Real Estate Investing: Biggerpockets becoming very heavy handed with asking for referrals - where else can I ask for professional referrals? |
- Biggerpockets becoming very heavy handed with asking for referrals - where else can I ask for professional referrals?
- Taking profits in an insane market.
- Apartments.com / Cozy.co is failing me with allits bugs & UI issues, alternative recommendations?
- Lending to a “baby” LLC where the “parent” is 98% owned by an Irrevocable Trust
- Best way to challenge an appraisal
- [Canada] How to take advantage of a hot market without selling?
- Rental heartache
- Seller financing?
- What would you pay?
- Has anybody used home equity to buy a business instead of more real estate?
- Fundrise
- A harrowing thing to hear as a RE investor: Nothing guarantees population growth
- If you have ever wondered why cap rates are so low in NYC...it's because half of the owners are doing this...
- Multifamily owners, what's a good "cash per door" amount to average?
- Due Diligence process for a Partnership
- Has any used Loanguys.com?
- Anyway to 1031 or delay tax?
- VA/FHA Loan Question
- Comments on my plan options
- Are Rentals The Best Path For Me in Building a Portfolio of Homes?
- Does anyone here have experience with parking spaces? [Chicago, IL]
- To sell or not?
- Should I hold onto my current home as a rental or dump it? (DFW market)
- The next step...
| Posted: 02 Apr 2021 04:18 PM PDT I own some rental properties and in the past I've always used biggerpockets as my go-to for getting property management recommendations. I just created a new thread asking for Orlando STR managers, and within 2 minutes I was messaged saying my posting was removed because asking for referrals is like advertising and I have to purchase their PRO plan to post advertisements. Feels to me like a money grab, I'm very disappointed they're turning this way. What's another good resource to ask fellow investors for people/company recommendations? EDIT: I understand a lot of people share my frustration with BP's new direction. Unfortunately it doesn't seem like there are any alternatives yet (I'm not going to keep using BP anymore, just sucks there's no other forum to fill the void) [link] [comments] |
| Taking profits in an insane market. Posted: 02 Apr 2021 08:10 AM PDT Edit: Per a commenter, maybe "Taking profits" should be in quotes technically speaking, I immediately re-deploying it. ------------------- I've been doing some restructuring of my rental portfolio of 20 units this year. Probably have a few other posts worth of interesting stuff from the process, but what I wanted to share was that I just signed closing docs on the sale of a SFH rental I've owned for 4 years. I purchased it for 64k at the end of 2016. My original down payment was about $13k. It was operating in the black during the time I owned it with fairly low-maintenance tenants who took care of it. However they moved out around Thanksgiving to get their own place and I decided the market was so frothy it would be a good time to try and take some profits. I owed $69k on it as during the 4 years I owned it, I cash-out refi'd all my original down payment (and a bit more) out of it while reducing the monthly payments. My broker is very good and we decided to spend some money to get top retail dollar out of the property. We put all new windows in (century home with a lot of crappy old windows), totally refinished the real hardwood floors under all the nasty carpet, and new doors and paint throughout among other upgrades. I spent $16k but it looked really nice. We listed it for $135k. We debated listing for $130k vs $135k for a bit based on comps. What happened shocked even my broker. We had multiple offers within a couple hours of listing and 20 showings the 1st day which was in the middle of the week. We ended up with 4 offers within a couple days, all of which were above the ask price, 3 of which were above it significantly. We ultimately went with a buyer who offered $155k, and agreed to waive the inspection. Closing date was 3 weeks after it went on the market. So basically after all the expenses I am clearing 70K+ in profits, on top of the money I already pulled out of the property previously. I sort of can't believe the appraisal came through but this market is insane. I am taking the profits and using it as the down payment on a commercial $290k building, so I basically do not have to come up with any down payment money out of my own pocket, it's all being 1031'd from the sale of this one. I close on the new purchase in a week once all the funds have settled. TL;DR - 64k rental 13k of my money down. Cash out refi my money out, play with house money for a few years. Good tenants profitable little rental. Sell for ridiculous returns and 1031 into a bigger better property. (New property is half leased already to an insurance company so I'm going into it with a tenant who covers the mortgage, and a lot of upside.) [link] [comments] |
| Apartments.com / Cozy.co is failing me with allits bugs & UI issues, alternative recommendations? Posted: 02 Apr 2021 06:12 PM PDT I'm running into lots of poor design and UI issues with apartments.com that make it really difficult to get a tenant set up and paying smoothly. Just bug after bug, or stupid UI decisions. For instance:
