All Forum Posts by: Account Closed

@Albert Bui That is good detail.

@John Kraakevik Hi John. This is only generalized info since general economic conditions, income, being self employed vs W2, experience, knowledge, spouse, risk tolerance, amounts owed on properties, reserves, interest rates, terms, equity & goals and so on, all play a role in the moving parts world of real estate investing. 

I don't like putting my residence at risk, so I don't. I think HELOCs are putting properties at risk. Most HELOCS can be closed or called on short notice. It typically happens when you need it most. So, I would plan my investing as though the HELOC wasn't there, and since it is there in your case, I would use it sparingly.

When buying Subject To, you are taking over the interest rate of the existing loan. If the loan was taken out at 3.75%, that is what you are paying. If the loan was 8% (as it often would be when I first started some twenty years ago) then that is the rate you are paying. Generally, going to a mortgage broker and refinancing a loan, costs you more than you save when using Subject To and it defeats the whole purpose of Subject To anyway. A refinance pays off the Subject To. 

Depending on the specifics of your rental, actual cash flow, what it would sell for etc, my inclination would be to sell it (or maybe refinance the rental) and take the equity and buy several other properties using Subject To, selling them to Tenant Buyers who would each give me $10,000 to $25,000 down to buy the properties from me. I tend to cash flow my Subject To's on average, at about $500 per month after making the underlying mortgage payment that I took over in the Subject To plus I get to keep the $10,000 to $25,000 down payment and I reinvest that into additional properties (or I can spend it ;-). I know that is packed information, but you get the general idea.

@Cody L. It's required by law. If I don't make that plain, the charge could be "practicing law without a license". Also, laws vary state by state and even an attorney will say "this does not constitute legal advice and does not establish an attorney client relationship. " I lived in a neighborhood of attorney's and judges for about 25 years so, and law is all they talk about, beside their latest trip to the country of Where-is-it-stan or whatever. So, I picked up a few inside tidbits.

Is this Post a setup? Is there a camera hidden somewhere for "Candid Camera"?

 Well, maybe not 100% the same. It is unlikely that in seller financing the seller is having the buyer fill out a 1003 application which is signed under perjury laws and then sell the note on the secondary market insured by Uncle Sam. A bank is however, likely to bundle the note with others and sell it on the secondary market insured by Uncle Sam. When necessary, the government will enforce the note with the 1003 information in hand and prosecute the signatories. It is a federal crime (criminal) to lie on a 1003. It is a civil crime (monetary) to lie on a seller financed contract. Keep in mind that I am not an attorney and this in no way constitutes legal advice. It is my opinion. Seek legal advice for any contracts you enter into. 

@Steve Vaughan I had to chuckle. "I don't buy from investors anyway, especially ones that bought last week with a QCD."  I'll bet you an apple orchard most people don't have a clue why that is important. I second your sentiment.

If you are planning on holding that property and collecting rents, be sure you plan ahead.

Single-family rents, as measured by the CoreLogic Single-Family Repeat Rent Index (SFRI), climbed steadily between 2010 and 2016. However, as CoreLogic reported last week, rent growth has seen a material decline during the last 18 months. The index shows that rent growth has been slowly decelerating (Figure 1) since February 2016 when it peaked at a 4.3% year-over-year increase. As of May 2017, single-family rents increased 2.9% year over year, a 1.4% point deceleration since

http://www.zerohedge.com/news/2017-07-19/rental-gr...

@Paula Fulbright

Decide which kind of investor you want to be (SFR, Commercial, Land, Tax Liens, HML, Multi-Family, Notes, Fix & Flip, Buy & Hold, "Subject To", apartments, duplexes, assisted living, REOs, Foreclosures, Short Sales), etc.. Decide how much money you have access to, & the zip codes, city or state you want to focus on. That will determine the next step. Outline where you want to be in five years. Put it all in writing. Start working your plan. There are plenty of people around to help you each step of the way.

@Toby Rachel I suppose I'd do a bunch of Subject To's and cash flow them so I can take care of my family and spend as much time doing whatever I wanted with them.  What did you have in mind?

@Ethan S. I use a couple of different cars. Depending on the reason for the car. I have a car that is "average" for the neighborhoods I buy houses in. Meaning, I have better negotiating power with the seller if I don't "flash my cash" driving down the street. I learned that early on when one of the sellers that I had bought a house from but hadn't yet been through escrow, wanted more money because "I could afford it" and he mentioned my very nice car. So, I keep the very nice car for taking the Mrs. out to very nice restaurants and use the "average" car for meeting with sellers. Also, if you do buy a car, try to pay cash. It helps when you go to a lender and there isn't a $600 a month payment on your credit report and you are trying to borrow money for the next real estate transaction. Make your money first, buy the nice car later.