All Forum Posts by: Eric X.

My reserve is anywhere from 3 months to 4 years. Canceled a few deals so building "reserves" to pick up either stock or more properties when the time is right. Reserve is just savings i think?. If things really hits the fan, I would just HELOC primary residence. As long as you have a piggy bank such as i401k, ira, 401k or some type of liquid or fairly accessible funds, you don't need that much in reserves

In this climate we are in, best to be on the higher side of reserves(especially in C/D areas) in case of non payment and to jump back into the market strong if we get back to early 2010s in terms of pricing.  I was transitioning to real estate then and although I got a decent amount, the true pros here basically set themselves up for life with the deals they got 6-10 years ago. 

As an investor? It helps that my tenants will get a bit of cushion for rent the next few months. Besides that, doesn't do too much for me as an investor. Does help quite a few people on unemployment and those that last their jobs...but it really isn't that much money.

Wait and see game to see how the virus and economy reacts in next 4-6 months.

@Claire Rosenberg

If you have to ask about 30k properties in Chicago, more than likely you aren't ready to deal with 30k property problems.  

30k would be C-/D properties.  High turnover, crime, property damage, etc etc.  There are a few players that make a great living in those areas, but majority would not.  Don't let the cost of the property blind you.

@Russell Brazil

Is this common in MD? I've talked to 3 attorneys regarding this previously in Illinois and they said there is extremely low chance of it happening.  They have all advised their clients to just let it go due to the cost of litigation.  

This is more than likely a stimulus fueled short term bottom.  But just like the last 2 recessions, there should be a further dip later on when actual q1 q2 numbers come out along with the increase in unemployment.  

It is VERY rare that you will get sued for backing out of a deal.  No one wins in those situations except the attorneys.  Especially in this economic climate, nothing will happen except for loss of deposit.  It has happened on more than 1 occasion with my clients and nothing has come of it.  Some even got their deposit back. 

@Steve Helms

If you have to ask, I'd get an attorney for the first time and pay attention to exactly what he does.

Also there's pretty much a freeze on evictions right now so you might have to wait a few months.

@Mike Maglietta

As an agent, I almost wouldn't accept your offer if I had other options(I would recommend seller against accepting the offer). Unless you are well known to be a reliable buyer, there are so many times when people made offers sight unseen just to "reserve" the property and then back out after looking at it.  

I do make sight unseen offers all the time. Usually if the other agent knows me, they won't hesitate to accept.  In other cases, I will waive the attorney and inspection contingencies and offer a high non refundable earnest money....this is only if it is a killer deal that I know will have multiple offers.

It is okay to close if you have enough cash to do so.  Personally, cash reserves are more important when there is recession.  

You need to calculate for yourself if the current deal  going to be greater than the future discount of that same property when values go down.  It is also a pain to renovate and rent out homes now. 

It was an easy decision to backout in my case.  Real estate has made people a ton of money since 2008 but I would guess majority of the  appreciation gains were from homes purchased between 2009 and 2012. 

It's fine. Agree to disagree.  You can see what it has the potential to do in other countries.  Any measures to control something before it gets out of hand is best.  It might be roses and puppies where you are at but some areas are quite bad and getting worse by the day.  

It is very true that many people probably have it and don't know it.  That's also what makes it somewhat scary.  You could be fine and visit your parents and potentially give it to them.  

It probably isn't as bad as the media makes it out to be but it also isn't something to just brush under the rug with statistics.   

As someone that has asthma, it is a big deal.  

I am middle of the road.  Don't think it is time to panic but do need to take it seriously no matter what the stats are compared to flu or any other disease.