Real Estate Investing: I just closed on probably the best deal I’m going to find in my lifetime. |
- I just closed on probably the best deal I’m going to find in my lifetime.
- Can buying a home for 60k over asking price in this market be considered an “investment” or is it rather a desperate move to locate a place to live?
- Listings with existing tenants on long lease
- Question about electric hookups
- ELI5 Heloc Vs Cash out Refi
- Commercial or Residential Financing?
- 1031 Exchange Question
- For those that self-manage, how do you handle calls for emergency repairs?
- Investors, when you do your “homework” what do you usually do?
- Purchasing foreclosure CRE
- Question about quitclaim deeds
- If the world were the be your oyster, where would you buy a property and how would you work it?
- Has anyone ever created PUT contracts for physical real estate assets? For landlords of say 100-500 properties who want downside protection?
- What is a reasonable price for my first real estate property?
- Partnership agreement
- What is a considered a good ROI and Cap rate on an investment property in a large metro area?
- How to acquire more property
- Does it make sense to get a real estate license?
- 190k first property
- PropStream Vacant Properties
- Curious Investment
- What type of loan for an investment property?
- House hacking SFH with Airbnb by the room
| I just closed on probably the best deal I’m going to find in my lifetime. Posted: 27 Apr 2021 04:16 PM PDT When I say "just closed", I mean the ink is still wet on the closing documents. I'm in a HCOL area. Two years ago, I bought a condo. I didn't realize or appreciate it at the time, but I got super lucky because my HOA is probably one of the lowest in the county but still covers 100% of the exterior (no pools or club house or other expensive common areas). The HOA is also pretty relaxed with low key CCRs. Two months ago, I notice the condo behind mine was suddenly vacant. I could see it was still furnished, but there wasn't anyone living there. Through a mutual friend who knew the owners of the property, I learned that a couple had bought it to house their disabled adult son. However he started having behavioral issues and was trying to move in his toxic girlfriend, but the parents said no, so he moved out. Mutual friend said they did indeed plan to sell it, so I asked her to pass along my contact info because I was very interested. I was super nervous because I wanted to try to make the owners an off market offer. I knew I couldn't compete with cash offers or a bidding war. Looking at comps on the market, another unit in our development was listed in December for $379k and sold for $420k. It sold for $41k over asking. Just insane. Looking at all the comps made me realize how desirable these condos were. We had our own private yards, no neighbors above of below (townhome style, while most others condos in town are apartment style), and each unit has a 2 car attached garage. I waited for 2 weeks for the owners to reach out to me, meanwhile researching what I could offer to make it desirable enough to accept without publicly listing. I was a ball of anxiety. I hadn't exactly planned on buying a second property right away, but now I had this opportunity to make an offer and I didn't want to mess it up. I started working as much overtime as I could possible take in. A supervisor at work also moonlights as an agent, and when I told him the situation and what I wanted to offer, he just laughed at me, told me I was ridiculous and they would be insane to accept it and forgo the opportunity to get into a sky high bidding war. He chastised me and acted like I was a child with no knowledge of real estate and bragged about these million dollar deals he was closing that were going for hundreds of thousands over asking. It felt super defeating. I finally get in touch with the owners after a couple of weeks of waiting on them to reach out to me. I explain to them my situation, how I wanted to buy the property so I could eventually have my frail aging grandmother nearby someday when she had difficulty living alone. They were empathetic because they had bought and fully remodeled the condo to house their son. But after he moved out, the parents decided they weren't here to be landlords, so they decided to sell the condo. However, it all came at a very inopportune time, as they had just bought a new house themselves, and were trying to downsize and list their current house. It sounded they were quite overwhelmed, but they agreed to show me the unit. We did a walk through and it was just lovely. As they said, fully remodeled and upgraded. New floors, ceilings, tile and granite. Gorgeous cabinetry and custom drawers. The entire place had been redone. At the end of the walk through, they told me they