Real Estate Investing: Freddie Mac makes change to allow transfer of ownership to LLC |
- Freddie Mac makes change to allow transfer of ownership to LLC
- Bought a 6 unit apt building in NYC, what to do with inherited tenants?
- Los Angeles is on a slow decline.. what should I do?
- Finding an affordable, reliable rental property
- Renter screening criteria for Retired applicant?
- Buying in an area with declining population?
- Rent pricing sources
- Other people’s money
- Thoughts on loan coming out of underwriting and requiring higher down payment thus reducing COC return.
- First Deal, Inspection Results
- What Should You Expect of Your Realtor?
- COVID may be the coup de grâce that hastens the slow e-commerce death spiral of retail spaces
- Advice for finding the Systems Needed for Success
- New
- At what point is it optimal to disclose that you're an all-cash buyer?
- Renting out a bumper pull trailer. (Texas)
- Real estate with low starting capital
- Which is a better investment property - more expensive/lower HOA, less expensive/higher HOA?
- advice- Cash out refinance, HELOC or something else
- FHA 3.5% Dow For FHA
- Any of you have a view on Omaha as an investment in SFR?
- Best resources for learning about investing in tax liens
- Do you believe in the “ up coming house crash”
| Freddie Mac makes change to allow transfer of ownership to LLC Posted: 18 Oct 2020 11:06 AM PDT
Full Freddie Mac news bulletin here Fannie Mae made a change in late 2017/early 2018 to allow similar transfers of ownership for recent (since June 2016) mortgages. This change should quiet concerns around transfers to LLCs controlled by the original borrower and "Due on Sale" / "Due on Transfer" clauses in conventional Fannie Mae/Freddie Mac mortgages once and for all. [link] [comments] |
| Bought a 6 unit apt building in NYC, what to do with inherited tenants? Posted: 18 Oct 2020 05:57 PM PDT Hey Guys, Basically I'm a noob and my friend and I bought a 6 unit apt building in Queens NYC, yadda yadda. The deals closed no backing out now. Last moment we discovered there's apparently 2 units still occupied by tenants. We don't wanna be assholes especially with covid and all but our plan was to renovate this place and rent and refinance out of it. I guess it boils down to how to legally and FAIRLY evict / relocate these good people? And what's the local laws if anyone is familiar with NYC? Thanks in advance, Newbie [link] [comments] |
| Los Angeles is on a slow decline.. what should I do? Posted: 18 Oct 2020 07:05 PM PDT I bought my condo outright and have been wanting to leave Los Angeles because of the high taxes, garbage, homelessness, air quality, and traffic. I only bought 3 years ago but things just seem to be getting worse and worse and I'm afraid property values will start plummeting. People have been leaving California in troves and my question is do you think I should wait 2 years and rent my condo in the meantime (so I can do a 1031 exchange) or should I just sell now and get out while I can? I'm leaving regardless but I'm conflicted on what to do. [link] [comments] |
| Finding an affordable, reliable rental property Posted: 18 Oct 2020 10:46 PM PDT Many people are trying to maximize cap rate and flip. In my first purchase, I'm just trying to find the most affordable, reliable property (i.e., few repairs and stable rent) for long-term buy-and-hold even if it doesn't cash flow for awhile. I'm open to farm houses, AirBNB rentals, single-family homes, tiny homes, anything really. This is meant to be a learning experience for more substantial investments later, so I'd rather make my mistakes on a smaller scale. The key challenge is that cheap often means rehab. [link] [comments] |
| Renter screening criteria for Retired applicant? Posted: 18 Oct 2020 10:38 PM PDT I just closed on my first property, a 3 unit: 1 inherited tenant, and 2 vacant units- one I'm going to live in and one I just listed for rent. Of the showings I have lined up I have a prospective that is recently retired. Their longtime owned home is under contract set to close in a couple weeks (guess they are done with home ownership and saw it was a good time to sell). I have my standards set for working applicants: 3x rent gross income, minimum credit score, length at current job, reasonably clear background check. But for an applicant that just retired what am I looking for? My initial thought is credit/background check and proof of 3x monthly rent x12 months in liquid assets or proof of monthly pension/social security income, or equivalent combination of both: liquid assets of (3x rent - income)x12. Hoping for some constructive feedback/criticism. Thank you. [link] [comments] |