That is all I can think of right now, but there were many more issues. Just way too much of a hassle for what should be a smooth process. The good parts are that apartments.com has free ACH bank transfers from tenants, you can track your rent and expenses for taxes, and it auto generates a location specific lease that has a lot of landlord protection in it. Is there a free or paid alternative that has a full lease (not just a one page sheet with a couple paragraphs), and free bank transfers? [link] [comments] |
| Lending to a “baby” LLC where the “parent” is 98% owned by an Irrevocable Trust Posted: 02 Apr 2021 04:17 PM PDT I'm a lender and I have a deal I can't figure out how to structure. I have someone asking me to lend on a property owned by a "baby" LLC that is owned 100% by a "parent" LLC. The "parent" is 98% owned by an irrevocable trust. The two trust grantors retained 1% ownership, each, in the "parent" LLC. I would likely have an individual guarantor(s) to reach 80% LTV. The Irrevocable Trust cannot be a guarantor, but it could be a co-borrower. If no guarantors, I see us sticking in the 50-60% LTV range. Can the trust grantors guarantee an asset they previously signed over? Does anyone have experience from the borrower's perspective on this? What's typically asked of you by the lender? I want to do it, but I'm trying to wrap my head around it. Thanks in advance. [link] [comments] |
| Best way to challenge an appraisal Posted: 02 Apr 2021 03:16 PM PDT I'm doing a cash out refinance and I think my appraisal is short by almost 30%. The appraiser used 3 comps one of which went under contract on 2/2020! Another of which had no pictures. And I'm in a market with plenty of comps. What's the best way to challenge an appraisal ? I've never done it before. [link] [comments] |
| [Canada] How to take advantage of a hot market without selling? Posted: 02 Apr 2021 06:11 PM PDT Hey guys, My homes value has gone up an absurd amount in the passed 3 years, but I'm quite content in staying where I am. I'm wondering if there are other ways to take advantage of the large increase in value coupled with the rock bottom interest rates. I'm thinking of using a HELOC to invest in land/ build a cottage that could be rented out, but I'm interested in the ideas others might have or are using. Thanks! [link] [comments] |
| Posted: 02 Apr 2021 06:20 AM PDT TL;DR - House mad. Broken stuff. Spent a lot. Sad owner. Long time to recoup costs. Thought I'd share this pain with the group just so we remember that unexpected expenses can and will pop up at the least convenient time.. Anyways, I hit my year in my house and decided to buy another and rent it out. As we were packing up the house, it rained. We noticed water leaking through the ceiling right around the chimney. Damn, what is this.. The house is 70 years old. Ok, lets just re-flash and move on. Had two guys come and check it out. Said re-flashing MAY not solve the issue - so we decided to knock down the chimney and patch the roof completely - problem solved and $1,300 down. No we're in escrow for the new house and boxes are everywhere and we're done packing. Later that night we hear a weird noise coming from the front yard - we live in a nice wooded area so we're on septic and well water. We go out to investigate and discover that this pump this is broken and water is splashing out everywhere. We shut the main off. Have two dudes come look at it. Turns out its the septic pump that pumps black water to the leach field - $800 down to fix. We're now in our new house. Sweet we made it! Property managers didn't switch the power over in their name fast enough and we go maybe 5 days without power. Prospective tenants don't mind and we have 20 showings. We have one that's ready to sign and give us the deposit. Well, the cold came through and froze out water pipes running through the ceiling and when the power was turned back on.. you guessed it - water pipes broke damaging the ceiling, flooring and living area that had carpet - maybe 500 sq ft total. This happened right before the tenants go in for the final walk through.. the walk into a small pond upon opening the front door. Is this house cursed? It's probably mad because we left it.. idk. Now, we're losing money daily since we have to get this fixed. How much will it cost to repair? First guy said $2,700 for the ceiling and to repaint, but he doesn't install carpets. Second guy said $1,100 to fix the ceiling and will repaint. Well, since he was there doing that I had him paint the other room too - $1,800. The carpet was an easy kill - $900 for the carpet and for install. $2,700 total to fix the ceiling, repaint, paint the other room and re-install new carpet. Fast forward two weeks, house looks better than ever and insurance is giving us $3,900 for the water break. Quick math here.. insurance nearly covered all these expenses! We have new tenants in, we're in our new house - good to go... for now. Thought I'd share. Rental properties and passive income is still my main interest, BUT it does come with challenges. Be prepared, have savings ready to cover these unexpected expenses! It'll take me a few years to recover these costs through my tenants, but it comes with the territory! Good luck out there! Edit: forgot to mention my heat pump completely freezing over too. This was an $80 fix though, thank goodness! [link] [comments] |
