Real Estate Investing: Best resources or informational content to become a successful real estate agent or investor? |
- Best resources or informational content to become a successful real estate agent or investor?
- What are your go-to materials for your investment properties?
- UK and Asia property info on Reddit
- How to best leverage first time homebuyer advantages for investment property.
- With covid are banks still offering cash out refinances?
- Anyone experienced with building out duplexes on their own and renting them out?
- Property management companies
- Building a Rental House
- Trying to calculate the Net Present Value (NPV), what exactly am I doing wrong?
- I have a question in regards to financial modeling for real estate dealing with vacancy rates?
- Seller took AC units right before closing?
- Has anyone worked with placement agents or cap intro to raise a fund?
- Trying to get away from relying on wholesalers for off-market leads. Already D4D with Deal Machine for Direct Mail, but what are your preferred methods & systems to use to cultivate your own off-market leads?
- First Time Acquisition Financing
- Would you invest in a SFR w/o a garage if it check all the other boxes?
- How can I help my realtor?
- Developing Primary Residence into Duplex - Trying to Understand Tax Implications
- What is your criteria for deciding when to do a 1031 Exchange?
- Own one home, advise/critique my plans for the future?
- Historical section 8 data
- Sell or rent current rental property due to hot market and no taxes?
| Best resources or informational content to become a successful real estate agent or investor? Posted: 29 Oct 2020 06:16 PM PDT |
| What are your go-to materials for your investment properties? Posted: 29 Oct 2020 04:19 AM PDT When either rehabbing a property to make it rent ready, or just generally upkeeping it during turnover, what flooring materials, paints, cabinets, etc, do you trust and use most often? I'm putting together a list of materials to make decision making easier down the road and I'd like the opinions of those of you who are seasoned and have real experience with specific materials (vinyl flooring types and brands, laminate, tile, faucets, light fixtures, what-have-you). I've looked things over in the store and read their little sales pitches but I'm skeptical of anything a company says about their own product. "We're the most durable in the business", "This paint hides stains and cleans easily", "These cabinets are life-proof". So I'm coming to you guys who have nothing to gain or lose by spilling the best and worst products you've used in your rentals. [link] [comments] |
| UK and Asia property info on Reddit Posted: 29 Oct 2020 08:12 PM PDT Hi friends. This is a great subreddit and I've picked up a lot of useful information here. One issue for me though is that it seems quite US based, whereas I split my time between the UK and Asia. With that said, does anyone have good recommendations for for subreddits focused on property investment in either the UK or emerging markets (ideally, Asia based)? Thanks for any pointers! [link] [comments] |
| How to best leverage first time homebuyer advantages for investment property. Posted: 29 Oct 2020 09:26 PM PDT Hello everyone, I've been interested in real estate investing for years, and am recently looking into it more seriously with educating myself to make good decisions for the long term. At this point, my knowledge level is still low but I know some basic stuff through reading Wheelbarrow Profits and Crushing It along with some listings searching, forums, etc. I've also ran a few properties through DealCheck and I think I'm probably doing it wrong or at least not understanding it fully. I have some questions, they might not even be the right questions, but they are the ones I have at this point. I'd be most interested to get some recommendations for what resources I should consume other and beneficial next steps to better educate myself and prepare for In the short term (< 1 yr.) I'd like to acquire my first property as a live in investment property. I'm particularly interested in MFH with a value-add, long term holding strategy, but am slowly rethinking a broader approach might be better (a good deal is a good deal regardless of asset class). In the longer term, I'd like to acquire more properties with a similar strategy to build a portfolio. I enjoy challenging projects that are hands-on, and require problem solving and hands-on efforts. This, plus the obvious financial incentives, have made my interest in real estate investing steadily grow. I'm aware there are some loan advantages to first time home-buyers, and that these are restricted to 1-4 dwellings and that you live there for a year or so. This led me to initially think the best course of action for someone in my position is to purchase a 4 dwelling property with solid financials/numbers, live in 1 room and rent out all of the others to ideally