I can’t continue working 60 hrs/wk and still have time for my family. I want to move on.
So …… I need to ‘retire’ with a minimum $6000/mo net rental income. And I want to do it by end of 2005.
I’m lucky to have two rental properties with $500K in equity and LOC for $400K, so I’m not starting from zero. I’m in SoCal and am considering opportunities nationwide.
Will appreciate your opinions on how best to do this.
A great way that has worked for me has been to purchase properties and hold notes as a 1st or second mortgage lender.
Give you one example, made a great purchase on a commercial property 10k sq. ft on 1 acre on major highway.
Sold the property on a mortgage note for 350k with no down and monthly payments of $2,916 and she agreed to name me as the beneficiary of her life insurance policy for 500k and to deduct the balance upon her death and the remaining amount goes to her children and this I jumped at. I took a 2nd position as my first has a balance of $89,000 with a payment of $495. Being creative and helping others will get you where you want to be.
Hey,
First learn the Game…then you will find opportunities…Learn how to buy commercial properties…Hotels,muti unit properties…
Donot throw your money away…
please explain equity to me
Howdy Qdiesel:
I have explained this to my wife many times and she is still confused. I do not know if I am a terrible explainer or if she will ever understand. The term is used loosely to mean what you could get for a property minus what you owe against it, and usually does not include closing costs such as commission and the like. If you own a $5,000,000 property and have no loans against the property, you have $5,000,000 equity. If you owe $5,000,000 you have no equity. It is just that simple. To complicate it a bit if you have the free and clear $5,000,000 and want to sell it really fast you may only net $4,000,000 at the closing table and I would consider this to be the hard cash quick sell net equity.
It is also considered and confused with the term down payment. If you buy a bargain and get 100% financing you will automatically acquire some equity and have zero cash in the deal.
I hope this helps a little. I may suggest that you do some more investigation before starting to invest. Maybe a basic sales course in real estate would be helpful
Good luck
so if i brought a property for ( and lets not shoot so high just yet ;D)for 75,000 and its worth 125,000 and prior owner owed 20,000 on the 75,000 wich i assuumed what would the equity be?
Qdiesel,
I can tell by your posts that you are definitely eager to get into REI, however slow down just a second and take a step back. Learn some basics about Real Estate and Investing in general. Maybe peruse through the ‘How-To Articles’ and ‘Freebies’ under the Information box at the top of the screen.
This will give you a basis of what is possible, then you can ask more detailed questions as how thing would work in specific instances.
So in your example…
If you bought a house at 75k and it ‘appraised’ at 125k then you would have an equity of 50k (125k - 75k = 50k).
In your example you did not ‘assume’ anything if you paid 75k.
The owner of the house had a 105k equity when he sold it to you IF it could appraise at 125k as-is. More than likely the place was run down and only worth 75k as-is, but if rehabbed it could be 125k.
Therefore this being a bit more realistic now, you should buy the home at a much deeper discount so that you would truly have SOME equity instead of buying a 75k as-is porperty for 75k, which would give you NO equity.
he brought it originally at 75k and owes 20k i got it appraise at 125k what should i do give him his equity of 50k plus some?and then i can sell for 125k right lol idunno.but i am educating myself and reading all i can about realestate.would a good start for me be doing assignments?thank u so much for taking the time in answering
Qdiesel,
Well what you are looking for is basic buying and selling of real estate. It follows along with any lender owned object (i.e. a car). You have what the person paid for it, you have what the person owes on it and you have what the object is worth now.
You say you had it ‘appraised’ how did you accomplish this? or did you look at an appraisal given to you by the owner?
My view on this is if the property truly is appraised as-is at 125k why is the owner selling for so much less.
Oh and is this something you are truly looking at or just an example. I got confused. 