All Forum Posts by: Account Closed
Account Closed has started 1 posts and replied 380 times.
Post: Cashflow statements on performing properties
- Professional
- Jacksonville, FL
- Posts 397
- Votes 34
Originally posted by @Danny Day:
Originally posted by @Mike R.:
It is used along with the cost of the units to calculate the cap rate (capitalization rate)... many often look at the cap rate when analyzing any multi family deal. For estimation, expenses (not including debt service) should be somewhere at 50% of revenue/rental receipts. Do you have an estimate for what the cost of the units are?
Post: Why buy larger apartment buildings?
- Professional
- Jacksonville, FL
- Posts 397
- Votes 34
Originally posted by @Connie Stainbrook:
...My house already went up 300K and I have only owned it since February...
A price growth of $300K in the value of a house in 8 months depending on what you bought it for isnt shabby.
Post: Mortgage and LLC
- Professional
- Jacksonville, FL
- Posts 397
- Votes 34
Originally posted by @Edward B.:
In some cases it is more than asset protection. If feasible, you typically don't want to have debt from business investments (which could be substantial) to be counted as personal debt; that may have its disadvantages when you then have to finance personal acquisitions.
Post: Mortgage and LLC
- Professional
- Jacksonville, FL
- Posts 397
- Votes 34
Originally posted by @Andrew P.:
Originally posted by @Account Closed:
Originally posted by @Andrew P.:
Hi I'm trying to buy rental properties for 80, 90k. Wells Fargo is telling us they can not give loans with the title being in the LLC, it has to be an individual loan. They only do LLC title loans for above 400k. Is this true? Does everyone get an individual loan then transfer the title after closing?
Each bank will vary. What type of property?
They are mostly 2 unit houses. Yes Wells knew up front about the LLC but our now forcing us into a personal loan. I read on their website they do commercial loans for 50k and above.
Perhaps they are/were concerned about the LLC demonstrating the ability to service the loan hence require the personal guarantee? If there arent any tenants in the house (lease in place), it may be an issue. The LLC has adequate assets/collateral? Be certain whoever you are dealing with at the branch is familiar with how to structure what you are trying to do.
Post: Mortgage and LLC
- Professional
- Jacksonville, FL
- Posts 397
- Votes 34
Originally posted by @Andrew P.:
Hi I'm trying to buy rental properties for 80, 90k. Wells Fargo is telling us they can not give loans with the title being in the LLC, it has to be an individual loan. They only do LLC title loans for above 400k. Is this true? Does everyone get an individual loan then transfer the title after closing?
Each bank will vary. What type of property?
Post: How would devalue of the US dollar effect realestate?
- Professional
- Jacksonville, FL
- Posts 397
- Votes 34
The devaluation may cause foreign direct investment and inflow of foreign money into many sectors to increase (including real estate). That may then alter demand and supply within the sector (total demand and inventory levels). Prices consequently may start increasing.
Some of the real estate price patterns in Canada (Vancouver, Toronto etc.) is attributed in part to increased foreign investment activity in the real estate sector there.
Also, companies in the real estate sector that have to import equipment, materials or input of any sort in the normal course of their business, would have to spend more per the devaluation.
The increase in 'cost of good' as a result of the devaluation would be transferred to the buyers and reflected in an increased real estate price.
Post: How would devalue of the US dollar effect realestate?
- Professional
- Jacksonville, FL
- Posts 397
- Votes 34
If the value of the dollar (or any currency) devalues (or gets devalued) compared to another currency (and there are many reasons why a currency devaluation could occur -- internal fiscal crisis, external market forces etc.), there might be pressure for real estate prices to escalate. There are however also grander effects to the economy as the value of international trade between nations each year is often substantial.
Post: The Effects of Pro Sports Teams Movements On Real Estate Prices
- Professional
- Jacksonville, FL
- Posts 397
- Votes 34
Originally posted by @Patrick Gleason:
If an NFL team were to movie to LA, they would only do so if the taxpayers pick up the cost of the stadium. Given the skyrocketing prices though, I don't see a team heading over there anytime soon.
It does not seem it is a matter of whether a team will be going to LA but rather when.
Post: To new Investors...Bad CMAs can cost you a lot!!!
- Professional
- Jacksonville, FL
- Posts 397
- Votes 34
Originally posted by @Ricardo G.:
If you're new-ish, please make sure you get a good Realtor who understands the market and takes their time to NOT ONLY complete, but also ANALYZE the comparables (CMA).
2 days ago, I got all excited when certain realtor told me we could sell my rental house for quite a bit more than what I had thought.
I had my doubts so I requested that she dend me an email whith the properties she had used on the CMA. Long story short... Only one house was a true comparable,
the others where either duplexes, bigger, with more ammenities, or fixer uppers.
If there were no other recently sold houses in the area I would understand using "what's available". but in this particular case, houses are being bought and sold frequently enough.
Either the realtor was trying to get the listing (even if this meant letting it sit for months on the MLS, or she didn't really know how to properly do a CMA.
I'm still not too experienced so I welcome and encourage anyone's contributions. Thanks everyone and I wish you all lots of success.
You may find this to be the case when dealing with some realtors. Not all of them are familiar with generating accurate comps.
Post: Zillow estimates?
- Professional
- Jacksonville, FL
- Posts 397
- Votes 34
Originally posted by @Joseph Daugert:
... Are the Zillow rent estimates worth any consideration or are they just pie in the sky guesses?...
It isn't a "pie in the sky" guess but there are tons of instances were a zestimate will be 'way off'. You want to use some sort of MLS based comps which does mean getting a realtor involved.