Real Estate Investing: Want to buy, but will be leaving the area |
- Want to buy, but will be leaving the area
- Issue Getting a Loan (advice wanted)
- Florida. Too hot?
- Very frustrated with property managers
- Partnering with a friend 50/50 on down payment but 1 lives in it
- Great opportunity, how do I make a reality?
- Financing a duplex with renters in it....
- What are the full logistics of buying a quadruplex as a first home to live in, while renting out the remaining units?
- Talking with an investor focused real estate agent tomorrow.
- How do you vet a syndicator?
- Considering renting out my house and buying a new one
- Using the same LLC to purchase investment properties in multiple states
- Seeking Knowledge and Advise
- Investment & Loan Structure, Great Credit/Late Mortgage Payment History... How to seal the deal?
- I came across an opportunity to lend my savings to an investor for 4 months for a flip project, should I do it?
- When should one *not* jump into this endeavor?
- More worth it to move out into building i own or do not own
- Best time to buy in the US; Now or wait?
- Is there any way for me to contact SBA on behalf of commercial tenant to see what is going on with their loan?
- Deal analysis- duplex versus multiplex
- Repair negotiations or walk away?
| Want to buy, but will be leaving the area Posted: 26 Jan 2021 04:33 PM PST I am just getting my toes in the water with real-estate investing and want to look into purchasing my first SFH. I have plenty of options to look into where I am, but it is very unlikely I will be here in the next 3-5 years. Should I look into out of state investing? Would it be easier to buy and sell when I move? Any advice is appreciated. [link] [comments] |
| Issue Getting a Loan (advice wanted) Posted: 26 Jan 2021 03:33 PM PST Hello Reddit, I currently own a $1.6m investment property which I owe $905k on. I make +/- $90k annually from my primary jobs($7,500 monthly), and $99k annually in rent ($8,250 monthly). Loan on the investment property would be +/- $5,500 a month, and my current rent is $2,500 a month ($8,000 a month total). I have no other recurring debts - car, student loans, etc. Credit cards are paid off monthly, so nothing there. Keep getting turned down from standard lenders - my bank and credit unions - because I'm told I don't make enough money to justify the loan + my rent. Coming here looking for any advice or counsel. All feedback is welcome! Are there any lenders out there that primarily deal with investment property loans and would be more lenient on their income to debt ratios that any of you can recommend? EDIT: First off - wow, thank you all for taking the time to read this and reply. Some of you even went through my post history to find info I missed! I'm floored. Answers to questions that I missed the first time posting: --It's a single family home, though there is an Accessory Dwelling Unit (ADU / in-law suite) on property. --How did I get here? Pre-Covid I was making more cash, though not absurdly more so (maybe $135-$140k annual wages in better years - I run a few of my own companies). I got to this point, in a word, incrementally - the house was a complete dump in an amazing area when I bought it and I renovated it over the past handful of years mostly myself thus the gap between what I owe on it and it's worth. $650k primary mortgage (30 year fixed, 4.25%). A year later a $150k HELOC to add the ADU (25 year, 5%), then in late 2019 a personal loan for the remaining debt (5 year, 7%) with the intent of finishing up renovations and selling the place. Renovation wrapped up in early March of 2020 just as the lockdown began so I got little foot traffic and by June had decided to rent the place out instead of selling it. Renting is about a break-even proposition currently, $8,250 a month in income vs. +/- $7,750 a month in lending costs. It's been smooth sailing renting, and if I could refinance into one Jumbo it'd be significantly cash positive... thus this post. -- Answered more specific posts in line below. Again, thank you all! [link] [comments] |
| Posted: 26 Jan 2021 08:15 PM PST Most Everyone loves Florida for one reason or another. For me, I love Miami and the coca beach/ Daytona region for lots of reasons stemming to childhood vacations and relatives. I live in SoCal and the market here is just insane. High cash, over ask and short closes have made even me with 100-150k down get rejected a few times so far. So, I turn to my admiration for Florida into one of a possibility to invest in. I am trying to remove my "emotional hat" and focus on my "cash flow hat". Why should I invest Out of State in Florida and what makes it a good investment besides low costs of ownership- compared to my HCOL area. I get reminded of the crash of 2008 and question if perhaps some place else may be better. Thanks and I appreciate your thoughts to my conundrum. [link] [comments] |
