Investing in rental properties

[Ren]

I would personally steer well clear of Vegas and Phoenix for rental properties, for now anyway. Just take a look at the rental section on Craigslist for those areas and you’ll see why.

[investor]

[quote=briansd1][quote=investor]Think about being the bank. Buy a house outright. Sell it accepting 15-20% down, with an interest only loan at 5-6 % with pre-payment penalties to protect your profit. Lots of people will have poor credit from foreclosures but still have a job to pay for a home. They take care of the property since they own it and you are protected as long as property prices don’t go lower than your downpayment. At some point, I would be interested in investing in this manner myself in san diego if I had someone whom I trusted that is open to this. Rich- you listening?[/quote]

That’s how is used to be done… until the easy credit from the banks kicked in.

Not sure that we’ll go back to routine seller financing.[/quote]
What I think is something new to some people is the idea of buying a property with the intent of selling it using owner financing as an investment opportunity right off the bat. Most owner financing traditionally was by someone who couldn’t sell a home and resorts to owner financing in order to sell it. I do think that in this time period with so many people filing bankruptcy/ foreclosure that credit scores will be hit but if they have a job and want a home, this is an opportunity for a win-win. Thank you for the input.

[investor]

[quote=briansd1][quote=investor]Think about being the bank. Buy a house outright. Sell it accepting 15-20% down, with an interest only loan at 5-6 % with pre-payment penalties to protect your profit. Lots of people will have poor credit from foreclosures but still have a job to pay for a home. They take care of the property since they own it and you are protected as long as property prices don’t go lower than your downpayment. At some point, I would be interested in investing in this manner myself in san diego if I had someone whom I trusted that is open to this. Rich- you listening?[/quote]

That’s how is used to be done… until the easy credit from the banks kicked in.

Not sure that we’ll go back to routine seller financing.[/quote]
What I think is something new to some people is the idea of buying a property with the intent of selling it using owner financing as an investment opportunity right off the bat. Most owner financing traditionally was by someone who couldn’t sell a home and resorts to owner financing in order to sell it. I do think that in this time period with so many people filing bankruptcy/ foreclosure that credit scores will be hit but if they have a job and want a home, this is an opportunity for a win-win. Thank you for the input.

[investor]

[quote=briansd1][quote=investor]Think about being the bank. Buy a house outright. Sell it accepting 15-20% down, with an interest only loan at 5-6 % with pre-payment penalties to protect your profit. Lots of people will have poor credit from foreclosures but still have a job to pay for a home. They take care of the property since they own it and you are protected as long as property prices don’t go lower than your downpayment. At some point, I would be interested in investing in this manner myself in san diego if I had someone whom I trusted that is open to this. Rich- you listening?[/quote]

That’s how is used to be done… until the easy credit from the banks kicked in.

Not sure that we’ll go back to routine seller financing.[/quote]
What I think is something new to some people is the idea of buying a property with the intent of selling it using owner financing as an investment opportunity right off the bat. Most owner financing traditionally was by someone who couldn’t sell a home and resorts to owner financing in order to sell it. I do think that in this time period with so many people filing bankruptcy/ foreclosure that credit scores will be hit but if they have a job and want a home, this is an opportunity for a win-win. Thank you for the input.

[investor]

[quote=briansd1][quote=investor]Think about being the bank. Buy a house outright. Sell it accepting 15-20% down, with an interest only loan at 5-6 % with pre-payment penalties to protect your profit. Lots of people will have poor credit from foreclosures but still have a job to pay for a home. They take care of the property since they own it and you are protected as long as property prices don’t go lower than your downpayment. At some point, I would be interested in investing in this manner myself in san diego if I had someone whom I trusted that is open to this. Rich- you listening?[/quote]

That’s how is used to be done… until the easy credit from the banks kicked in.

Not sure that we’ll go back to routine seller financing.[/quote]
What I think is something new to some people is the idea of buying a property with the intent of selling it using owner financing as an investment opportunity right off the bat. Most owner financing traditionally was by someone who couldn’t sell a home and resorts to owner financing in order to sell it. I do think that in this time period with so many people filing bankruptcy/ foreclosure that credit scores will be hit but if they have a job and want a home, this is an opportunity for a win-win. Thank you for the input.

[investor]

[quote=briansd1][quote=investor]Think about being the bank. Buy a house outright. Sell it accepting 15-20% down, with an interest only loan at 5-6 % with pre-payment penalties to protect your profit. Lots of people will have poor credit from foreclosures but still have a job to pay for a home. They take care of the property since they own it and you are protected as long as property prices don’t go lower than your downpayment. At some point, I would be interested in investing in this manner myself in san diego if I had someone whom I trusted that is open to this. Rich- you listening?[/quote]

That’s how is used to be done… until the easy credit from the banks kicked in.

