- Rant mode: I cannot believe the number of podcasts about real estate investing. It makes it feel super bubbly. And frankly, I'm kind of embarrassed to label myself a real estate investor despite 20+ years in the game because it feels so cheesy.
- My family thinks you can’t make money flipping unless you have experience in construction, carpentry, plumbing etc.
- PM Agreement - Issue with 2 clauses
- Protip for aspiring wholesalers (besides don't wholesale)
- Advice needed: Making a smart land purchase for building
- Piggy-backing off the person who's annoyed with RE Podcasts.. Honest questions for those of you who've been at this a while
- Interest Rate on Investment Property
- New investors, please poke a hole in our plan
- Flea market?
- Comps
- Newbie seeking book recs
- Buying a home with tenants that have no contract?
- Pay off rental or buy more?
- If you could pay for a property up front in cash, would you? Or would you still borrow?
- Working on a large SFR portfolio with a lot of outstanding rents
- Advice for taking it to the next level
- Big news RE: opportunity zone investing
- Very Serious Help
- What Questions to ask when buying a multi-family?
- No evictions, ever!
| Posted: 21 Jan 2021 07:58 AM PST Basically the title. I mostly listen to politics and money podcasts. I do listen to bigger pockets occasionally (or I used to back when it was a little less self sucky sucky) but I don't really browse that often. I clicked through suggested and I am blown away at what felt like 50 real estate podcasts. I mean.....It isn't that complex to justify 1000 hours of content a week. Lots of the podcasts kind of feel like the podcast is the business rather than the real estate. I know so many people interested in buying rentals, flipping etc. It is almost like bitcoin where they are hopping in just so they don't miss out. I like real estate. I think it is a good path to wealth creation. But it is mostly boring. Dealing with tenant squabbles, deciding what grade of LVP is best, trying to find matching trim is like 80% of the game over the long run. Do you have any idea how long I've spent trying to locate the right color grey to re-paint a unit? That doesn't need a 90 minute podcast. Finding deals is sort of exciting for spreadsheet nerds. But contracts, financing, refinancing....boring. Buy a property that cash flows, wait like 30 years while making $150 a month and maybe refinance occasionally to take a bigger chunk out. And if you haven't been in the market through at least one downturn- I don't need your advice. Your experience isn't valuable enough to broadcast. I realize you made 28% appreciation in 2019 and your cash on cash was 456%. But until you have watched it all go negative and had 5 years of gains get wiped out in an instant....don't tell me how much leverage I should have. Oh you have 4 units so you think you can start a class about how to become more like you? piss off. You successfully flipped a house in a market that goes up 2% a month? you could probably have literally done nothing other than hold for a few magic months and made money too. You didn't discover the secret RE rosetta stone. You bought into a hugely rising market where everyone feels like a genius. You made a 10K assignment fee off of an old lady you charmed? super sustainable business model Mr Buffett. You should start a TV show too. I don't know what my point is. I just hate that what was a very legitimate business is so snake infested now. I don't call myself a real estate investor now. I just tell people I'm a landlord- which makes them not want to talk about it further. Rant off. [link] [comments] |
| Posted: 22 Jan 2021 01:50 AM PST Hi everyone, I'm an 18 year old aspiring REI passionate about real estate and soon will be moving from Australia to the USA to follow my REI dream. My long term goals are to make a living flipping houses and when I told my family this they shut me down and encouraged me to go to trade school first. "If you don't do the repairs yourself you won't make any profit." is what they told me and as I know this is not true they called me too young and inexperienced for disagreeing. I told them if you get educated, buy the right property, and accurately run your numbers, risk goes down and profits go up. They dismissed this by saying "if it were that easy everyone would do it". My question is, am I too young and uneducated like my family says or am I correct about flipping and should follow my dream? [link] [comments] |