| Very frustrated with property managers Posted: 26 Jan 2021 07:02 PM PST Today I spoke on the phone with a commercial real estate broker who spent a good 15 minutes telling me property managers messing up owners' properties. I have been doing buy and hold for two three years now and have changed property managers two times. One firm charged me my property tax in January 2020, but did not pay for it until 11 months later when I found out the tax bill was pass due. The same firm faked my signature and sent me a management agreement that I had never signed (there was no ridiculous terms in the agreement. prolly what happened was he told his guys to find the contract, he guys lost it, but didnt want to admit it and thus created a fake one). The other firm I hired last November said he would get my rental license renewed 4 weeks ago, but it is not done to date. The same firm has not distributed the rent he collected in January yet and today is Jan 26th (This firm is managing a duplex for us and one tenant way late on rent, but paid two weeks ago). I also have probably 5 other pending items that this firm should have done a month ago. I get it that when you manage people, you've gotta tolerate people's mistakes and focus on the bigger picture (otherwise, you cant delegate any work to people and cant grow bigger). At the same time, I am not satisfied with my property managers' work. Whenever something happens, I feel like it tends to linger on and on and many of them dont get solved at all. This created a lot of stress for me. I wonder if you are planning on keeping your property for say 30 years and collect rental income, is doing your own property management the best play here? The class A apartment buildings in the area I live in (Manhattan) all do property management on their own. The other thing is how do you work with the people you hire? I get it that you have to be sympathetic and tolerate mistakes, but at the same time, if someone is really not good for the job, enough is enough. Where do you draw the line? [link] [comments] |
| Partnering with a friend 50/50 on down payment but 1 lives in it Posted: 26 Jan 2021 06:21 AM PST Want to get opinions on what you think is a fair deal on partnering with a friend. Friend is willing to put down 50% of deposit but I would pay mortgage payments as I'd live in the place. After selling would return $ back plus share of net gains or would buy out the equivalent. Do you think this is a fair deal for both parties especially my friend? Obviously he assumes some risk in a co-mortgage. [link] [comments] |
| Great opportunity, how do I make a reality? Posted: 26 Jan 2021 11:49 PM PST Hi there. I'm a new investor just learning about real estate investing and dipping my toes in the water. I have an opportunity to buy a property for $100K under market value from a family friend who is moving in a hurry and offering me the deal before listing the multi family property. The property is 4 units, all occupied with long term tenants, in an up and coming area. From my research, cap rate is roughly 7%. My issue is that I do not have enough saved for 20% down. I don't want to pay PMI and I don't want to miss out on this opportunity just because it's a couple years early. Any advice? Is it worth getting investors? If so, how do I set that payment structure up? [link] [comments] |
| Financing a duplex with renters in it.... Posted: 26 Jan 2021 09:05 PM PST I've been in the market to purchase a new property, and found a duplex on the market in the area and price range, however both sides currently have renters. While I would like to move into one of the units to avoid the 20% down. Is it possible to use the rental contracts to swing it with a bank in getting better terms or a lower down? [link] [comments] |
| Posted: 27 Jan 2021 02:26 AM PST I was considering on buying a quadruple as a first home with my partner. Let's say that our loan qualifies us to a SFR for $645,000. And we want to buy a quadruplex that's selling for $1,000,000. Would my loan amount change if I decide to buy a quadruplex instead? Because the remaining units rent can be used to offset the mortgage? And also, do I get taxed on the rent I collect from the tenants, since that would be used to pay the mortgage? Sorry in advance everyone because I have no idea how this works.. [link] [comments] |
| Talking with an investor focused real estate agent tomorrow. Posted: 26 Jan 2021 11:59 AM PST What should I ask about and what should I be prepared to answer? [link] [comments] |
| Posted: 26 Jan 2021 08:58 PM PST What do you vet a syndicator, and how do you know if they are legitimate? How do you know they are creditable... this is mainly for Commercial Real Estate. [link] [comments] |
