All Forum Posts by: Account Closed

Account Closed has started 141 posts and replied 4068 times.

Originally posted by @Stephanie Ro:

@Account Closed Thank you for this. All of this takes longer than 3 months? I have seen several properties for over 100 days. There's lots to factor in. I suppose I shouldn't immediately think something is wrong with it.

Your Comment: "All of this takes longer than 3 months?"

Please reread your question. It says "30 Days". "What Are Some Reasons a Property is on the MLS for over 30 days?

Over 90 days would mean other factors.

1 Vote

Originally posted by @Stephanie Ro:

For my first purchase, I will be house hacking in a multifamily property. The examples below just happen to be in PA where I have never lived. The questions apply to any property no matter the State. When I return to the US, I am happy to go anywhere only if there is a sports bar in sight!

While browsing the MLS, I notice that properties sit on the MLS over 45 days. Instantly, I think there is something wrong with them – termite damage, major plumbing issues, structural/foundation problems…etc. I've even seen photos with contractor's equipment lying around. It looks like they walked off - not very attractive. Perhaps financial issues with the investor?

However, there are some properties that are listed as “turn-key” or “newly renovated”, yet they sit on Redfin for over 100 days. (I take the property descriptions with a grain of salt.) My thinking is that this area really isn’t a renter’s market or that the house is too rural for a big interest.

What else can it be?

#1 For example – https://www.redfin.com/PA/Pittsburgh/7413-Duquesne-Ave-15218/home/74519930 this one looks like college aged party-goers live here, but it states that the two current tenants wish to stay. (Personally, I would renovate the whole thing (lightly) and get new tenants who would pay a few hundred more). An unfinished basement would be a dream!
*if there are two renters, why can’t this sell?* Why are there no investors interested?

#2 https://www.redfin.com/PA/Somerset/363-W-Church-St-15501/home/139058626 This one looks really fresh, but it's appears to be rural. Maybe too rural for an investor? Why do you think this has been sitting on the MLS?

I know to consult a REA to get a more clear story, but at first glance, what can you tell a new investor to be like me? If you came across these properties on the MLS, would you investigate or pass them up?

Thanks!

-Steph

A seller may want to keep the listing open for a couple of weeks to produce a possible bidding war. Then, from the time an offer(s) is/are presented & accepted and then on to closing could be 30 days or more. Some agents keep the listing open because they are not confident the buyler will be able to complete the transaction or perhaps that the appraisal will not support the offer. Then it becomes a negotiation conversation with no guarantee how things will finalize.

Cash offers close much more quickly.

Most offers in the US require a bank's approval for lending.

2 Votes

Originally posted by @Casey Lance:

I was not sure where to place this post, so feel free to move it if necessary. My apologies in advance.

I have an RV park that has been running for 3 years and I have been filing taxes under my name, and just running it as a self employed type of business. I would like to start an LLC in order to separate business from my personal assets. I am not sure how the tax process works with an LLC in Texas though.

Can I just file my taxes the same way I have been, with the same/similar forms for profit/loss? Or does an LLC have similarities to a corporation where I would need to file a lot of extra paperwork explaining what assets the park had, how much inventory of any products used at the park were left over at the end of the year, how many feet of toilet paper is left in the bathroom, ect (basically making the tax filing really complicated and a lot of extra things to keep up with)?

I read that there is some tax advantages to filing taxes with an LLC compared to a corporation because it could be done under the owners name, but I don't really understand what the differences are. If anyone could explain what I would need to do differently once the LLC is formed that would be great.

There is no difference if it is under an LLC. There is a difference if it is a Corporation.

0 Votes

Originally posted by @Michael Plante:

Originally posted by @Account Closed:

Originally posted by @Michael Plante:

Speak to me like I am 5 Years old

Customary Total fees interest etc for 100k hard money loan for 4 months?

A typical setup is 2% up front and 12% per year (interest only) divided by 12 months. So if you had $100,000 it would be $2,000 up front (called points) and that usually is taken out of the $100,000 so you end up with $98,000.

