All Forum Posts by: Mimi H.

I'm surprised that not one person pointed out rent control. If you're new to REI and you're looking to hold, definitely research rent control laws.

Hi friends,

I find myself in a really odd position and thinking about an ALT a mortgage. I've really gone from full-time employment to a contract position but have less than one year of self employment history and as a result cannot seem to qualify for a conventional A paper loan despite great financials and solid assets. 

You can imagine how annoyed I am about this. Would love to hear more about other people's experiences, especially in California.

This would be for an owner-occupied residence in CA. 

Thanks!

This can devolve into a nice religious war quite easily. The bottom line is, different people will have different views on risk. What's high risk to one person is low to another. Before deciding on an approach, be honest with yourself on where you sit risk wise. There are people who find comfort in 'having their money work harder' via leverage, and others who find comfort in 'knowing that they are free and clear'. There's not one right way. The reality is that most people will be somewhere in between.

People who close 100 deals typically have developed some close relationships with financial sources. Sometimes, it's hard money that goes through a refi. If you're married, you can conventionally get 4 mortgages a piece (generally) - that will get you up to 8. There's also the possibility of wholesaling to get multiple units going. There's also partnering, where your partner may be the primary on a mortgage, and as a secondary, that mortgage may not show up on your credit. There's seller financing - also, mortgage doesn't show up on credit. 

Lots of options and I hear a lot of people toss around phrases like "I want to have 100 doors". But do you really? Or do you want to make a certain amount of $? 100 doors generating $100/door is a very different experience than 10 doors generating $1000/door.

No. Next question.

Unless, of course, you like losing money for fun, then I can send you my address, you can send me some checks, and in return, I'll yell at you. I can guarantee that experience to be a lot more fun than the financial drain and angst that overpaying will cause to your life and corresponding relationships. 

I'd second or third other people's commentary on being a first time investor and buying out of state. It always sounds great to say my PM is going to take care of it but IMO there are a lot of crappy PMs out there. Also, be aware of local law, if it's a tenant vs landlord friendly area, and eviction policies, they vary greatly geographically.

Here's an update to this - I've since become a Licensed Realtor in CA so I no longer have the need. Also, between the Title company and Escrow officers, CA is pretty well covered vs in NY where everyone "lawyers up". 

Big thanks to everyone who's been on the journey with me thus far! :)

Mimi

Divorce happens. Actually, almost 50℅ of the time. It's wise to know the details of community property vs private property so both people can be protected. Best case scenario, it's never used. 

Planning for the worst doesn't mean the person is a cheapskate. A cheapskate is what makes someone a cheapskate. And if someone splits the bill down the middle and that's not your style then why move forward? 

Most attorneys who are savvy with divorces will give a free consultation. Take advantage of it.

And yes, it's quite possible that you'd impress your girlfriend by being prepared. It's not meant to be a one way agreement as shown in movies. 

I'm always surprised to hear people sounding offended by a prenup. If neither is out to take advantage then it's just planning. You can do other financial planning together too. 

Not all women roll up being gold diggers, some come with considerable assets. Maybe you'll need to show her that you're not after her assets, inheritance (community property in CA if it's during marriage btw - so there's something that you'd want pre-nuped)

Good luck with it.

I once had an incredible tenant and as a thank you, I didn't raise his rent. He was so grateful that he totally took care of a pretty major issue a year later. Totally worth it.

60 days and do it in writing to make sure that you are legally covered. Might want to see why the rents are so low in the first place, walk around the neighborhood in the evening, etc. 

The bottom line is that if you are using a buyer's agent, the agent makes the offer on your behalf, so if you want to offer let's say, $1.00 for a $1M property, you totally can.

The bigger question is why would you?

There's a low offer, and then there's the possibly offensive offer. If you have a good agent, s/he should be able to guide you through what's potentially reasonable. There may be situations where you'd offer a massively lowball offer and win it, simply because the planets align properly. A friend of mine had won a very low offer simply because of lack of staging, desperation of buyer, extremely rainy day, and a terrible listing agent.

However, it's much more likely that you'll burn through your agent, and several other agents, and then develop a stigma that you're not very serious, experienced, and a time waster. And then no one will want to work with you, except the really bad, desperate agents, because they won't know better. Or they are just really bad, or really desperate.

There are fire sales, for sure. But as many others mentioned here, do some research to see if it's warranted if you want to be successful.

Your agent should be running a couple of CMAs for you so you get a sense of offer needed to win. 

As for offering below MLS aka asking price, it's the asking price. Similar to the car dealer, it's MSRP - depending on the market, you may pay over or under to win. In the Bay Area, we're still at the paying over stage, even in Q4. Detroit, you've got a different scenario.