| PM Agreement - Issue with 2 clauses Posted: 22 Jan 2021 12:36 AM PST We're currently focused on long-distance SFHs and just pivoted to a new market in the midwest. We're now closing on a first deal there and in the process. Would love to get people's feedback on our agreement with the PM company: The team we have in place is a one-stop shop for deal finding, GC work and property management. This is the most hands-off we've ever been (have been managing ourselves remotely a few properties so far), but I'm comfortable working with this specific group. The owners are investors themselves with a significant portfolio of over 50 SFHs. I definitely want to work with them and learn from their experience and local expertise. I am happy to pay a premium of 10% management fee. I'd love to scale to with them to at least 10 properties in that market. However, there are 2 issues in the agreement that I'm concerned about:
There is another clause that I wanted to introduce to the agreement:
[link] [comments] |
| Protip for aspiring wholesalers (besides don't wholesale) Posted: 21 Jan 2021 05:48 AM PST I recently had an aspiring wholesaler contact me. Great. Rarely do I buy from one, but I'll listen. Well he markets me a HUD foreclosure, one that I had already looked at, from the MLS. He's marketing it over HUD list which is fine, but if I was gonna buy it I would have already bought it. All that's fine and well. A dumb business model on his end but that's not of my concern. Where we get into the weeds is that he had no clue what he signed up for when he offered as an owner occupant. Rather than just say no like I should have, I chose my follow-up question to be along the lines of " you know you can't sell this house for 90 days much less sell the contract right? You're asking me to give you the money to close and then take possession when it's legal?" Radio silence. The kid had zero idea that he was obligated to purchase this house, in his name. And I feel bad for him. He probably thinks I'm a dick but that's not really a big deal. So the protip here is instead of spending 100s of hours reading books from people who need money from selling more books, spend 1 hour reading your fucking contract. [link] [comments] |
| Advice needed: Making a smart land purchase for building Posted: 21 Jan 2021 06:12 PM PST Hi all! I've been investing in long term multi-family rentals for about 10 years now and I'm looking to tackle a new project that will take me outside of my comfort zone and area of expertise. Since I know that y'all have an absolute wealth of knowledge, I figured I'd ask for some advice! Here's a snapshot of what I'm looking to do: I'm look to find a suitable parcel of land in the NC, SC, or GA mountains where I can build small cabins for short-term rental. I could go into detail about the vision but I'm not sure it's super important here. Now... I've never bought land before, I've never bought out of my home state (GA) before, and I've never built a property before. I've also never managed property remotely, but I'm much more comfortable with this risk given my background and I'm looking at land with a rather reasonable distance of where I live. I'm at the point in this process where I'm beginning to find land for sale that seems appealing. I've done my zoning research and I'm confident that I won't hit any snags in that area. I'm ready to go explore some parcels and push forward with the purchasing process when I find the right spot. At the risk of asking too broad a question... How should I proceed?
My initial plan was to focus on purchasing land first and then begin tackling the challenge of building. I just want to make sure that I buy land with as few surprises as possible. I don't feel the need to rush and I expect to build structures in phases over the next few years. As always, any advice is appreciated! :) [link] [comments] |
| Posted: 22 Jan 2021 12:08 AM PST There's a post on this sub that's recently blown up that has an older person [justifiably] complaining about the over saturated market for RE podcasters. I was reading through many of the comments and there are A LOT of people.. not "talking shit"... (I know it wasn't written to be in a mean or negative only manner) but more like the "oh you youngins don't know what you're going on about" kinda stories. I get that someone who's relatively new to RE investing doesn't have as much to teach someone who's been in the game for a while; but at the same time, things are changing--new laws, new markets, new taxes--and for those of us who are just getting started, well.. we gotta start somewhere. And just like the over priced textbooks that we had to pay for the latest editions that got "revamped" every single damn year in college,... we need the most up-to-date information. Not outdated references that don't apply to the markets we're facing today. (idk, maybe just an explanation as to *why* there are so many people putting out new RE content?) THAT BEING SAID!!! Obviously, like the textbooks of ole', I feel like a LOT can be learned from people who have been doing this for a while. So here are my questions I hope some of you are willing to spend your time answering for someone who's pretty much only recently started:
Thanks in advance for anyone who takes the time to reply! [link] [comments] |
