All Forum Posts by: Bill B.

I’ve paid 4.5% pretty much every time for 10+ years. Probably the advantage of using the PM’s realtor. Usually it’s 2-2.5% each. Last one was actually 1.5-3% because only one realtor brought any offers, and even that was unique. (He got 3%). (It was $10k over ask, no repairs, no inspection or appraisal. 25% down and 5 year balloon at 7%.)

It’s actually “only” a 50% increase, which is a high percentage, but on a small number. Now if we’re talking about a 10,000 new mods increase out of 80,000,000 loans. That’s only 1/100th of 1% increase, a very tiny percentage. Or if we count all the mods (30k), we’re at less than  1/25th of 1%. Still a pretty small percentage. 

I’m sure you can find quarters with 1,000% or even 10,000% modification increases. I’m not saying it isn’t a thing. Personally I think we should just get rid of them. It seems like we keep giving the government more and more rights to modify agreements between adults where no fraud is suggested. 

in a year or two we’ll all know the answer and nobody will care enough to remember this conversation. 

Since 2008 3% of mortgages (2.8m out of 80m) have had “permanent” loan modifications? It seems like 1/2 of them, or more would have sold in 17 years. (Last I saw the average was 12 years so almost all of them could have moved out?) so we could be talking about 1.5%? And unless the modifications change you would think anyone with an unchanging “permanent” modification 5-10 years ago would be in better shape now than then? It just bothers me when they build of a fact based on a “weird” starting date. They can’t scare us about all the loan mods done in the last 3-4 years and then state a number from 17 years ago  

All this is said with the admission I have almost zero experience, knowledge, or really even an informed option of what’s really going on. It’s mostly my distrust of mass media combined with a real desire to know the “whole story” from someone like you who seems to knows more about it than I do. I do appreciate you informing us and truth be told. I’d probably have believed it straight away if you had just posted it as your research says…, instead of Redfin says. :-). 
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ps. I just realized it’s much less than 3% because there are CURRENTLY 80m mortgages. Certainly 40-80 million mortgages have been paid off by term or property sale in the last 17 years, maybe more.  so it could be 2.8m out of 120 or 160m mortgages. 

Are they counting 70-90% of the sellers as buyers as well? Since we know that many sellers buy a replacement property. Or are they just ignoring them?

Ps. The way they say it sounds just as stupid as when the financial “journalists” say there were more sellers than buyers in the stock market today. (When the stock market goes down…). But guess what. There weren’t more sellers than buyers, there were exactly the same number. Seems like they stole the line from them. 

At least they’ll pay a huge penalty if they’re wrong right? It’s not like it’s just a wild *** guess they’re getting paid to make. Is it? Which then reminds me when the economist or stock analysts predicts a 1.3% decline and we get a 5% increase. Good thing they went to the decimal point in their wrong guess. 

Good luck to the investors that sell everything and move to a different market based on this report. Because that is the suggestion right? Move from the market with little competition and go to the market with all the competition. 

Find a MUCH better PM. I assume you don’t have any friends, relatives, co-workers that would need a place to live. Even if you gave the, a 5-10% discount off market rent that might be break even if you didn’t need a PM. 

Hopefully you’re getting appreciation and you’re in better shape than if you had been a renter. You’ve had more drama in a coupe, years with 1 unit than I’ve had in 20 years with a dozen units. I give most of the credit to my PM. 

Ps. I’ve never tried it, but have you considered section 8? Do they pay market rent in your market? Good luck. 

Make sure you have $10-$20k “extra” in cash for the unknowable problem that’s discovered. (Lead, asbestos, termites, water damage, not in code, etc etc. .)

You don’t want to get the house torn apart and in an unreliable condition only to run out of money to put it back together. 

Could Thai be the reason he lost his job? Can you imagine having him as an employee? What are his odds of finding another job with that attitude?

Good job following through with the PM. Hopefully they will say market rent is higher and you can raise the rent.  
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ps. I would raise the rent an additional $50-$100 (at least 5-10%) above market as a “hassle factor fee”. Especially if you had to hire this PM specifically because of thsi tenant. They shoudl be paying the cost of having them. Good luck. 

Because you’re asking about how to find a good tenant. You would know that before you would know what market rent is or how to correctly (and legally)  screen the good tenants that apply. 

You’ll be lucky to break even if you have 1 month of vacancy, before finding a tenant that pays every month and nothing breaks. You’ll need “perfect” to break even, on your first attempt to find/screen/place/manage? It’s probably less than 50/r0. Might as well just sell and go to Vegas. If you had a 5+ year plan and an experience PM you’d pry be 80-90%. But you’re already asking why you should involve an expert. 

If the association is causing trouble that’s a bigger reason to sell than rent out. I’d sell now while it’s tax free. If you insist on renting it out. Hire the best PM you can find or you’re going to end up losing money. And make sure you list it for sale within in the next 2 years.

Hey Chris. Quick question. You lost me when you said the 2nd got wiped out. 

Was that because the sale price was to low to pay them off, they wasted it on legal fees, was their entire lien declared invalid? Or something else I’m not thinking of. 

As I’ve said before. Your provide very interesting stories about situations most of us will never experience. Thank you. 

-Bill