Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Mo Karim

Mo Karim has started 11 posts and replied 159 times.

Post: What are the real perks of buying RE internationally?

Mo KarimPosted
  • Real Estate Agent
  • Dallas, TX
  • Posts 164
  • Votes 80
Quote from @Steve K.:

Our only international investment is in Costa Rica, and we bought the surrounding vacant land in order to make sure those lots were developed in the best possible way for our property, so ended up developing a bit and creating a nature preserve kind of by accident. In my opinion, outside of personal lifestyle reasons, there aren't really any advantages to investing in Costa Rica over the USA. It's a very volatile business environment there with much higher risk, much harder to get financing, the economy is based almost entirely on tourism, etc. There's money to be made for sure of course, but the market is very different and it's kind of the wild west compared to the US when it comes to regulation, which means higher risk. The saying goes that property is easy to buy in Costa Rica but don't ever try to sell (during the late 2,000's the average time to sell a property there was 7 years). I wish we had bought in Mexico. 

@Steve K. where is Costa Rica? I’ve looked extensively in Santa Teresa. Been there a lot and love it there. Yea financing is tough for foreigners so everything will be cash purchase. Beautiful place.

Post: NYC Bans STRs. Are MTRs next?

Mo KarimPosted
  • Real Estate Agent
  • Dallas, TX
  • Posts 164
  • Votes 80

NYC just put in place tough STR ban:

https://www.cnn.com/travel/nyc-airbnb-short-term-rental-rule...

After the dust settles, will MTRs be next for cities to go after?

Post: Midterm Rentals in Dallas-Fort Worth

Mo KarimPosted
  • Real Estate Agent
  • Dallas, TX
  • Posts 164
  • Votes 80

NYC just banned STRs almost completely

Post: Paying off debt vs. investing in LTR - Thoughts?

Mo KarimPosted
  • Real Estate Agent
  • Dallas, TX
  • Posts 164
  • Votes 80

@Alex Kosley - I'd pay off the car loan or downgrade the car. Kind of tough to do now with car prices so high. That interest rate is too high for me. I haven't had a car payment in 12 years and buy cars (when absolutely needed) with cash.

While you decide what to do, I'd stick the 100K in US Treasury bills or money market (look up Vio bank) and earn 5.25-5.5% interest on it risk free. Thats $5,500 in free money a year you can use to contribute towards any other debt such as the 2nd lien or student debt. You have a very high income and I don't see a reason to have either of those on your balance sheet. Nice job saving!

Townhomes - 250K for a townhome will be tough in DFW. Plus you have HOA which I'm never a big fan of. I'd suggest getting a single family home without HOA and something that needs cosmetic reno for your first investment property.

Post: What are the real perks of buying RE internationally?

Mo KarimPosted
  • Real Estate Agent
  • Dallas, TX
  • Posts 164
  • Votes 80
Quote from @Joe S.:
Quote from @Henry Clark:

@Joe S..  This must be a loaded post.  

Things always look greener on the other side of the fence.  

Belize:

We invest in Belize.  I don’t want any of you to come invest there.  So I’m not selling Belize.  

Belize is wonderful.
 You can buy land for $500 per acre (1 hour out in the jungle), 

you can get financing in country (50% down and 12% interest),

off market deals are everywhere (everyone in Belize is a realtor, no license is needed and truly everyone is a realtor), 

Last I counted there are five ways to own property in Belize.  (Can you imagine five ways to figure out if you own the property?).

property taxes are close to zero ($1mm house might cost $160 USD, but insurance is triple), 

Best of all, are you ready????  There is no tax on the sale of property.    No taxes.  (You have to get permission to move large amounts of money out of the country.  Also the US requires you to pay income taxes even for overseas profits.).

Top 10 murder rates by country in the world.  All depends on the 10 blocks you’re standing in Belize.  I’ve never stood in those 10 blocks.  Also never been in Gary, Indiana.

Glad I’m a male.  It’s all about male machismo.

So why are we investing there?  My family background says go see the world.   At thirteen I chose Brazil, India, Australia, South Africa or Belize as countries I would like to live in.  Romantic!

Now this is an REI forum. We do Self storage, country subdivisions, and contractor buildings. Even though Belize is a Romantic move for us, I can't turn my business brain off. Our Belize investments we have already made will be 10, no 30 times greater than any investment we have made to date.

Italy:

Gotta love Italy.  Made 4 trips there.  Be there again in two weeks and over thanksgiving.  My brother and his wife are moving there in a week for 3 or 4 years.  My son is stationed in Sicily with the Navy.  Have not researched fully.  

What we love about Sicily is the pasta, First world amenities, having both a yellow and red Maserati blow past me on a curve doing 100, great cannoli and Arancina.

But this is an REI forum.
 There are 1,000’s of properties that have been on the markets for years. 