didn't have an asking price, but they mentioned they knew comps were selling for between $380k-$410k and wanted to know what I was willing to offer (I guess they didn't see the $420k Comp). They also made clear that they understood I was saving them money by not using an agent, and they wanted to pass along some of those savings to me. I told them that while the unit was very beautiful, it wouldn't appraise for $410k because that particular comp had some features that this one didn't have (automatic garage door, wrap around back yard, etc). But I told them that even if we used agents who did get them tippy top dollar, they would still only walk away with less than $375k after listing fees and commissions. So I offered them $10k over that, a sale price of $385k. And I told them I would cover the expense of a real estate attorney to facilitate the entire transaction ($5k). They really loved this offer and jumped on board. Since their son had moved out and pretty much left the condo fully furnished, they gave me the opportunity to buy back the furniture in the unit: couch, love seat, coffee table, dining table and chairs, desks, twin trundle bed, queen bed, dressers, night stands, and all the wall decor. I told them that even though I loved how it had been decorated after the remodel, I really couldn't afford to make an offer because the lawyer expenses were eating up my extra reserve cash. They understood this and told me that they loved my offer so much, they were just going to sell me the unit fully furnished as is. During the entire escrow, I was super nervous that the sellers would back out and decide to publicly list the unit. I knew they could be getting more than $385k for it. I thought about all the negative shit my supervisor at work had said when he laughed at my idea of an offer. To compound the stress of everything, I had a preplanned trip out of state in the middle of escrow. It was absolutely chaos trying to get all the requirements for the loan satisfied before I left town. Appraisal was completed while I was out of town, came back at $405k. This was exciting but also just peppered me with anxiety that the sellers would back out all over again. But here we are! Today finally arrived! We closed escrow 3 days early. I got a 2/1 condo, 1050 sq ft end unit for $20k under market value, and fully furnished on top of that. I just saw the sellers after the final signing. They gave me a huge hug and thanked me for being the lead on this transaction. They said during the hectic transition of selling their own home and moving into the new one they just bought, they were very pleased with how smooth I made this transaction for them and it was just what they needed. So I guess my two big lessons learned here are 1) shoot your shot. The worst they can say is "no". If you never ask, the answer will certainly be no. 2) don't be intimidated by FSBO. Agents certainly have a place and can be beneficial. But conducting this sale without agents got the sellers more in their pocket, and cost me less in the long term. I don't think either of us could've hoped for a better outcome. [link] [comments] |
| Posted: 27 Apr 2021 10:13 AM PDT I am a learning amateur who hasn't scored any wins yet but this crazy market it making me reconsider what investing actually means. Somehow it doesn't "feel" like paying 60k over asking price will bring any financial returns in the near future. Can that still be considered an investment in any way? If you see it as a financially smart move, could you explain why it appears like that to you? Thank you! [link] [comments] |
| Listings with existing tenants on long lease Posted: 27 Apr 2021 09:41 PM PDT I've noticed some nice offerings with existing tenants on leases until later this year. They're offered to investors and marketed as a positive "built in tenant". Of course, we have an eviction moratorium until end of June that may be extended. Is there any safe way to buy with a tenant and prevent default? [link] [comments] |
| Question about electric hookups Posted: 27 Apr 2021 09:20 PM PDT Dumb question, but not sure where else to ask + you guys are smart. Let's say I have a 2 unit retail space. Let's say it's not rented yet. If I unplug everything inside so zero power is being used, would the electric usage be zero? I'm sure it varies by provider, but mainly trying to figure out if the power company charges a fee simply to be hooked up into the grid every month, even if there's zero electric being used at the space. Thoughts? [link] [comments] |
| Posted: 27 Apr 2021 09:04 PM PDT How exactly do they differ? I am buying a property 10% down that appraised 30k over my purchase price. I wanted to effectively know the best way to realize that capital so that I could invest in another property. [link] [comments] |
