All Forum Posts by: Wilson Lau

@Lina Vezzani-Katano

When you say the current rent barely pays for the monthly mortgage, did you purchase the property recently at a higher rate? If your financial situation allows, maybe you can slowly increase the rent and bring to FMV, and after a few years refinance to a lower rate? I would say a rent increase of 3-5% per year is very common and reasonable in the area. Honestly, most houses in 95112 and surrounding areas are renting for $2.7k+/month, so I don't think they can find anything to move to.

Quote from @Carlos Ptriawan:

Quote from @Wilson Lau:

Quote from @Patrick Thomas Dickinson:

@Bill B.

@Arlen Chou

@Jason Wray

She seems to think she she might be able to do what’s called a reverse contingency and sell her house to someone on the contingency that she has to find herself a replace home. With the lack of supply here in the Bay Area that could take months to do in my opinion especially if you’re looking for a quality home here in the Bay Area in a decent area. Any  good neigborhoods are getting multiple offers over asking, so offers need to be really aggressive right from the start.  To boot she only has a few cities she’s interest in.  Then my next thought is who is going to want to buy her house and wait for what could be multiple months for her to find her future home ,probably very few people in my opinion. ? 

Thanks for the creative financing choices 

Any more to add on this situation 

It almost seems like in any situation in order for her offer to be strong she has to have the cash in hand. 

Are agents still getting clients home in the background or is most stuff going to market to see who can pay highest and best? 

Agree that bridge loan would be the best here. Seller finance and reverse contingency are some potential options but both are tough to get in today's market, although not impossible. It is still a very strong seller's market in most of the bay area (except San Francisco condos), and on my end I am still seeing lots of cash offers up to $2MM with no or very minimal contingency.

 LOL, this condition is created by the realtor itself (submitting offer with non contingency) sometimes.

Reverse contingency I think it's almost impossible in bay area market though.

This condition is really create worse of the worst for FTHB or someone that want to make the move like above.

Btw I see in Jan 2024 that DOM is increasing.

For reverse contingency or seller financing to work, in reality, you really need to be the highest bidder with a strong story to convince the sell side. At the same time, you either know the seller, or the seller needs to be an ultra high net-worth individual who is in no rush to receive his money.

This is a chart of active vs. pending. Ratio under 5 indicates sellers are still in control. I should have included DOMs there but most places are seeing increase from ~10 days to ~18-30 days.

On a side note. Yes. It only takes 1 willing buyer or 1 realtor to create a ripple effect on the non-contingency. Especially since COVID, it almost becomes the norm. Inspection only takes 2 days in most major cities, and turn out that 2 days could make or break your deal.

@Carlos Ptriawan Remember this one I asked you when it was asking for $1.2MM (ARV $1.7MM), someone bought it for $1.53MM cash with no contingency lol
https://www.zillow.com/homedetails/3411-Merrimac-Dr-San-Jose... 

Quote from @Patrick Thomas Dickinson:

@Bill B.

@Arlen Chou

@Jason Wray

She seems to think she she might be able to do what’s called a reverse contingency and sell her house to someone on the contingency that she has to find herself a replace home. With the lack of supply here in the Bay Area that could take months to do in my opinion especially if you’re looking for a quality home here in the Bay Area in a decent area. Any  good neigborhoods are getting multiple offers over asking, so offers need to be really aggressive right from the start.  To boot she only has a few cities she’s interest in.  Then my next thought is who is going to want to buy her house and wait for what could be multiple months for her to find her future home ,probably very few people in my opinion. ? 

Thanks for the creative financing choices 

Any more to add on this situation 

It almost seems like in any situation in order for her offer to be strong she has to have the cash in hand. 

Are agents still getting clients home in the background or is most stuff going to market to see who can pay highest and best? 

Agree that bridge loan would be the best here. Seller finance and reverse contingency are some potential options but both are tough to get in today's market, although not impossible. It is still a very strong seller's market in most of the bay area (except San Francisco condos), and on my end I am still seeing lots of cash offers up to $2MM with no or very minimal contingency.

@Jeffrey Zhou Welcome!! I am sure you will learn a ton here. I am based in San Jose. Let's connect :)

Depending on the size of her capital gains, there are a few ways to lower her tax burden if she is not in a hurry to sell the house. Deferred Sales Trust is a great way as @Chris Seveney mentioned.

@Jonathan Angulo I am based in San Jose as well. Let's connect!

@Karan Anand It really depends on your financial situation and goal. The worst thing you can do is buy a house now at market value and realize you have to sell it in 1-1.5 years. All the fees and commissions can easily wipe out all your gains.

Hey Bruno. I'll DM you and see if there is anything I can help.

Hey Jesus. Welcome to BP! The wealth of knowledge in this platform is incredible! Best of luck.

Hey Tony. Generally speaking, MTR/STR guests make less damage/wear on the property due to the shorter length of stays. You also have the benefit of having cleaners keep an eye on your property, so any issues can get addressed right away, as supposed to your LTR tenants who may not even notice anything until it's too late. However, MTR/STR has its upfront cost, about $5k per bedroom from my experience, and occupancy rate can be a hit or miss. The demographics of your guests and the size of your property (larger property = more guests = potential for more tears/wears) also play a role as well.