All Forum Posts by: Rick Albert

Have you looked into a prescriptive easement? That is something that we have in California. Basically, if the road has been used uninterrupted for five years, it is implied that everyone is okay with it. From there it would be on title. 

Not sure if there is something similar where you are. That might be an easier path. 

There are always going to be exceptions and everyone has a different story. I got a HELOC a few years ago that capped out at 90% LTV. My property has increased in value since but in some markets that may not have been the case.

Keep in mind if you are buying in Texas, they are definitely seeing a correction to the housing market because they are able to keep up with demand with all the new construction. In Los Angeles the cost to build is so high and there isn't enough land so that keeps prices more stable.

What also isn't considered is all of the foreclosures that were SUPPOSED to happen in 2019-2020 that were all of sudden halted because of COVID. This could just be a catch up from those who were supposed to be foreclosed on years ago. 

The reality is many Americans have equity in their homes. They are more likely to sell before heading down the foreclosure path. That would make more sense for a market correction rather than foreclosures.

Many agents don't know what they don't know but they don't want to admit it.

Most FHA and VA loans are assumable, but honestly it just takes one call to find out. I do know that it takes roughly 60 days.

In terms of the premium, it really depends on what the loan balance is. For example if you property is listed for $1M but the loan amount is $600K, then asking a buyer to come up with $400K may not be realistic. Parts of Winnetka are first time home buyer territory so they don't have the cash to come up with the difference.

If you don't like your agent, you can cancel the contract anytime on a practical basis. Even if the agent pushes back, you can deny access and reject every offer that comes your way. I would just check the clauses. I've had this happen to me where the Seller decided to cancel, even though I met all expectations and got her multiple offers. It happens. Your agent should not have dismissed your thoughts on the assumable loan, that's poor customer service. She should have looked into it and then you both could have made a decision. Plus to be honest it doesn't cost anything for the agent to mention it in the description. I listed a house recently with an assumable loan and we got inquiries and showings because of it. The buyer ended up getting an FHA loan but the extra attention didn't hurt. This was back in February when we closed.

We are currently on our second house hack here in Los Angeles. My first one I had a roommate and this second one we lived in one unit and rented out the other (and have since switched). In my first house hack when my roommate moved out for a little bit I lived on my own (I could afford it). I absolutely loved it. Having the privacy was nice.

We had converted our garage into an ADU. My wife and I had our first kid last year and ready to upgrade. But, like you, are missing some keys things in our current home that would mean no more house hacking.

I would explore the FHA 203(k) loan and convert the garage into an ADU. Then either live in the ADU and rent out the main house or vice versa. When you design the ADU, think about privacy for everyone (most don't).

You aren't necessarily burning out, you are just changing lifestyles and that's okay. It really comes down to your personal finances. 

This is interesting because I was digging into this as well last year. My understanding that it can be done but a lot of hoops to jump through and that doesn't include potentially fighting with the City because you are technically taking rentals off the market, which the city needs more of. I think that is going to be your biggest fight. Similar to when a developer wants to break ground or do a lot split and the neighbors have a option to say something.

I would talk to someone at the City about this and what it would take. That way you are getting it direct from the source.

 Got it. I'm seeing some wholesalers wanting to use their title company and this is out of state but I have some people I trust there to check things out. 

Thank you!

I've been in real estate for a long time but historically used Realtors and of course there is direct to Seller.

I see wholesale deals come across all the time but how can you vet them? The last thing I would want is to wire money and it ends up being a scam. 

Could I require to use my choice of closing attorneys? Could there be any other requirements as a form of protections? Especially because most of the wholesalers I speak with want properties non-contingent, adding another layer of risk.

Thank you in advanced.

Hey Kevin,

My first house hack was a condo. It can be a great start because it is better than not buying at all.

Typically areas like NYC, LA, and SF are an appreciation and loan buy down play. That's where the wealth building starts. 

The other thing I've noticed in LA is fixer condos tend to sell for less than it would cost for renovating. Not enough as a flip, but enough to build some equity.

I would also focus on 3 bedrooms or more if you can afford it. I don't know your financial situation but then your condo would make for a great family later on. 

Here are the steps I would do:

1. Talk to a direct lender: Hard to say if you should or shouldn't buy if you don't know what you qualify for. Having a basis can point you in the right direction. If you don't qualify for high enough, then you can work towards that goal (for example debt reduction, increase income, or better credit score). 

2. Talk to a well qualified Realtor who has house hacked in NYC. That's going to be key because they will be able to point out what works and what doesn't. Don't just go with your cousin/friend/former teacher who may not be as qualified.

3. Set up auto searches now to set expectations. This is important even if you aren't ready to buy now, you can get a sense of what's out there.

Happy to talk through it more if you would like.

Good luck!

Thank you both!