All Forum Posts by: Account Closed

@Nicholas Weckstein Just curious, but for what purpose do you/other investors use the classifications for? I could see maybe labeling the likelihood of being paid or for knowing your market of tenants. What market rents are and the likelihood of being paid on time/no damage to the rental seem to be the golden focuses to me. Just curious as to what you use the letter grades for? Thanks!

Hey all,

I'm looking to buy my first multifamily property and I came across a deal that I love the location of, rents are way under market, and I can afford.  Here's the question:  current owner is unwilling to allow look inside or even pictures until in escrow.  This seems fishy, and I am pretty much going to pass on this because it seems like a red flag to me.  But, I am new to real estate and have only looked at a handful of deals at this point so I figured I would ask here.  Is it normal to avoid giving people info?  Doing the math on the rents that I know it seems way overpriced already and with him being unwilling to provide any information I am guessing it is a total wreck inside the homes.  Should I just run and not look back?

Thanks all,

Travis

Hey BP,

So I am looking at a property that I could house hack and grow my business in. I currently own my home and would keep it as a rental. I am a small business owner and had planned on purchasing a house next year, but need my 2018 tax return to get bank financing.

After my awesome realtor (my girlfriend) did some research on the owner of this property it seems he has a lot of different houses and commercial space. Clearly an investor. On the listing, owner financing is not an option.

I would be able to get a loan for this place first quarter of next year but don't want to miss out. I may be able to get private lending from a family member but would need to give pretty rough terms for that to happen and can not get an answer on that for a couple weeks most likely.

The asking price is $209k, and has been on the market for more then 90 days. My thought was to propose a few different offers.

1. Cash (subject to private lending) of $175k 2. Partial owner financing for $190k ($90k owner financing, and $100k subject to private lending) 3. 100% owner financing for 12 months at full asking price.

As for owner financing, I am a little confused on how to structure the deal. Should the interest rate be higher then a typical bank rate? Would it be amortized for the 12 months? Could it be an interest only financing until I can get the mortgage to cover ect.

I will continue to research. This just came up and it really is a perfect property for my business and family. So the owner financing idea just came from a BP podcast, I hadn't ever thought I would go that route.

Thank you everyone for the help! In the interest of time I figured asking here along with research was my best strategy.

We have been hearing that the market is going to crash for four years now; so, many investors agree that sitting on the sidelines for extended periods is very costly.

If you have strong market knowledge, buy in good locations, use prudent debt, and have reserves, buying (predictable) appreciation plays can be a very profitable strategy.

On a side note, buying property is not a success story...making a profit over the long-term is.

This is a fun thread I love all the banter back and forth

@Amit M. and everyone else talking about a supposed downturn - you guys (collectively the people who have been bearish on real estate) have been saying we are nearing a downturn for years. You said it in 2015, 2016, 2017, and so on. Now @Account Closed claims 2021. Anyone who invests in anything knows there is a saying that goes something like this

"whether you are bearish or bullish on [insert ticker symbol, market index, real estate, etc], you will be right sooner or later - the question is when"

People who are bearish on real estate just keep pushing the year further and further out, until finally they see a pullback that is large enough to say "I told you so" when in all actually, I personally believe that todays highs will still be higher than next years lows. Especially 2016s highs, and 2017s highs - way higher than 2021s lows (my speculation)

Also @Account Closed I mean this with all due respect, but I wouldn't call yourself a stock investor when your account balance is 2k (granted, i'm sure its higher by now?) - that isn't even enough for robin hood to allow you to day trade

@Joe Splitrock you're not missing anything, I don't own any cash flowing properties nor did I ever claim to - this original thread was posted in the real estate success forum because I successfully purchased 2 pieces of property in 1 year and am very proud of my family for making this happen. Talking about what happens if we go unemployed is a completely different thread - but i'm fortunately not a w-2 earner (self employed) so I feel less stress when I think of "losing my job", because i'm not going to fire myself (that isn't to say that something couldn't take my business away)

Originally posted by @Account Closed:

Originally posted by @Account Closed:

Originally posted by @Account Closed:

Originally posted by @Nick Colvill:

I’m just curious about the data suggestion we are nearing a downturn in the San Jose area 

 Didn't get a notification, but here is the data for S&P500 using the program that stock investors and traders uses (it's called thinkorswim by tdameritrade if you are curious). I'll try to make it short.

That is 15 yr timeframe measured daily. Do you see the consolidation in the beginning of 2017 and 2018? basically consolidation is where the market is basically just going up and down without no clear direction. Now look into the the 2006-2007 before the dip in 2008. Looks similar where it has huge 'swings' compared to the other times it went down a bit. Won't spam this forum with pictures, but if you zoom in to look at every single tick mark, it shows that within days, there has been huge sell offs. 

While I play the stock market, I don't hold positions longer than a week. I am what is known as a swing options trader in the stock market community. Basically I draw up contracts putting 'option' money down to control large amount of stocks without paying for it. Someone buys my contracts when I predict right and I get the difference. Same thing as subject to or wholesale. 

I also play the FOREX market (currency, but instead of companies the whole country), that you have to get approved by banks since I control 1:400. Meaning for every dollar I put in, the bank or broker will put 400 in. I collect all the profit, bank collects the interest. Reason why I know about economics. If you are not successful in trading, trusted brokers will not approve you to trade. IF they somehow does and your trade goes wrong, all your money in the account will be taken. 

 Looks impressive. The only flaw in your theory is that your trade can never be as quick as a Hedge Fund trade. You will be left holding the bag when that happens. It doesn't happen slowly, it happens like when the "Flash Crash" took place. All gone. Fast!

 Reason why I am getting into RE market. Too many big dogs in the stock market. Worse in the FOREX market. With FOREX you are playing against the government reserves. At least in the RE market, you can get deals and get inside scoops which are harder to do in the other markets.

 Air Force is good. If you ever want to discuss details of real estate investing, let me know. My daughter's best friend is an Academy Grad .