| Considering renting out my house and buying a new one Posted: 26 Jan 2021 06:48 PM PST As the title states I am looking to rent the house we currently live in and buy a new one. We are in our early 40s. I bought this house in 2005 for $225000. I owe $90k still on the loan and it is scheduled to be paid off in 2027ish. It's currently worth roughly $500000. My payment is $1225/mo. I refi'd to a 15 some years ago. I've chatted with three propery management companies here in our metro area and all three say they'd rent it for ~$2500/mo. I have no desire to manage the rental myself, so if I do this I am pretty sure I will go the property management route. One idea is that I throw everything I have at the loan and pay it off. Or I pay it down some then refi it to a 30 and knock that payment way down to like $300/mo and rent it out using property management. The other idea is we sell it and buy a house about the same value and break even. The last idea is we sell it, use all the equity and buy a bigger more expensive home. But I am hesitant to be saddled with 30 years of mortgage payments that could quite likely outlive me at this point. I assume by the time I retire I'd likely sell again and downgrade. But who knows. I don't know anyone personally that has done this or I would ask them. I asked in PersonalFinance but I wanted to bounce this off the experts here. I appreciate any time and help you can offer. [link] [comments] |
| Using the same LLC to purchase investment properties in multiple states Posted: 26 Jan 2021 03:51 PM PST My 2 business partners and I have an LLC set up in Missouri that owns a few properties in Kansas City. We are now looking at Philadelphia for a purchase of a 6-unit building... is there any major downside to using the same LLC to purchase in Philly? I understand there is some additional liability to have multiple properties in one LLC, but we'd like to avoid a separate LLC tax return unless it's absolutely necessary and recommended. Any thoughts on how we should proceed? [link] [comments] |
| Posted: 26 Jan 2021 11:57 AM PST First things first, lets assume that I know absolutely nothing about real estate, owning anything, or dealing with anything as an adult. Because I don't. I am a child trapped in a middle aged woman's body lol With that in mind I come to you today to get some help. I live in California. Northern California. I was very recently given the chance to own some land. Its not directly offered to me, its being offered to my parents, but it would be my husband and i that would end up assuming responsibility for it. Someone my mom knows that lives in a different state owns empty lots in the town that my parents live in. The property has been untouched for years which has resulted in it becoming over grown and likely has some trash dumped on it. Subsequently the city has taken an interest and I believe they are being threatened with fines if the land isn't cleared. As I mentioned they are in a different state so they are offering to gift the lots to my parents if they pay the transfer of title fee. The work of clearing the property out isn't what concerns me. Its all the costs and fees that will be associated with taking over ownership, and long-term, in owning the land. Beyond the yearly property taxes. What concerns me is things like the taxes they will be responsible for if they sell it. Or similar expenses that I am unaware of. its also important to include that my parents are not rich. Any expense they take on would be a burden to them but one my Dad is dying to take. He has no idea what hes doing though and isn't willing to look into it. He is kind of bullheaded, and in the nicest way possible, ignorant. I mean that in the sense that he will jump both feet into this without a lick of knowledge as to the responsibility he is taking on. And hes unwilling to learn in most situations. Basically long story short I'm wondering if this is a blessing or if they are getting way in over their heads which in the long run would become my mess to clean up. The saying too good to be true rings in my ears. I know this is vague and that a lot of factors contribute to it being a good investment or not but before I take the steps to see someone like Real Estate Lawyer I was hoping to gather a little direction here first. So, If you were in your late 50's with not a lot of savings would having land gifted to you be a good thing? Or are they just taking a headache off of someone else's hands. The current owner is someone my mother says she trusts and has known for years. But the very first question that jumps out to me is why give land to someone you don't have a current relationship with? The answer my mother provides is because the woman knew my parents still lived here... idk.. I apologize for the long post and if you've this far, Thank you. And if you have any advise for me I would greatly appreciate it. I hope I have included enough information to make sense. [link] [comments] |
