Back in the day...

MD/DC · Member since 2024 · 1k+ posts · 1k+ votes

I started investing in my late 20s during early 90s in up and coming inner city neighborhoods. I lived in and renovated or renovated and rented. Two things I remember that probably don't happen today:

-First property was a no-doc loan, technically low doc because you still had to provide information but with 30%+ down pretty much anything you wanted was yours.

-Local banks were the best. Bank a few doors down from my residence didn't ever foreclose on a property. I went in one day and manager asked if I would be interested in buying a shell that was in default. It never even hit MLS. I was overwhelmed with projects at the time but paid $35,000 and sold two years later without any improvements for $125,000.

For older investors what are your back in the day stories?

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Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

Quote from @JD Martin:

This is a great thread for @Jay Hinrichs . He will have some great ones. My first mortgage was almost 11% and that was a good rate. My first rental I asked the guy at the closing table how much he usually got for rent and he told me he could pretty reliably get 300-400. I almost fell over dead thinking maybe I was going into the wrong business. I still have that house and it rents for a grand these days.

my first house was late 70s that I bought in those days it was 80 10 and 10 you need 10% cash and normally a private HML would give you the 10% second and bank was the first.. interest on the first was 9% second was 15%.. this was before the Carter interest rate run up.. paid 80k for it in Milpitas CA.. and it was brand new bought it from Shapel . today probably around 1 mil.

Rentals was not a thought to me in those days I was a land flipper.. had absolutely no interest in being a landlord.. and basically still dont to this day :) yes I have some rentals for tax purposes but not really for wealth building purposes.

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
1y
Quote from @Jules Aton:

I started investing in my late 20s during early 90s in up and coming inner city neighborhoods. I lived in and renovated or renovated and rented. Two things I remember that probably don't happen today:
-First property was a no-doc loan, technically low doc because you still had to provide information but with 30%+ down pretty much anything you wanted was yours.
-Local banks were the best. Bank a few doors down from my residence didn't ever foreclose on a property. I went in one day and manager asked if I would be interested in buying a shell that was in default. It never even hit MLS. I was overwhelmed with projects at the time but paid $35,000 and sold two years later without any improvements for $125,000.
For older investors what are your back in the day stories?

First house in 2021 - no internet to search at that time, remember going to realtor offices and seeing magazines and talking on phone with them about properties available and driving by them as there was no google street view. You are correct, local banks would go in and sit with them and go through rates and financing and understanding the payment. My first home was 6% and my wifes was 8%, so people looking at 7% today as crazy - that was normal.
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Scott P.
Rental Property Investor · Indiana...mostly · Member since 2019 · 468 posts · 245 votes
1y
Used to be able to ask for social security numbers on Applications.
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David Krulac
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
1y
The first apartments I rented as the owner, were previously rented by the former owner at $150 month including utilities. My big bold move was to rent them at $150 month with tenants paying for heat and electric. I owned for 37 years, raised the rent many times, and later sold for 6X what I paid. Zillow says the estimated current rent is $940, which I think is low. I have some similar apartments that I rent for around $1,100.
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David Krulac
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
1y
The first house that I bought was 17 years old, 3 br, 1.5 bath, brick ranch house with hardwood floors, Andersen windows, ceramic tile baths, gas heat and a brand new roof. I paid $27,000. Zillow says its worth $240,000, which I think is low, and would rent for over $2,000.
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
1y
Quote from @Scott P.:

Used to be able to ask for social security numbers on Applications.

Who's stopping you? I always collect social security numbers, driver's license numbers, date of birth, etc. You can't run a credit/criminal without the social.
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Dennis McNeelyPro Member
Investor · Gibraltar, MI · Member since 2017 · 108 posts · 103 votes
1y
I've been a broker forever, and remember the early 80's with 16% interest rates. Ughhh!
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Jules Aton
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MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
1y
Quote from @Dennis McNeely:
I've been a broker forever, and remember the early 80's with 16% interest rates. Ughhh!

A Realtor friend said he had some of his busiest years during that time so life goes on. Now people are shocked at 6-7%.
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Jules Aton
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MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
1y
Quote from @David Krulac:

The first house that I bought was 17 years old, 3 br, 1.5 bath, brick ranch house with hardwood floors, Andersen windows, ceramic tile baths, gas heat and a brand new roof. I paid $27,000. Zillow says its worth $240,000, which I think is low, and would rent for over $2,000.

