All Forum Posts by: Account Closed

That brings up a great question. If you inherit a timeshare can you refuse to accept it? Its really a liability rather than an asset. Same for underwater homes.

Its not just the down payment but also the terms. A 30 year mortgage will have a different cash flow than a 15 year but will pay down faster. My personal goal is neutral cash flow with 20% down and 10 year financing.

to most people buying a real estate "investment" is buying a home to live in and cash out on appreciation. That's not investing. What we talk about here is cash flow, roi etc. Which is investing. Of course interest rates will rise eventually and put pressure on housing prices. But that will also lower bond prices and dividend stock prices as well

@Raymond Yeung a lot of this is based in trust in your business partners. Anyone who started off with me with that kind of email would never get my trust or my business. I learned a long time ago in an expensive lesson that choosing the right people to do business with is more important than the business it self . The business will change over time. People remain who they are. Your chance of success is greater with good partners and mediocre opportunity than bad partners even with great opportunity.

Of course. I always negotiate every purchase. Success depends on market conditions. Ultimately the purchase has to meet my criteria. If not I am happy to pass on it.

if I got an email like that from any potetenital business partner or vendor I would run screaming. It's not about the permits, he may be right that it's not common practice. But his attitude shows that he will not stand behind the purchase should something go wrong.

Why on earth would anyone sell a house for $2K that is earning $500/month? Are you sure it doesn't need substantial rehab?

I have bought a package of 4 before. I offered a total package price and let the seller allocate the total amongst the homes as he wished. But each one had to appraise independently at the contracted selling price. Two of them I got fairly under market and two were at market. One came with a terrible tenant and was the worst experience I have had so far but the other 3 have performed really well so all in all it was not a bad purchase.

How often are you willing to come to the US? I own out of state and go there at least once per year to see the market, check my properties, meet my PM etc. I know a UK investor with investments in Atlanta that also comes once or twice per year. It's possible to make money but really investing across national borders is not for small individual investors. You are more likely to get burned than not especially in a cash flow markets. On the other hand you could buy a million dollar condo in SF, rent it and collect the money. It would only give you 3% on cash but if it appreciates you can make profit. That's more suitable for foreign investors and many are doing it.

I have never done this but have thought that its a good exit strategy for rentals. However you do have a couple of issues. First, I dont think you can transfer title and still keep the mortgage. So you have to do a sub2 kind of deal to have the buyer take over your loan. Then I guess you could do a second mortgage for the difference. But what you want to do, and I dont see how, is take the spread on the interest you pay the bank and interest you charge the buyer.

Secondly, do you really want to carry a 30 year note? What if the buyer never refinances? What if you want the cash at some point? You could make the second a 5 or 10 year balloon note and since it would only be for about $25K, that might work. Of course cash flow at 6.6% on 25K is not very much. But thats the only equity I see in this situation.

Thats my understanding but if anyone knows a better way I would be very interested in knowing how to capture interest rate spread after a sale!