| Posted: 02 Apr 2021 02:05 PM PDT Hello, a while back someone called me when I was heading to the gym and said he was thinking about selling his home. Small 3/1 in a rural town about 30 mins away from me in a growing area. I said I'd call him back once I was home, which I did, and he didn't reply. I'm planning on calling him again to see if he would entertain seller financing. This would be my first deal. Haven't even bought a primary home yet. Any advice regarding seller financing? Does a RE attorney handle everything? Do we both go to the attorney and tell him what the specifics are? I got this lead via driving for dollars and sending direct mail to him. I'm excited to see how this pans out. Thanks everyone! [link] [comments] |
| Posted: 02 Apr 2021 06:36 PM PDT This is a property I currently have under contract. Not going to mention the price I got it for but just curious what is a ball park number of what everyone here would be looking to spend on a property like this... Duplex renting for $600 a unit ($1200 a month) The house is about 100 years old but has new (under 5 years old) siding, roof and furnace. Might need $10k, probably less, in repairs BUT has two tenants that already have signed leases through 2022 who plan to stay so realistically leaving it as it is right now is completely possible at least for the short term. Property is in the Mid East in an area with a rather steady market, won't see much appreciation but like wise should be easy to keep tenants. I'm sure I am missing things but ask and I will tell what I know. Again just ball park numbers here. What would you pay for it? Curious to see if I got a good deal... [link] [comments] |
| Has anybody used home equity to buy a business instead of more real estate? Posted: 02 Apr 2021 04:41 PM PDT I bought my home, a duplex that's a 3/2 on each side, last year right before the lock downs started and the market went nuts. From what I've researched, I've gained close to 100k in equity in under a year. I also live in South Florida, where housing prices have a history of being volatile. I want to take some of this equity and diversify it into another business. I was thinking of taking some of this equity and buying a laundromat instead of buying more real estate. You can buy a low end laundry for about 250k - 300k where I live. It seems like it would be cheaper than trying to find another duplex/multifamily. I already have an accountant, electrician and appliance repair man that I know. From what I've researched, it would also be another business that could be run part-time. Has anybody done something like this? What was your experience like? [link] [comments] |
| Posted: 02 Apr 2021 10:36 AM PDT Have any of you used the Fundrise technology for real estate rather than buying the physical properties? [link] [comments] |
| A harrowing thing to hear as a RE investor: Nothing guarantees population growth Posted: 02 Apr 2021 10:21 AM PDT Nothing about human (mammal) nature makes population growth inherent. Our population has grown to this size due to advancements in many things such as the amount of and ability to allocate resources, but our planet will not sustain an infinite number of people. If you believe some academics, like here, the United States' population will "peak," perhaps as soon as 2060, at which point immigration would be the sole driver of any increases in population. The US would then have a compelling reason to increase immigration, as a shrinking population is poisonous to an economy, see Japan. To me, it feels odd to question one of the most deeply ingrained assumptions of real estate investing: the population rises. After natural population growth ceases, there is no guarantee of this. What are your reactions to this? [link] [comments] |
| Posted: 02 Apr 2021 04:01 PM PDT The first time I have ever seen a story like this. I have lived here for 20 years and it's common knowledge that many buildings are set up like this. Basically, if you want to cash flow in NYC you have to beeak the law: [link] [comments] |
| Multifamily owners, what's a good "cash per door" amount to average? Posted: 02 Apr 2021 12:56 PM PDT I think like most of us I use Excel to keep track of my income and expenses. After taxes and insurance and expected maintenance, I divide my monthly income by the number of units on each site and I average $300 per door for most of mine. I have 32 units and I'm thinking about branching out into other markets but from what I can tell $300 per door is pretty good right? [link] [comments] |
| Due Diligence process for a Partnership Posted: 02 Apr 2021 08:07 PM PDT Hey! I am currently going to be partnering in a real estate deal to buy, construct & sell houses. I would appreciate any advice regarding how I should be conducting due diligence for the deal and any potential loopholes I should be looking for Note - we will be buying a big plot of land & creating a society from it selling multiple bungalows [link] [comments] |
| Posted: 02 Apr 2021 07:30 PM PDT I came across this site for fix and flip loans and was wondering if anyone has any experience with them. Their rates seem decent for hard money, although that's just based on there "starts at" rates. Not sure how high they go. [link] [comments] |
