All Forum Posts by: Jacques Herve

1) Loose women and fast cars lol.
2) More seriously: You're all set, buy a total market indexed fund (Vanguard VTI) , forget about it and spend time with friends and family.
If you get bored with 2, then you have option 1.
Simple as that.

Listing agent is accountable to seller only. He has no duty to you, so does that make any sense to you to rely exclusively on someone with ZERO accountability to you? And having an agent representing you will cost you NOTHING: seller pays the total commission that your own buying agent will receive: if you don't have a buying agent, listing agent pockets the money. Having a buying agent is the best money you DON'T spend lol.

2006 price has zero relevance to today's value, you know that, right?

Good looking property but why does it sit on the market? Mold? Don't walk, run!

Inspection contingency is your friend.

Jacques

Don't stress this much, won't help you make the right decision. First of all, you don't need to stress both for capital gains tax and losing money at the same time, it's either/or. If you lose money, there's no capital gain so no tax. Furthermore, If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).

Indeed, call a realtor. It's his/her job to help you figure out your options. They know the market and the impact of the fire on home values. If your partner can freelance from NC, maybe he can from CA too so he doesn't have the commute? Maybe if people panic-sell, it creates an opportunity for someone like you who wants to start in the real estate business. Maybe y'all don't need to pack up and go to the other side of the country and need to see the opportunity right there in your backyard?

Originally posted by @Charlotte Dunford:

Here the strategy I would offer for someone with bad credit and no money. Don't focus on what you don't have which is credit and money, focus on what you do have. Forget about credit and money for now, and think about what expertise you do have? Sales skills? Analysis abilities? Networking? What is something that you do better than others? Leverage your strengths and make them work for you NOW. For example, let's say you are good at networking and analysis, you can find someone who has good credit and money and add value to them. Maybe you can do underwriting for them, find deals, etc, and then you could form a partnership with them. That's it. 

Great response. Original poster has his worksheet cut out for him.

Originally posted by @Charlotte Dunford:

@Marquis Wilson at the end of the day, you don't need money or good credit. You need a strategy, a good one. That's all.

I'm interested. Can you please share with us the strategy that allows to invest in real estate with no money and bad credit today? 

Zillow is trying to do to the real estate market what Amazon did to the retail industry. Two problems for them:
1) This is late in the Tech Unicorn cycle so big Wall Street money starts wondering whether dishing out cash to money burning companies guarantees success.
2) Real estate is not retail: their cash offer program means they would carry an inventory that exposes them to being wiped out if/when the market softens. That's why they low-ball sellers to have a margin of safety.

All that makes it hard for them to pull it off.

As Lucas Carl said. Click on the link below, it'll get you right to it. You'll still have to decide yourself: there's those that say go for it, and those that say no way. Two big risks are recession (What happens if you have a bunch two year leases and no one's renting short term anymore) and regulatory risk (County/town messes up regulation -check San Francisco)

https://www.biggerpockets.com/...

Cap rate is like the interest rate on a bond. Junk bonds carry a higher interest rate (cap rate) than quality bonds to reflect their higher riskiness (Bankruptcy risk). So do crappy buildings: NOI represents a higher portion of the value (so high cap rate) because the market knows that part of NOI will have to cover repairs (roof, HVAC..). You fixed your building and even at unchanged NOI, its value improved so cap rate is now lower (NOI represents a lower portion of the value).
Cap rate is not a driving force, it's the result of dividing the market value of the building by the NOI.
That being said, it is true that not all improvements will raise the building's value. Best way to ensure they do is to make sure you invest in stuff that justifies higher rents, so the building value increases even at unchanged cap rate. Don't gold plate a crappy building. Don't build the castle of Versailles in Chicago South Side.

I'm impressed.

:)

What about carrying costs like property taxes and such? Also, what's the value if no water rights attached? Just askin'...