| Investment & Loan Structure, Great Credit/Late Mortgage Payment History... How to seal the deal? Posted: 26 Jan 2021 02:30 PM PST I would like to thank you all in advance of reviewing my question. I'm 32 years old have exciting plans to build a small retail operation that will require $2 million to complete (this figure assumes total for land, soft/hard costs, operating costs to +NOI). I've been self employed for 5 years now in the same industry but under a leased space (owner operator) and now would like to build my own to increase assets and income. I currently show $500-750k annually with reasonable salary and good distributions. I make six figures and can easily show for it with 3 years of tax returns. I have spent many months planning my proposal and it's close to complete. I'm now moving on to the bigger picture items but have some roadblocks that might occur. Maybe you can advise? Equity: 20-30% will be money raised from investors. Shooting for 51/49% ownership with myself as majority. Multiple or single preferred equity investor(s). Some of my next steps include the following: -Establishing banking relationships -Signing up potential backers/investors -Locking in builder and completing basic schematic -Location contract with owner (90 day/letter of intent) Before I run into any issues down the line, I'd like to be proactive in regards to my personal situation as I believe this could make or break my banking qualification process for the loan. I recently fell into forbearance on my mortgage last year (9 months length). This is now paid off. I am current as of this month thank God. However as COVID unfolded nationwide so did my income. I was late 30-60 twice on my mortgage (yeah I know, brutal). These late payments were consecutive and are now 12 months in the past (this is good!). I don't want to get to into the reason why I was late but I mistakenly missed a payment due to stop-payment I didn't realize was permanent. On the bright side of this is I'm now heavy in cash and assets with my business because I closed a large deal. I'm looking at this in two ways. I can either keeping moving forward or fall behind… I want my businesses to grow and succeed so I'm willing to fight for success. Concluding Question: I have no issues raising the equity I'll need. I just don't know if either one single preferred investor or multiple investors via class A shares is better. How do I get around the late payment fuck up? Who will guarantee the loan if the bank doesn't think I'm sufficient but understands I'm well backed? I feel once I have the investors, builder, and property ready the bank is going to see my personal credit report with good credit but late payment history and kill the deal. How can I position myself better to prepare for this? How can I structure this deal in the way that my efforts and money on the table is attractive? Right now, I feel like a loser. I'm looking for real options to prepare, organize, and proceed with calculated results. Please help. Thanks again. [link] [comments] |
| Posted: 26 Jan 2021 02:29 PM PST I am very involved in the real estate investor community in my city. I go to investor meet ups and am in several group chats with other active investors. One of the investors who does a lot in our group is doing two flips at the moment and only has enough in his business account to cover one of them, so he's searching for a private lender to fund the second one. I messaged him privately to see how much he needed because I have a good chunk of savings right now that I've been holding on to in hopes of buying a rental property with it, but the market is so competitive right now that I've been looking and making offers for months with no luck. He is offering 10% interest and 1 point for the money, but if I lent him the amount he needs, I would only have $5k left in my savings, and wouldn't be able to buy a rental if a deal does come up. I think it's a good opportunity because that money is just sitting there, but I'm afraid of having my savings so depleted for 4 months (possibly longer, you know how flips go haha). I've never been a private money lender before, although I know several and have borrowed money from them before. This investor has been in my real estate market for years and has a good reputation (we're such a close knit investor circle that if you do anything shady, everybody knows about it very quickly). Shoud I tie up my money for a few months and lose the opportunity to buy a rental property? [link] [comments] |
| When should one *not* jump into this endeavor? Posted: 26 Jan 2021 09:30 AM PST I've never owned property but I guess we all start somewhere. My husband and I are looking at about 10 grand back in taxes and a work bonus soon. He wants to buy a house next year but we're not peojected to be able to save as much as we need in that time. Our area (Texas panhandle) has a lot of very old, small houses that are super cheap ($14k-$25k) with several Ive seen offering seller financing. I really want to snatch one of these up, I've been learning about "how to aquire a rental with no money down" and things like that. My husband says we are not ready because of a bit of debt and being in a rental right now ourselves, and all the cost-risks possibly sinking us. Which I understand. However, I see the risks very low for pre-tenant repairs and rehab while we work on credit and debt (>$10,000) because if you don't have some one living there, you can do those things at a slower pace. A friend of my mother's is a retired contractor so I was thinking about enlisting his help for a walkthrough to gauge the rehab costs. And I would probably allow for several months to be able to do this rehab debt free, and hopefully buffer the amount of time that repairs would pop up mid-lease with a tenant. I feel like the initial cost risk of just acquiring the property is fairly low. Are seller financed options viable for situations like ours? Is my line of reasoning sound or is my head in the clouds? [link] [comments] |
