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    Real Estate Investing: Will I loose "first time home buyer" advantages if I buy investment land before a primary home?

    Real Estate Investing: Will I loose "first time home buyer" advantages if I buy investment land before a primary home?


    Will I loose "first time home buyer" advantages if I buy investment land before a primary home?

    Posted: 15 Aug 2020 11:56 AM PDT

    I've got a chance to buy some bare land. I think it's a good investment (I think the value will go up, even without improvements) and I'll use it as a recreational property while I hold it. It's cheap enough that'd it'd be a simple cash sale.

    My concern is that I'm also interested in buying my first home in the next few years. Will I still qualify as a first time home buyer if I have this investment property?

    submitted by /u/PM_ME_CRYPTOCURRENCY
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    Lender is suggesting claiming owner occupied for rental property

    Posted: 15 Aug 2020 03:34 PM PDT

    My mortgage lender was suggesting me to claim a property is owner occupied even if I'm actually an investor. She wasn't outright suggesting fraud per say but was suggesting that if I planned on living in it for a bit I could have an owner occupied loan so my interest rate would be cheaper. Interest rate she quoted was 3.65% with a point and I have a 686 middle credit score. I have no other real estate.

    My question is, what are the implications of this? If I did claim it's owner occupied but only rented it out, I'm guessing that's straight up fraud right?

    Another related question is with the new construction sales office. They said if we're investors we have to buy in the $350K+ range only, whereas we want to buy in the $280K range. So I asked what happens if we claim we're owner occupied to the builder but then started renting it out a short while later. He said that's no problem. Even if I immediately started renting it out he was basically saying it shouldn't be a problem. So again I asked him what if my financing says it's an investor property would that still be ok and he it should be fine.

    My question for that is, is there anyway I could get screwed over if I tell the builder it's owner occupied when in reality I want to rent it out? This is assuming my loan also says investor property.

    submitted by /u/InYourBabyLife
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    Solar farm leasing

    Posted: 15 Aug 2020 06:09 PM PDT

    Does anyone have any experience leasing land for solar? Any thoughts from those who have?

    submitted by /u/Awfflpete
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    Are there any websites for flipper disasters?

    Posted: 15 Aug 2020 02:40 PM PDT

    Sometimes I'll be browsing Redfin and they'll be such a catastrophic flip that I just have to show somebody. Does anyone know of a site that documents these flipper disasters? Thanks

    submitted by /u/billyjoerob
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    Looking at a property in the Bahamas. No clue where to start.

    Posted: 15 Aug 2020 11:53 AM PDT

    I live in the states. Have a deal fall in my lap for a property in the Bahamas. Getting it way under value (long story, just luck) with an extra lot I could sell off. Need to plan a trip to go see it but anyone have experience with the Bahamas? Any and all advice on how to take advantage of this would be great. No experience with real estate investing.

    submitted by /u/youlittleshiit
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    Getting a New Consultation Loan

    Posted: 15 Aug 2020 06:34 PM PDT

    I found this lot for about $20k, there was an existing home in the past that burned down. I was planning on building & selling it. A contractor quoted me for about 140k to build the home. I could sell it for 230k (to be conservative, the area is a small community) but can potentially for no more than $240k for sure. Anyways, I want to build a home on it. I've talked to 5 lenders & they all said they are not currently doing construction loans due to COVID. What is there to do. Does anybody know of any lenders actively still doing these type of loans.

    ***** I meant New Construction loan NOT Consultation

    submitted by /u/alchemisttrilogy
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    Out of State RE Investing

    Posted: 15 Aug 2020 09:11 AM PDT

    Hey All,

    I live in a very high cost city in the north east and I'm interested in leveraging my money in real estate in lower cost parts of the country. I'm pretty familiar with RE investing generally, so I know how to calculate various markers like CoC, but all of this has been in areas local to me. For out-of-state, I have a whole bunch of financial and practical questions that I'm hoping this community can help me answer. Thanks in advance for the help!

    1. If you currently have no connection to an out-of-state area you want to invest in, how do you assemble your team or broker/s, property management and contractors?

