Real Estate Investing: What are some widely accepted “facts” in the real estate industry that are actually myths? |
- What are some widely accepted “facts” in the real estate industry that are actually myths?
- Fractional Ownership Investment Property
- 1031 and converting from individual to LLC
- RV / boat property storage question
- Dirt ��'s
- When do you think the eviction moratorium’s will end?
- Structuring with a partnet
- Best basement concrete floor paint to seal in smells
- Use 35k to pay off vehicle OR roll into investment property?
- Invest in US as a foreigner
- Leak After Inspection, Before Settlement - should I inform the lender?
- COVID related selling
- SBA Financing - SBA loans Real Estate
- Advice on the best use of capital?
- Insurance for residential investors
- Llc question
- Title Company Costs for Refi
- RENOVATING old theater - turning into apartments
- Nestegg or other rental management options
- Trusting your friends can cost you time and RE opportunities!
- Question about pre approval letter
- Financing for > 75% LTV?
| What are some widely accepted “facts” in the real estate industry that are actually myths? Posted: 12 Sep 2020 08:12 PM PDT |
| Fractional Ownership Investment Property Posted: 12 Sep 2020 02:49 PM PDT I'm very new to real estate investing and have come across the availability of fractional ownership of a suite at a fairly popular ski resort. At face value, it looks like I could make a good return if I treat it solely as a rental property. However from much of my research online, they say that a fractional situation will rarely ever work as a meaningful investment. Does anyone here have experience using fractional real estate as a way to invest your money and make a decent return? Thanks for your replies! [link] [comments] |
| 1031 and converting from individual to LLC Posted: 12 Sep 2020 01:57 PM PDT In the process of doing a 1031 - the property being sold is under two unmarried individuals - I understand that the new exchange has to be under the same individuals names - but can we do a Quit Claim Deed later (after exchange is complete) to a LLC which has the same two individuals as only members? Or two separate LLC's under each individual? The exchanged property is a multi unit - so trying to minimize the liability by putting it under a LLC instead of individual ownership without violating the 1031 exchange rules. Thanks for any recommendations or ideas. [link] [comments] |
| RV / boat property storage question Posted: 12 Sep 2020 10:44 PM PDT So I have stumbled upon property that would make for an awesome RV / boat storage lot. Can I charge owners a "one year upfront" lease? How do and what are the pitfalls and payoffs of RV / boat storage? The property is 6acres and near a popular boating resevoir. Most of the local RV /boat storage lots have very few spaces left for rent, and rent at +$150/month. Estimates are 100 parking spots per acre. At 75% capacity thats still 450 spots. Let's round down to 400. I'd really like to get a full year up front for 100 units and have $120k in the bank, while managing the other 300 RV lots as need be/monthly/short term. Is this feasible? Prudent? Cost of the land is $1m. [link] [comments] |
| Posted: 13 Sep 2020 01:47 AM PDT I was wanting to know what your opinions are on here about building in this covid environment. I'm asking this question coming from a budding builder's perspective, haven't found any groups on Reddit for builders... Oh I work with compressed Earth blocks. [link] [comments] |
| When do you think the eviction moratorium’s will end? Posted: 12 Sep 2020 10:53 AM PDT I've been wanting to expand my real estate portfolio but I'm concerned about getting financing to buy large rentals when tenants can get out of paying. I think in January a new moratorium will be put in place but at some point this has to end and tenants will go over the "eviction cliff" because nobody will be able to pay the back-rent. When do you think government intervention will come to an end? [link] [comments] |
| Posted: 12 Sep 2020 06:13 AM PDT I am in the middle of closing on a cash deal with my brother as a partner. Now some may argue not working with family, but I am not here to discuss that. We are going on an equal split buying cash and looking to refinance after fixing it up. A classic brrrr. Now, before we finish closing on the property, I would like to know how we should join together because of refinancing. I currently have a careet making really good money and will have no issue refinancing with my DTI. My brother on the other hand is back in school finishing up after serving in the military. He was able to save a good chunk of money while serving which is how he is a part of this deal. We haven't formed an llc yet. But I was wondering if we enter a Joint Tenancy on the property, would that cause any issues down the line when refinancing because he doesn't have any income? Would the banks frown on 2 people owning it instead of just 1? So would it be better to just keep it in my name if we don't put it in an llc? And if it is put in a brand new llc, how do they look at financing a property? Our incomes, or the income of our company which would be 0 at the time? Edit: I apologize for the blundered title and any other errors in the post. I was typing fast on my phone and did not double check everything. [link] [comments] |
| Best basement concrete floor paint to seal in smells Posted: 12 Sep 2020 11:40 AM PDT Removed an old oil tank in a basement and some oil came out. Been trying different things to try to remove the smell. We didn't remove the oil first which was the issue, but now we've removed all the oil. What would be the best paint to seal the floor since there is still a slight smell in the concrete. Or any other ideas to help remove the smell. [link] [comments] |
