Why invest in realestate Real Estate |
- Why invest in realestate
- We should stop saying that the seller pays for the buyer's agent
- My Parents are selling their house and the real estate agent offered to buy it but I have some concerns.
- Will the open concept ever die out?
- New House's Roof is Warping
- Bad school district?
- New hardwood floor, scratches or being nitpicky?
- 2011 Investor
- Tax Assessment Lowered After Closing Completed
- Kitchen appliances and their effect on desirability / value.
- Considering Buying Undeveloped Land for Investment and Recreational Purposes
- Commercial Loan newbie
- Using a flat rate agent. I have some questions.
- Better flooring for home resale? LVP or Cali Bamboo
- Buying House from Mother-in-Law
- Buying a house - chimney inspection
- [MA] How much does LL owe in interest on security deposit?
- MLO to Mortgage broker? - California
- Tips on getting into real estate
- [TN] House on the market for a while now. Listing about to expire. Switching realtors worth it?
- Found possible buyers for house through FB - Can/Should we use realtor?[NJ]
- When to sell a converted rental property
- Top pet peeves of realtors. (Wanting to avoid them)
- Post Inspection Question
| Posted: 30 Dec 2018 03:51 PM PST Hey everyone, I'm new to /r/RealEstate and I have a question. I've got a decent amount of money to invest for the first time in my life and I've been doing research to determine how best to invest it. After doing a fair bit of research it seems that investing in stocks is a much better investment than investing in real estate, however, I know many smart people do invest in real estate so I'm assuming that I'm missing something. First, the research I've done. Here is a decent comparison of the average value of a stock portfolio vs real estate over time, and as you can see stocks outperform real estate by a lot! Note that the Y axis is not linear. This is only looking at the value of the stocks and real estate, so it doesn't factor in rental income or dividends paid by the stocks. This is where it starts to get complicated, how do you factor i rental income, and does it close the gap? I haven't been able to find any good data on the of rent increases over time, but plausible back-of-the-envelope math doesn't get me close to closing the gap. So what am I missing, why invest in real estate over stocks? One obvious reason is that it's easy to leverage yourself in real estate if you don't have money to start with, but I do have money and I'm not interested in leveraging myself significantly. What else am I missing? Edit: one other thing I forgot to mention, My stock investments have done well, I'm averaging slightly more than 18% annually since 2011 (including this year which is -3%). This requires very little effort and time on my part. [link] [comments]  |
| We should stop saying that the seller pays for the buyer's agent Posted: 30 Dec 2018 11:53 AM PST I think the saying that the seller pays for both agents should stop. It carries the implication that a buyer should always use an agent and it stems from a technicality that's not even completely true. (buyer pays seller pays listing broker pays buyer's broker) In most threads, people on this subreddit ignore the fact that the buyer is ultimately the one paying and often try to imply that the buyer's agent comes at no cost to the buyer. The fact of the matter is, a buyer doesn't need to use a buyer's agent if he don't want to. He can instead negotiate for a lower price and drop the (assumed) 6% commission to just 3%, thus saving 3%. If it's a really hot property, he can drop it to 4%, in which case the seller's agent will prefer his offer, which may influence the seller. Now this is not to say that a buyer's agent has no place in the market, but I don't think it should be blindly recommended to people on this sub. Especially since most asking these questions are exploring their options and don't truly understand agency relationship. Now for the downvotes from agents come in. TL;DR there are pros and cons to using a buyer's agent so we shouldn't blindly recommend them due to "the seller paying for them." [link] [comments]  |
| Posted: 30 Dec 2018 03:56 PM PST My parents are selling their house in a different state and they got it estimated by a real estate agent for around $120K who then offered to buy it for about $95K. They then got another estimate from a different agent for about $180. However, the house does need about $30K in repairs. I'm not sure if the first agent lowballed us in an effort to buy the house, but we negotiated and eventually reached $115K. Now the other tricky part is that the buyer wants to sign a contract to move into the house until he manages to sell his old one and then pay my parents. I don't like the idea of someone moving in without actually paying them. However, I don't know any of the risks that I may not be seeing and would like to get some advice. [link] [comments]  |
| Will the open concept ever die out? Posted: 31 Dec 2018 03:06 AM PST Personally, I can't stand the open concept and like separate rooms for family room, dining and kitchen. I almost never see new homes building like this anymore. Will the open concept ever fade away? For the vast history of living, all of those rooms were separate, but now we've combined them all. How do you know it isn't just a fad that'll fade away in popularity 20-30 years from now? Don't get your tail in a knot. I know my disgust for open concept is a personal opinion. I'd just like to know of the long term viability of the design when you have to sell the home many years from now. Tons of people thought the split level home was a great idea in the 70s, but many people hate them these days. [link] [comments]  |