| Interest Rate on Investment Property Posted: 21 Jan 2021 10:07 PM PST What interest ate should I except on a 30yr loan for an investment (rental) property? I just don't know what "good" or "average" terms would be considered in this market. [link] [comments] |
| New investors, please poke a hole in our plan Posted: 21 Jan 2021 09:20 PM PST My wife and I currently have $140k due on a SFH that will appraise for about $250k. We have our finances in order, credit scores at 700 or better. Not great but it is what it is. Some student loan debt that we're paying, no car payments, etc. Very good DTI. I am a tradesman for 10 years, currently making about $120k W-2. Her income doesn't cover much but allows her to stay home with the kids. We have about $30k in savings above an emergency fund and then we have more in retirement accounts. We're looking at duplexes and triplexes that are falling apart in the $40-90k range to BRRRR and keep, then keep going. Plan is to do a cash out refi on our SFH, combine with some savings, buy cash or do a conventional loan. I can't find a hole in this strategy. Someone please do! We know the market. We've been here a long time. Its makes sense to us. Check me! [link] [comments] |
| Posted: 21 Jan 2021 01:14 PM PST I can find a million videos on strategy to invest in multi family, apartments, storage unit, and even rv parks. But I can't seem to find any info on investing in and owning a flea market. Does anyone know a place where I can learn more about the business model? Or that can share personal experience? I'm intrigued after hearing about someone in my area that has done very well with flea markets, and has one property with higher end vendors and antiques that cash flows $1M+ for him annually (probably not this last year) from percentage of sale and booth rent. [link] [comments] |
| Posted: 21 Jan 2021 04:40 PM PST Hi I am new to real estate investing. I am looking to do a BRRR deal. My biggest struggle is finding accurate comps. i know prop stream is a good service but im not sure if ready to pay for the subscription yet. Ive tried using trulia sold function to calculate $/sqft to back track into my ARV. Are there other methods i can find better comps? Thanks [link] [comments] |
| Posted: 21 Jan 2021 04:12 PM PST Hi all, longtime lurker here and looking to start taking larger strides toward investing in RE. I'm wondering what books you guys would recommend to somebody who doesn't know much about REI. I'm searching for books that are more quantitative and strategic rather than conceptual, something that might be able to teach me how to get started and succeed at this. Also any books on the BRRRR method that people have found helpful would be awesome to know about! Thanks in advance! [link] [comments] |
| Buying a home with tenants that have no contract? Posted: 21 Jan 2021 03:47 PM PST I am looking at buying a home in Maine as a rental but there are already tenants in place. The tenants are on a month to month and the seller is saying he will not evict them prior to the sale. I am wondering what to do in this position. The home is a good deal but the tenants being on a month to month sounds like they have no reason to pay when I take over the property. The reason I need the tenants out of the unit is to fix up the unit which would require gutting the house. [link] [comments] |
| Posted: 21 Jan 2021 03:01 PM PST My fiancé and I are younger (28) rental property investors in Texas. We currently have two properties. We bought with immediate equity on both and both have great interest rates and are located in growing areas. Right now both our properties cash flow about $400/month and we self manage. We did 20% down on each. From our jobs we have $3000 a month that we could apply directly to either principal or save towards a third property. So is it better to pay off our existing houses or keep buying more? Right now, by applying the additional 3k, we would have one property paid off in about 3 years. The second house paid off 1.5 years after that. It's enticing because if paid off, after taxes and insurance, we'd have about 30k a year in cash flow after that 5 year payoff. But I also recognize the liability safety net that mortgage debt can provide. We also don't want to over-leverage by buying too many properties too quickly. The long term goal is to move into commercial and to me, it seems like having high existing cash flow plus two paid off houses to borrow against would make it easier for commercial loan approval. Our personal strategy is buy/hold investing for cash flow so we can retire early. Any advise from investors more experienced that us would be great! Thanks! [link] [comments] |
| If you could pay for a property up front in cash, would you? Or would you still borrow? Posted: 21 Jan 2021 01:32 PM PST If you had the opportunity to buy a property and pay in full up front, would you do it? Or would you still borrow and put in a larger down payment? What are the benefits/downsides of each option? [link] [comments] |
