still flipping houses and making money?

[steveny]

I don't know anyone who's making $$$ selling right now.

Let me know when were off the bottom.
Plan to add Real estate , but would rather not try and call the bottom.
What do you guys think? 1 yr from now? 2? more.........?
Need something to write off, but would like a positive flow with 20% down. Am I Dreaming? 15-20 X gross? No thanks.............

I believe int. rates will continue to drop, then pick up next yr. and housing could continue to slide.
Would be nice if rates and real estate would bottom at the same time, but
that's not likely.......

Now, if only commercial property would start to drop.

Another note, its really a mixed bag right now. Some areas have not been effected to the extent of others. The old location thing again.......
60 miles from me, things are down 30%+ from the peak. 60 Miles in the other direction no change.....

I just sold one that I did not make any money on but that was my plan from the get-go. I sold at cost a 3 unit to someone who works for us to help get him started on his way to financial freedom.
As you said with location. There are some areas around here where I think I could still flip and make some money. I like to go into something knowing rather than thinking.

If interest rates and RE prices bottom at the same time it will be a first in all of recorded history.

Commercial property most likely will not decrease at all.

 

[MCM]

"I just sold one that I did not make any money on but that was my plan from the get-go. I sold at cost a 3 unit to someone who works for us to help get him started on his way to financial freedom."

Makes perfect sense, having some dry powder available during the next few years is a very good idea.

 

[docjohn]

Well on the commercial side the lenders have tightened the sphincters almost as much as on the residential.Rates are pretty good though,and apraisals are still strong.

 

[steveny]

"I just sold one that I did not make any money on but that was my plan from the get-go. I sold at cost a 3 unit to someone who works for us to help get him started on his way to financial freedom."

Makes perfect sense, having some dry powder available during the next few years is a very good idea.

For him and I. He is 23 we now have his credit established. When the market turns around we will be ready to pounce.

 

[Hal_396]

I just bought a rental home this week. Will close the end of march. A year ago this house would have sold for 120K. I bought from an estate for 105K. Had a FICO of 770 and put down 25% that I borrowed from another rental property that I've owned for 20 yrs.

I'm hoping to sell this property in 15yrs after it has doubled. (Hopefully). The current rental house has trippled in the last 20 years. Of course I live in the Midwest where the price of real estate generally doesn't move near as fast as other markets.

Obviously, I'm betting that rigth now is the time to buy.

 

[Dtrigg]

My banker is currently offering me 10% down, 6.5% interest on thirty year fixed, non-owner occupied singles and duplexes. For non-owner triplex, quads, etc. it 10% down, 6% interest for 30 year fixed.

Anyone have a better deal with your banker(s)?

Thanks,

Doug

 

[steveny]

My banker is currently offering me 10% down, 6.5% interest on thirty year fixed, non-owner occupied singles and duplexes. For non-owner triplex, quads, etc. it 10% down, 6% interest for 30 year fixed.

Anyone have a better deal with your banker(s)?

Thanks,

Doug

Do they do loans in NY?

 

[Dtrigg]

Do they do loans in NY?

They will do loans nationwide. I guess you are implying my banker is on my side? :biggrin:

Thanks. All of my reasearch has indicated they are in bed with me. I just wanted to check with you guys and make sure.

Thanks.

 

[pvmike]

How about for 5+ unit non-owner properties? :biggrin:

 

[steveny]

They will do loans nationwide. I guess you are implying my banker is on my side? :biggrin:

Thanks. All of my reasearch has indicated they are in bed with me. I just wanted to check with you guys and make sure.

Thanks.

Pm me the name and contact info of the lender please.

 

[Searchin4acoupe]

My banker is currently offering me 10% down, 6.5% interest on thirty year fixed, non-owner occupied singles and duplexes. For non-owner triplex, quads, etc. it 10% down, 6% interest for 30 year fixed.

Anyone have a better deal with your banker(s)?

Thanks,

Doug

Great terms right there.

Pm me the name and contact info of the lender please.

Me too please!

 

[Bigglezworth]

 

[WingZ]

ROFLMAO That's friggin great!

 

[Scot]

couldn't you do a 1031 exchange to postpone the tax..... i have heard you can do a 1031 into buying your own personal residents from an investment property.... then live the 2 years as primary resident and get out of the taxes entirely (well the first $250k-$500k (single vs married) of gain).?

just an option....

Go Johnny McCain....

I fully believe that market is going to turnaround. However, the other thing to consider is that that if a Democrat takes office, forget the virtually lowest capital gains tax rate in history (15%) and get ready for 20,25,30+ perecent on your investment properties.

I have an apartment complex I want to sell this year but if that market is not quite right this spring/summer, I'm dreading getting hit with higher taxes. Selling it in a few years from now for what probably may not much more than what the current price is but with higher tax liability. That is, if Mrs Clinton or Mr Obama take office..

