All Forum Posts by: Caleb Haynes

@Matthew Crivelli

I'm not trying to cash flow. It's a little different than typical situation as I am just trying to balance portfolio (too much in market, volatile) I was wanting to balance with some real estate, so I'm willing to just break even. But not willing to lose money and want to get a better ROI than bonds... it's getting close to bonds being just as good as I would have to put more down to get monthly payments in acceptable range for rent prices currently 

@Micah Joseph

Thanks Micah

What I don’t understand is the investors. Many properties that I plug in and look at mortgage, capex, vacancy, home insurance, and taxes for expenses only have a cash flow of about $100 per month. And if you throw in a property manager, there goes even that small profit.

Unless rent goes up considerably, I don't see how an investor is making money unless they are putting down a good bit more than 25%. In which case they are getting a lower ROI.

How are investors looking at this? Do they think rent will go up? Or are they satisfied with lower ROI?

The thing about Tyler is, rent can only go up so far, no? Because pay at peoples jobs is not going up

I keep getting outbid on home offers I’m making on single family homes.

HOW MUCH OVER ASKING PRICE DO I NEED TO OFFER?

I’m looking in the Tyler, Texas area, doing a conventional loan.

I offered day of, full asking price with pretty good terms (2% in Ernest ) and was not chosen.

So then I started to sweeten the deals. I offered on a house day of last week at 2% OVER asking price. They still went with someone else.

How far over asking price have y’all seen people bidding recently?

Is this getting too out of hand? Should I just wait for a crash? (Realizing that could be YEARS) from now

Just looking to see what others are observing in other areas or situations

Thanks!

@Ricco Ardemagni thats exactly what i'm trying to do. Buy and hold

@Frank Jiang thanks for explaining, i dont really know how bonds work.

@Matt W. they would give me 2% because that is what the current 30 year note is and that beats inflation or is about what inflation is.

Also:

1. they would have better access to liquidation

2. diversification (they already have money in bonds

if you were the lender, what are the downsides of investing your money as a loan for an investment property? (not challenging honestly looking for downside) 

@Account Closed are you implying that rates will stay low for these next few years as housing prices continue to rise? Therefore just buy now?

I'm looking to start purchasing rental properties and have seen people recommend doing rentals through LLC's. Should i open an LLC first and purchase the house through the LLC or purchase the house personally and then transfer to the LLC later. I live in Texas if that helps provide context.

@Mason Hickman ^^

great point, let me ask a further question. If my source of private equity for the 2% has limited deals where they will lend that private equity. Am i better off doing a deal with the bank now at 3% and then waiting till interest rates get bad to hit up my source of private equity?

Howdy all,

With interest rates so low and housing prices currently high for many reasons, i am considering on waiting for the interest rates to come up to about 5% to 8% to buy a home. I would do this because i have a connection to some private equity that would loan me at 2%. The thought would be that if everyone else going through a bank has to pay 5% and i have access to 2%:

1: i would have better margins than others with my rental properties and could in turn be more competative

2: the housing prices would come down because of higher interest rates, no?

OR should i just buy now at low interest rates through the bank and high housing prices?