| Posted: 30 Dec 2018 09:18 AM PST I got a house completed in late March, and the roof seems to be bowing. Do y'all have any opinions on how about to go through with this warranty claim? I feel that it's going to be an uphill battle, and I need to have a good argument to get the whole roof replaced. I think this part of the warranty description best fits what these pictures are showing:
[link] [comments]  |
| Posted: 30 Dec 2018 06:50 PM PST After looking at what feels like 40 houses over the past few months, we found the perfect house, it checks every box on our list EXCEPT it is in a terrible school district. The elementary school is in the bottom 5% for the state. My question is: should this be a deal breaker? We do not currently have children but plan to in the future. We would not be opposed to exploring alternative options like private school. However, I have heard that the school district can have a huge impact on re-sale-ability. The neighborhood itself seems nice, from what we have seen. We have driven through at different times to see what it's like and everything seems to check out. It is located in a low-crime area; however, the red zone on the crime map is not more than 1/2 mile away. I'm not sure if that should be a concern or not, because the house itself is in the lower crime area. Thanks in advance for the advice [link] [comments]  |
| New hardwood floor, scratches or being nitpicky? Posted: 30 Dec 2018 07:42 AM PST https://imgur.com/a/Bp0GOXe - Reddit shows only one image, multiple angles in the album New construction. There are three spots on the hardwood floor where my sock gets a slightly caught. Would these be eligible for repair by the builder or are these natural things thats expected in hardwood? New to this so not sure if just being nitpicky. The box that the boards came in is labeled: HW671 SW552 SA464 , 3/8 inch Also, if it should be fixed, what kind of effort would that project be? [link] [comments]  |
| Posted: 30 Dec 2018 08:38 PM PST Let me get this straight. So all the investor who bought houses back in 11-12 when houses were only 100k to rent out. Are making a fortune now? House are now 300k and rent is around $1200. Mortgage is only $500/month. So thats $700 extra times 3 houses, $2100/month from rent? [link] [comments]  |
| Tax Assessment Lowered After Closing Completed Posted: 30 Dec 2018 07:58 PM PST
The seller has come back asking for their portion of the tax savings six months after closing. I see a reasonable argument for my paying the seller a prorated portion of the tax savings. The seller did fully handle the appeal (had paid a company) and I did get the credit at closing based on the higher original assessment. What are your thoughts on whether I truly *owe* that to the seller? [link] [comments]  |
| Kitchen appliances and their effect on desirability / value. Posted: 30 Dec 2018 10:07 PM PST Hey folks, Looking for opinions here, but I've heard that factors such as having "red knobs" on your stove top (i.e. a wolf brand range) is a big boost for home desirability when it comes time to sell. I've even seen wolf and sub-zero advertised in home descriptions with great enthusiasm, other brands maybe not as much. Now I've been doing some research, and based on what I understand.. wolf/sub-zero are not necessarily the best choices when it comes to kitchen appliances... There are many people who complain about reliability issues, and they prefer brands like Miele, Blue Star, etc. Also looking on consumer reports indicates that they also view Miele (And other brands) much more favorably. So basically this got me wondering, is there a huge demand for wolf and subzero appliances? More so than a brand like Miele or Blue Star that you could argue makes objectively better equipment? Would buying Non-wolf/subzero appliances be a "big deal" when it comes time to sell? Or does everyone just care about those little red knobs on their stoves? [link] [comments]  |
| Considering Buying Undeveloped Land for Investment and Recreational Purposes Posted: 30 Dec 2018 05:20 PM PST I'm considering buying land in the hills of MS. I've seen some ~100 acre properties with 15-25 year old pines for $1-1.25k an acre. I expect to make $1k-2k an acre for the pine. The amount of acreage I would be cutting would vary but I would like the majority of the land to be cut and leaving the bottoms for wildlife. I would utilize the clear cut areas for some ag fields but mostly plant some fast growing hardwoods. With these land changes, I would try to give out hunting leases for around 3 families depending on size for $1-1.5k a year and put a primitive cabin on the land. I have not done a cost analysis on the cabin but expect minimal recurring costs on it beyond basic maintenance on the actual structure. I expect taxes to be around $3-4k a year. This would also be my hunting area so making money isn't a huge factor but I also want the opportunity if possible. What am I missing? I expect some hidden expenses will sneak up on me but I'm hoping to break even or within a few thousand of it right off the bat and making a profit once those hardwoods are cut in 25 years. [link] [comments]  |
| Posted: 30 Dec 2018 08:11 AM PST Hi! My family and I own several multi-family buildings in Kentucky - all are under 4 units, so we have been using conventional residential mortgages (20-25% down, 30 year term) when we need to finance. However, we're looking to break into some larger buildings (6+ units) and we've heard that commercial loans are better options for these types of buildings. I've tried some general googling but can't find a ton of information on these types of loans (I'll blame the holidays). What are the benefits of the commercial loan vs. a conventional mortgage? What should I look for when shopping commercial loans (other than the usual APR, etc.)? Any other helpful advice? Cheers! I appreciate the help! [link] [comments]  |
