http://www.protectyournestegginreti...schiff-listen-to-but-maybe-not-to-invest-with
a terrible investor, so married to his opinions and bias... great money management lol... hes a snakeoil salesman
US foreclosures - Boholt Seminars - NO
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http://www.protectyournestegginreti...schiff-listen-to-but-maybe-not-to-invest-with
a terrible investor, so married to his opinions and bias... great money management lol... hes a snakeoil salesman
say I was buying in Florida and i was able to get financing for 6% but only in my own name, would it make more sense to buy the first 2 or 3 properties in your/my own name and take advantage of refinancing later on, or to puirchase via an LLC structure? can u transfer property and proeprty loans over to the LLC at a later date once uve got a significant portfolio?
also with umbrella insurance.. is that for every property individually or just the one policy covering all?
cheers
also with umbrella insurance.. is that for every property individually or just the one policy covering all?
cheers
like can you transfer the property and loan through a quit claim deed?
Quit claim deed
You can quit claim deed any property at any stage.... Free download and a notary et voila... You just have to pay for title transfer.. Most buy in your own name to avoid the proof of funds issue and then if desired, grandest into the llc.
Umbrella insurance is a flat amount per annum that covers all your assets up to x desired amount... So let's say you have landlords insurance of 500k for personal liability and umbrella insurance for 2 mill. Your tenants child is hit over the head by a shingle falling off your roof and develops a brain turmor as a result that requires emergency evacuation to San Francisco...then is in a coma for 3 months and paralysed for the rest of their life beyond that.... Total bills = 2.4 million... They will eat through your landlords insurance first, then start on your umbrella insurance.... Total 2.5 million.... Hey, you still have space to pay for someone else tripping on ice on your other property to the tune of 100k. Then you would be out of insurance.
That was my cheery thought for the day....! Happy US purchasing...
You can quit claim deed any property at any stage.... Free download and a notary et voila... You just have to pay for title transfer.. Most buy in your own name to avoid the proof of funds issue and then if desired, grandest into the llc.
Umbrella insurance is a flat amount per annum that covers all your assets up to x desired amount... So let's say you have landlords insurance of 500k for personal liability and umbrella insurance for 2 mill. Your tenants child is hit over the head by a shingle falling off your roof and develops a brain turmor as a result that requires emergency evacuation to San Francisco...then is in a coma for 3 months and paralysed for the rest of their life beyond that.... Total bills = 2.4 million... They will eat through your landlords insurance first, then start on your umbrella insurance.... Total 2.5 million.... Hey, you still have space to pay for someone else tripping on ice on your other property to the tune of 100k. Then you would be out of insurance.
That was my cheery thought for the day....! Happy US purchasing...
cheers for that!
Emma, Can you please explain closing/settlement process in detail, say once offer is accepted, what are the further action item until buyer owns the title. Also, please share the cost associated at each step.
Are there any major difference in the closing process for cash buy vs mortgage buy.
Are there any major difference in the closing process for cash buy vs mortgage buy.
hi all
here a few words that you are going to be hearing alot about in the comming year or so and its something we don't have here
we could have it not sure how it would work
strategic default
its a default where the person can cover their loan payment they just don't wish to
so say you have a 250k loan and the house was worth 300k but now its worth say 100k or next door sells for 50k in a foreclosure
what you do is you go to your bank and you do a strategic default
which is saying I can cover my loan I just don't wish to because the loan is higher then the property is worth
you are handing back before you default
I have posted some where and have no idea where at the moment two links to bloombergs that have already been looking at this issue.
no the problem for the stategic defaults is that there is no data on the number of these
as its up to the householders
to give you an idea how many strategic defaults they are thinking will happen 20 mil or 3 thril in value
these are not defaulting home owners which is a fore closure
these are people that can afford the repayment they just don't wish to
this is the next big wave they think that is comming
the time frame on this window is 12 month
and can be a very profitable window if you know what you are doing
i think these two words are going to start if they have not already to be seen and there is no stopping them at this stage
teh difference also between a foreclosure and a strategic is that the foreclosure could not hold their property with a strategic they can in most cases they have no problem with repayments or cash flow
they are making a strategic move to reduce their debt levels and as long as they have the structure to do this in place then it make very good sense to do so
and the funders know this is comming.
here a few words that you are going to be hearing alot about in the comming year or so and its something we don't have here
we could have it not sure how it would work
strategic default
its a default where the person can cover their loan payment they just don't wish to
so say you have a 250k loan and the house was worth 300k but now its worth say 100k or next door sells for 50k in a foreclosure
what you do is you go to your bank and you do a strategic default
which is saying I can cover my loan I just don't wish to because the loan is higher then the property is worth
you are handing back before you default
I have posted some where and have no idea where at the moment two links to bloombergs that have already been looking at this issue.
no the problem for the stategic defaults is that there is no data on the number of these
as its up to the householders
to give you an idea how many strategic defaults they are thinking will happen 20 mil or 3 thril in value
these are not defaulting home owners which is a fore closure
these are people that can afford the repayment they just don't wish to
this is the next big wave they think that is comming
the time frame on this window is 12 month
and can be a very profitable window if you know what you are doing
i think these two words are going to start if they have not already to be seen and there is no stopping them at this stage
teh difference also between a foreclosure and a strategic is that the foreclosure could not hold their property with a strategic they can in most cases they have no problem with repayments or cash flow
they are making a strategic move to reduce their debt levels and as long as they have the structure to do this in place then it make very good sense to do so
and the funders know this is comming.