| Working on a large SFR portfolio with a lot of outstanding rents Posted: 21 Jan 2021 12:28 PM PST The buyer wants to buy the houses vacant but the seller is saying no, you buy them all, or you buy nothing. The buyer however has about $80,000 in receivables so the buyer is now asking if the seller would "waive receivables" and let them collect whatever they can post closing. Can someone explain this to me? Is it something worth considering if you were a seller with that much outstanding? One tenant owes something like $10,000 in back rent! [link] [comments] |
| Advice for taking it to the next level Posted: 21 Jan 2021 05:18 AM PST Hello, I'm hoping to get a little mentor level advice for best way to take the next step in growing my real estate portfolio. As it stands I have two homes. One in a DC suburb that I bought about 5 years ago (lived in it up until two years ago), which is currently being rented out and I'm pretty much breaking even on all expenses - might be making $50. I have PMI on it which is really killing me. I'd be making about $200 if that weren't there. I have about 60k in equity on that condo on the low end if I were to sell now. Second home is in Tulsa, OK and is my current primary residence. I'm trying my hand at learning how to DIY a few things before we either sell it or make it a rental in about 2-3 years. We got a great deal on it in a great location. My plan for 2021 is to sell my DC/MD condo and purchase a potential flip here in Tulsa. From there I'd like to turn that into my first multi family home toward the end of the year/early 2022. Thinking about the Sun Belt. I'll also have an additional 20k in cash saved up specifically for this on top of the 60k that I would hopefully be earning for the sale of my first home. With that context, what are some best practices I can look into? What would you do? I've done a ton of research but I'm never confident until I receive confirmation from folks who have been there before - I always feel like I'm missing something big. Thank you in advance for your advice! [link] [comments] |
| Big news RE: opportunity zone investing Posted: 21 Jan 2021 10:41 AM PST https://opportunitydb.com/2021/01/new-irs-notice-extends-several-opportunity-zone-deadlines/ Good news! The IRS just issued another extension for investing into Opportunity Zones! This is a great way to defer and reduce your capital gains taxes on the sale of stocks (or any capital gains), both short term and long term!Effectively, this means that for any gain recognized by an individual on or after October 4, 2019 and before October 2, 2020, there is no 180-day period but rather a single deadline of March 31, 2021. The deadline to invest in a Qualified Opportunity Fund for these taxpayers is now automatically extended to March 31, 2021. [link] [comments] |
| Posted: 21 Jan 2021 02:39 PM PST Need help from all of you guys. I'm in a position to where I could pay cash upfront for a home and in a position to take out a loan on a home as well. How would you guys go about this considering that I would like to invest some money into rental properties and pay off my home off at the same time. This is quite a tough decision because everyone is saying buy upfront but then again those same people aren't in my wife & I, position [link] [comments] |
| What Questions to ask when buying a multi-family? Posted: 21 Jan 2021 08:40 AM PST Hi guys and gals, I'm new to real estate investing and it has been something I wanted to do for awhile and finally have the funds to do so. I started looking researching multi family properties and I'm not completely sure which questions to ask and things to inspect when looking at a house. Not only that, I always feel there is a red flag about purchasing a house with tenants already occupying it because why would the seller be selling the house then? Any advice, articles, books, etc. that can help me starting out would be appreciated. Thank you :) [link] [comments] |
| Posted: 21 Jan 2021 06:40 AM PST As a protective public health measure, I will extend the current order temporarily halting residential evictions until at least March 31, 2021. The COVID-19 pandemic has presented a historic threat to our nation's health. It has also triggered a housing affordability crisis that disproportionately affects some communities. Despite extensive mitigation efforts, COVID-19 continues to spread in America at a concerning pace. We must act to get cases down and keep people in their homes and out of congregate settings — like shelters — where COVID-19 can take an even stronger foothold. https://www.cdc.gov/media/releases/2021/s0121-eviction-moratorium.html [link] [comments] |
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