All Forum Posts by: Account Closed

Where was this?

I'm glad you could afford a home. I'm not against owning homes. It's WHERE to own them that matters.

 How much is your yearly property tax? Texas has way High propertyTaxes. (I have investments in TX) but they don't have crazy laws and politics like in California which is what I was commenting on.

By the way, were you aware that when the market gets wonky, which it soon will, the bank locks your HELOC and you Can't use it. Just sayin'. (Check 1987 down turn 2000 down trun, 2008 down turn). You actually should have done a second if you want access to the money when good deals come around. Didn't know that? I wouldn't be so smug ;-)

Interesting. You focus on what Henderson Might do in the future rather than what IS happening where you invest.

It's been fun. Toodlee Do and a good day to you.

Not sure what you mean by "low" taxes. I have taken two houses priced at $1,000,000 per Redfin. One in Torrance CA and one in Henderson NV just as an example. Time wold fail me if I went into all the comparisons obvioulsy.

$1,000,000 in Torrance - 1521 Beech Ave,Torrance, CA 90501 - 3 Beds 2 Baths 1,360 Sq Ft - Built 1927 Lot 4,275 - Prop Tax $12,696  

$1,000,000 in Henderson - 1964 Larkspur Ranch Ct, Henderson, NV 89012 - 4 Beds 4.5 Baths 3,503 Sq Ft -Built 1997 Lot 8,712 - Prop Tax $ 3,636 - (1/3 the tax of CA)

The property in Henderson is 70 years newer, Nearly Three Times the size, the lot is twice the size and the taxes are 1/3 of the Torrance property.

Californians are "frog in the boiling pot" mesmerized. Over time things have degraded so much they simply don't notice.

Not to mention, the crime, the traffic, the cost of living, the cost of entering the housing market, no cash flow, and the crazy politics. The state of California taxes your wealth, lifelong no matter where you move. Look it up.

I love the California weather and the water and we just got back from Leguna Beach (which we frequent) along with Newport Beach and Santa Barbara. 

But, I would not invest there. There are too many unpredicables about the future course of CA.

By the way, your appreciation and $5.00 will get you a cup of coffee. You can't eat appreciation, you can't invest appreciation, you can't guarantee that appreciation will be there next year.

 Yep. Absolutely.

Just spent a week in 92651. Would I rent or would I buy, I ask myself. 

I would Never, Never, Never buy in Californi-eye - the list of Why makes me cry, but I would never buy in Californi-eye 

2. An above average return with less risk than normal for that return

What are you suggesting is "Above average return"?

The market is so hot right now, I simply put up signs outside the properties, listed on Craigslist and sold 2 flips a month before completion for more than asking. Closed on the first a month ago and we just closed on the second. In both cases the buyers had modifications we were able to include for them that made it more to their taste and didn't impact us.

No real estate agents needed. 

In a slow market (this is definitely Not a slow market) you finish and stage the property first. 

With no Bio, no comments and very few posts "it ain't gonna be easy" to get the attention of anyone who knows what they are doing. 

Put a little something in your Bio that explains what you've done, what you're looking for and what you want to accomplish.

People here aren't impressed until you've shown what you can do. They are over 2,000,000 people who signed up before you did. What sets you apart?

Buying pre-foreclosures is my specialty (when they are available. :-)

If you are doing this with a partner you do the following:

1. You create individual LLCs, one for you and one for your partner. Have an actual real estate attorney create them, not online. (Don't do a partnership, too much liability in a partnership.) Your two LLCs form a Joint Venture in writing. Your attorney writes up the JV Agreement one time and you use a copy for each new property. You have to decide percentages. I don't recommend 50/50 ownership. It's a deadlock if you disagree on something and everything bogs down. You can do a new Joint Venture for each new property but do 51/49 ownership perhaps on an alternating basis. Or if you do 50/50 have a means of a tie breaker (draw straws, flip of the coin). Your LLCs have to be run according to your operating agreements.

 2. Identify the state(s) you want to buy pre-foreclosures in. Please don't say Washington State, Oregon or California. It is highly regulated and against the law in Washington State and is a felony. Didn't know that huh? Yeah, it's that serious. Have a 1 hour conversation with an a real estate or foreclosure attorney in the state(s) you want to participate in and ask what can and can't be done. Take really good notes and follow the advice you've paid for. Ask about redemption periods and the S.A.F.E Act and Dodd-Frank and any local laws regarding foreclosures, reinstatements, evictions, Allowing the seller to  remain in the property (Not recommended, but some investors want to do that.) Personally, slamming a hammer into my big toe is more satisfying and less pain than keeping a tenant who was an owner. They forget they lost the house and resent you. Make a clean break.

3. Decide if you are keeping the property long term (cash flow, appreciation, great tax write-offs) or flipping and selling (capital gains) or selling and holding a note (how you structure the deal here is important). I use lease options and get 10% down. So, on a $200,000 house I get $20k Option fee non taxable cash, up front. Since a Lease Option isn't a sale there is no capital gains tax until the Optionee exercises the Option and finances out of it. Have the attorney set up both your Lease agreement and Option agreement in compliance with the Dodd-Frank Act.

Go for it tiger, that should get you started.