All Forum Posts by: Danny N.

Meh I think alot of real estate professionals are not understanding what is going on with interest rates. Im a trader for a living, interest rates are up 20%+ in a short time frame. The reality is these nominal cap rates we've seen in real estate for the last 6-8 years are gone. Mortgages are 5% now and Us treasuries yield over 3%, anyone who doesn't understand what those are and how treasuries affect all assets has no business discussing home valuations.

An appraisal means nothing, I had to get an appraisal to insure my exotic car a few months I, I wanted a $140k valuation, which is what I paid, they gave me $200k, how/what/why I don't know and I don't care. The entire appraisal industry in all assets is a joke.

Ok sorry for the question/confusion. So basically our realtor sold our place very rapidly for much less than we wanted, but she did it on the basis of we had the one condo we wanted wrapped up, she gave us the verbal that it was done, it turned out her verbal on the other condo was false and now being that was the only place we wanted to move and its not doable for the price she told us was agreed upon we now are selling our place very rapidly for way less than we wanted for nothing. She was doing the buyer/seller on our place so thats why she got it done rapidly which was fine with me as long as the other place was wrapped up and she promised it was....ended up not.

So I read about the 5 day attorney review period, and it says a seller can cancel for any reason within that period, im on day 3 right now, so can someone explain more to me about this and if i can apply it/how. The buyer was paying all cash for my place and closing in 2 weeks because he wanted to move in quickly, i obliged bc the place we were supposed to buy was vacant and we were going to pay all cash and now it turns out were $50,000 apart and my realtor just basically bs'd me.

Well in my case it was a piece land, thats hard to finance I believe, not sure. The land had a tax value of I believe $120k so paying my price wouldn't have worked I think with a loan. Was the piece worth it? Well it was cleared and fenced, that costs money that the tax appraisal doesnt show and the area was up and coming. The guy wanted it for a used car lot so he ended up going through on the deal. The title company I used made an amortization table and everything, it was much simpler than I thought.

So Im looking at 2 condos for my personal home. Both are the same price $900k. One is 2000 sq ft and a penthouse in a mediocre building full of mostly $350-500k condos with about 30 units that are 2000 sq ft like the one Im looking at. The second is an 1100 sq foot condo in one of the best buildings in town but it has no view while the first unit has a spectacular view, like mind blowing view. The 1100 sq ft unit is by far the cheapest as most others in the building are $1.5-30m.

So my question is down the road, would the spectacular view apartment being enormous at 2000 sq feet with killer views but at $450/sq ft be the better buy even though its in a worse area vs a condo thats half the size with no view in the best area? Wife is worried the cheaper building with so many cheaper units will always be a hinderance with so much supply.

Just trying to understand the pros and cons when investing.

So I have a large piece of land I paid $140,000 for in 2015 and I have it listed for sale now and a guy made me an incredible offer, but I have to owner finance it. He wants to pay me $2200/mo for 10 years with $50k down. I was honestly hoping to sell it for $215k or so but this comes out to $300k+ over the time. How do I go about structuring all of this with an amortization table and what are ramifications if payments are missed ie how many are missed before a foreclosure happens. I have never done this before and I was selling the land by owner since it was paid for and was hoping for a quick and easy transaction. I literally just got this offer 30 minutes ago and my title company I used for my other deals is closed for the day now.

Just trying to gather more info on how to structure all this to minimize headaches in case tenant doesnt pay. Thanks again.

Hello all, so a good friend of mine came to me and is retiring. He has a commercial property that is appraised for $525k and he would like to sell it to me and I got him down to $460k and just rent it back from me for $4000/mo. He wants the cash for some other investments and I've known him 40 years. Anyways I wanted to put $200,000 down and finance the last $260,000 from the bank. The question I have is this. I have 5 other rental homes all paid off, worth about $350k and a couple parcels of land paid off that are worth about $300k total. The 5 rental homes are grossing about $4000/mo as well. I also have a nice vacation home thats got $222k left on the mortgage, worth about $625k and its renting for $3500/mo and cash flowing $1000/mo after all bills are paid and i put the extra $1k/mo towards principal.

Im thinking of possibly paying off the $625k rental at $222k and then that condo would net me $2500/mo after bills. I know not ideal for a property of that magnitude but its in a super in demand place on the beach and nobody really lives there full time and there's no economy so there's not really any renters, but i have one, a long term one who isn't leaving until I want to move there.

Is it smarter to pay off that property for $222k and finance the full $460k for this new property and use the new found cash flow to pay the note or would it be better to just put the $200k towards the new property and then just get another note? Or can I borrow against the properties I have? Whats the best plan of action. Thank you.

Thanks Travis. When I go into one of these smaller banks and go over what Im looking for am I looking for a loan with a 30 year amortization or are they typically shorter term loans? Im fine with either one I  just curious what I can and cannot do. I also have a vacation home worth about $600k in another state, I have about $375k in equity in it, would the local bank be able to help with that too? My vacation home is where I want to retire one day but it is currently rented out for now as well.

I have 5 properties in houston, all paid off and all leased out. As you know we just had a hurricane and lots of properties are available. Would like to raise funds to buy some new ones. Currently grossing about $4300/mo from the paid off properties. Their taxable value total on the local tax district site is $315k. I also have 2 large parcels of land, taxable value on those is $270k total. All of these are paid off: $585k taxable value, but worth id say $650-700k. Anyways I would like to keep collecting the rent from the 5 properties but would like to borrow what I can from them to add new homes.

1) What is the name of loan im looking for? I bank with chase, they're not very investor friendly, could I go to a small bank that I dont bank with and they would possibly work with me?

2) the homes I have, they're low income housing, the people usually pay me with cash so I dont have the audited statements to show the cash flow of them.

3) What are typical terms and rates on the borrowing im looking to do? Assuming my paid off properties are say $650k total, could I borrow $500k? What would be the term and payment on that or is that considered a jumbo mortgage like a home mortgage?

4) I have 2 personal residences, a home and vacation home, as well as a car financed. Would these drag down my ability to borrow in this particular situation or no bc I have collateral im trying to borrow against? My taxable income was barely enough to slip in the vacation home financing last year.

Thank you

So long story short, had my vacation home for sale but now that the major flood hit houston we're going down to our vacation home and wont be selling it. Im about to end my listing but dont want realtors calling me all day long, I have a million phone calls a day as an owner of multiple businesses and these guys are so pushy about getting the listings and call me at home,work,cell phone you name it. I had a listing 2 years ago that ended without a sale and it was a nightmare after, so Im curious if there's a way to ensure that doesn't happen this time. My realtor said its not possible.

Was I doing the math right though? $3500/mo gross - $691/maintenance - $800/taxes - $75/insurance thats $1934/mo net and with depreciation running around $1536/mo my taxable portion would be around $400/mo? Is that correct or am i doing it all wrong?