    2. Have you or would you buy a property without seeing it in person?

    3. What factors do you care about when investing in low cost regions? This question is intentionally a bit vague as I hope to get a variety of answers. Strictly CoC? Market/rental upside? Revitalization efforts made by the city or local developers?

    4. What cities would you recommend if you're strictly maximizing CoC?

    5. How much do "Landlord friendly" states matter to you? And does it offset other considerations? For example Texas apparently is very LL friendly but has some of the highest RE taxes. Is the friendliness worth the additional cost?

    6. Multi-families are consistently better investments in the Northeast. Does that hold true in other regions? Should I also be considering SFH?

    Also, don't feel obligated to answer every question if you want to respond! I'll gladly take singles too 😁

    submitted by /u/legaladviceseeker21
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    Whats the best way to structure an LLC with a non W2 partner so the mortgage lenders approve financing?

    Posted: 15 Aug 2020 08:00 AM PDT

    Hi All - I would like to get into a partnership with a friend(non W2) who has been investing in RE for few years and would like to know the best way to structure the LLC such that mortgage lenders will be OK with him owning ~ 50% equity?

    Asked differently, How do I get financing in an LLC with a partner who does not have a W2 and will do all the work?

    More color below:

    - He will do all the work and bring in the knowledge. Capital contribution TBD.

    - He is going full time in RE so wont have a W2. Imagine that will raise a flag with the lenders because he will have more than 20% equity, likely around 50%.

    - I am ok giving the personal guarantee on the loan just by myself. I have a full time job and solid credit.

    - He does not mind being on the loan. But we just do not know if the lenders will be OK with that.

    - He will have NOT enough income from his investments when he goes full time in RE for the lenders to be fine. He will have decent liquidity in the banks.

    Thanks so much in advance.

    submitted by /u/rxzbiker
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    My expert advisors are disagreeing so I’m coming to you: to sell my rental and 1031 exchange it or to keep renting and cash out refi?

    Posted: 15 Aug 2020 10:26 PM PDT

    Hi all,

    I would love your input, as I am personally confused about how to best think about this situation, and as I mentioned, a few very experienced mentors of mine disagree about the best move.

    As a necessary preface, my goal is to maximize profit over the next 20 years more than to mitigate risk at this point. I'm OK with being leveraged.

    Situation: - I have $250,000 of equity in a $400,000 single family rental house in Nashville Tennessee. - It rents for 2400 per month - It is very safe to assume 5% annual appreciation over the next 20 years. It is in a hotspot of Nashville which has seen steady 6% annual appreciation over the past 40 years - taxes, insurance, mortgage, and management are 1800/mo

    The issue is that the $250,000 in equity is going unused.

    I cannot figure out how to best think about whether it's best to sell it and 1031 or keep renting and cash out refi.

    Either way, I would use the extracted money as a 25% down payment on a MFH. I have identified plenty that will cash flow nicely. But assuming the new property would be the same in both circumstances (in other words, saying "all else equal") not sure how to think about whether to 1031 or cash out refi.

    Any input would be greatly appreciated!

    PS. I don't know if this part matters, but I make 180k, no debt, 800 credit, 50k liquid now, and only own that one house

    submitted by /u/mushyq
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    it really sucks being in an expensive market like NJ NY CA etc to buy MF vs other markets

    Posted: 15 Aug 2020 09:42 AM PDT

    do you ever wonder you could have it easier to find and buy something in a cheaper market like midwest etc vs living in these high cost markets where prices are just so dam high?

    this i wonder every time i read people who recently buy than i see its in some cheaper or cheap market midwest. high-cost

    submitted by /u/blueeyesdragon92
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    Beginner question on purchasing land

    Posted: 15 Aug 2020 06:17 PM PDT

    My sister is planning on buying 20 acres and will have to take out a loan to purchase it. She wants me to live on the land in order to take care of it.

    Can she give/sell me a portion of the land and can I use that land as collateral to build a house even though the land isn't paid off?