| Using a flat rate agent. I have some questions. Posted: 30 Dec 2018 07:09 PM PST So I am using a flat rate agent. For $500 they essentially just list the property on the MLS and that's it I even send them the pictures. I plan on showing the house and doing the marketing. Where I live the houses are going fast and for cash above market value so I dont see that value in using a commissioned agent. My only issue is in the contract with the company they dont pay anything to the sellers agent. I am trying to make as much money on this as possible and it's a 600k home so everything counts. I dont want to pay the buyers agent and the company I am using is telling me they buyer is responsible is that true. [link] [comments]  |
| Better flooring for home resale? LVP or Cali Bamboo Posted: 30 Dec 2018 05:10 PM PST Hi all, Looking to get rid of the carpet in the house and have narrowed it down to either of these flooring types. Struggling with what will bring the bigger ROI when we sell the house within the next 2 years. Flooring will only be in closets and bedrooms, we have tile throughout the rest of the house. Total price difference would be about $1200 (approximately 800 sq feet between all bedrooms and closets). Thanks in advance for opinions and thoughts!! [link] [comments]  |
| Buying House from Mother-in-Law Posted: 30 Dec 2018 01:11 PM PST Hi all, For the past five years, my wife and I have been living by ourselves at a house owned by my wife's mother. There's never been any official rental agreement or lease - only an arrangement where we have been paying between $800-1,000 per month while also being responsible for all maintenance, repairs, and utilities (i.e. no real landlord). My mother-in-law is retiring and wants to sell the house (she lives in another state), so I'm just trying to figure out the easiest way to buy it. We are already very familiar with the property and its condition, so I'm not sure why we would need an attorney, inspector or realtor involved. Is there an easy way to bypass all of this? The market value of the house is about $400,000 and my wife and I have about $200,000 in cash for a down-payment. The only catch is that the house still has a $168,000 mortgage remaining. I was thinking I could just write a check for $168,000 to my mother-in-law to pay off her mortgage in one lump-sum, so that she could then sell the house to us at a discount for $232,000. Would this process be as simple as just going to a bank together to transfer the deed and get a new mortgage in my name? All we would need to do then is notify the county that a deal was struck, correct? No attorney, realtor or closing costs/fees required? What am I missing? Thank you for any help. [link] [comments]  |
| Buying a house - chimney inspection Posted: 30 Dec 2018 09:07 AM PST Hey /r/RealEstate! We are buying an old house, the home inspector found some issues, and we asked sellers for some repairs as well as a chimney inspection. They've been open to our requests and the repairs look good, which is great. We have some concerns about chimney inspection; we've never dealt with this before. The sweep cleaned the two flues (furnace and wood) and noted that the furnace was "partway spalling" and needed "a liner in the future sometime, safe to use now". Not sure how to interpret this... is this a repair needed in 6 months? A few years down the line? I know re-lining a flue can be pretty expensive, and work to fix spalling can either be easy or lead to a rebuild if it's bad. The exterior of the chimney is fine - was recently tucked and re-pointed. I should've hired the sweep myself during the inspection phase, but too late for that now. Since this is not a 'now' problem, is this something worth asking for a credit for at this point? Or do we suck it up and save up for a future project? [link] [comments]  |
| [MA] How much does LL owe in interest on security deposit? Posted: 30 Dec 2018 04:33 PM PST A security deposit of $1200 was paid upon leasing an apartment in 2007. The unit was just vacated at the beginning of December (so, total occupancy of 11 years). Per MA law, "The tenant is entitled to either 5% interest or whatever lesser amount is received from the bank where the deposit has been held" and "Interest is payable to the tenant each year on the anniversary date of their tenancy. The landlord must inform the tenant of any interest owed to them, and must either include the interest or allow the tenant to deduct the amount from the next rental payment. If the interest is not received within 30 days of the anniversary, then the tenant may deduct the interest from the next month's rent. Once tenancy is terminated, any interest owed to the tenant must be paid within 30 days of termination." The LL never gave bank info nor paid annual interest. And there has been no mention of the security deposit. We still have a copy of the lease + certified check receipt and plan to send Security Deposit Demand Letter, but don't know how to calculate what is actually owed for the deposit + 11 years of overdue interest. [link] [comments]  |
| MLO to Mortgage broker? - California Posted: 30 Dec 2018 11:41 AM PST Hey, guys. I've had my MLO license since 2014 and my real estate salesman license since 2015. I figure it's time to get my broker's license so I can run my own shop. Do you guys have any tips or resources I can look into to learning about 1) how to get that done 2) any study material (I can only find MLO SAFE study material) 3) professional resources on the actual business side of things regarding setting up relationships with lenders and what not, relevant software to purchase, etc? Thanks! [link] [comments]  |
