All Forum Posts by: Kama Ward

Brian Hoyt My dad is almost 78. He's got one rental left. He has owned it more than 27.5yrs. So it's all capital gains. He doesn't want to fuss with renting anymore, he will get close to nothing for the 90-100k after taxes if he puts in in the bank. He doesn't want to invest in something more risky. It's about preservation of wealth now for him. I don't want the rental (too far away). My brother is not interested in real estate. So he's going to owner finance it to a young couple who want to own a rental. He will get a good sales price and a much better interest rate. Amortize at 30 payoff at 10. The worst that happens is he gets the house back. If I inherit it, I get the income or sell the note for a wad of cash. What's not to like?

After I wrote this I realized it's similar to J Scott's advice, but what the heck:

You have to decide if you really want to sell your house, or if you prefer to hold on to some idea of what your house is worth.

If you do want to sell, here's what I would do if I were you:

1. Go back to the 400K buyers, see if they will take it. If they do, sell the house and be thankful.

2. Take the house off the market (people will disagree here I'm sure) My thinking is a bit of time off will get a new crop of serious buyers built up- and to get your house in shape if need be.

3. Get three or more serious realtors over to see your house. Tell them to be brutal, you want to hear the truth. They won't be brutal, but it might get them to be a bit more straightforward about what's wrong.

4. Get some stagers over for a consult. Do what they say. Fix and clean as much as your budget will allow. This may not be expensive.

5. Re-list your home with one of the realtors you interviewed.

6. If you want a bidding war, you need to have it very under-priced. Talk with the realtor to see if there are bidding wars in your area and if they are advisable.

7. Sell! Be done with it! Move on to better things. I'm of the mind that trying to squeeze every last penny for over a year takes away from making money elsewhere. *All this is greatly complicated if it will need to be a short sale.*

Good Luck!!

Hey KK! Sounds like you have the enthusiasm, solid marriage, and financial management skills to make it work! Can you make it just on your husband's salary for a while? If not- maybe you could transition to a real estate related career as an in between step. Would it be possible to move to a cheaper place without having a crazy commute?

Set your goals and break it down into steps- you can get there. You definitely can invest with a baby in tow. It's not easy, but I did it. People might give you a look, but they keep their mouth shut when you are the buyer/person paying their fee or commission. (in my town most people are nice about it). Not that I took them with me all the time. An occasional babysitter is way cheaper than regular daycare.

Some may laugh at this, the high powered guys perhaps, but it worked well for me. I set my goals and achieved them, and had time with my kids. Now one is 19 and one is 11. I don't regret it one bit- I would if I missed all those snuggles.

Generous offer from Rich Weese. Take him up on it! You will learn so much from looking over one possible purchase. The main thing you will learn is that you need to learn even more!

ps. About the specific property- my guess is there's no such thing as a free lunch or a free lot.

If there is a free lot to be had, there wouldn't be an ad about it. It'd just be sold with an old house where the owner was in trouble/ignorant/didn't care.

The issue with the OP was trust with him/ their finances in general. Not real estate particularly. That's why I recommended getting in better shape first.

The spouse does not have to be involved with the business (mine isn't) but must be ok with the general idea- if you want to have a healthy marriage. That's not everyone's objective.

If your partner does not have the entrepreneurial mindset, it's best to have a buffer/safety net built up for them. Saves on fights in the bad times and chronic low level tension in the good times.

Of course there are extreme cases where the investor is delusional or the spouse is paranoid- but that's a different issue. Maybe if they are little bit of both they could balance each other out and win!

Also, I prefer fewer layers between the seller and myself- all other things being equal. I've found things go more quickly and smoothly that way. Unless the seller is crazy- then it still takes longer, but a layer or two keeps my drama level lower.

Shane Woods With either agent, do not use the professionals they recommend: inspectors, attorneys etc. These professionals rely on the agents for their living. OH yes, I learned this the hard way!

Get your own recommendations from another source- another investor preferably, or a friend with good judgement who has bought recently, or a quality contractor you happen to know.

All this changes with relationships-- if you develop a relationship with an awesome agent (rare but does happen with persistence). Take their recommendations for professionals if you don't already have your own.

Let's say you bought your first house, and you love it. And your agent was "great". Lots of people say that, right? Well, You got lucky- or you're oblivious- or there's a serious problem that may not even show up until you try to sell. Hey, cynical but true in my experience.

Buyer beware! Due Diligence Rules! It's all on you in the end!

Hi- Wife here!
" It's taken a long time to get my credit straight and debts paid down. " This indicates that you may have not have been so responsible with money in the past. She may feel insecure about it still.

"HELOC, turning over traditional 401k to SDIRA" - putting the house and or retirement at risk: more insecurity

"Completely out of debt... Probably a good 5 years off." This indicates you either have a ton of debt or a small income (i'm guessing small income) more insecurity

"we're getting there but by that time it'll more than likely be too late to build the wealth I would like for us" This indicates either ignorance or impatience/immaturity on your part (don't mean it harshly). Any time is a good time for real estate!!- the real estate investor must just adjust their strategy to market reality. She must feel this too.

The best time to invest is when *you* are ready to invest.

So my advice to you, as a wife who, with my husband, went from debt/ low income to good income, no debt and re investments:

1. Be patient with your wife, and yourself. Realize there will always be opportunity. Lay off the real estate talk for a while.

2. Show Don't Tell: Work like a dog to get out of debt. Extra jobs, insane hours, serious budgeting that you both work on together every month. Maybe that second job is in a real estate field.

3. Sell her the dream: Not the real estate dream, but her dream! What does she want more than anything?- does not necessarily mean a consumer item. This goes with what Brian said, but take time to listen and find her exact needs/desires. Tell her how you want to help her realize her dreams- of security, nice house, travel, good education for the kids etc.

4. So you are now in less or no debt, your income is higher, your wife feels like she has a safety net under her, and is excited about her dreams. You have less urgency and more confidence in your voice. Real estate is a natural next step in fulfilling those dreams! Go for it!

Good Luck!!

He means if you live in part of the house. Like if it is a duplex, or you rent rooms. If you just got the loan, and do not live in it, you will almost certainly be committing bank fraud. That can result in jail time.

Plus, look up the 50% rule for all the true costs of renting the home. You may think you will be making money while you will really lose money over time. Then look up the "horror" stories about bad tenants. Being a landlord is great when it works, and can be a serious disaster when it does not. Eyes Open!

That's why he's such a good actor. He can play 16" shorter and 36 IQ points dumber at the same time.