All Forum Posts by: Yul G.

I was recently asked if I would like to invest in a rehab project with a real estate investor. What would one have to do to protect my investment in this project? He is saying he will sign over a deed of trust with assignment of rents but i am not sure this will offer me full legal protection. what would you guys suggest before handing money over?

Thank you, I too am realizing now that its ok to lay out the ground work but the most important thing is not necessarily the plan but the execution. I have a small property in escrow that I was able to purchase below market value and plan for a decent ROI.

Hi All,

I apologize if I am starting a thread that has already been answered but seeing how the new year is close upon us and its time to break out the pen and paper and write down those resolutions I am curious...

For the experienced real estate investors and professionals doing this at a medium to large level, What were your goals when you first started off?
Did you write them down, in what time frame did you measure them and what would you recommend for a first time investor wanting to get started in this field? Anything that one needs to learn first? Baby steps would be preffered..

Thanks in advance

Hey Steve,

Thanks for the input. There would be a taxable gain because her cost basis is $89k. Have you heard of any situations where a bank will allow a gift of equity on a non-owner occupant property since my intention will be to continue to rent it out to the same tenants?

Also, another suggestion I was thinking might be to call the bank she has her mortgage with and see if they will allow me to assume responsibility of the mortgage under the same terms, not sure if thats a possibility tho...

Once again, thank you for your input.

Hi All,

Became an instant fan of this place soon as i stumbled into it and have already picked up a vast amount of knowledge. I wanted to present a situation I am currently going through to see if I could get some guidance as far as what direction you all see fit.

I currently have a rental property that I originally purchased FHA, lived in for a year and am now renting out to tenants. The property is mortgaged at $119,500.00 @ 4.875% and the PITI is $940.00/mo including the $90.00 MI payment. Property is assessed at $150,000.00
Currently renting for $1,250.00 per month to a great tenant.

My sister has a property mortgaged at $ 65,000.00 @ 4.275% with a PITI $520.00 under conventional non-owner occupied. Property is assessed at $145,000.00. Rents for $1,200.00 per month so cash flow is steady.

My father has a property that he is having a difficult time making payments on. his 1st mortgage was for $ 256k and he had a second for $ 102K. However, we negotiated on the second and it has since been wiped away. So the current standing on the property is a PITI of $ 2,200.00/ mo on a mortgaged amount of $ 256k however the property value is around $330k.

Our intent in order to help my father out was to refinance MY property from FHA into conventional, and at the same time I would purchase my sisters property from her for $110K with a gift of equity as remainder. This would give us about $40k in free cash that we would then re-invest into the bigger mortgage of $256k that is currently under my parents name purchasing the house from them for $215k and doing a gift of equity on the remainder of the properties value transferring ownership from parents to my sister but lowering the PITI to a reasonable estimated payment of about $ 1,200- 1,500.00 per month. The purchase would be made via FHA with my sister as owner occupant and myself as non-owner occupant since I will be helping with income qualification.

Am i misinformed on how the gift of equity can be used, and does anybody see any flaws or other suggestions that they feel will be more appropriate to this situation. If there are and key points I left out I will glady provide.

Thanks to all and I am anxious to hear back from all of you.