| Buying in an area with declining population? Posted: 18 Oct 2020 04:42 AM PDT I know this generally sounds like a horrible idea. But the town I am looking at (3 hr drive from me) has 3-fanily houses for $60-100k and even a few larger properties for only $15-25k per unit. The largest employer in the area closed down around 10 years ago and population has declined from 36,000 to around 10,000. They are working on revitalizing the downtown area and brining life back to the town. It is also very close to great hiking, skiing, snowmobiling, ATVing, etc. I have been running the numbers on many of the properties for sale, and even with SUPER conservative numbers the properties still turn a great cash flow. Even putting a chunk of change into renovating the apartments, they would still cashflow from day 1. And due to it being adjacent to all these outdoor activities I think it would also do well having a unit as an AIRBNB. I posted a feeler ad on Craigslist to see if apartments were in demand and got 10+ responses in less than a day. I am new to this and it would be a great way to get started for a lower cost, but wondering if I am missing something here or maybe found a hidden opportunity? [link] [comments] |
| Posted: 18 Oct 2020 06:12 AM PDT What do you guys use as sources for determining rent in a given area. I've been using rent cafe, but it doesn't have smaller areas listed. [link] [comments] |
| Posted: 18 Oct 2020 03:00 PM PDT In your experience, what is the most effective way to acquire and use other people's money to start building your real estate portfolio? [link] [comments] |
| Posted: 18 Oct 2020 01:25 PM PDT The DW and I have a 6 unit complex under contract. It will cash flow day 1, fully rented with some tenants being there for 20+ years. The loan cam out of underwriting requiring a 30% down payment and 15 year amortization. This brings my expected COC returns down to 11% which is below my target. The 11% includes a combined 15% for repairs and cap ex as well as 5% vacancy. I tried to negotiate with the bank for more favorable terms and talked with a family friend who is also in commercial banking and he said he thinks my banker is working in earnest. This is our first deal outside of primary residence which is another reason the bank said they were being restrictive. I just wanted to see what thoughts you guys had. [link] [comments] |
| First Deal, Inspection Results Posted: 18 Oct 2020 05:48 PM PDT Hey Guys, I am going through the inspection process of a duplex in a knockout location near my hometown. I live out of state now but have secured a good property manager and some family to check into the place. The house is a very old duplex that was built in 1902. The owners had this property for 20 years and have had a great rental history, but they have put little money into the property over the years. This is a little below market and it a great area but needs a long list of repairs. Some issues are cosmetic, some are safety issues, and some are maintenance that need addressed sooner rather than later. (Some electrical, small hole in roof, downspout overflowing etc). I'm curious how you guys handle issues found on the inspection? Does the seller typically pay just for safety issues? Do you ask for things that aren't safety issues? Do you have the seller fix the issues with a licensed contractor? Do you have the money go in escrow and fix it with your own contractors? Do you just ask for money off the purchase price? All of my previous homes have been primary residences and most of the time the seller just took the money off the purchase price. I did sell my first house and pay out of pocket for an electrician and plumber to do some minor work. [link] [comments] |
| What Should You Expect of Your Realtor? Posted: 18 Oct 2020 01:14 PM PDT Tl;drI'm in the process of purchasing a property, but I feel like my realtor's services were only beneficial because I'm not local to the area, COVID is a thing, and this is my first time buying property. What are reasonable expectations to have of the services provided by your realtor? Backstory:I'm a first time home buyer and received the same financial/life skills education that most Americans received from traditional sources which is nothing. So everything I learned is from various books, podcasts, and you wonderful people of reddit. Still very much an amateur, but working on understanding this financial and real estate game. I live in CA. Yes, I know it's expensive. I'm from the midwest and realize there are markets that are far cheaper to invest in, but this is my decision😂. I work in the trades as my day job with the goal to be a GC who also builds/invests on the side working towards reaching financial independence in 12 years. I identified a market, Sacramento, that makes sense for me to live/work/invest in. I got really clear on the type of properties