All Forum Posts by: Steven Goldman

If  the owner will not accept your contract without an inspection I would pass for many of the reasons others have already pointed out. I prefer investment properties without condo fees if at all possible. The fees are a wild card and so are the assessments! 

Many of our clients focus on AIRBNB opportunities. The appraiser will value the building based on the lenders request. First they will look at the sold comps. in the immediate vicinity of the property. Than they will, if asked, give a fair rental appraisal based on the average annual rents for each unit. I think you are asking this question: How will a lender determine debt service coverage for a proposed Airbnb?  This would determine the maximum loan to value that the property would support. Only a very few lenders will use AIRDNA average rent to determine debt service coverage ratio. (D.S.C.R.) Forget the banks and also, forget about 3.8 or 4.2 percent interest, If you need the D.S.C.R. to be determined by AIRDNA than you will be working with a specialty funding company. Rates between 5.5-6.5 but thirty year fixed available. Good luck!

Anyone can sue anyone for the cost of the filing fee. Is the electric panel the problem, or have you decided against the transaction? If insurance is really the problem tell the owner to upgrade and inspect. That would be a simple solution. If in fact you can not get the mortgage and you have made a good faith effort to apply than you should prevail in a law suit for money damages. In most States a seller can only sue for money damages. A buyer can sue for specific performance.    

Are you in or out? If you are out you have a small risk of legal defense costs when you walk.

Hayden you need to add your closing costs, taxes, utility payments etc. into your calculation if you are doing a honest evaluation. Your example uses cash but if you are borrowing money than the costs of the money and the interest paid. 

The way to figure out if a deal is worth it is a time tested formula:

Figure out your ARV. Multiply that by .75.(Current max. L.T.V.) That is the maximum loan amount you will be able to borrow against the property. Subtract from that the purchase price, closing costs, cost of repair, utilities and expenses and you will have your number. (If you are borrowing for the rehab than those costs as well.

You also need to figure out the fair rental value if you are holding because the max. L.T.V. can be reduced if the debt service coverage ratio is too low.

You are likely to have to leave some money behind in the deal if you are BRRRing. 

Good luck real estate is an epic journey!

If you are thinking about New England we have a investor who works Mass., New Hampshire and Vermont. We also know agents in the area.  Investors in the New England area say that prices are steeply rising so you should not procrastinate if that is your target. We are based in Pennsylvania. Many investors are buying in western P.A. and Ohio. Ohio real estate was depressed for a prolonged period of time. The economy is shifting and prices are beginning to move up. Rents are lower than P.a. and California but they are commensurate with pricing. So the bar to entry is not as high. Just a thought use it or throw it out! Good luck.  

You may be surprised at how many property owners who are in a bad spot will walk away for a nominal sum. In order to mine the gold out of the deal you may have to deal with the owners lenders or other municipal headaches. But these deals often have the best return. Whenever you hear about an opportunity be sure to look at it from every angle.  The opportunity to make money might be their its just not obvious or conventional.  My Dad always said:" Solving problems equals money!"

Reschedule it and Steve and Eric Goldman will attend. Will be at Seth's as well. 

You need to figure in your principal and interest together with these costs to determine the viability of the deal.  You also need to analyze the cash needed to close. Unless you have a unlimited supply of simoleons to play with. Good luck what a great trip!

It's hard to say. On the one hand the employment market is improving. Job listings are soaring through the roof. On the other hand inflation is raising its ugly head. It is possible that the market will stabilize at this higher benchmark for a while and then the bubble will burst. Prior to Covid the economy had expanded a record 125 months or so. The expansion only came to an end artificially when Covid disrupted the markets. So continued expansion for much longer would be  unprecedented.  

I'm betting that when the eviction and foreclosure moratorium is lifted the bulls will become nervous and any financial or international crises may cause the bulls to run for the exit and the decades long run of cheap money may pass into history. Than the real estate deflationary pain begins. How soon that is the question. We have noticed that some of our sophisticated investors who have blocks of property have been breaking them out into packages and selling. This is a warning sign that they believe the run will soon be over.