REWahoo
Give me a museum and I'll fill it. (Picasso) Give
Rumor has it she was hired by the TSA to teach massage therapy to the pat-down agents...
Rental income to FI RE earlier
- Thread starter Eyerishgold
- Start date
owner carry
My understanding is that Jan 1, 2011 it will no longer be legal to do owner financing withouth being licensed as a mortgage ORIGINATOR (not just broker). Still unclear on the details, but my Realtor is clear enough on them to tell me he has to remove my offer of owner financing on a home I have listed with him as of 1-1-2011. Seems outrageous to me, but it appears, at first glance, to be true. (S.A.F.E Act)
My understanding is that Jan 1, 2011 it will no longer be legal to do owner financing withouth being licensed as a mortgage ORIGINATOR (not just broker). Still unclear on the details, but my Realtor is clear enough on them to tell me he has to remove my offer of owner financing on a home I have listed with him as of 1-1-2011. Seems outrageous to me, but it appears, at first glance, to be true. (S.A.F.E Act)
calmloki
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Not at all sure your realtor has it right:
http://noteinvestor.com/notes-101/safe-act-and-hr-4173-update-%E2%80%93-is-it-good-news-for-seller-financing/
Looks to me like you could do 3 owner carrys/year, however, no balloons, fully amortizing, can only adjust after 5 years, other stuff...
frickin' great. that should pretty much force bank lending only, which would be good if the banks were lending - and what about the great inventory of properties the banks don't feel like lending on?
SVHoper
Recycles dryer sheets
Congrats Hotwire
I definitely have positive things to say about real estate
But can well understand that landlording is not the primary desire for many people who are ERed.
I am not that experienced, but view successful Real Estate investment to lie on a spectrum between lots of cashflow to lots of capital appreciation. We are still accumulating so sweet spot for now, is initial high leverage, where the property provides at least some cashflow above mortgage and taxes.... then basically, the tenant is buying me a house... which you also expect to have some appreciation.
I view it as kinda like a tax deferred component of asset allocation - I am not sure what it will return over the next 10+ years (expect less than 10% cash on cash of last decade)... but likewise I don't know the future return for small caps or large value.
Wishing you all the best.
I definitely have positive things to say about real estate
But can well understand that landlording is not the primary desire for many people who are ERed.
I am not that experienced, but view successful Real Estate investment to lie on a spectrum between lots of cashflow to lots of capital appreciation. We are still accumulating so sweet spot for now, is initial high leverage, where the property provides at least some cashflow above mortgage and taxes.... then basically, the tenant is buying me a house... which you also expect to have some appreciation.
I view it as kinda like a tax deferred component of asset allocation - I am not sure what it will return over the next 10+ years (expect less than 10% cash on cash of last decade)... but likewise I don't know the future return for small caps or large value.
Wishing you all the best.
tryan
Thinks s/he gets paid by the post
- Joined
- Mar 25, 2005
- Messages
- 2,604
Isn't that the truth ... wanted funding for a HUD home. Offered up a few free-n-clear rentals with long history of positive cashflow. "send me your W-2 for the last year" they said; "don't have a W-2" I said; "sorry" they said.
750 credit score and they won't loan money for a first position 20-30% loan to value. Amazing.