    Any help/advice/tips would be greatly appreciated!

    submitted by /u/countryroads8484
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    Invest out of state properties

    Posted: 15 Aug 2020 05:49 PM PDT

    I live in VHCOL area (bay area), the real estate price is insane; with the rental law/property tax/insurance, the ROI/cap rate is low. Also, consider the income tax rate, California is not retirement friendly (tax-wise when getting social security or selling stocks for money).

    So I think about investing in other states where the tax and laws are friendly, and real estate prices are reasonable. The intention is that I could rent out and hold for appreciation; then move in when I retire. Tampa FL, Orlando FL and Austin TX seems have friendly tax laws, booming job markets and affordable prices.

    But I don't know how to tackle the challenges of picking up good targets especially during pandemic. Are there real estate agents serving out of state buyers? I even thought about buying a distressed home and flip, but our of state makes it difficult. Any advice?

    submitted by /u/MoonlightFlowing
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    Option a property?

    Posted: 15 Aug 2020 09:35 AM PDT

    There's a large lot on the ocean for $5M. It could easily be subdivided into 4-5 lots. How would I go about "optioning" the property for 12 months while I established the necessary zoning to divide the property? How much would you offer for such an option?

    submitted by /u/tmorgan175
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    Why would property at a development sit idle?

    Posted: 15 Aug 2020 11:44 AM PDT

    I was interested in purchasing property in a development in PA that was surrounds a lake, all property off lake gets a boat slip at their marina. I assume most sales were for vacation homes, although some were probably thinking of moving in as a primary residence. There are about 100 parcels in the development and most were sold ten years ago by the developer although the developer is still selling the remaining few they still own. When I looked at the development this week, most of the parcels had not yet been built on and the initial lot pricing by the developer ten years ago (and the same price being asked now) is double what people are asking for their lots at resale. I assume the developer is trying to artificially maintain values by not undercutting third party sales.

    While I can understand some people buying and holding for the future, I can not understand why half the lots were never built on and those that are now for sale are willing to accept half what they paid ten years ago just to get out of the deal.

    Taxes are low, especially on an undeveloped lot, and HOA fees are a few hundred dollars a year which includes a boat slip.

    What am I missing? I feel like there's something going on that owners know and I'm unaware of. I'd love to be able to call someone and just ask, what the heck's going on over there and why are so few lots built on and others being sold for half what they paid ten years ago.

    I'm not familiar with unsuccessful developments that don't take off. Usually if a poor developer fails, they move on, sell out, and a new developer fixes the mess. Here, it's been a decade and while the developer certainly made money on selling the initial lots, something just does not add up. What are the usual reasons people don't build on a lot they bought so long ago, its not just money since half have not built on their lots.

    submitted by /u/jefffromnj
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    Business idea - mortgage assumption during recession

    Posted: 15 Aug 2020 11:40 AM PDT

    Hey friends,

    I'm a complete noob to real estate investing but was thinking about ways to match up i) property owners unable to make mortgage payments due to layoffs (if resident) or vacancies (if landlord) and ii) people (like myself) who currently rent but have spare cash flow from their job, in a way that is BENEFICIAL for people in i) and ii) at the expense of banks.

    My key assumption is that if people in group i) cannot make mortgage payments, the bank disproportionately benefits by 1) foreclosing the house 2) still getting the full mortgage back via permissory note 3) having received a lot of upfront interest payments in the beginning of the mortgage term.

    The idea would be to set up a system to bypass the bank foreclosing, getting new investors (group ii) ) to assume the mortgage and benefit from the mortgage being partly paid off.

    A challenge to this idea that I'm unsure about is whether people in group ii) would benefit enough by assuming the mortgage, or if they should just get their own mortgage in a market with lower prices and low interest rates.

    What do you think about this?

    submitted by /u/Crtrcrch
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    Does anyone know where to find a virtual assistant? I'm already on Upwork and Fivver looking

    Posted: 15 Aug 2020 08:56 AM PDT

    The virtual assistant I was working with unfortunately died last week, so my team and I are looking for a new one.

    submitted by /u/spacedragonn
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    Contemplating RE investing using current home equity.

