuff they left behind. Anywho, I'm looking to figure out what I would like to do long term worth the place, and the best way to use it as a rental. It sits on 3/4 of an acre, just outside city limits (my property line is the boundary), on a septic. I see a couple of options, from least to most favorable in my view, and would like y'alls input.
I appreciate the input! [link] [comments] |
| SHORT SALE NEEDS LOTS OF WORK !!! Posted: 27 Aug 2020 02:09 PM PDT I found a short sale for $50000, the home needs major renovation. No floors, no walls in most of the home. It looks like it has good bones and a new roof. This would be my first purchase, would I be over doing it trying to buy it and fix it up myself? [link] [comments] |
| Where is the best place to store the cash until we find that 2nd home investment? Posted: 27 Aug 2020 12:50 PM PDT Refinancing to pull cash out on our house to use as a down payment to invest in another home. Any recommendations on where to put the cash until we find the investment home? [link] [comments] |
| Purchasing first potential rental would like advice/criticism. Posted: 27 Aug 2020 12:30 PM PDT I live in British Columbia near Vancouver. Obviously property is very expensive here and finding property that would break even is pretty difficult but I've found some condos that I think I'll be able to make a decent profit off of. I currently have $88 000 saved and make enough to afford $480 000. My plan is to purchase an older condo near a city center. The asking price is 230k for a 1 bedroom 700 sq ft built in 1982 about 30 minutes outside of Vancouver that is near transit. The strata fee is $286/month and property tax is $1000. After including income taxes/write offs and all fees I'll need to rent out the property for about $1200/month to break even this includes the mortgage, strata and property tax. I'm confident that the unit could easily rent out for $1100-1200 as it currently is. The unit is very dated doesn't have washer/dryer or a dishwasher but is top floor corner unit and the building has an elevator. My dad has a construction company and can help me renovate the unit for a lower cost, I also have experience in renovating my last property. I believe if I invest $15 000 into renos I'll be able to significantly improve the unit add washer/dryer and a dishwasher. A brand new unit in the area of similar size rents for around 1700-1800 so based on that k believe I could get around 1500-1600 which would leave me with around 3-4000 in profit annually (including the extra $15000 for renos). My plan would be to move into the unit as it is renovate it while living in it then save to purchase my next property (would take about a year to get enough for the next downpayment @ 20%) at which point I would begin to rent this unit out. Then repeat this process. My questions are Is this the correct order to do things in? Should I just renovate it not live in it and rent it out and continue to rent where I currently am ($800 a month). If this unit was to only break even Id be paying off around $5000 principal each year and this would be about a $52 000 investment. Meaning I should get anywhere between 10-18% ROI %10 would be in equity How much of a benefit is it to add a washer/dryer and dishwasher? Is a top corner unit seen as the most desirable for a renter? Is maybe a ground floor unit seen as more desirable? Are my margins too tight? It's very hard to find potential profit in rentals in this market Any advice would be appreciated. I'm really excited to take these steps in my life but also nervous. Thank you! [link] [comments] |
| Posted: 27 Aug 2020 06:11 AM PDT |
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