cover the mortgage and even cash flow above that. As I've been reading about MFH I wonder if it's even worth focusing on the <=4 dwelling first time property and give priority to a larger MFH to leverage the economies of scale that come with it. Essentially, is the benefit of whatever first time homebuyer programs are greater than the returns of a larger property? Thinking of the long term, does the absolute value matter with regards to future refinancing, leveraging equity for a future purchase, etc.? A bit about me, if it helps: *Mid 20s *HCOL Area (Minimum property value likely ~1MM) *~400K available for down payment *Credit score >800 *Annual income estimated 70-100K (I own a new small business, difficult to have a confident value) *All expenses ~2K per month *No debt whatsoever (credit cards paid off in full monthly) I'm also unsure about the best financing strategy at a basic level. My conservative/savings minded background made me think at first that a higher downpayment is better because, all things being equal, you pay less in total due to interest. Contrary to this initial thought, a higher cash investment up front leads to lower cash on cash returns. Furthermore, if the return from the investment is greater than the interest than a lower downpayment would be net positive (right)? But, if you go to low with one of the 3% downpayment options (that exists, right?) you have to pay the expensive insurance. Even if those factors are not relevant, raising the property value could allow refinancing with better terms, so how does that way into the equation? TL;DR *For a first time home buyer, is it better to house-hack or skip that and pursue larger multi-family property, *Is a higher down payment better (for lower interest over the long term) or is a lower down payment better due to cash on cash returns, ability to refinance, other? *What resources do you recommend for someone asking these types of questions to start asking better questions? Thank you for reading this, I hope this post is adequate to survive the mod teams' iron fists. (: [link] [comments] |
| With covid are banks still offering cash out refinances? Posted: 30 Oct 2020 12:23 AM PDT Are banks hording cash again? Or has covid changed nothing from the banks perspective? [link] [comments] |
| Anyone experienced with building out duplexes on their own and renting them out? Posted: 29 Oct 2020 02:26 PM PDT |
| Posted: 29 Oct 2020 12:59 PM PDT I've been tossing around the idea for awhile to start a PM business in our market. There is a severe lack of one. I know in my state you have to have a brokerage license but we have a friend that is a broker with her own firm who may be open to working with us. This is a pipe dream that I want to lay the foundation for in the years to come. What advice can you give and what resources do you recommend to learn more on the subject? [link] [comments] |
| Posted: 29 Oct 2020 10:27 PM PDT I have a vacant lot in my suburban city. The neighborhood homes range from 220-350k. I'm starting to kick around the idea of building a rental house on the lot with an ADU as well. Maybe like the main home a 1400sqft 3/2 that would rent for $1500ish and a 600sqft 1/1 garage apartment that would pull in $900/mo. I'm brainstorming on building a two story for the 3/2 or using the attic trusses in a 1 story to squeeze in extra square footage. Any other ideas for building with the ambition of maximizing ROI? I'm assuming $130 sqft to build- so 2000sqft of living space = $260,000 + 20k for the unfinished garage below the apartment = 280k. Which is in range for the neighborhood, but far from a home run on the rental income side of things. And when factoring in the lot being worth around 50k, it would be the high side of the neighborhood on price. I'm mainly wondering if there's some creative ways to build to drive the cost down? Like I assume building 2 stories is cheaper than a similar size 1 story- because it'll be smaller slab and roof. It is in the city so I can't get TOO creative bc I'll have to be in line with city code. Any ideas would be appreciated. [link] [comments] |
| Trying to calculate the Net Present Value (NPV), what exactly am I doing wrong? Posted: 29 Oct 2020 02:33 PM PDT
Apparently, the correct answer according to my textbook is: Net present Value = $11,490 I keep getting $15,012.09, and I am not sure why. I used https://www.calculatestuff.com/financial/npv-calculator to help me with my calculations. What exactly am I doing wrong? Aren't I supposed to add up the sales proceeds cash flow to the third year and insert cash flow for the 3rd year as $60,500? Please help. [link] [comments] |
| I have a question in regards to financial modeling for real estate dealing with vacancy rates? Posted: 29 Oct 2020 04:25 PM PDT If the current vacancy rate is 35% due to Covid-19 on a property would I asume that same rate for my projections going forward for next year or should I assume a historical figure such as 10%?? [link] [comments] |
