All Forum Posts by: Bill B.

You’re talking about 3% on $50k. That’s $125/mo. If this is a bad deal because of $1,500/yr in interest run away and have your family sell the property. 

Heck. You could get a new loan for $150k. (Give that to sellers, they picket $100k after paying off the loan.) and then pay them 4.5% interest (what they could get from the bank.) now you’re talking $750/yr extra interest, and it’s being paid to family. 

780 or higher should get you the best rates/terms available, no difference than 820 score. (Some people say 760 or higher.)

Again. They can’t delete your “old mortgage”. Even if they stopped reporting your payments the history would be there. 

You wouldn’t magically have access to hundreds of thousands of more dollars if your credit score was 20 points higher  

TLDR: You aren’t being harmed at all by being 780 instead of 800+. Get a free report from the credit agencies. If you want a second opinion check credit karma, ask your credit card or your bank. Many include them constantly. But there’s no benefit to be gained. 

Allstate says no to any trampolines at any of my Vegas properties. They give you 20-30 days to prove they are gone or cancel your insurance. They have no problem with in ground pools. Though USLI, one of the biggest umbrella policy providers, dropped my max coverage to $1M because I had pools. So I had to leave them. I’d never allow above ground pools.

Did you read the 7 day old replies by 4 experts before responding? SMH. 

I THINK what Kevin is saying is what I was thinking. 

If you’ve had a mortgage for 20 years and they stopped reporting your payments 6-12-18 or even 24 months ago. You’d still have 18-19.5 years of history. They can’t delete your payment history. 

Nor do I understand how it cost you hundreds of thousands in funding to not have payments recorded. I’m POSITIVE you aren’t saying they are reporting non-payment when you are paying. To prove payments you could simply show your latest statement to the lender denying you hundreds of thousands of dollars. But worst case they should assume you’ve paid it off, helping you. 

In any case reach out to the credit reporting agency in question after requesting your free credit report. It’s all free. 

So you’re saying you’d be collecting more rent (92% of $1,000/mo or $920 instead of $800, or $825, or $875.) if you were using a property manager? Then why aren’t you using a property manager? You are literally paying to play property manager. 

Call a couple local property managers (I’d suggest key property be one of the calls. But that is far from the point of this post.) first they’ll confirm your $1,000/mo “market rent” isn’t a) BS or b) still too low. Second, you’ll collect more money while doing less work Third you’ll stay legal with notices and operations. Fourth, tenants tend to “try more stuff” with mom and pop landlords than property managers. Fifth, you’ll get better screening the next time you have a fancy. And lastly. You’ll make more money today and in the future. 

@Jay Hinrichs and @Bruce Lynn

I remembered that deal too so had to look it up…

original deal:

https://www.cnn.com/2017/08/08/us/couple-buys-san-francisco-.... 

2015 this time. They actually failed to pay taxes in 1983 as well according to the follow up article below. 2 years later in 2017 the County reversed the sale voting 7-4 against “these out of town speculators trying to make a big payday” and for the fine people of their district. 

https://www.sfgate.com/politics/article/SF-supervisors-to-vo...

You forgot to say, or I missed it, how much you paid for the property. That’s the biggest part of the puzzle. 

If you sell for $460k and it costs you say $30k to sell, you net $430k. If you paid under $230k, you’d save $30k in federal capital gains taxes and maybe another $15k or more in state income taxes. That means you’d have to make $60k? In rental income it break even with selling instead?  (Call it 20% federal and 5% state ($15k in income tax, plus the $45k in additional taxes you created.). And that’s with zero vacancy, zero repairs, zero capex. And assuming a 0% return on the $200k you could have in the bank earning $10k/year if you sold. 

If you paid over $375k MAYBE you could keep it because the taxes saved are so low. But that also means you’re generating almost zero appreciation and barely better than bank CD returns. I’d probably still sell. 

The lending type doesn’t matter. The “Big deals” are…

You have to buy something you don’t already own, not pay off debt, renovate a home you own, or build on land you already own.

You have to spend all the “cash” you receive.

You have spend more than your net selling price.

You can never receive or have control of the cash, you need a QI PRIOR to selling. 

It may not add much but as it happens…

My new build home in Las Vegas (DR Horton build) specifically says I do not have any subsurface rights. I don’t know what they expect to find. We’re not a hotbed of oil, diamonds or even lithium. But I guess it doesn’t cost them anything to keep them. I bet if they found a subsurface problem, I would own those. :-)

ps. How would they get to any of these subsurface rights with 1/8th acre lots and barely 20 feet in any direction between any houses and any roads.