All Forum Posts by: Account Closed

Back to the startup, Grassdoor, or Opendoor. The extra profit they made is hidden in the 7%-10% “technical fee (commission)” plus the house appreciation. I contacted one of them a few months ago, pretending to sell one of my properties, and ask for a price they would offer to buy one of my properties. The price they offered match with the most recent comp. However, the market has been Red Hot, most sellers are listing at least $10k to $20k over the most recent comp. #1, Their most recent comp offer is considered a low price compare to most other seller’s listing price. #2, they don’t charge commission. Sounds great? But it comes with a 7% to 10% “technical fee”. A typical realtor commission is 5% to 6%. Why would I pay you the 7% to 10% “technical fee” instead of 5% to 6% Realtor fee?

From historical data, different countries experience recession at different time, not all at the same time. Example, USA hit recession in year 2008, but Vancouver and Toronto were in the boom stage in year 2008.

For curiosity, if not investing in Las Vegas, which market is better than Las Vegas? Or which market meet 1% rule? Thank you

@Kieth J, that’s right, portfolio loans are easier to get because it does not require a lot of documents. However, most portfolio loans are 5 years fixed, similar to an ARM loan. In addition, portfolio loans may have lower LTV ratio, such as 50%, 60%, or 65%. It is not easy to get 75% loan unless the rental income is high enough. The time length of a portfolio loan won’t be shorter than the time length of a conventional loan, sometimes, portfolio loans take 2 to 4 months to process it because the banks have a lot of files and taking their time working on portfolio loans. I have portfolio loans with 3 different lenders before, the process time took somewhere between 2 months to 5 months to complete the loans. The big advantages of the conventional loans: 30 years fixed rate and 75% loan are 90% guaranteed. The full loan paper work documents are not hard to get with Qualified W-2 income, good credit score, all HOA, property tax, 2 months bank statements, two years tax return etc. Conventional loans usually takes 30 days to 60 days. I would use the 10 conventional loans before using portfolio loans.

The big bank lenders such as BOA, Wells Fargo, Citi, Chase would not do more than 4 conventional mortgages. However, there are many smaller size lenders willing to lend up to 10 conventional loans, just need to keep searching and calling all different smaller banks, but be careful there are a lot of scam nowadays, just do your diligence.

Class D property most likely will have class D tenants and are very difficult to deal with... A lot of late rent payment, non-paying rent tenants, eviction, big damages caused by bad tenants at move-out for eviction etc...

I would not renew the lease and send an early move-out notice today, so the tenants have extra time to look for a new place

Call your local bank one by one and ask for a portfolio loan.

I agree with Mr. Yun too. This high price housing “problem” won’t be solved or the housing market won’t be burst until the supply exceeds the demands... Lack of inventory is the root of the high price / main “problem”. Although “people” want to build more and more properties, it cannot happen overnight, it will take minimum of a few years to build enough supply to flood the housing market, which means, yes, in the near future, the high price housing market “problem” will become much much more bizarre than today. Speeding constructions on the numbers of new homes, building many more new units, let the supple exceeds the demands is the way to burst this housing market or solve this high price housing market "problem". Before it happens, the trend of “tomorrow’s house price” is more expensive than “today”s house price” will keep on going without stop...

Hahaha... Same here. Either direction work for me. If the housing market keep going up, my existing properties value goes up more. If the housing market crash, I just buy, buy, and buy more. I’m fine with market going upward or downward direction. Current trend is, housing price would not tumble anytime soon...