All Forum Posts by: Account Closed

If you lose money you can write off your gains until you make back the loss. 

Really wealthy people re-invest in their companies to grow the stock price. They pay some taxes but their workers pay a lot of taxes based on their salary too. 

It is a different set of rules but as a real estate investor you can 1031 exchange however the taxes are due at some point. 

There has been indications that the Fed will continue to raise rates again by the end of the year. 

Government spending is causing inflation that is very high when you look at it from the point it started rapidly increasing, not just year over year. 

Rates will tick up higher, and they need to keep rates high for a few years. Inflation is a much bigger threat to the economy than interest rates at 6 or 7%.

Higher rates are actually keeping the supply of homes for sale low in my market so prices are still going up (unreal). Who wants to sell a 3% loan to take a 6.5% loan?

There is a cycle of run away spending that props up the markets, they throw money at bad news. SVB is the best recent example. -32T will be -50T in no time! Eventually the market will correct or inflation will go up too high.

I'd either move to a place where it doesn't cost so much to buy a home or start buying lottery tickets.

The odds really won't be in your favor to make 1M in 5 years when you're only making 20 bucks an hour and starting with $10,000. 

Making 1M in 5 years is too far out, find a safe way to double the 10K, do it again. Then aim for $100,000. Get to 6 figures before you worry about 7 figures.

Get the power to gain money and grow your money, then you will be able to keep your money.

Quote from @Bob Stevens:

Quote from @Alex Ng:

How much are profit margins say if I build a 4plex vs just finding a distressed 4 plex and fixing it up? I expect constructing a new one to cost more and take more time to do, but does it have more profitability than rehabbing? Is it worth the time and effort to construct a new property vs just rehabbing an old one? I'm looking to get into contracting so I desire to flip and develop houses. Just wanted to know if it was worth it. Thanks!

 Impossible to answer, 

Bob is right, it is a case by case answer. Overall building new in my market is better at this point in time. I invest in New Hampshire and Southern Maine, most deals to flip get bid up or are just over priced from the start. 

If the signed purchase and sales agreement has the incorrect seller name and the deal fell through then that is a cut and dry case of a contract being void and you should get your money back no problem.

I'd get a copy of the purchase contract, the current deed and tax card to show that the deal is null and void due to incorrect or fraudulent information. If they still won't release the funds then I'd probably ask to speak to a higher up at the title company.

This isn't rocket science but at least a title company is holding the funds. 

I've had higher profits on new builds, it takes longer if you consider the planning phase but it is worth it.

Fix and flips are good if the numbers work, but there is more value and opportunity in successfully developing a new property. Building new makes you better all around because you deal with less flipping an old house. You also won't have to deal with as much if you decide to keep a new build for a long time.

You really have to know your numbers in either case but new construction is better in my market right now. The margins are higher if you can find land.

Hey 19 year old me: Don't invest in Real Estate! Put all of your money into Apple Stock then move it into bitcoin in the year 2010.

Best of luck, you won't need it!

On a serious note: I'd probably have kept more of my smaller flips as rentals when rates were lower. Flipping is a great way to build up cash but you can't keep every deal. 

Everyone knows the Fed was way too late as far as raising interest rates. Government spending and terrible energy policy has also caused a lot of the inflation in my opinion.

The Fed scrambled to fix inflation by raising rates, the Feds goal was to create higher unemployment rates and cool things off. It hasn't really worked and higher rates have created more of a shortage in housing in my market. People don't want to sell their homes with a 3 or 4% rate so prices continue to increase even though new mortgage payments are a lot higher.

They won't drop rates for a while, they will raise twice more this year according to the head of JPM. When the Government is spending Trillions and Trillions of dollars it is tough to predict when the market will sour because they will dump cash on problems. Look at what happened with Silicon Valley Bank!

At some point things will go in reverse but it depends on when the government cuts spending. 

I agree with the first response, there is no risk to get it under contract and the deposit locks in after the inspection. 

You may want to walk through and then line up the inspection a week later incase you decide it isn't going to work. That way you might save the inspection cost. 

On FSBO deals or deals I'm looking to close fast with cash I just put in the contract that my company will hold the deposit.

Always give yourself a few outs in the contract if you can but it depends on the situation and property.