Not sure that we’ll go back to routine seller financing.[/quote]
What I think is something new to some people is the idea of buying a property with the intent of selling it using owner financing as an investment opportunity right off the bat. Most owner financing traditionally was by someone who couldn’t sell a home and resorts to owner financing in order to sell it. I do think that in this time period with so many people filing bankruptcy/ foreclosure that credit scores will be hit but if they have a job and want a home, this is an opportunity for a win-win. Thank you for the input.

[recordsclerk]

Why not just advertise home loans for people with 20% down that have poor credit and currently employed. That would be a lot easier then buying and selling a home so you can earn 5-6% annually. There are cost associated with buying and selling real estate. If you don’t have the resources to buy cheap and sell high (flip), I would just do the loan side. I also personnally don’t think there are that many people willing to accept 5-6% interest only loans that have 20% down. You would do a lot better flipping a property and offering 1% down. Make them pay a premium on the house price and offer closing cost.

[recordsclerk]

Why not just advertise home loans for people with 20% down that have poor credit and currently employed. That would be a lot easier then buying and selling a home so you can earn 5-6% annually. There are cost associated with buying and selling real estate. If you don’t have the resources to buy cheap and sell high (flip), I would just do the loan side. I also personnally don’t think there are that many people willing to accept 5-6% interest only loans that have 20% down. You would do a lot better flipping a property and offering 1% down. Make them pay a premium on the house price and offer closing cost.

[recordsclerk]

Why not just advertise home loans for people with 20% down that have poor credit and currently employed. That would be a lot easier then buying and selling a home so you can earn 5-6% annually. There are cost associated with buying and selling real estate. If you don’t have the resources to buy cheap and sell high (flip), I would just do the loan side. I also personnally don’t think there are that many people willing to accept 5-6% interest only loans that have 20% down. You would do a lot better flipping a property and offering 1% down. Make them pay a premium on the house price and offer closing cost.

[recordsclerk]

Why not just advertise home loans for people with 20% down that have poor credit and currently employed. That would be a lot easier then buying and selling a home so you can earn 5-6% annually. There are cost associated with buying and selling real estate. If you don’t have the resources to buy cheap and sell high (flip), I would just do the loan side. I also personnally don’t think there are that many people willing to accept 5-6% interest only loans that have 20% down. You would do a lot better flipping a property and offering 1% down. Make them pay a premium on the house price and offer closing cost.

[recordsclerk]

Why not just advertise home loans for people with 20% down that have poor credit and currently employed. That would be a lot easier then buying and selling a home so you can earn 5-6% annually. There are cost associated with buying and selling real estate. If you don’t have the resources to buy cheap and sell high (flip), I would just do the loan side. I also personnally don’t think there are that many people willing to accept 5-6% interest only loans that have 20% down. You would do a lot better flipping a property and offering 1% down. Make them pay a premium on the house price and offer closing cost.

[infoseeker]

Recourse in Money Lending business is difficult. Going after folks defaulting on loan is a risky business… the same issues you will have as with prosper.com. Failure of payment of rent is easier to deal with since eviction of people from rental property is easy compared to a “owned” property. People’s emotional attachment to rental property is less than “owned” property. In addition to cash-on-cash ROI, renting also provides the long term gains that comes with asset appreciation. Depreciation tax write off is an additional advantage of renting.

[infoseeker]

Recourse in Money Lending business is difficult. Going after folks defaulting on loan is a risky business… the same issues you will have as with prosper.com. Failure of payment of rent is easier to deal with since eviction of people from rental property is easy compared to a “owned” property. People’s emotional attachment to rental property is less than “owned” property. In addition to cash-on-cash ROI, renting also provides the long term gains that comes with asset appreciation. Depreciation tax write off is an additional advantage of renting.

[infoseeker]

Recourse in Money Lending business is difficult. Going after folks defaulting on loan is a risky business… the same issues you will have as with prosper.com. Failure of payment of rent is easier to deal with since eviction of people from rental property is easy compared to a “owned” property. People’s emotional attachment to rental property is less than “owned” property. In addition to cash-on-cash ROI, renting also provides the long term gains that comes with asset appreciation. Depreciation tax write off is an additional advantage of renting.

[infoseeker]

Recourse in Money Lending business is difficult. Going after folks defaulting on loan is a risky business… the same issues you will have as with prosper.com. Failure of payment of rent is easier to deal with since eviction of people from rental property is easy compared to a “owned” property. People’s emotional attachment to rental property is less than “owned” property. In addition to cash-on-cash ROI, renting also provides the long term gains that comes with asset appreciation. Depreciation tax write off is an additional advantage of renting.

[Author]

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