Good god GR, a post that I could read, contained at least some fully formed sentences (excluding of course the traditional end to English language sentences - the full stop) and although discussed before did at least in some way add to the thread and didn't push appalling toxic assets!
Are you OK?
Are you able to offer finance to people here for what THEY want to buy, rather than 'your' low end MFR's? I (for one) would be very interested in finding out about ANY finance...
Are you OK?
Are you able to offer finance to people here for what THEY want to buy, rather than 'your' low end MFR's? I (for one) would be very interested in finding out about ANY finance...
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The 'strategic default' as you term it has been happening right along.
Here is a link for a US forum where they are talking about exactly that going right back to the start of 2010.
http://www.city-data.com/forum/florida/984575-if-you-walk-away-your-mortgage.html
No doubt it has been happening for a substantial time before that.
As I understand it, although the loans are NON recourse, the mortgagees are still going to be credit impaired and it is this that is in part keeping the market from taking off at the low prices as most can't buy again.
Obviously doesn't included everyone as Emma has been approached by the ex home owner to sell her shades for the house as they don't fit his new (cheaper) house. (I think it's somewhere in this thread)
Cheers
Here is a link for a US forum where they are talking about exactly that going right back to the start of 2010.
http://www.city-data.com/forum/florida/984575-if-you-walk-away-your-mortgage.html
No doubt it has been happening for a substantial time before that.
As I understand it, although the loans are NON recourse, the mortgagees are still going to be credit impaired and it is this that is in part keeping the market from taking off at the low prices as most can't buy again.
Obviously doesn't included everyone as Emma has been approached by the ex home owner to sell her shades for the house as they don't fit his new (cheaper) house. (I think it's somewhere in this thread)
Cheers
FYI, rented a few days ago at $995/m. Tenants have moved in! I had to reject two other applicants. So the offers were coming in.
Emma has been an immense help, without her, my property wouldn't be ready and it would not be rented! really knows her stuff and has a great team of people that get the job done (repairs, appliances, etc), with quality workmanship and you don't get ripped off. i'm sure i would have spent a small fortune had i gone it alone.
Huurayyyyyyyyyy !
Congrats Costa. Whats your plan going forward. Looks like you gave 5$ discount to tennants
Congrats Costa. Whats your plan going forward. Looks like you gave 5$ discount to tennants
Here's an interesting situation.
I have been looking at Arizona as one of the places I want to invest. Anyway, I made contact with a buyers agent via a Zillow listing I was interested in. Told him I was looking at 3/2 homes under $50K, preferably tenanted.
In the last couple of days he has sent me 2 listings for properties where the owners are selling but then want to rent back from the buyer. Prices are $43K and $46K. Owners have lived in these homes for approx 10-13 years each and don't want to move. One of them is willing to sign a multiple year lease.
The great thing is that the rents in this particular area are approx $900-$1100.
They are both short sales and could take months to settle.
Not sure if I'll go for either of them, but it was interesting to see how many people are wanting to stay in their homes and rent straight back from a buyer. What better situation could an investor want
I have been looking at Arizona as one of the places I want to invest. Anyway, I made contact with a buyers agent via a Zillow listing I was interested in. Told him I was looking at 3/2 homes under $50K, preferably tenanted.
In the last couple of days he has sent me 2 listings for properties where the owners are selling but then want to rent back from the buyer. Prices are $43K and $46K. Owners have lived in these homes for approx 10-13 years each and don't want to move. One of them is willing to sign a multiple year lease.
The great thing is that the rents in this particular area are approx $900-$1100.
They are both short sales and could take months to settle.
Not sure if I'll go for either of them, but it was interesting to see how many people are wanting to stay in their homes and rent straight back from a buyer. What better situation could an investor want
Sorry, propertinvestor.. Will respond to yours but in a non financed transaction, buyers Agent fees, title fees and prorated sewer/trash and taxes are about it....! Hand over offere, get accepted, three weeks later hand over reisudal amount after receiving and reviewing settlement statement and voila yours. Simplified but late and tired so that is it. I think i posted one of my closing docs about a billion pages back. Each title company, just like each solicitor does in Oz, charges different amounts
I just read the post from bevk and a few red flags. FYI I had an owner approach me as well about a similar situation with a great price on his property....BUT... I wuldnt go near it once i heard it was a short sale. Just because a list price is given on a short sell, it is by no means indicative of actual sales price ...it is simply a point at which you start negotiating with every lien holder on the property... There is a reason why only 10% of these close. Which you may find about a year into negotiating, by which time stable tenant may well have been foreclosed on and kicked out despite their best intentions. That is even if they really ARE willing to stay... Or in horrible USA ville, a desperate buyers agent will SAY they are going to stay, or that they really are the owner...or, just .....check, again... Proof of ID the tenant is the owner, affidavit theybare going to stay..? I have no idea, just tough to say. I get owners would want to stay but I also get why they may be foreclosed on regardless.
