All Forum Posts by: Roy S.

The prime rate is currently 3.25%. Add +2.75% and you get 6%. So both loans start at the same rate.

The first loan has a 3 year BALLOON. That means it is due in 3 years, whereas the second loan gets reset, probably to a higher interest rate. The first loan you HAVE to refinance, the second loan, you MAY refinance.

Without the balloon, I'd go with loan#1. But because of the balloon, loan#2 is the clear winner.

Note: the 3.25% is the wall street journal prime rate. This seems to be the most commonly used prime rate, but there are various ones to choose from. You may want to check your documents and see which prime rate it refers to.

Though Kevin makes it clear you may be able to do even better :)

Good luck!

This thread reminds me of a story I heard where the Buyer got very upset after the sale. One of the things that attracted him to the house was an oak-like toilet seat. The seller took it with him.

Realtor solved the problem by spending $40 at Home Depot.

It's good you're asking about this now so you're know what to put in a contract.

The following is just my opinion:

shower curtains - goes with seller. But if they match a theme in the bathroom, I'd leave them

vanity mirrors - stays. Though I notice you say "mirror" and I'm thinking the whole mirror/cabinet/light thing.

toilet covers - goes. This threw me at first because I thought toilet lid, and wondered why would you take that? :) But I realize what you mean now. Again though, if it matches a theme, I'd leave it.

floor mats - usually goes. Especially small ones. If it's a large area rug, I'd make sure the contract mentions if it goes or stays.

One thing to remember - once you've been in the biz for a while, you start to get referrals. These are often worth more than making an extra couple of bucks each sale.

Good luck!

I think prices will pretty much remain the same, as a percentage of people's income (ie, back/front ratios). Building materials will get cheaper, but then people will want more, jacking the final price back up.

Example: drywall is cheaper to install than lath & plaster, PVC is cheaper than cast iron stack pipes, etc. But now everyone wants A/C, every kid gets his own bedroom, larger closets, etc.

I was just picturing yesterday how nice it would be to have microbots patching cracks in walls, cleaning drain pipes, searching for bugs, and various other things. I can't wait for the future to get here :) (OTOH, I'm still waiting for my flying car)

I'm afraid you're going to have to go through a lot of pretenders to find the non-pretenders. Just chalk it up to the cost of doing business.

Go to REI meetings. Get up in front and tell what you want. Network while there.

Call the various bandit signs. Most are either wholesales looking for properties, or wholesalers looking for buyers.

Call owners of apt buildings. Ask how they found it.

Watch for an apt in foreclosure. Offer the owner a couple of $$ in exchange for the postcards/letters he gets.

Find an apt for sale. Offer the realtor/owner some $$ to send a letter back to those who make lowball offers (I don't think it would be right for the realtor to give out names, but they may be willing to forward a letter)

Good luck!

Glad to hear someone else knows about the singularity :)

I don't want to take your time with my picture of RE changing in front of our eyes due to technology (and social wisdom)

Please share.

How soon our homes will include (more) structures involving entertaining illusions

It's happening now. Flatscreen tv's can be mounted right to the wall. Personal theatre rooms are becoming more common. Picture frames that wirelessly change the picture. etc.

and safety (total) against natural disasters

It'll be a long long time before we get *total* safety. Fortunately, local building codes are usually safe enough. The harder problem is just common sense, like not building in flood plains...

when will we lift some homes upwards to the air

I doubt this will ever happen, except in VR worlds. But even today, you could buy a dirigible :)

Alas, now I seem to have a problem.

I no longer get the page 1 2 3 4 etc across the bottom. I do get a "previous" and "next", but it's not as convenient as jumping straight to the page I want.

I also notice that last post now says "1 day ago" or "2 days ago" etc, instead of giving the date and time. I write down the day and time of the last post I read so I can pick up where I left off next time I'm online. The new way is not better :)

Not trying to complain, just trying to give feedback.

Edit: I originally had "next" and "previous" inside angle brackets (less than and greater than). They appeared fine under "quick reply", but the words disappeared when posted. I bet the software interpreted them as html tags and so didn't display them.

I'm curious as to how you even have an option to pick. I haven't done much landlording, but I thought there were two ways to pick the tenant. Both involve having a written set of criteria.

1) First one to meet the criteria gets the apt.
2) Accept applications until a set date/time. Highest score gets the apt. In case of tie, earlier applicant gets the apt.

Oh wait, there was a third one I've heard of.
3) Set the criteria so high that no meets it. Then pick the one you want.

#3 always sounds like it's asking for trouble though.

Just to be clear - I'm not saying you did anything wrong. But I plan to get into more landlording in the future, and so the more I can learn, the better.

First, congrats on the house.

As far as your buyer not qualifying for a loan - if it's your J-O-B to tell people what the need to do to qualify for a loan, I don't think this will be a problem. If it does turn out that way, you can always give them an extension. If it still doesn't work, you can continue to rent to them, or get a new person in.

You can also talk with them regularily to make sure they're doing the things they need to do to be able to buy the house. Reminding them that the option fee is non-returnable will either motivate them, make them hate you, or both :)

For the appraisal, you may want to talk to a realtor or an appraiser to see what you need to do before you start your rehab. This way you can avoid doing something twice. FWIW, a lot of first-timers over-rehab.

I think the main thing to do, is what any landlord should do - screen, screen, screen. For a LO, you have the additional screening to make sure they'll be ready to buy when the time comes.

Good luck!

I don't know much about Helocs, but why not fix & flip the first house and do it again and again, until you have the money for the 2-3 houses you want to hold?

Another alternative is to buy with seller financing. But with this, you have an ethical duty not to screw the homeowner over, so make sure you have the cash reserves to handle it when things go wrong.

Good luck!

With $80K, you can do your first house. But a second one would be hard. So my advice would be to fix and flip and build up the bank account, and put off the rentals for a while.

Good luck!