All Forum Posts by: Vinay H.

Have you looked into your second amendment rights? Generally when a burglar goes up against 2nd amendment, they back down...

Have you talked to the police? Installed an alarm or camera system?

I thought I was seeing objects falling from skyscrapers in Manhattan until I realized these were investment bankers jumping out of the windows ....

Just kidding. We had 900 point decline in Feb and we are still standing.

HOWEVER, clouds are on the horizon

a) International markets have been routed - from 50% down in Asia and Russia to 15% down in Europe

b) Interest rates are climbing, 30 year mortgage hit -- shock, horror -- 5% again

c) Real estate markets in some regions are showing seasonal cooling down

d) Tariff wars

e) Oil prices rising

f) Employers cannot find employees

The next 12 months should be interesting ....

When the credit markets sneeze, the real estate market will catch a cold ....

You have to deal with several external entities

a) Title search company

b) Lender ordered appraisal

c) Home inspector

d) Closing attorney

In theory, everybody could do their job in 2 days but in practice it does not happen. Appraisal is ordered - takes a week. Your financials are processed. Home inspection and any findings need to be discussed and negotiated. Closing attorney needs to get HUD from bank, verify numbers, get/prorate any tax/utility bills, get final payoff numbers etc etc

So anything under 2 weeks is aggressive. Of course, you could just have a cash offer and render most of this moot but with a mortgage you will have to go through the circus ...

Before we get pitchforks and lynch mobs, possibly there is a need to talk to the local police to find out about the situation. Maybe he committed the crime 20 years ago and is now reformed. Find out the details from him and from the police. People deserve a second chance, and that's a reason why he was not given the death penalty..

If we all chase him out and make him jobless and homeless, is this a better situation for society? 

Obviously this is a major headache, but if you can't stomach it, better back out of the deal. Even if he turns out to be the best tenant ever, his presence will limit your potential tenants for the other units.  

I think there are 2 options - either get more info and develop a strategy or back out of deal.

 LLCs can elect to be taxed as C Corp

Children make great cheap labor ....

Just kidding ....

Mark my words - the go go days will be back in Spring. Also the bankers will start approving easier loans around ... Bankers and loan officers also need to make quotas and earn bonuses ...

Please leverage 100% or 4% FHA. However, if this is your first time, start small with a duplex. Best to learn to walk before running? Make sure to run the numbers or post here for people to look over

You avoid self employment taxes by booking gains in an LLC and distributing profit as dividends to shareholders.

One way to keep housing affordable is to avoid doing the over the top Marble-and-Glass-mosaic-tile-everywhere flip. Start sourcing more sustainable supplies and good quality but more affordable building material. Eg Granite or solid surface instead of Marble and Quartz, Reclaimed hardwood and Luxury vinyl plank instead of brand new cherry hardwood floors, Repurposed Vanities instead of Brand new ones etc etc. Don't just sod out the lawn and build massive Trex decks with 2-way gas fireplaces. go with old fashion seed, small but cozy reclaimed decks and a trusty pellet stove ....