| More worth it to move out into building i own or do not own Posted: 26 Jan 2021 08:39 AM PST I have the intention of moving out into an apartment of sorts, however there is something that has been bugging me. Would it be more worth it financially to move into an apartments unit that i own and have the rent i am receiving decrease, or to move into an apartment that i do not own and use the money that i will not be losing from my building to pay for the rent, what are the pros and cons of each, i am really stuck on this question [link] [comments] |
| Best time to buy in the US; Now or wait? Posted: 26 Jan 2021 12:10 PM PST My understanding of the current market is very basic. However; I've heard from numerous people now is the time to buy properties. I've also heard from other people that soon they expect many more properties to open up and be for sale or foreclosure. Just curious what your general take on this is and if I should be lookin to invest in properties now or wait a bit. And help/tips/advice are welcome and appreciated. All the best! [link] [comments] |
| Posted: 26 Jan 2021 09:24 AM PST I've got a tenant that has been waiting for their PPP loan for literally 6 months. They were under mandated government shut downs for months and still limited to occupancy. Even if he gets funded I am afraid I'll never see any back rent. Is my only option as a landlord an EIDL loan myself? [link] [comments] |
| Deal analysis- duplex versus multiplex Posted: 26 Jan 2021 09:04 AM PST
Both of these properties are in a HCOL State. Are there any specific considerations to look for in when investing in multiplex buildings? The returns from properties like #2 are significantly higher than #1, netting almost 100% more despite being only 36% higher in market value...what's the catch? Is #1 simply not as efficient? Edit: Fine with foregoing higher appreciation in return for better cash flow [link] [comments] |
| Repair negotiations or walk away? Posted: 26 Jan 2021 06:53 AM PST Had my future second home inspected yesterday. I was glad my inspector said that no home would be perfect if he inspected it. The report always makes it seem like the property is in more disrepair than it actually is, yet, there really is work to be done. 4 bedrooms, 3.5 baths, 1850 sq ft. Built in 2011 .5acre of land, no fence Currently tenant occupied Offered $5K over the asking price Seller agreed to paying $4,000 of my closing costs which pretty much covers the majority of it Professional cleaning Landscaping/lawn mowed before moving in The location is IDEAL for a lot of work in the surrounding area. Nice neighborhood. My intent is to live in it, fix it up a little, while renting out my current home, and eventually turn house #2 into a more expensive rental. Repairs: Garage door is finicky. Need to press it a couple times to open up completely. Siding has moss/algae on it Some siding towards the ground needs to be replaced, lawn equipment had damaged it. Leaking water heater Need more information about whether a pipe was leaking in the garage and they didn't close up the ceiling or it's still leaking. A similar repair was discovered in the kitchen, spot needs paint. Some parts of the roof don't have underlayment No gutters I'm almost positive this 10 year old girl doesn't run the bathroom fan because the paint is peeling around the shower and the fixtures are rusted. If the windows were meant to be energy efficient they no longer are because between the glass panes it can be a little cloudy. Needs some paint on the interior, I'd also like to replace the carpet with LVP myself. I'm pretty handy, so MOST of this isn't scaring me away. So negotiating this may be difficult Sellers are by no means obligated to pay for repairs. In this market, if I walk away, it's not a big deal to them because it's a seller's market. Either I ask for the major things, inquire about the plumbing repairs.....or just ask for a credit at closing to make or oversee the repairs myself. To cover those repairs....that's a hefty credit on top of the $4K that they already agreed to to have my closing costs basically covered which is incredibly rare in this market. But I don't want to walk away on an opportunity because of a few repairs, I'm not someone who wants or needs a turn key home at this point in my life. But who wants a money pit? [link] [comments] |
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