| Commercial or Residential Financing? Posted: 27 Apr 2021 08:22 PM PDT Hey guys, I found a 4-plex multifamily home. Even though the house is in residential neighborhood, it's zoned as commercial. Originally, it was residential house but at some point about 20 years ago, it was converted to commercial for front house. What are my options? If I have to go to commercial route, can you recommend the lender? I have about 20% of down payment. [link] [comments] |
| Posted: 27 Apr 2021 11:12 PM PDT If I 1031 exchange a rental property worth $250,000 that I've had for ten years and buy a new rental property worth $300,000. Then I sell the new property for $500,000 in ten years. How would I calculate capital gains taxes based on the depreciation I would be taking on the first rental and then the second? Also, if I moved into the house and lived there for two years or a certain length of time can I avoid capital gains taxes that way? Thanks [link] [comments] |
| For those that self-manage, how do you handle calls for emergency repairs? Posted: 27 Apr 2021 10:36 AM PDT Do you use a service that takes after hour calls then calls you? Do you give the tenants your personal number? [link] [comments] |
| Investors, when you do your “homework” what do you usually do? Posted: 27 Apr 2021 02:17 PM PDT Hey Reddit investors, I have posted a few times in this subreddit and have seen various comments on posts about what people usually look for when investing in a property. What are the factors that really matter on assessing the value of a investment property and what is your preferred course of action when you do your "homework". Whether this means looking at rents/prices of properties in the area, the areas price per sqft, repairs that may be needed, etc. This will help myself and other investors that are wary about buying their first property and are not sure what to exactly do. Thanks in advance! [link] [comments] |
| Posted: 27 Apr 2021 05:13 PM PDT Hello everyone! I want to buy foreclosure commercial real estate but dont know where to find best deal. Where do you guys normally check for foreclosed CREs? Do you typically have to pay cash or can commercial loans be used? Thanks in advance! [link] [comments] |
| Question about quitclaim deeds Posted: 27 Apr 2021 05:02 PM PDT Hello everyone, Thanks for taking the time to read. I just have a quick question about quitclaim deeds. I am currently trying to understand more about real estate and I bought a book that goes over all of the fundamentals. In the book that I am studying from, one of the lines says "The quitclaim deed is usually used to clear up an imperfection in the title, called a cloud on title." If a cloud on title is a circumstance in which the public records are not perfectly clear about who owns or has rights to certain property rights. How exactly does the quitclaim deed clear up an imperfection in a title? Any responses are appreciated, Thank you [link] [comments] |
| If the world were the be your oyster, where would you buy a property and how would you work it? Posted: 27 Apr 2021 08:30 PM PDT The intention is perpetual income and store of value with the pessimistic assumption of an increasingly more turbulent world. [link] [comments] |
| Posted: 27 Apr 2021 04:08 PM PDT Or for investors who would take a premium to absorb the risk. [link] [comments] |
| What is a reasonable price for my first real estate property? Posted: 27 Apr 2021 06:44 PM PDT I plan on purchasing a house within 2-3 years and am very interested in the "house-hacking" topic. I essentially want to get a 3-4 bedroom home, claim the master room, and rent out the others, so hopefully my roommates rents will pay for the mortgage, and I save some $. Born in Long Island NY, we have a very high COL. I want to move to a lower COL area such as NC so it is more feasible. After trade school, I'll have $140k to my name and a paid off car. I was thinking of purchasing a home for around $300,000-400,000. Also, I will be working as a construction laborer, making around $40-50k per year, hopefully investing most of that. What is a reasonable price for my first property? Thanks [link] [comments] |
| Posted: 27 Apr 2021 06:36 PM PDT My friend and I are going to flip a house next year, we want to make sure we are both protected, but also we don't want a lot of legal fees. Does anyone have some recommendations? We were thinking of a Partnership agreement. [link] [comments] |
| What is a considered a good ROI and Cap rate on an investment property in a large metro area? Posted: 27 Apr 2021 06:33 PM PDT Hi all, I'm a new investor and I am closing on a multi-unit property in Chicago. I understand that it depends on location and city heavily, but can someone give me a ball park of a good ROI and Cap rate? I'm cash-flow positive but wondering the difference between a "single" and a "home-run" (terminology a realtor I met uses) when it comes to investment properties. Thank you, Pete [link] [comments] |