    Posted: 15 Aug 2020 08:54 AM PDT

    Hi all, new to this, and I've been kicking around an idea and I cant find a ton of information on it so I figured I would see if someone here can point me in the right direction.

    I am currently about 8 months away from having my current home paid off and being debt free.

    The rough plan is this.. -Pay off home.

    • Once all of that dust settles take out a HELOC on my home, to purchase a rental property (from what I can tell Helocs carry lower interest rates than trying to get a mortgage on an investment)

    -Form LLC to own said rental property, and have all cash flow into LLC account so it is not seen as income by me directly.

    -Assuming cash flow positive, let all excess money build into the LLC account, and possibly add my own funds to it to achieve 8-10k emergency fund for property.

    -Once the 8-10k emergency fund is built for the property, all extra cash will be put against the principle of the loan until it is paid off.

    -repeat?

    The basic idea is that with my home paid for, I can use the equity in it to basically purchase a rental property that will pay for its self and I would not come out of pocket for it.

    Does this make any sense or am I off my rocker completely?

    Edit to hopefully fix mobile formatting.

    submitted by /u/FingerIsMySafety
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    Income property expense calculator

    Posted: 15 Aug 2020 11:06 AM PDT

    Hi all,

    Does anyone have a tool they use that includes the following:

    1. Mortgage costs
    2. HELOC down payment costs

    I can't seem to find a good one.

    Just need for quick analysis

    submitted by /u/oncophd
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    In the UK: should we look to buy a second home (and rent out our current home), or buy a bigger house?

    Posted: 15 Aug 2020 02:15 PM PDT

    Just curious on your thoughts.

    South of the UK, we can buy a bigger house for ~100k more than our current house and sell our current house, or, should we look at buying a slightly smaller (but still bigger) house and keeping our current house and renting it out. We're talking in the 200k to 350k range for any of these houses here.

    1st option is what we're leaning towards since we do need more room than our current house offers, but 2nd option is we could probably make do with a smaller upgrade and also start on the property investing ladder by renting our current house out.

    Cheers.

    submitted by /u/Robioty
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    How does out of state financing work?

    Posted: 15 Aug 2020 02:01 PM PDT

    Living in NYC and looking around CT for possible investments. I already got a pre-approved loan from a nationwide lender, but I was thinking about looking for a more local level for better conditions.

    Is it more effective to look where I live or look around my possible investment for lenders?

    submitted by /u/gochurust
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    OPM Deal Examples

    Posted: 15 Aug 2020 02:00 PM PDT

    Just as the title says. Im looking for examples of deals made for other people's money for investing. What are some deals you've used in the past? Do you offer a percentage of the sale at the end along with a percentage of the rental income? Any advice going into this?

    submitted by /u/Geo027
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    Is now a good time to invest in a apartment complex?

    Posted: 15 Aug 2020 01:52 PM PDT

    I've been wanting to do that for a while now but then the virus came and changed everything. For background purposes I live in Texas and in my area Covid cases are spiking up. So would now be a good time to invest in a apartment complex? Or should I wait til next year when. Hopefully everything will be better?

    submitted by /u/Pappagiorgio1
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    Is it safer to buy a house with low mortgage rates or wait for a possible crash? (California)

    Posted: 15 Aug 2020 01:31 PM PDT

    Excuse my ignorance on Real Estate investing, I'm a novice but I did spend a lot of time learning prior to this post.

    I'm shopping for a house right now, and found some nice 4 bedrooms going for $350k-$400k.

    I'm considering buying a house with a fixed 30 year mortgage, and renting out 3 of the rooms to friends from college while I live in the master bedroom.

    At some point I'd like to move out and rent out the entire house to a family.

    I have enough cash reserves to put a down payment right now + 3 months of bills. However, I am considering waiting half a year for a possible market crash.

    Would it make sense to wait? Or should I take advantage of this low mortgage now?

    submitted by /u/Qscfr
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    Foundation problems

    Posted: 15 Aug 2020 01:22 PM PDT

    Did anyone ever buy a property with foundation problems?

    submitted by /u/Junior_S1
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