| Use 35k to pay off vehicle OR roll into investment property? Posted: 12 Sep 2020 11:36 PM PDT Hey friends....the family expanded and we bought a minivan. (This is our only monthly debt). How important is debt/income ratio for investment properties? Can I go ahead and pay off the car? Or should the money go towards down payment or remodel budget on our soon to be first investment property? Appreciate any insight. Have a good night. [link] [comments] |
| Posted: 12 Sep 2020 10:08 PM PDT Hi everyone. I have stumbled upon real estate investing and find all the success stories here really interesting. However, I live in Singapore and the market here does not make much sense. We are only able to buy condos here for investment and they typically start at S$1 million and the rent is around S$3000 a month. On top of all this, we are taxed 15% of the property value if its an investment property apart from the rest of the taxes. So my question is how viable would it be for me to invest in real estate in the US and what are my options? Thank you so much! [link] [comments] |
| Leak After Inspection, Before Settlement - should I inform the lender? Posted: 12 Sep 2020 05:33 PM PDT I'm under contract on a row home in Washington, DC. The day after we completed the inspection, there was a torrential rainstorm and the home started leaking from the kitchen ceiling on the first floor. It's a two story home. Seller says water entered through a crack in the stucco on the back wall of the home and traveled through the walls and leaked out an access panel in the kitchen ceiling. Seller says they will fix it but won't give our contractor access to inspect. Should we inform the lender of the issue? Our agent is saying that would risk a low appraisal and financing being denied. I'm fine letting the home go if the leak issue is serious. [link] [comments] |
| Posted: 12 Sep 2020 08:34 PM PDT I have a 4-plex which I've increased rents to market and have been looking to move up to an opportunity for a 12-unit out-of-state. My 4-plex is in a lease-up multi-plex community with an HOA which covers property management, W/S/G, landscaping and common area maintenance - pretty much turn-key stuff. The other 71 buildings in the community have a combined vacancy rate of 1.6%. However, my current 4-unit, while fully occupied and under lease, only has gross income of 25% of potential gross rents due to loss of jobs from COIVD. Needless to say, I'm running cash-flow negative. This is only temporary though as one of the tenants is leaving in the end of this month and another is leaving at the end of October. That still leaves me 75% of gross potential rents. Here comes the tough part. This 12-unit opportunity won't last long as its priced at roughly 50% of retail and I must sell my 4-plex for the down payment to purchase the 12-unit. My question - is my 4-plex, which usually performs to market expectations but is currently not, even worth selling if the expectation for the new owner will be a cap rate of 0 (or less) where most other units showing cap rates in the 6s? [link] [comments] |
| SBA Financing - SBA loans Real Estate Posted: 12 Sep 2020 12:30 PM PDT Hey guys, thank you for all the value you guys provide here, as i was doing some digging i see that many people use some SBA loans to get into real estate deals (i am not referring to Coronavirus funds like the EIDL or the PPP). Have any of you guys had any luck with SBA? Please hit me up if that was a lead that proved to work for you. Best, [link] [comments] |
| Advice on the best use of capital? Posted: 12 Sep 2020 06:03 PM PDT Hi all, Total newbie to real estate. This is sort of a buy or wait question, but a little more specific. I live in a HCOL area (SoCal/LA) and have been debating the best path forward in regards to property ownership, being middle aged and wanting to start building a portfolio of some kind even if that just means my own first home that I live in. I currently rent and pay an astonishingly cheap rent for where I am ($1400/mo). I have about $75K in cash to apply to a down payment. I have a job that I believe to be relatively stable. I could handle about $3K/mo of a mortgage payment if I were to live in whatever I purchase. That won't get me anything that's even close to desirable in LA, nor do I think I want to be in the city a whole lot longer. I've had the typical response to being on lockdown at home that I would really love to improve the quality of my living situation from a 1bd apt to something bigger with a yard. I have been flirting with other places that are more affordable on the hope that the expectations following Covid for coming into the office will be far less (maybe 2-3 days a week). I don't think my company will go full SF tech and let people work remotely across the board. I have been debating buying either somewhere that's still drivable to LA but more affordable (e.g. Ventura) to live in the property, or somewhere that I might want to live when I get old and retire (Bend, OR / Denver / SLC etc) and just buy it with the intention of renting it from day one. The third option would be to buy something in a lower COL area (MFH or SFH) where I don't care to live one day, but start generating cash flow - though that would likely need to be very far from my immediate area since anything SoCal is $$$$$. These questions are of course all swirling against the backdrop of nobody-really-knows-what's-going-to-happen post Covid. Any thoughts or insight would be much appreciated as I try to navigate this. There is no real urgency either, so other than continuing to dump rent money into the void, I'm generally fine to wait as well. Any thoughts would be much appreciated! [link] [comments] |
