Am working on a potential deal to buy a fixer with a client. When I called the listing broker to get guidance on the offer, I was told they already had non-contingent offers and that my clients would need to make one themselves in order to have a shot at the property. What’s a non-contingent … Continue reading “Non contingent offers”
Category: Buying
FHA loan limits
Have recently had a lot of buyers interested in using FHA loans. We’ve discussed why this is a difficult time to get these loans done before. But, obviously, being able to buy an apartment building with 5% down is pretty appealing. So I thought I’d post a quick FHA refresher. FHA is a program for first … Continue reading “FHA loan limits”
If you want to work with me…
Five things I absolutely need from you if you want me to help you buy an apartment building: 1. Communicate exactly what you want. Some people really want to buy a turn-key deal right near their home and don’t care about the financial returns. Obviously, this is not my preferred strategy and I will always … Continue reading “If you want to work with me…”
Thinking of going FHA?
We’ve talked a lot about the FHA program on this site. For those just joining us now, FHA is a federal government program that encourage homeownership by making it possible for non-owners to buy homes or small apartment buildings with as little as 3.5% down. Sounds pretty amazing, right? It was. I helped some friends … Continue reading “Thinking of going FHA?”
Good time to buy all cash
If you have the dough to make an all cash offer on a building that’s been sitting on the market, now would be a good time to send in the offer. Why? Well, it’s pretty clear from the maneuvering in Washington that the capital gains tax rate is not going to stay at 15% next … Continue reading “Good time to buy all cash”
What’s an earnest money deposit?
Lucy read my piece yesterday and wanted to know what an earnest money deposit is. I swore up and down I had already written about it. She disagreed. Turns out she was right. Anyway, an earnest money deposit (EMD) is the money the purchase contract requires the buyer to put into escrow immediately after the … Continue reading “What’s an earnest money deposit?”
Where’s the single family home market going?
Hadn’t really considered this question in a while, until a client asked me yesterday. Let me start out by saying that anyone who is 100% certain of the direction of any market ought to be at a hedge fund betting on their ideas. In the case of the residential housing market, I think you could … Continue reading “Where’s the single family home market going?”
If it’s such a good deal, why don’t you buy it?
I get asked this question a few times per week, so I figured I’d post my answer here so that I can just refer people and save my breath. Let’s start out by saying I fall in love with a lot of properties, many of which don’t necessarily have such great numbers on the surface. … Continue reading “If it’s such a good deal, why don’t you buy it?”
What happens immediately after you buy
One of the issues that’s been popping up for me lately is how buyers handle the transition to owning once the deal is done. When you buy the kind of buildings I favor, the ones with low-paying, rent-controlled tenants in them, there is inevitably deferred maintenance that needs to be addressed. The kinds of things … Continue reading “What happens immediately after you buy”
How to get a bad reputation as a principal
Claim you’re buying all-cash; then use a loan Attempt to chip price materially; blame lender When seller resists price chip, force your agent to take a commission reduction, even though he brought you an off-market deal Request an extension of closing Request another extension of closing When seller requests payment for delay, act surprised Ask … Continue reading “How to get a bad reputation as a principal”