All Forum Posts by: Account Closed

No you don't

i won't make friends on BP saying that but real estate in itself is already a parasitic activity heavily weighting on households, but realtors and wholesellers are the epitome of a parasitic cartel providing almost zero value to society and the economy from a general standpoint. This service should be paid a maximum flat fee of 500-750 bucks for a standard sale. Anything above that is just ridiculous

I've never understood how people are silly enough to hand over the equivalent of at least one year of their hard earned salary to a realtor for posting an ad on the MLS and eventually opening the door a few times. Any idiot can take a few photoshopped pictures and post them on internet, anyone can learn what his property is worth just by searching comparable sales in the assessor records.

You want to secure your deal? get a real estate lawyer if you re not confident enough to go through this by yourself

...of course you'll have many guys here trying to sell you their bs telling you how critical it is to have a realtor,  how insanely risky it is to be out there without them, how much money they will make you EARN. People should start being smarter and cutting them out.

All this hard earned wasted money should better be reinvested in value adding businesses and associations beneficial to the society rather than paying a new Porsche to these bloodsuckers 

honestly i think it is a terrible idea to enter the market now anyway

I'm currently exiting a large commercial construction project and lucky to do so while it's still possible.

I'm very likely going to write a check to the IRS rather than making another 1031, stay in cash for a while, or invest in other markets elsewhere

Look at the ailing stock market, the new homes construction datas, rising interest rates, trade war; people are talking about recession

I'm not saying that the market hasn't more room to grow but everything is showing that it topped out and entered a danger zone

If things go sour, you'll see many overleveraged RE genius from this forum getting wrecked. Don't be one of them

I don't want to bring scepticism to this thread but I've never understood why an investor in his right mind would do this; this could eventually make sense if the active partner is extremely experienced and reputable with a long proven track record of successful deals but why would you put your hard earned money at risk partnering with a newbie for only 50% of earnings? 

I would never partner with anyone who hasn't skin in the game; way too risky  

18k per year for 28k gives a 0,64 GRM; congrats, that's the kind smoking deal i have never seen in real life; maybe in some rust belt cities, but you'd still have to find decent tenants, and they wouldn't pay 1,5k a month

However, the net operating income would be better used in this case

Cheap properties tend to have as much or even more operating expenses than more valuable ones, and you still have to take vacancies, high property taxes and the 12% for your private lender in consideration

@Adam Adams

3 appartment buildings and 6 houses with 40k in hand

121k gross income at say 10% annual that's 1,2m worth of real estate 

That's a 30:1 leverage...or 97% LTV

I want the name of your lender

Honestly after the subprime crisis mess, i thought they would ban that kind of excessive leverage but it seems it is back to business as usual

payment => closing

vesting => deed recording

sorry for the confusion, english is obviously not my native tonge.

So, in short, the consensus among the answers seems to be that the date of the actual transfer of funds is the reference date and not the date of the deed recording, nor the purchase agreement date

what is the reference date to determine long term / short term capital gains for a real property?

Is it the actual payment date? the sale contract date? or the vesting date?

I tried to look it up but found nothing conclusive

I read that stocks ownership starts at the moment of trade and not at the settlment date; so should i assume that the property's ownership starts at the payment date? 

I have a substantial time spread between the payment / sale contract and the vesting of a property i acquired and need to know from where i should start the 12 months count to fall into the long term capital gains

Thank you all for the the inputs; 

I've shopped around and this lender actually came up with the most competitive and flexible terms. They also seem legit and have good reviews

I will use my escrow company; they quoted me a lower fee for the same policy, and will negociate to have the legal and doc fees waived

Hello guys,

my partner and i are using for the first time a local hard money lender in the los angeles area. We are borrowing 250k over 3 months

We just received their estimated settlement statement which seems to carry a significant amount of junk fees:

Amount requested                                   250,000.00

type                                                             2nd trust deed

terms:                                                         no pre payment penalties after 3 months

rate                                                             10%

Points 1,75                                                4,375.00

lender Underwriting                                795.00

lender Admin                                            700.00

lawyer fee                                                   1,000.00

Escrow Fees                                                450.00

title co Property Inspection Fee              75.00

Notary Fee                                                  175.00

Electronic Recording Fees to title co       20.00

Lender Refinance Policy to Title co         1,032.00

Endorsement - estimate to Title co         125.00

Recording Fees to Title co                         75.00

Deed of Trust Recording to title co         150.00

total junk fees                                             $4597

It is the first time we use a hard money lender, but to me 50% of these fees are avoidable and should be negociated

Could you guys give me your opinion about these terms and what are the fees you'd pay and wouldn't?

thanks

@Jay Hinrichs

Why not; we definitely should discuss

I think Los angeles is the worst place to do new developments in the country;

All the architects i have been working with have confirmed that the city is the most restrictive in the country and that the LA bureaucracy is the worst.

After i exit the last 3 deals i have ongoing now, i'll be done with LA; the waste of money and time dealing with the city and its multiple agencies doesn't make any sense and has been hindering my returns for years.

The market there does not make sense anymore anyway; construction prices are through the roof, and the re prices have reached unsustainable levels;

I see stucco shacks selling for 500-600k right in south central, in the total ghetto. This cannot be right

I'll happily take my money and head to a low tax jurisdiction like Florida, Texas, or Ohio where prices are nowhere near the LA levels