| Posted: 02 Apr 2021 07:21 PM PDT about a month ago I bought a house back from a family that was seller-finance purchasing from me (i was the lender) I paid them 180,000 for it, they had bought it from me for 150,000, I had bought it for 115,000 cash prior to that. I purchased it in the name of one of my LLCs. Now I want to sell another property I own, because of the ridiculously hot market, that is in my personal name. I will list it for right around 190,000. If I had sold this condo six weeks ago I think I could have done a 1031 exchange from property number two to buy property number one. But it's too late for that... since these properties are in different entity names, is there any way for me to capitalize on a 1031 or some other strategy that would allow me to not pay capital gains taxes currently without purchasing a different new property? [link] [comments] |
| Posted: 02 Apr 2021 12:06 PM PDT I have a close trust-worthy friend that I am planning to househack a 4 unit with, utilizing his VA home loan eligibility as he is active reserves military. As a co-signer on this loan, does this waive my FHA loan eligibility? Also, is there a way to finance the cost of repair/improvement similar to the 203kFHA within the VA mortgage? [link] [comments] |
| Posted: 02 Apr 2021 05:39 PM PDT Goals in the order of priorities
What I have to work with: 1 Rental
1 condo primary
My main issues are mortgage options and I am having a terrible time finding a good broker for scenario 2. I cant see anything bad about scenario2. If someone would give me a loan for say 5% down and interest only for say 7 years, i can just sell the property. Also if there are folks here from Seattle, can they direct me to some good mortgage brokers. I am running into a wall. [link] [comments] |
| Are Rentals The Best Path For Me in Building a Portfolio of Homes? Posted: 02 Apr 2021 06:08 AM PDT I've been wanting to get into the rental property game for years but never really had the capital to consider it...until recently (about $100k). I haven't purchased my first home yet and wanted to see if I can start investing into rental properties. Here's what I had in mind (broken down into steps): 1) Do not spend a penny and just learn. Read, watch, listen, do everything necessary to educate myself in the space 2) Research into different homes in my area and see if I can find a 2-4plex worth investing into. Move in and take advantage of the low down payment requirement 3) Bring in tenants and experience what it is like as a landlord. If I decide it's what I want to stick with it/grow, research after the year mark into doing the same thing for another property. Would you consider this to be the best path for me? I'm looking to accumulate a decent portfolio (as much as I would like to, I know I won't be able to make a replacement income amount). Any advice would be appreciated! [link] [comments] |
| Does anyone here have experience with parking spaces? [Chicago, IL] Posted: 02 Apr 2021 12:50 PM PDT To start, I appreciate any help, information online for this is pretty spotty. Long story short, I've found a seller who wants to sell multiple deeded and currently rented spaces in a garage attached to a large condo building. At the rate the spaces are currently rented, assuming a 10% vacancy rate and subtracting property taxes and HOA fees, the annual ROI I've calculated to be around 7.5% if I was to buy at asking rate. I believe the seller would discount buying all of them though, potentially bringing ROI near 8.5%. I'm not familiar with how the purchasing/transfer process works for this or what kind of fees I'd be looking at, I just have free cash available and I'd like to avoid sinking more into another property or securities until the markets are less volatile and prices have stabilized. What can I expect from the purchase process? What kind of fees am I looking to pay, since this will definitely impact ROI? Are there any sort of "surprises" I should know about before jumping into this? [link] [comments] |
| Posted: 02 Apr 2021 12:22 PM PDT We have a rental property in Scottsdale AZ and we live in Florida. We managed the property. The current tenants are excellent. And we are deciding on wether to sell or keep it long term. We lived in the townhouse for 2 years and rented it out for almost 3 years. From our understanding the 5 years capital gains is coming up and would prefer not to pay capital gains. We also know the current market is hot and prices are high. Would you sell the townhouse or keep it? [link] [comments] |
| Should I hold onto my current home as a rental or dump it? (DFW market) Posted: 02 Apr 2021 07:23 AM PDT Many of you may know that, like many metros, the DFW market is white-hot, with the news running several stories over the last few days about people needing to sometimes offer $50k over asking price to get a contract ratified. We have personally experienced this, fortunately getting an offer accepted for a new house at $15k over asking that we will be moving to. Our original plan was to hold onto our old house as a rental property, but the rental market isn't as hot - in 2017, we paid $243k for this house, and it is now easily worth over $300k between the market and our upgrades. However, MLS rental comps show that houses like ours are only renting for $2k/month, maybe less. This may be a very easy question based on long-term trends, but I wanted to provide that info in case there was some nuance to this: Should we continue to hang on to this house as a rental, or dump it while the market is so insane that we can probably get way more than its worth? [link] [comments] |
| Posted: 02 Apr 2021 04:04 PM PDT I see people that get 30 units in 3 years....Meanwhile I've acquired 2 properties in 2 years How do I take things to the next level? [link] [comments] |
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