| Tips on getting into real estate Posted: 30 Dec 2018 02:50 PM PST My father has always been in real estate, particularly focused around commercial redevelopment. In part for that reason I have always had an interest in wanting to go into real estate (at least at some point in the future). Can one tell me how I should go about doing this? I feel as though I am more suited to flipping properties, rather than buy to let. I also think I have a good sense of luxury design and would be suited in that field. [link] [comments]  |
| [TN] House on the market for a while now. Listing about to expire. Switching realtors worth it? Posted: 30 Dec 2018 02:18 PM PST I'm not very experienced with buying/selling houses so I wanted your opinions on my situation. Is this just a bad time of year to sell a house or should we consider switching realtors? I've had good experiences in the past with another realtor within the same company, but I don't know how much difference that would make. So I guess my three options right now are A: stay with current realtor, B: other realtor within company, or C: switch companies entirely. From what the current agent has told us, the majority of interested buyers have declined making offers due to the location on a 5 line road that gets a decent amount of traffic. I don't think there's really anything we can do about that. It's busy pretty much any time of day, so only having showings at a particular time wouldn't make much of a difference. [link] [comments]  |
| Found possible buyers for house through FB - Can/Should we use realtor?[NJ] Posted: 30 Dec 2018 08:37 AM PST Hello! This might be a better post for r/realtors, but it seemed more like discussion among realtors and I didn't want to spam them...so let me know if I should delete and repost there. My husband and I are looking to buy a single family home in town and are considering putting an offer in on a single family home. We haven't signed an official agreement but are working with a realtor. We own a townhouse and after running numbers the past few days we're coming to terms with the fact it may be better to sell than to rent. If so, we're going to want to get it on the market ASAP. We're confident it would sell quickly based on the current market and that our unit is more updated than the ones around us, which have been going quickly. Someone on a local FB group was asking about FSBO homes in town and they were looking for a 200-250K 2 bedroom townhouse. Well....considering our place is a ~220K 2 bedroom 2.5 bath... I shot her a message letting her know we were thinking about putting ours up and I'd shoot her a message if/when we decided to list in the next few weeks. All in all, this likely won't work out, but it made me think. If we decided to sell to this couple, it feels like using 2 realtors and giving a 6% commission might be a bit of a waste. We want the benefit of someone doing the paperwork, and we don't want anyone to get screwed, but is there a 'simpler' way to do this if we already have a buyer? NJ requires a lawyer for the transaction and of course we would expect an inspection, so those would already be part of the picture. We're not looking for realtors to still do a ton of work and then not get paid, nor are we assuming it's so easy we could just do it ourselves for the first time and not screw it up... we're just wondering if this is something that can be optimized. Last question...is it a faux pas to work with a realtor on buying a home that's well known in town while selling our home FSBO? Of course she'll know and it would go up while we're buying this other house. [link] [comments]  |
| When to sell a converted rental property Posted: 30 Dec 2018 12:16 PM PST Originally had this over in personal finance and was recommended to post here - thanks in advance! Looking to determine when the appropriate time would be to sell a rental property that was initially our primary residence. This condo has been a rental for 2 years now netting ~4k/year after expenses. I have been researching what selling the unit would mean tax-wise. It would be sold at a loss from the initial purchase price but would be flat or a slight gain relative to when it was converted. I believe if I sell within the next year that it would fall under section 121 - sale of a primary residence (as it would have been occupied as our primary residence for 2 years prior to conversion. What I do not understand though is how the cost-basis is calculated for that type of sale...based on the initial purchase price OR the market value when converted (or the lesser of two??)? The other option is to hold it for an additional year+, fall outside the primary residence clause, and then purely claim it as a loss / gain depending on sale price relative to conversion price. For this case I do not believe the prior years claimed depreciation comes in to play. If I understand the code properly I would also be able to back-deduct any loss against income from the prior two years by filing amendments. Any advice on if I am interpreting the code properly is greatly appreciated. Although we do not need the cash from selling this property immediately we are evaluating how this property plays in to our overall plans and would like to make a smart decision on exiting the property. Thanks! [link] [comments]  |
| Top pet peeves of realtors. (Wanting to avoid them) Posted: 30 Dec 2018 10:24 AM PST |
| Posted: 30 Dec 2018 09:46 AM PST Sent post inspection addendum to listing agent for repairs. Seller said would do some, and offered a dollar amount to fix the sindows. We don't think the dollar amount is enough to cover the expense. If we cross out their amount and we write in another dollar amount, can the seller walk away from offer, and cancel already agrreed upon purchase counteract? Thanks for a reply! [link] [comments]  |
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