All Forum Posts by: Ilya Z.

@Travis Hibbard can the interest be compounded? That is, can you reinvest the interest you earn at the end of a year? Or sooner. Is it a big hassle to add the extra money at the end of each year, or whatever the reinvestment period is? Thx

Quote from @Dylan Speer:

Have you considered a syndication or an oil and gas mineral right royalty fund? 

No. Never heard of such royalty funds. Will explore thx. Can you recommend any good sources of info about those?

Quote from @Joe Villeneuve:

Quote from @Ilya Z.:

Quote from @Joe Villeneuve:

Are you asking if you can by a free and clear rental with a ll cash an not debt on it?

I want my equity to work by producing additional cash flow. I am open to any type of investment, not just buying more cash-flowing rentals, but I need this to be fairly passive. For example, I can't start flipping houses since I don't have enough hours in the day to do it.

That doesn't answer my question.

"are you asking..." -- no.

I am asking this: if you have a free and clear rental and you want to invest its equity into something real-estate related that would bring you more cash flow, what could this "something" be? It used to be just a few years ago that you could refi it and use that to buy more rentals. Now the refi rates are so high that this doesn't seem to be possible given rents you can get in my area. Are there other types of investments that would not require me to sell the current rentals, only refi? Another requirement is that it has to be about as passive, or more passive than, residential rentals. Make sense?

Quote from @Joe Villeneuve:

Are you asking if you can by a free and clear rental with a ll cash an not debt on it?

I want my equity to work by producing additional cash flow. I am open to any type of investment, not just buying more cash-flowing rentals, but I need this to be fairly passive. For example, I can't start flipping houses since I don't have enough hours in the day to do it.

How can you invest equity in existing free and clear rentals long-term to get more cash flow? Seems like today's cash-out rates are too high to get positive flow if you buy a turnkey rental, since rents where I've looked are below 1%. You can get a HELOC against it and use it for BRRR rehabs. But it's short-term and may or may not be better that getting hard money. Any other options? Any of those options more passive than investing in residential rentals? TIA!

Originally posted by @Joe Splitrock:

Another option is to list on Zillow as FSBO and advertise that you are paying the buyers agent a full 3% commission. Send an e-mail to every major brokerage in town letting them know you have a property hitting the market FSBO. Tell them you are paying them full 3% commission. With low inventory and full commission, buyers agents will happily steer their clients towards your property.

Interesting, thanks. What will I need to do as a FSBO seller that is usually taken care of by a seller's agents? One is that I will need to find someone to take quality pictures of the property. How hard is this? And what else, both before and after I start getting offers?

Originally posted by @Chris Davidson:

@Ilya Z. Depending on your area redfin and zillow can be 2-3 days old when they first pop up. Some markets that doesn't matter. But if houses are going quickly that can put you out real quick.

And for buying a house it all depends, what's your experience, how are you submitting offers, who are you sending offers to. A lot will boil down to your market and the houses you are dealing with. I'd definitely find an agent near you and have a chat.

I am not planning to buy a house. I am trying to figure out if going with a discount broker means that fewer agents representing potential buyers would be willing to work with them to buy the property I am selling, and if so, whether this will reduce my chances of selling the house quickly and for top $.

It is my understanding that in the past, before Redifins and Zillows, I as a seller might be shooting myself in the foot by going with a discount broker because buyer agents would simply not tell their clients that my property was on the market. They would steer them toward houses with a higher commission.

But now a buyer can search for properties on their own. If they find my house on Redfin or Zillow, and they like it because it matches their criteria, the commission NOT being one of them, they can reach out to an agent to represent them. If that agent does not want to work with them because the commission is too low for him/her, well then the buyer will find another agent that's less picky. And it's a seller's market her -- at least for now -- so I should be able to find a buyer.

I might be wrong about this -- this is why I posted this. :-)

@Mike Dymski we bought the house through a wholesaler

@Chris Davidson thank you, good questions.

As a potential buyer, do I need to work with a realtor to find properties on the market? Years ago, you needed someone with access to MLS to find those matching your search criteria. Today, can't you just set up alerts in Redfin or Zillow and get all the ones that are listed on MLS?

The property is located in a secluded neighborhood so not many people drive by it. Which means that I would expect most potential buyers to come after finding the listing online or after getting social media alerts if the brokerage is good at this type of marketing.

We're preparing to put our flip on the market. The inventory in our area is close to 0 and it's very much a seller's market (as probably is in many other parts of the country). Assuming it stays this way for the next couple of months, what are possible disadvantages of selling the house through a discount brokerage (3% commission)? TIA!