| Seller took AC units right before closing? Posted: 29 Oct 2020 10:06 AM PDT I'm an out of state investor and I purchased a house back in May. A bunch of things happened but I'm now being told that the seller took back the window AC/heating units right before we closed. I know its been about 6 months, but is that something a seller can do? Listing said new AC units so I assumed it would stay and my PM didn't tell me so here I am..... Is there something I can do legally? Will it be worth it? I'm being told to replace the two units it'll cost at least $1000 which isn't the biggest issue but I'm more pissed about the fact that they took it out. Thanks [link] [comments] |
| Has anyone worked with placement agents or cap intro to raise a fund? Posted: 29 Oct 2020 12:31 PM PDT Hello real estate friends! I raised a $5M friends and family fund a few years ago and am starting to think about a fund 2 in the $20-50M range. Do you have any experience (good or bad) working with placement agents or cap intro firms to raise a real estate fund? Really appreciate the perspective. [link] [comments] |
| Posted: 29 Oct 2020 08:11 AM PDT Hello all! I am a flipper currently located in South Florida, a pretty expensive and hot market right now. In this market, essentially all homes on the MLS are way too expensive and are getting 10+ offers by the first weekend. In the past, I've relied on the MLS and local wholesalers to keep my pipeline full but as my business scales this is no longer enough to keep me fed & keep me busy. In pursuit of building my own pipeline I am looking for some input on the most effective systems and strategies that others are using. I have started Driving for Dollars (D4D) at least 2 hours a day and usually add ~100 homes to my Direct Mail list. I contact individual landlords not using PM companies that are listed on Zillow. But I am not sure how else to grow my pipeline. Current Marketing budget is ~$3k with about $500-$700 currently being spent. Also, looking to connect with any REI pros in the area! DM me [link] [comments] |
| First Time Acquisition Financing Posted: 29 Oct 2020 09:20 AM PDT Happy Friday Eve! I've been working in Real Estate PE for roughly 3.5 years and primarily in the acquisition space but have a good amount of experience in all things RE (asset management, dispositions, fun management, etc). My goal is to go off on my own and syndicate a few of my own deals. I'm looking to start off in multi family, targeting secondary and tertiary markets across the US doing Value Add, which is what I have been doing most recently. I have a few colleagues that have gone off on their own who all come from wealth families so when it came time to qualifying for a loan they had no issues. My question is for someone who doesn't come from a wealthy family like myself, what advice/solutions do you have for me to get qualified. The deals i am targeting are anywhere from $10-20MM, I think my first deal will be in the $5-10mm space. I really appreciate any comments/feedback and welcome any advice! Cheers! [link] [comments] |
| Would you invest in a SFR w/o a garage if it check all the other boxes? Posted: 29 Oct 2020 02:46 PM PDT |
| Posted: 29 Oct 2020 02:28 PM PDT I'm selling my first home and working with a realtor to do so. He is doing all the work, but it's taking a little longer than I expected. Is there anything that I can do to help him? [link] [comments] |
| Developing Primary Residence into Duplex - Trying to Understand Tax Implications Posted: 29 Oct 2020 09:55 AM PDT Hi r/realestateinvesting- I own an old single family home on a double lot in a rapidly appreciating urban neighborhood. I'm currently in the design phase of scraping the home to build 2 townhomes to try to unlock some value and also live in a nicer home (in one of the two townhomes). I'm going to go through with the process either way, but I'm trying to get a better understanding of the tax implications for different routes I take. If I construct the duplex and move into one side, and sell off the other side, can I take the primary residence tax exclusion for the side I sold? Then, I assume I would wait 2 years and take it again for the other side whenever I sold that. I really just don't know how the sale of the first side would be treated. If the first sale will be taxed, I could live in one/rent one side for 2 years, sell without capital gains, then move into the other side and do the same. But that is a headache I'd like to avoid if possible. I'd probably just end up paying the taxes due. Anyone have any experience with this? I'm consulting an accountant when we file taxes next year, but was hoping someone in this group might have gone through something similar and have an answer. Thanks! [link] [comments] |
