All Forum Posts by: Leon Y.

Lupe Santiago, the financing varies with sellers. I'd suggest be flexible on final selling price but try your best to match your payment (PITI + maintenance + vacancy) to the market rent. I.e., I don't mind buying a house 50% overpriced if I am paying 3% interest for 30 years. But I'd think twice buying market price at 9% interest for 10 years. Do what makes sense. But I'm glad to see that you are doing your research. Biggerpockets is an awesome place to learn!

Starting talks with a lender who says they can do more than 10 investment properties through Ginnie Mae. Count 75% rent as income. 6 month cash reserves. 70% of market value on existing homes and 70% off of purchase price if it is to be pulled right after purchase. LLC properties (if free and clear) needed to be deeded to the borrower. Probably gonna get something together in February. If it all works out will let you know.

I'm not scared of the market. I'm buying my properties financed by sellers even if they are overpriced. You can't predict whether the market will drop tremendously or stay the same. Still, a leveraged buy will help you out in the long term. Inflation is going to come around and it will inflate your debt away...just like what the government is doing :)

Ahh. Always feels like I'm missing something good whenever I step away from Biggerpockets for a sec

No Asian would ever buy it...

I actually don't think it is the interest rate that drives the market but rather it is the availability of credit. As long as the banks keep buying government debt instead of lending to people prices are going to stay low. Bernanke just started complaining about how tight lending standards are. Hopefully he isn't trying to make them too loose too soon.
At least in Vegas, right now prices are up because of no supply and total sales are down by a lot. I heard a property got 57 offers on a home. Definitely not a normal market...

Recently I have been discussing establishing a partnership with a couple of investors in the same town who could bring in credit partners to get traditional bank financing.
So there's me, A, investment group, B, and credit partners, C.
So we would approach a deal by putting in the down payment in splits 25% A, 25% B, and 50% C, A & B manage, C the silent partner. Rental net income plus future equity profits will be separated according to those percentages.
How would you structure this? Deed it to a LLC? A trust?
And what if A, B, and C have different investment horizons and want to cash out at different times?
What kind of structure will allow me to not sell my interest as I'd like to keep cash flowing forever? Or do I set a clause for buy out?
Would love to hear from you guys.
Thanks in advance!

Wow. And that's why you need to have $4.72 million lying around... doesn't the banks have the right to redeem the tax liens on the properties?

Must smell real good haha.

Ned Carey Thanks for confirming. Then yes, go all in with real estate!