| Insurance for residential investors Posted: 12 Sep 2020 11:12 AM PDT Have a friend who is an investor in residential rental properties across multiple states. 15 or so that are a mix of SFH/duplex/triplex etc Don't have a lot of familiarity with anything other than a traditional personal lines landlord/fire policy so wanted to ask the experts. Is there anything out there that anyone uses to put properties in this type of situation (multi state) together with one date and typical CL aggregate limits? Outside of a traditional CL package with scheduled locations or a million separate pl fire policies with all different dates. [link] [comments] |
| Posted: 12 Sep 2020 04:27 AM PDT Working on getting my first rentla property with my brother...we'ee going 50/50 and trying to get a porpterty for cashflow...with a tenant and management company in place..my question is..how does the credit approval for the loan work when purchasing through the llc? My assumption is both our credits will be ran as co signers? [link] [comments] |
| Posted: 12 Sep 2020 10:11 AM PDT I have a 3 unit investment property in Philadelphia and I got a quote from my refinance company of about $1500 for all title company related charges. I know I can shop around, and I plan on doing so on Monday, but does anyone know of that amount is normal? [link] [comments] |
| RENOVATING old theater - turning into apartments Posted: 12 Sep 2020 03:43 PM PDT Hey guys, I am considering buying an old theater building and turning it into apartments. The theater was built in the 1920s and has 2 floors. It is about 7000 sq ft total. The second floor already has 2 apartments but they are in bad shape. The first floor was being used for holding events, birthday parties etc. The owner is asking for $250,000 for the building. I am thinking of gutting the whole place, keep the outside shell and rebuilding it into 6-7 units. Cost should be about $100-150 per sq.ft from what I have been told for new apartment complex. I think I can rent each for about $800 per month. Does this sound feasible? Or am I in dreamland? I'd love to get some feedback from seasoned investors who have done apartment construction before. Thank you in advance :) [link] [comments] |
| Nestegg or other rental management options Posted: 12 Sep 2020 11:00 AM PDT Does anyone here use nestegg to manage rentals? What are your thoughts about it? Looking to buy my first rental property soon and would much rather prefer to offload payment collection, and handling issues with tenants as much as possible. I appreciate your input! :) [link] [comments] |
| Trusting your friends can cost you time and RE opportunities! Posted: 12 Sep 2020 06:57 PM PDT I've seen this happen more times than I can count. Are you the type of person who can't make your own decisions? You have Zillow, Redfin or some other app that shows you homes that hit the market. The pics are there. The description is there. Your Realtor shows you the home, gets you the reports and disclosures which you study to the best of your ability. Any and all details are given to you, and you and your SO/partner (if you have one) discuss & debate the pros and cons.....and at the end of all that DD, you are ready to move forward. But then you make the stupid mistake of consulting your friend. This person seems excited for you, but truth be told isn't really. He/She tells you all the negatives: Maybe the school isn't that great. Or the yard is too small, or missing altogether. Or maybe he thinks you should avoid THAT city. I can go on and on....but are you getting my drift? All of a sudden, the property that you were seriously thinking about calling "home" is now not that appealing anymore! Prospective Buyers......PLEASE STOP CONSULTING YOUR FRIENDS! These people are not going to be living in that property. YOU ARE! What matters is what YOU think, not what others think! And more often than not, friends are jealous and don't really enjoy seeing their friends go up in the world. Buying a home is probably the biggest financial thing you can do in life, and trust me.....most people are measuring their own worth, and subconsciously avert their friends from reaching their dreams because of their own insecurities. Keep homebuying a secret from friends! I can't emphasize the significance of this more! Friends usually add doubt and waste your time. Homebuying a very stressful and daunting task, and you only need the principals, a great Realtor and a reliable Lender. THAT'S IT! The only caveat I have is IF THE FRIEND is the Realtor or is truly that exceptionally rare guy/gal who genuinely wants to see your success. If you have one of those, GREAT! Don't waste your time trying to defend that dude to me.....I really don't care. My post here is being made to those of you who have friends who are getting in your way of becoming a homeowner. And only YOU know this is happening to you based on your experiences, namely that you are still a renter who is "still looking" after so many months or years! [link] [comments] |
| Question about pre approval letter Posted: 12 Sep 2020 09:04 AM PDT Hey All The banker I have reached out to for getting pre approval letter is wanting my ssn, w2, tax return etc. Is this normal? I am a little paranoid giving my ssn to anyone so being extra careful here. Thanks! [link] [comments] |
| Posted: 12 Sep 2020 02:38 PM PDT I'm looking for a lender that will do 80-90% LTV, ideally sub 4% for a non owner occupied duplex. Any recommendations? [link] [comments] |
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