| What is your criteria for deciding when to do a 1031 Exchange? Posted: 29 Oct 2020 11:29 AM PDT 1031 Exchangers out there - what is your criteria for determining when a property is ready to 1031? My situation: I'm a buy-improve-hold investor looking to scale, in part, via 1031. I've never done one personally. In total, I have about 2M in total property, all small multifamily ranging from 250k-600k. All acquired at 80% LTV. For the most part, they've doubled their initial equity positions (with some variance between specific properties). Example: multi-unit I bought for 500k with a 100k down payment will now yield me 200k or so on sale, including transaction costs ($625k FMV). Knowing that I can't go to more than 200% of sold property value on the newly acquired property, I'm somewhere near the cap of where I think I'd want to be if I am basically using 1031 to relever myself at 80 LTV. Counting what I think are all valid costs, my best guess on recouping transaction costs on sale and new purchase are somewhere around 1.2-1.5 years. Pros: -It gets me into a larger asset class, more pure multifamily, which I want. -More or less doubles the size and cash flow of my portfolio -I am relatively young and will be at this for a long time, so I'm not hugely concerned about the near term impact of transaction costs Cons: -I'm not a real estate professional (W-2) and the increased passive tax losses are of little value to me at the moment. -Transaction costs are significant (150k for whole portfolio, both buy side and sell side - maybe more?), and I could probably achieve lesser scale through cash-out refi at 75 LTV or so with less transaction costs Has anyone just scaled consistently using 1031? Any gotcha's that I may not be considering? Just go for it? [link] [comments] |
| Own one home, advise/critique my plans for the future? Posted: 29 Oct 2020 11:22 AM PDT I have ~230K left on a 30yr fixed 3.875%, am thinking I should refinance now with the low interest rates. Am in Austin TX where the real estate market is crazy (appreciation is nuts, there is virtually no inventory) We are considering moving 40mins south of where we are next fall (2021) and renting out this current home. Would have to be a year lease, don't know the first thing about how to accomplish this... I am not sure whether I have enough to refinance and buy the second home next fall? I am not sure how much I will have to put down given that it's a second home, but one that we are planning to move to and live in? Currently have about 41K just sitting around (emergency funds) so I guess realistically I would only have about 20K to put down in order to have some emergency funds left over... FICO is 781. Just bought a car which has brought my credit score down a bit but it should still be in the excellent range. Please let me know any advice you may have if you have done something similar (or even if not and you just know way more than I do!) [link] [comments] |
| Posted: 29 Oct 2020 09:47 AM PDT Would anyone happen to know where you can find historical information about section 8 housing in a particular state and area? [link] [comments] |
| Sell or rent current rental property due to hot market and no taxes? Posted: 29 Oct 2020 07:31 AM PDT So I did the classic BRRR with single family homes. I am on house number 3 and I have some pretty damn good numbers. But this is about one of the houses. (And before you ask, the market is Detroit) So I bough this house for $37k, put in $11k rehab then moved in. In the next 2y, I put in $7k to fix it up a bit more. Cost basis is $55k, I have all the receipts. After that first month, I refinanced for $70k. Took out $52k @ 4.8% interest. The goal is to live in the house for a year then move, but nothing on the market looked like a good buy, so I kept looking. Moved this month (October 16) I hit my 2y on 11/1, so I am waiting to turn in my property transfer affidavit (in Michigan you have 45 days, so no harm here) then I will have 2 years in that property and I can sell it tax free. I have tenants to move in on Nov 1– $1200/mo rent and $450/mo PITI. Making $750/mo in profit. However, the house is so cheap that depreciation barely makes a dent in the taxes— $2k/y. In today's market, I can probably sell for $100k. I am torn on what to do. No matter what, I KNOW I want to rent for 2y. So at least I have that next step figured out. By the end of the 2y, I will have $50k left on the loan and an asset that is worth $100k (unless a recession hits... in which, guess I hold). After all fees and what not, I could walk away with $40k tax free if the market holds or I could continue to make a taxable $7k/y (($1200 * 12)+(-$450 * 12) * .9)) which is 17% ROI looking at the cash I could have... considering I am only about $3k deep— it's a 233% COC. Would you sell or hold in this scenario? I think the biggest issue is knowing that I redid all the plumbing and electrical and it has a new furnace, AC, and roof. The only part of the house that isn't new is the hot water tank and that thing is only 5yo. [link] [comments] |
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