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Real estate gurus, help


NPTim
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Can be very legitimate. But it all depends on the terms of the contract. 
 

Say I have a lot of cash I need off my books and I want to put it into real estate. I’m just letting a renter and potential buyer do the leg work for me. 
 

You find a house you want to eventually buy. We come to contractual terms. I buy the house and rent it to you until you are able to secure your own mortgage and buy it from me. 
 

I now have a house that will appreciate over the next 5 years. I will sell it to you at a predetermined (or market) price and I have a renter paying me (or my mortgage on the property) in the meantime. If I put minimum down and mortgage the rest, you are cash flowing my investment. Not me. 
 

If done right, I can’t lose because I control the property and the contract. If you save up a down payment and get a mortgage, you can also win especially if the value at time of sale exceeds market price. 
 

The contract is key. This can also be done as a rent to own. This is different from renting until you buy. If done as a rent to own make sure all payments go through a third party escrow company. Not to the landlord/owner. 

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They show a photo with a huge, new kitchen, double door commercial grade walk-in(?) fridge, Wolf (style) range top / oven, and limit the home price to 350k. That alone doesn't line up one inch.

Let me know when you find a home like that for 350k.

Also, its a sellers market right now with prices and demand being high. Chances are you will pay too much in 3 years when you are ready.

Get your debt under control (if needed), lower your recurring expenses, improve your income, save money for a down payment, improve your credit score and history, and buy a property when the prices are low. Not the other way around.

m2c

Edited by crockett
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Indeed prices are high. These 3%+/- 30 year mortgage rates have many of the farmers in my area carving one to two acre lots off their land which fronts a county road with a water main. And pricy looking houses are going up rapidly.

For reference, if one’s income will support a $200,000 30 year mortgage at the once normal 6% it will support almost a $300,000 one at 3%. 

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23 minutes ago, crockett said:

They show a photo with a huge, new kitchen, double door commercial grade walk-in(?) fridge, Wolf (style) range top / oven, and limit the home price to 350k. That alone doesn't line up one inch.

 

Yeah, the cooler alone is north of 20k.  Don't ask me how I know.

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A 30 year mortgage only makes sense if you have a steady income and / or savings worth the loan amount going into investments with a higher profit percentage than your mortgage rate.

If you can only afford to pay off your mortgage over 30 years with no equivalent amount of money working for you elsewhere, you will lose 6 figures in interests over time plus a huge mount through opportunity cost, and end up with no proper retirement funds. Instead of making your income and money work for you, you make it work for others.

The idea is to live very frugal for several years while focusing on making and saving as much as possible, and investing that money in order to create passive income, for example a fixer-upper bought on auction for 40k. Renovate, live in it for at least 2 years, save money again, buy the next one, renovate, move, rent out old one, rinse and repeat until you end up in a home that you like long-term. All this without paying any mortgage, and being able to live from rental income alone after a decade or so.

Buying a house on 30 years in a sellers market and no equivalent funds in investments is 100% where the finical world wants you to be. They call you a bleeding sheep.

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1 hour ago, crockett said:

A 30 year mortgage only makes sense if you have a steady income and / or savings worth the loan amount going into investments with a higher profit percentage than your mortgage rate.

If you can only afford to pay off your mortgage over 30 years with no equivalent amount of money working for you elsewhere, you will lose 6 figures in interests over time plus a huge mount through opportunity cost, and end up with no proper retirement funds. Instead of making your income and money work for you, you make it work for others.

The idea is to live very frugal for several years while focusing on making and saving as much as possible, and investing that money in order to create passive income, for example a fixer-upper bought on auction for 40k. Renovate, live in it for at least 2 years, save money again, buy the next one, renovate, move, rent out old one, rinse and repeat until you end up in a home that you like long-term. All this without paying any mortgage, and being able to live from rental income alone after a decade or so.

Buying a house on 30 years in a sellers market and no equivalent funds in investments is 100% where the finical world wants you to be. They call you a bleeding sheep.

I’m 20 year behind the curve on this. I’m screwed. My retirement plan is trying to get a life sentence in a Swedish prison without hurting anyone.

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