 Depending on the city, the city and the banks work together to establish the interest rates.  Today.   Yes Today in certain towns you can get 2%, 3%,4% interest rates.  Ever heard of a town called Pisa?

STR you can make enough in 3 months to pay your annual PI.

You go home to the US and come back 3 months later and there are some squatters from ???? Country in your house.  Might take you months to legally get them out.

You remember Covid.  Italy was one of the worst countries hit.  Everyone thought it was because they have a lot of old people.  If you go into a hospital at 8pm you sit in a square room about 30 x 30.  There are small chairs next to each other.  About 50 people sitting side by side.  Just patients.  Relatives have to sit outside.  The cost was cheap though.  

Can you make money in Sicily? No clue. Haven't run the numbers or analyzed in depth. Won't be buying a house there or making an REI investment for profit sake.

 

@Joe S.

Looks like you’re in San Antonio.  You don’t have to invest in Belize or Sicily to invest in a different nation. Just invest in the Republic of Texas.

My brother moved out of Texas so here are some deals.

New Braunsfel there is 12 acres you can make $3mm profit in 2 years.  Or make $500k in 3 months.

San Antonio there is 4 acres near the abandoned airport you can make $2 mm profit in 2 years.  Sell the old metal airplane engine crates for scrap metal.

25 miles east of Dallas off 175 there are two acres you can make $100,000 in 6 months.  Or $300,000 in 2 years.

What did Maverick say?  Your in a target rich environment.    

Start small and Make Your Big Mistakes Early.


Belize is also great because our Teak Plantation mangers wife is a great cake maker.


 Where do I sign up? Lol

 @Henry Clark @Joe S. - same question, where do I sign up for those TX deals?

Post: Appraisers blowing up deals

Mo KarimPosted
  • Real Estate Agent
  • Dallas, TX
  • Posts 164
  • Votes 80
Quote from @Jay Hinrichs:
Quote from @Mo Karim:
Quote from @Jay Hinrichs:

this happened to me in the Dallas market and after about 10 flips there we finally moved to other markets.. part of it was our price point.. they were all fha buyers.. so once U got that apprasial it was stuck for 6 months .. buyers did not have money to cover..  

@Jay Hinrichs - Yep, seen FHA and VA appraisals come in under comps and contract price multiple times this year. But it also happened to me when I sold my Oklahoma 7plex recently. Thankfully buyer and I were able to reach a compromise as they had cash to cover.

What markets are you in now? 


Oregon  new builds.. the rest of what i do is as a capital partner.. My money there work.. Currently operating in ..  KC  Toledo Cleveland Indy W pa  Baltimore  Augusta

@Jay Hinrichs awesome! I have a few rentals in KC burbs.

Post: Appraisers blowing up deals

Mo KarimPosted
  • Real Estate Agent
  • Dallas, TX
  • Posts 164
  • Votes 80
Quote from @Jay Hinrichs:

this happened to me in the Dallas market and after about 10 flips there we finally moved to other markets.. part of it was our price point.. they were all fha buyers.. so once U got that apprasial it was stuck for 6 months .. buyers did not have money to cover..  

@Jay Hinrichs - Yep, seen FHA and VA appraisals come in under comps and contract price multiple times this year. But it also happened to me when I sold my Oklahoma 7plex recently. Thankfully buyer and I were able to reach a compromise as they had cash to cover.

What markets are you in now? 

Post: Appraisers blowing up deals

Mo KarimPosted
  • Real Estate Agent
  • Dallas, TX
  • Posts 164
  • Votes 80

Something to keep in mind and I've seen this happen numerous times starting late last year, both from personal investment side and agent side: appraisers are being very tough on their appraisals. They're not giving an inch and erring on the side of caution even with good comps. Hoping for 5-10K over your contract price so you can use the excess as credit towards closing costs? Probably not going to happen. Appraisal came in 5-10K below contract price and you want that seller side reduction? That's also probably not going to happen. I've seen appraisers blow up multiple 7-8 figure deals from other experienced commercial brokers. Something to pay attention to as you buy and sell in this environment. 

Post: Selling Long-Term Rental Property to roll into Syndication

Mo KarimPosted
  • Real Estate Agent
  • Dallas, TX
  • Posts 164
  • Votes 80

Ah ok. I assumed 1031 because you mentioned "like-for-like." Cost seg will give 80% accelerated depreciation this year so I guess it depends on the size of the deal for the syndicator. 

Post: Selling Long-Term Rental Property to roll into Syndication

Mo KarimPosted
  • Real Estate Agent
  • Dallas, TX
  • Posts 164
  • Votes 80

You want to make sure your capital is protected so I think sponsor and the deal is very important. Did you find a syndication that'll take 1031 money? Most wont.