I'd be interested in: distressed/under market value properties with room to force value through remodels, additions and/or ADUs. The thought is that this strategy will allow me to "house hack" my property and eventually turn these properties into long-term buy and holds. The back up plan is that if the rental situations don't work out I should have a live in flip with an acceptable profit. I was referred to an agent through a friend who just bought property in the area and had a great experience. This friend is a REI as well and has bought multiple properties in the past so I was excited to meet with the realtor. When I spoke with the realtor I asked all the questions the books and podcasts tell you to ask. Are you an investor? How long have you been doing business? Do you feel confident that you can find the properties I'm looking for? So far so good. I knew next to nothing about Sacramento as the majority of my time in CA has been spent in the bay area so at the start of the search I relied on the agent for information on what areas are good for investment, what he has witnessed with rents, etc. This is also my first time purchasing property so he also helped fill in some knowledge gaps with the general home buying process. Also due to COVID restrictions, he was the only way I could view properties and also was the only reason certain sellers' agents would respond to my inquiries. He also has strong local connections and can get inspectors/contractors opinions on questions about the property. Outside of these areas, which I am not discounting the benefit they had to my property search, I didn't really perceive any additional benefit. Here are my main "issues" All but one of the houses were found by me through the basic listing sites. If he sent properties to me I had already seen them or they were completely flipped homes that had no room for my forced value strategy. I guess I was expecting that a realtor would have access to better dealflow than me especially since I have 0 connections in Sacramento and am purely looking on zillow and sites like this. When it came to determining the value of the home that was basically on me as well. I can understand being mindful of COE issues in terms of figuring out what to offer and what it could in turn rent/sell for, but I guess I expected more help. I don't expect realtors to "know construction" but there were times when I could not look at a property in person and I would like to know some basic red flags to look out for before putting an offer in. This was delivered on about 50% of the time. Given this experience I would say this realtor is a great first time home buyer's agent and maybe even a great listing agent, but probably won't work out with me in future purchases. However, I would definitely refer him to my family/friends who are not investors and simply looking for a home. The Question:What is reasonable for a fledgling REI to expect of their realtor? Buying properties is and most likely will be one of the largest purchases of my entire life. A percentage of these purchases will be paid to my realtor, but I don't know what that percentage should cover. I know there are REI who claim you don't need realtors and they might be right, but at this point I believe that experts exist for a reason and you either become one or hire one. I think of purchasing investment properties like building a house. I don't think it's efficient to attempt to build the entire house on your own and there's a reason subcontractors exist, but it's much clearer what the expectations of the subs are. What are the standard expectations I should have of my realtor? If you made it this far, you're amazing once again reddit thanks in advance!😁 Edit: I now understand most realtors won't have access to off market deals and in certain areas "pocket listings" are illegal or frowned on [link] [comments] |
| COVID may be the coup de grâce that hastens the slow e-commerce death spiral of retail spaces Posted: 18 Oct 2020 01:01 PM PDT |
| Advice for finding the Systems Needed for Success Posted: 18 Oct 2020 04:49 AM PDT Hey Guys - I am looking for advice on how to find the following elements within the geographical area that you want to invest in. Systems Needed for Success:
Also, Let me know if there is anything else that I may be missing! [link] [comments] |
| Posted: 18 Oct 2020 03:59 PM PDT Hi all new here where can I learn more about real estate investing i wanna start in the next 3 years or so. Thanks [link] [comments] |