| Posted: 27 Apr 2021 06:32 PM PDT I have 2 rentals which I financed, and plan on financing 10; the most Fannie/Freddie will allow. After that, how do I buy more property? I won't be able to afford to buy them outright for awhile. I see on this sub that people own tons of properties. How did you purchase them? [link] [comments] |
| Does it make sense to get a real estate license? Posted: 27 Apr 2021 01:49 PM PDT I have been thinking about getting a real estate license before I buy a fourplex to live in that I will also be renting to tenants. I have heard the classic phrase "you save 3% if you have a real estate license when you buy a home" but is it really worth the time and money that I must put in to get the license? I live in Kentucky if this matters and I'm not sure the exact laws regarding brokers and stuff. I plan on strictly being an investor and not an agent, broker, etc. but figured having access to the MLS will be a plus in my investing career. So in the end is it worth getting the license? [link] [comments] |
| Posted: 27 Apr 2021 05:22 PM PDT Hello everyone, Right now I am currently looking at a property that is 950 sqr feet for 190,000. I am going to be going to the area and hopefully living in the house for graduate school. At the moment I am trying to find a way that I can pay for the property before no one else snags it. I currently have about $7,000 saved but I would need to find a way to get a loan that is generous (credit score 724) but since my income is about 15000 (fluctuating with covid)a year I'm unsure how to proceed. What programs or types of loans would be beneficial if I would not be living in the property for 1-2 years and would still need to pay for my current rent. [link] [comments] |
| Posted: 27 Apr 2021 05:20 PM PDT Does anyone know how PropStream determines if a property is vacant? [link] [comments] |
| Posted: 27 Apr 2021 04:28 PM PDT We recently moved to a new area in TN and I looked on Zillow in the neighborhood to check out how long people have lived here. In my search I came across something I had never seen before and now I'm curious and hoping someone can clear it up for me. There are two houses that are approximately 2 blocks away from each other that recently closed for $1.8m on the same day. The thing is one of the houses sold for around $450k last year and that is the highest it's ever sold for until now. The other one is in the $500k range. Both show they sold for $1.8m. Is it possible someone bought several properties (there could be others) and they all show the final price paid? Or are there other reasons for inflating the values of these houses? [link] [comments] |
| What type of loan for an investment property? Posted: 27 Apr 2021 10:08 AM PDT Hi. I live in Florida in a house with my spouse who is the only person on the mortgage. I want to buy a condo which we are planning to lease out. Our current house is currently worth almost $300k, she still has a mortgage of almost $150k on it. I am not sure if it would be better to apply for an investement property loan or an equity loan? Can I apply for equity loan if the house has a mortgage in my wifes name? Just to mention, I worked on W2 until October 2020, then I got a new job where I am working as self employed on regular bi-weekly paycheck. Same occupation for over 5 years. I had an s corp with my wife for 5 years, it did not bring any income since March 2020 due to Covid. So technically I was self employed under that S Corp for 5 years. Since October 2020 I am working on a 1099 but not under that company. Will this be sufficient to qualify for a loan? [link] [comments] |
| House hacking SFH with Airbnb by the room Posted: 27 Apr 2021 09:37 AM PDT Hi everyone! I'm under contract for a SFH 4br/3.5 bath new construction home in downtown Indy. I was initially thinking to house hack by the room with long term renters (6,9,12mo leases). This would have covered about 90% of my mortgage before utilities. Now I'm thinking to go the short term rentals route (I.e. Airbnb). This would be a shared house scenario where any combination of 1 room, 2 rooms, or 3 rooms would be avail to book. I have to live in the property as I have an FHA loan. Eventually, I want to finish the basement (currently plumbed and electrical) with a full bath, bedroom, kitchen, and a separate entrance. This would allow me to put the whole home on Airbnb as a listing. I figured I'd try Airbnb first since it would be harder to transition later with long term renters. Anybody have any thoughts or advice on where my mind is at now? I'll likely close in 30-45 days. [link] [comments] |
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