All Forum Posts by: Bill B.

1) Gave you don’t anything yet? It’s 23 days later

2) You forgot to put your location in your post. Where are you investing, in what kind of property, and why did you decide to sell? (Where’s your experience and expertise?)

3) How big does your exchange have to be? (You say you’ll have $1M after the sale, I assume that’s “cash”. But you’ll need to buy as much as you net from selling, including any loans paid off. So did you own in full and only need to spend $1M even? Or did you owe $500k on the sold property and you have to get a loan for $500k while buying $1.5M? These are very different stories. 

4) if you owned it outright, and the taxes and depreciation recapture would be a big hit you have all kinds of options you can perform quickly. Even as simple as 1-3 SFR. (Don't go above 3 replacement properties or you run in to more rules.). If you need to get a loan, get your lenders started now or that could torpedo the whole deal.

Even with just $1m you could look at that ideal property in a state with no income tax that could be rented out now and might make a great retirement home later. Good luck. 

As a buyer I’d wait until that tenant is out of his unit, especially in NY or CA. As a seller I’d want you to put up 2-3 months worth of rent as a non-refundable deposit. (So you don’t get me to evict the tenant then walk away or try to re-trade the price.)

As Joe and Chris said. I don’t think BP recommends anyone and It is weird you’d join, wait five years for your first post and that would be a complaint about a company. Thank you for contributing to our community. Maybe you could/should have asked others about their experience before using them? It’s like the client that tells his CPA I did this, now what. Instead of asking I’m thinking of doing this, should I?

Anyway. Next time use a credit card. Then you won’t be held responsible  for unapproved charges. Heck, make a virtual credit card next time so you can just close it. It’s a rare client indeed that gives direct access to their bank accounts. Good luck. I hope it works out for you and you find someone new. 

Am I reading this correctly?

The investor gives you $100k. 
Some day in the future they get their money back with zero interest. 
For 5 years you get all the income their investment purchased

5 years later they get 1/2 the equity their investment purchased?

Assuming 3-4% appreciation  they will get 1/2 of 15-17% gain, before 6-10% in selling costs, after 5 years? So 1/2 of 5-11% in 5 years? You are talking about 2.5-5.5% on “less than $200k property” so $5-$11k? 5 years from now? Sounds a little worse than a bank CD.  What if the value goes down? Or goes up less than selling costs? (Say it only goes up 1% per year.) Do you kick in 1/2 the loss or do they get all the loss?

So you get all the rent and 1/2 the equity with zero risk? I wouldn’t mention that part. It’s a lot easier if you just find a partner based on percentages. You each put in a certain percent and get that percent of the equity and rent. Good luck. 

If the repairs do end up around $100k can you sell it today for $75k? Or even close?  Maybe to someone who’s “good with tools”. Like you say you wouldn’t buy it but others might be handier. 

To a lesser extent the same is true of a smaller number. If the repairs meet in the middle of your $35k and the new $100k, call it $65k. Can you sell for $100-$110k as is? Don’t forget. Any estimate you get will be the minimum. Nobody can guarantee they won’t find bad soil or hidden rot when they tear it apart. 

The amount less than $75-$110k today is what you’re getting paid to take those risks. So if it’s worth that today you’re actually losing money taking the risks. 

How many people? 10, 100, 1000 or 10,000? 

Imagine a full page ad saying house for auction, bidding starts at $1. Walk through the house at your convenience the week of the 3rd through the 10th. 

Ps. Unvetted scum, criminals, and homeless. Please try not to take this opportunity to steal anything, use the bathroom, or unlock doors/windows so you can come back later. 

Pps. I don’t see how higher prices for these homes helps anyone but the banks. (The only result of letting people inside other than theft/assault/disruption.). Obviously people are bidding less today because they can’t see the inside. Why are you fighting so hard to help these banks recoup losses at the expense of the people living there and the current buyers who are paying less than under your plan. 

The banks would obviously get more money if they allowed people inside…

Why do you think the “greedy banks” are doing something that costs them money?

It’s going to be common decency (Or at least the desire to appear decent.) or laws. Pick one or both. 

It’s about as far away from fraud or dishonesty as physically possible. I’ve never heard of someone committing fraud or being dishonest to make less money than if they didn’t do it. 

Would anyone hire a realtor that would ignore offers on their for sale home for 4 days? Maybe he should invest in a cellphone or an iPad with internet service. Otherwise don’t list your house before you leave town for 4 days if you can’t be bothered to buy a cell phone. 

If you’re not in love with the property I would choose between.

1)ignore request, should keep current offer alive

2) offer less if I was kinda mad at how I was being treated

3) reply never mind. My offer obviously had a 24hr response deadline (make sure you don’t have a very newb realtor on your team that forgot this.) and it’s no longer valid I’m going to move on. 

It’s the classic horrible person or a liar, which is worse?

Ps. The “game” is usually called oblivious or Ahole. When someone does something that seems selfish or disregards others feelings or safety. 

Stand pat…

90% chance that either…

You are already the high bid (20%?) or you can’t afford to match what will be the highest bid (60%?). 

You didn’t say how much you asked for in sellers concessions. But the sellers literally don’t care if you choose between raising your offer $5k or ask for $5k less in concessions. Oh closing day they will be affected the same. In fact if they are smart lower concessions are smarter as it avoids the problem of not appraising. 

The fact they waited 4 days means either it took that long to get one more offer, or they were getting offers every day. Probably no reason to do much in either case. You can certainly toss more money at the problem if it will pay for itself by moving out of your current situation sooner. Otherwise I’d keep looking. 

@chris 

@Chris Breaton No. It can't be in a LLC, but that shouldn't matter. There's no reason to purchase the 1/4th primary 3/4ths rental in an LLC. There's no upside, only downside. You don't get anonymity, liability protection, or tax advantages. What you get is more expensive debt and tax prep for no reason.

Personally I moved primary to primary 5 years in a row renting out my previous home. I didn't do it for the lower down payment. (I still put down 20% to avoid PMI.). I did it to save almost a full percentage point in interest. This alone could be worth $4k/year ($330/mo) for the life of the loan. Do it 4x in a row and you've got an extra $16k/yr coming. Better than owning an extra property.