| At what point is it optimal to disclose that you're an all-cash buyer? Posted: 18 Oct 2020 03:41 PM PDT More specifically, on investment optimal (i.e. high cap rate) homes that are rather crappy (think list price less than $400k). The immediate thought is as soon as possible, but are there any caveats to this? (Or is it not a big deal at all?) I ask because I've bought my share of luxury cars, and in that situation, it's best to never disclose being an "all cash" buyer until the very last minute, after the final price is agreed upon. Obviously because the dealer typically makes "points" (profit) off your financing terms. Thoughts? [link] [comments] |
| Renting out a bumper pull trailer. (Texas) Posted: 18 Oct 2020 02:22 PM PDT I just purchased a bumper pull trailer from my pops at an outstanding price. It's a 1980's vintage trailer and I would like to update it then rent it out. In my personal experience, if it has a roof on it they'll come. I'd love to hear from those who have done this. Successful? All bills paid? How much for rent? [link] [comments] |
| Real estate with low starting capital Posted: 18 Oct 2020 06:40 AM PDT I am interested in getting into real estate investing. I am wondering what the best ways are to raise capital/increase leverage. Of course there are banks, P2P lending, venture capitalists, but are there any inventive ways to raise capital. Does anyone have stories of their own or books/articles to recommend? Thank you [link] [comments] |
| Which is a better investment property - more expensive/lower HOA, less expensive/higher HOA? Posted: 18 Oct 2020 01:23 PM PDT A. $700,000 2br/2ba, HOA is $50/mo B. $600,000 2br/2ba, HOA is $475 Assume both are 3% interest, 30 year loan, both are 2br/2ba, same sq ft (they aren't, but for purposes of this discussion...), same school district, same rough neighborhood. Would be a rental property. So at 3%, an additional loan on $100,000 is about $425 monthly payment at the onset of the loan, most going to interest in the early years. So the monthly payment would be about the same. I believe the tax deduction would be around the same, since you can write off the HOA as a business expense. California property taxes are 1.2% I believe, and grows at a fixed rate. But which would be a better investment over time? Somethings to assume: both properties appreciate at the same % rate, property taxes increase at the same % rate, HOA fees increase at the same % rate. Is it better the one with the lower HOA (even though it comes at a cost) because you presumably are more in control of your fate, say if you wanted to pay down the mortgage? Adding that I don't know if the monthly differential is due to the one with lower doing a lot of separate assessments for new roof, painting, etc. (Put this under Taxes, but not sure that is really accurate) [link] [comments] |
| advice- Cash out refinance, HELOC or something else Posted: 18 Oct 2020 08:06 AM PDT I am wanting to renovate a condo that I own that is paid off to rent. I would like to perform extensive renovations which I estimate at about $45,000.00. I estimate the value of the condo to be about $125,000.00 pre-renovations and $160,000 post renovations. I know since the condo is not my primary residence and would be used for a rental that the terms of a new mortgage or HELOC would not be favorable, and I am not even sure you could use the HELOC for a period of time. My primary residence has a $294,500 mortgage and the estimated value (conservatively) is $425,000. My mortgage rate is high at 4.15% and at the time of purchase I financed $320,000 (80%) of the home value. I am thinking the cash out refinance on my primary residence at 80% of value would be the best option for me. I could use the cash for the condo renovation and I think my monthly mortgage payment would be about the same as now with a much lower interest rate. My credit scores are all above 825 depending on which source you use and I have very good income with stable employment history. I have no debt except my primary residence. I would welcome any suggestions before I start contacting potential lenders as I have never done this before. [link] [comments] |
| Posted: 18 Oct 2020 11:44 AM PDT I have a 680 score. Make a respectable $45K per year. I have $100K cash 25 years old. No debt. I want to buy a 4plex with an FHA 3.5% down. Live in 1 side rent the other 3. Do a value add refinance after a few years in a conventional after the property has been revaluated. Purchase Price would be $900K $31,500.00 Down (3.5% Down FHA) How do I use the existing rental income to qualify? Thanks. [link] [comments] |
| Any of you have a view on Omaha as an investment in SFR? Posted: 18 Oct 2020 11:43 AM PDT |
| Best resources for learning about investing in tax liens Posted: 18 Oct 2020 07:52 AM PDT I live in Florida if that helps but just want to read up to see if the investment strategy is for me. [link] [comments] |
| Do you believe in the “ up coming house crash” Posted: 18 Oct 2020 11:07 AM PDT |
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