That sounds like a nice property. Mine were 100yo rowhouses first three $50,000, $45,000 and $35,000 all worth over $400,000 now. But to put it in perspective I was only making $35,000 a year at my day job.
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Charles Perkins
Member since 2024 · 222 posts · 161 votes
1y
Bought my first property near downtown Seattle that had two homes on it for 26K. Today one has trouble finding anything here under 500K.
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JD MartinBusiness Member
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
1y
This is a great thread for @Jay Hinrichs . He will have some great ones. My first mortgage was almost 11% and that was a good rate. My first rental I asked the guy at the closing table how much he usually got for rent and he told me he could pretty reliably get 300-400. I almost fell over dead thinking maybe I was going into the wrong business. I still have that house and it rents for a grand these days.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y
Quote from @JD Martin:

This is a great thread for @Jay Hinrichs . He will have some great ones. My first mortgage was almost 11% and that was a good rate. My first rental I asked the guy at the closing table how much he usually got for rent and he told me he could pretty reliably get 300-400. I almost fell over dead thinking maybe I was going into the wrong business. I still have that house and it rents for a grand these days.

my first house was late 70s that I bought in those days it was 80 10 and 10 you need 10% cash and normally a private HML would give you the 10% second and bank was the first.. interest on the first was 9% second was 15%.. this was before the Carter interest rate run up.. paid 80k for it in Milpitas CA.. and it was brand new bought it from Shapel . today probably around 1 mil.

Rentals was not a thought to me in those days I was a land flipper.. had absolutely no interest in being a landlord.. and basically still dont to this day :) yes I have some rentals for tax purposes but not really for wealth building purposes.
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Charles Perkins
Member since 2024 · 222 posts · 161 votes
1y
I remember being excited to refinance at 5%. 9% was good rate and plenty of loans were 12% or more.
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Scott P.
Rental Property Investor · Indiana...mostly · Member since 2019 · 468 posts · 245 votes
1y
@Nathan Gesner Hmmmm....thanks for asking....i thought there was a law change quite a while back, maybe over 10 years ago, which prohibited smaller landlords like me for getting SS#s. I could be mistaken but I know I thought it was correct at the time. So, I took it off my Application and haven't really thought about it too much since then.
I don't remember now where I first heard about it.
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Dan H.Pro Member
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
1y
Quote from @Scott P.:

@Nathan Gesner Hmmmm....thanks for asking....i thought there was a law change quite a while back, maybe over 10 years ago, which prohibited smaller landlords like me for getting SS#s. I could be mistaken but I know I thought it was correct at the time. So, I took it off my Application and haven't really thought about it too much since then.
I don't remember now where I first heard about it.

Can you get credit report without an SSN? it may be jurisdictional specific, but it would certainly limit the sources for providing credit reports.
Good luck

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
1y
Quote from @Dan H.:

The applicant needs a social security number or an individual tax ID number (ITIN). There are almost no exceptions to this, so it's not even worth considering. Your policy should be that the applicants have an SSN or ITIN, period.
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Scott P.
Rental Property Investor · Indiana...mostly · Member since 2019 · 468 posts · 245 votes
1y
Thanks @Nathan Gesner I admit is seems odd that we couldn't require a SS#. I'm probably older than a lot of people here. I didn't stop requesting SSNs for no reason. But I could've made a mistake in my understanding of law "back in the day."
My memory is that there was a time when we were not allowed to require them, but maybe I'm wrong or maybe the law changed back. I also remember a time when we could claim a dependent on our tax returns even if the dependent didn't have a SSN. After all, a baby can't work. Why would a child need a SSN? But my memory is that around the mid 90s all babies born had to have a # in order to be claimed as a dependent on tax returns. Similarly there was a time when we needed a Doctor's prescription to turn in a receipt for an OTC med, like Zyrtec, to a FSA or HSA or both, but now a script is not req'd, I believe.
Anyway, I didn't stop requesting SSNs for no reason. If I can remember what gave me that impression I'll post it. I did do a search a few minutes ago and I admit I can't easily find anything that prohibits it now-a-days.
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