There is no greater benefit as to whether you have a new tenant with a new lease with stellar credit record but given that it is now mandatory to enter into negotiations withhold owners, I would question why they refused to or couldn't renegotiate with the bank...could be GREAT reason.. But I would want to know that they can they afford the rent... Fortunately if you do go down the months of negotiations, you seem to have plenty of padding in the rental returns in that area so it shouldn't matter.
Make sure you ask the agent how many short sales they have actually closed in the past year and time frame they took. Check this info. It is such a skill that even one of the most successful agents at it in Vegas that I know of has only managed 3 in the past 6 months.....
Don't get me wrong, I constantly say that if a deliciously perfect property came up and I was here anyway and could afford to tie up 5k EMD forever and stand truly firm on my offer, it may be a giggle to give it a go. I just would hate a home owner to get their hopes up in the interim.....
I just read the post from bevk and a few red flags. FYI I had an owner approach me as well about a similar situation with a great price on his property....BUT... I wuldnt go near it once i heard it was a short sale. Just because a list price is given on a short sell, it is by no means indicative of actual sales price ...it is simply a point at which you start negotiating with every lien holder on the property... There is a reason why only 10% of these close. Which you may find about a year into negotiating, by which time stable tenant may well have been foreclosed on and kicked out despite their best intentions. That is even if they really ARE willing to stay... Or in horrible USA ville, a desperate buyers agent will SAY they are going to stay, or that they really are the owner...or, just .....check, again... Proof of ID the tenant is the owner, affidavit theybare going to stay..? I have no idea, just tough to say. I get owners would want to stay but I also get why they may be foreclosed on regardless.
There is no greater benefit as to whether you have a new tenant with a new lease with stellar credit record but given that it is now mandatory to enter into negotiations withhold owners, I would question why they refused to or couldn't renegotiate with the bank...could be GREAT reason.. But I would want to know that they can they afford the rent... Fortunately if you do go down the months of negotiations, you seem to have plenty of padding in the rental returns in that area so it shouldn't matter.
Make sure you ask the agent how many short sales they have actually closed in the past year and time frame they took. Check this info. It is such a skill that even one of the most successful agents at it in Vegas that I know of has only managed 3 in the past 6 months.....
Don't get me wrong, I constantly say that if a deliciously perfect property came up and I was here anyway and could afford to tie up 5k EMD forever and stand truly firm on my offer, it may be a giggle to give it a go. I just would hate a home owner to get their hopes up in the interim.....
Thanks Emma.
Much of what you say is exactly why I'm not really keen on pursuing short sales at the moment and I have indicated this to the agent.
After we move to Canada in a couple of months I plan to fly to Arizona and meet with this buyers agent as I want to be on the ground to see properties myself.
Emma, who do you use for your umbrella insurance?
Much of what you say is exactly why I'm not really keen on pursuing short sales at the moment and I have indicated this to the agent.
After we move to Canada in a couple of months I plan to fly to Arizona and meet with this buyers agent as I want to be on the ground to see properties myself.
Emma, who do you use for your umbrella insurance?
Extending bevk question bit further.
Emma, Which umbrella and homeowner/landlord insurance do you recommend for properties in LV. I see geico and usaa looks popular.
Are there any other insurance involved apart from title, homeowner/landlord, umbrella.
Emma, Which umbrella and homeowner/landlord insurance do you recommend for properties in LV. I see geico and usaa looks popular.
Are there any other insurance involved apart from title, homeowner/landlord, umbrella.
Costa.
What was your criteria may I ask? Would you care to say why the others were not chosen? Did you follow your own formula or leave things too Emma's discretion?
Personally I wouldn't know where to draw the line. Americans are an odd bunch to me and as such I'm not sure I can be that well of a judge. There are the usuals of references and background checks and the oldy of "lookin at the whites of there eyes". But other then that I wouldn't be full bottle on my picks
Umbrella Insurance varies depending on the broker as with landlords insurance. I have received about $200 difference in quotes on the same property. Same as Australia - it is like comparing NRMA to competitors - ie the underwriter and I am basically starting to think it depends what day of the week! It is an individual quote and given that Australians are landing as "Martians" in Vegas and asking for umbrella insurance over one single investment property (oxymoron) , I have had some interesting responses thus far as in general, you have multiple properties or assets which is why someone would be curious to sue you.... (one person literally said to me - but excuse me ma'am, if I was a prosecuting attorney, why would I sue you over the only listed asset in the US if the asset itself is only worth 80k). It is definitely more expensive for non US residents. As a level of asset protection viability on a single property versus an LLC, but for the refinancing concept, I would be tempted as a non resident to argue LLC. I pay about $300 per million versus about $600 for a non resident.... It comes down to where/what you bought as well - same as Australia!
Shop and compare.
Shop and compare.