Then $12,000 per year divided by 12 months is $1,000 per month for 4 months so $4,000

That's a total of about $6,000 plus junk fees, title, insurance and property taxes and you would repay $106,000 at the end of 4 months.

PERFECT! Thank you

I need to make two additional comments:

1. Since you paid the points up front out of the $100,000 you don't pay that twice, you repay $104,000 at the end of 4 months using this scenario

2. The other scenario (and it depends on the hard money lender) is that you make payments of $1,000 to the HML each month and you repay $100,000 in the month that you pay it off. So, if it happens that you need the money for 6 to 12 months, you make a payment of $1,000 a month for each month and then pay off the $100,000 when you sell the property or refinance.

1 Vote

Originally posted by @Matthew Williams:

Hello all,

I am considering doing a direct mail campaign to find a primary residence for my pregnant wife and I.

I was wondering if it is appropriate to Visit the house of an interested seller before making an offer, or is it better to make an offer as is?

Thanks!

Always walk the floor plan first and see if it works for you. Also look at the big 5 - roof, heating/AC, electical, plumbing and foundation.

Congratulations on your family.

1 Vote

Originally posted by @Michael Plante:

Speak to me like I am 5 Years old

Customary Total fees interest etc for 100k hard money loan for 4 months?

Then $12,000 per year divided by 12 months is $1,000 per month for 4 months so $4,000

That's a total of about $6,000 plus junk fees, title, insurance and property taxes and you would repay $106,000 at the end of 4 months.

2 Votes

Originally posted by @Jay Hinrichs:

Originally posted by @Jonathan Greene:

I only needed to read this "I had a rental application from someone with poor credit." to say you dodged a bullet.

Sad state of affairs when you need to be a private detective and spend all this time trying to figure out who to rent to LOL

And it's even worse to try to track them down for collections if you don't do it "right" up front.

0 Votes

Originally posted by @Russell Brazil:

Originally posted by @Prabhakaran Subramanian:

Originally posted by @Russell Brazil:

There is no official way to measure the square footage of a house.

Imagine measuring using the outside walls, then measuring inside...youd get 2 totally different numbers. Closets or no closets.

Thanks for your response. I agree there could be some difference even if i go with one more time doing appraisal. Result may vary.

Will this difference help to backout / negotiate?

No it won't. Have 10 different people measure the house and you will get 10 different square footages.

And 10 different appraisers will give you 11 different values. (Someone will say "it's worth between "X" and "X" + 10%)

0 Votes

Originally posted by @Tj Barrett:

@Steve Morris I recently found a property in Oregon that is in Lis pendens. How would one in this state go about getting the property owner to reassign rights? Would I need to get a real estate attorney involved?

If it has a Lis Pendens no title company will give you clear title.

0 Votes

Originally posted by @Peter Morgan:

Hello,

I need to install few non gfi electrical outlets, do I need to reach out an electrician for that?

Appreciate your inputs. Thanks

Depends. Have you played with electricity before? Is it being added to a bedroom or what? Is the line grounded? Do you know which breaker turns off the line you are adding the outlet to? Can you properly tie the 12/2 to an existing outlet? Can you get past the studs in the wall to run the new line to the new location? Will the new outlets overload the circuit or is it within spec? Just a few things to consider.

1 Vote

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All Forum Posts by: Account Closed

Account Closed has started 141 posts and replied 4068 times.

Post: What Are Some Reasons a Property is on the MLS for over 30 days?

Post: What Are Some Reasons a Property is on the MLS for over 30 days?

Post: Filing taxes with an LLC?

Post: Usual Total fees interest etc for 100k hard money loan for 4 mont

Post: Direct Mail question

Post: Usual Total fees interest etc for 100k hard money loan for 4 mont

Post: Did I dodge a bullet or was I too suspicious?

Post: Appraisal came back with different SQFT than the listing

Post: “Pre foreclosure” and Lis pendens

Post: Need to install non gfi electric outlet - Electrcian needed?