Ok, I turned this thread into a political thread, let the flames begin :tongue:
PS: Vote Republican, vote McCain

 

[steveny]

couldn't you do a 1031 exchange to postpone the tax..... i have heard you can do a 1031 into buying your own personal residents from an investment property.... then live the 2 years as primary resident and get out of the taxes entirely (well the first $250k-$500k (single vs married) of gain).?

just an option....

Go Johnny McCain....

I am pretty sure you can not 1031 investment property into a personal property purchase unless you live in the investmeny property for a required period of time. I might be wrong but I am pretty sure about it.

 

[Scot]

without spending a life time looking, i think it is possible to sell a rental house via 1031 exhange (apartments, whatever) then purchase a single family house with the proceeds, that in theory is going to be for rental....but after 1 year (according to this) you can convert it to your personal residence.... then the 2 years starts ticking.......

Property Conversion
How long must I wait before I can convert an investment property into my personal residence?

A one-year holding period before investment is advised. As there is no definitive holding period that currently exists, the IRS did propose a one-year holding period before investment property could be converted, sold or transferred, yet it was never adopted by Congress. Please do not misconstrue the failure of the adoption of this proposal as an approval to convert investment property at any time. As the one-year period reflects the intent of the IRS, most tax practitioners advise clients to hold their property at least one year before converting into a personal residence.

As intent is extremely important, we remind you that it should be your intention at the time of acquisition to hold the property for its productive use in a trade or business, or for its investment potential.

I am pretty sure you can not 1031 investment property into a personal property purchase unless you live in the investmeny property for a required period of time. I might be wrong but I am pretty sure about it.

 

[Searchin4acoupe]

I had a local accountant (not mine) tell me that a client of his tried to use a 1031 to buy a rental property that they planned to use 10 years down the road as a replace to retire to. The 1031 was denied. YMMV.

 

[Scot]

I have only done 1 1031 exchange.... i sold a rental house and bought a new rental house.... the Exhanger was very flexible... you are supposed to identify the new property in some really short period (45 days I think) but don't have to settle for 180 days..... mine was very lienent on all of the deadlines...... they didn't give a shit if I bought a house in the ghetto or a nice house. How is the IRS going to tell? They aren't going to come out and inspect the two houses and tell you the new house is far too nice to rent?

maybe that was a very strict dork 1031 exchange company that your accoutant is referring to?

I had a local accountant (not mine) tell me that a client of his tried to use a 1031 to buy a rental property that they planned to use 10 years down the road as a replace to retire to. The 1031 was denied. YMMV.

 

[pvmike]

My banker is currently offering me 10% down, 6.5% interest on thirty year fixed, non-owner occupied singles and duplexes. For non-owner triplex, quads, etc. it 10% down, 6% interest for 30 year fixed.

Anyone have a better deal with your banker(s)?

Thanks,

Doug

You have PM Doug.

 

[Dtrigg]

You have PM Doug.

Sent one back to you Mike:biggrin:

 

[Hal_396]

Here is a quote I read from CNN today:

Credit scores range from an abysmal low of 300 to a perfect 850. Now CNN reports that the magic number for qualifying for a loan is a very high 720. "You really have to have good credit," said Bob Moulton, president of the Americana Mortgage Group, admitted to CNN. He acknowledged that some places will give loans to people who have a 680 FICO score, but the minimum number required gets higher each month.

 

[steveny]

Here is a quote I read from CNN today:

Credit scores range from an abysmal low of 300 to a perfect 850. Now CNN reports that the magic number for qualifying for a loan is a very high 720. "You really have to have good credit," said Bob Moulton, president of the Americana Mortgage Group, admitted to CNN. He acknowledged that some places will give loans to people who have a 680 FICO score, but the minimum number required gets higher each month.

The credit score should also play a major role in what kind of interest rate you pay as well. I know it does play a role but that role should be more involved. For every 25 points over 720 should shave .25 off the rate.

A lot of people don't even give a rats ass about their score. There is a threshold there where it really doesn't matter how good your score. in this case it's 720.

 

[WingZ]

Here is a quote I read from CNN today:

Credit scores range from an abysmal low of 300 to a perfect 850. Now CNN reports that the magic number for qualifying for a loan is a very high 720. "You really have to have good credit," said Bob Moulton, president of the Americana Mortgage Group, admitted to CNN. He acknowledged that some places will give loans to people who have a 680 FICO score, but the minimum number required gets higher each month.

Just read that article. If the credit score keeps getting higher to qualify for a mortgage and the number of foreclosures keeps going up hence lowering credit scores someone explain to me how the housing market can recover by 09 if not several years from now

 

[Hal_396]

That's exactly why I think now is the time to buy rentals if you can. People still need places to live.:wink:

 

[Ski_Banker]

That's exactly why I think now is the time to buy rentals if you can. People still need places to live.:wink:

too early. couple of years. maybe. :wink: