193

I'd say your tenant is out $750, not you. How you handle it is totally personal preference. If you want to be the super-nice landlord and eat the loss this one time, then you might gain some karma and hopefully they'll be awesome tenants for the remainder of their stay. Are they the kind of tenants you want to be nice to because they deserve it? You (and ...


175

Don't pay it, see a lawyer. Given your comment, it will depend on the jurisdiction on the passing of the house and the presence of a will or lack thereof. In some states all the assets will be inherited by your mom. Debts cannot be inherited; however, assets can be made to stand for debts. This is a tricky situation that is state dependent. In the ...


134

How do you buy 1 house a year? You save up the money you make from the rent for a down payment on the next house. Then you save up the money from those two houses and buy two more the next year (or one bigger one). Rinse, repeat. what bank would be willing to give you that loan? You'd be surprised... This is essentially a major cause of the 2008 ...


131

Because you don't have the jobs lined up, it makes more sense to rent for a few months for a couple of reasons: A: You should never deplete your emergency fund of 3 to 6 months for non-emergencies B: Once you land a job, you can make a better judgement as to where to live for the commute. C: Car loans and credit cards are expensive forms of debt that ...


121

I like the existing answers, but I'll add another thought: They want to know if you're looking for a house that you like or want one that is a good bargain. Investors will buy a house that they personally don't like just because they think that there's more profit potential. It changes the conversations from focusing on emotional to financial aspects (...


111

It's a little unusual, but I don't think the financial terms are completely unreasonable on their face. What you describe is similar to an interest-only loan, where you make payments that only cover the interest due each month, and the entire principal is due as a single "balloon payment" on a specified date (in this case, the date on which the condo is ...


110

Real estate can be rented out (or otherwise "used"), so it "produces" income. He's not solely investing in real estate in the hopes the value increases, he's saying it's a better investment because it produces income whether or not the value increases.


110

EDITED after OP added more details. no taxes have been taken out yet. 24% will probably be withheld, taking you down to 38K. The organization that ran the sweepstakes must withhold 24%. It's the law, and of course you have to claim it on your tax return, whether or not they withhold anything. Because they'll withhold, they'll send you a W-2G saying ...


107

If you're moving up in house in the same area, it's better to wait until the alleged bubble bursts, since bubbles affect higher-prices homes more than lower-priced homes. You could also sell now and rent until the market bottoms out. There is no shame in renting, especially if you don't plan to stay in the house for more than a few years. If you're ...


106

I know this is broad, but this isn't a scam -- it's a workshop/educational thing about teaching people of investing in the real estate market, and how to profit The scam is that the free or cheap class doesn't give you enough info to make money; so they sell you a more advanced and expensive class that gets you almost enough info; but the goal of the ...


98

I think this might be an instance of "survivor bias" in that you only tend to hear from the people who were successful at it and made a lot of money off of it. Conversely you don't hear as much from the people who lost their shirt trying to flip a house or those who couldn't secure tenants at a good price. If you're interested in the idea of passive real-...


98

First off, I'd question the premise a bit. There are plenty of investors that have large real estate holdings and correspondingly large loan amounts and expenses that are constantly verging on bankruptcy. Large investors have the benefit of diversification and professionalization. Diversification If you own a single rental unit, you have a great deal of ...


92

No. Just no. This is a cheesy sales pitch from someone who wants you to take their course on real estate investing for the low low price of $499. It's a non-sequitur: the conclusion does not follow from the premises. Population generally increases: true. More and more real estate will be needed to house them: true, with caveats. And thus you should go ...


92

Wholesaling is basically the act of standing in at an auction and "buying" a home on behalf of a yet-to-be-determined buyer. You put a down payment on the purchase, and then, you go out, find that actual buyer, and basically get them to close the sale - but at a higher price than you bid for it, so you can pocket the difference as profit. It works because ...


86

Cash should never have been placed in the mailbox in the first place; this is what checks are for. I would be a bit surprised if that constitutes your accepting payment, but I Am Not A Lawyer. You need local legal advice; this is the sort of thing where local rulings matter. Definitely report the missing money to the police, no matter what else you do. You ...


77

It's important to differentiate between "living below your means" and being smart about money. Buying a used car with low mileage is generally a smart financial decision considering every car becomes a used car the second you drive it off the lot. Financially, there are only advantages to living below your means. You will save more money which can be ...


75

Something sketchy is definitely going on. Real Estate agents are obligated under the National Association of Realtors Code of Ethics to take all written offers to the homeowners, regardless of how low it is unless the homeowner has specified a minimum offer amount or waived, in writing, that obligation. Your brother in law can ask for rejections in writing ...


72

You’re thinking about it wrong. To make the maths easier, assume the estate has just $600K in cash and the $300K property. If you each inherit equally, you each end up with $200K and a third of the property. If one sibling buys out the others, then he ends up with the $300K property and no cash, and the others each have $300K in cash. So you all end up with ...


70

You did not add a country tag, but in most countries, a plot of land and any buildings built on it become one inseparable unit which usually can not be sold separately. If you sell one, you also have to sell the other. That means if your bank forces you into foreclosure, they will auction the house, the plot of land and the other things you build on and ...


67

Compared to the other answers, I feel like I'm taking crazy pills, because: Is my following calculation correct? Sorry to be the bearer of bad news, but no, this is not correct. In 3 years, if the market gets soft, and I have to sell the house for $200,000. Am I still better off than renting, because, $180,000 (taking off 20k for the realtors and ...


66

This is fairly simple, actually. You should insist on payment for the rent payment you never received and stop accepting cash payments. If you want to be nice, and believe the story, allow the tenant additional time or payment in installments for the missing $750, but this is a textbook example of why it's a bad idea to transact with cash. Insist on cash ...


65

There are no rules about how to handle equal offers. A seller is free to accept any offer they want. They don't even have to accept the highest offer if they don't want to. Reasons why a seller might pick one offer over another despite price include date of closing, buyer not having a house to sell, and buyer having cash rather than mortgage. However, ...


64

What is the truth about this? Pretty much no truth. At 48 years old, I received an offer for a job where I was paid far more than any other employment I had previously. I chose it over two other competing job offers that were offered at a very similar time. While I was laid off from that job, rather abruptly, I had a new job within a short time at age ...


64

The siblings need to wear two hats: An owners hat and a tenant hat. Both siblings have the owners hat, and it sounds like just one of them will have the tenant hat. One of the siblings will be only an owner, the other will be both and owner and a tenant. The owners need to "charge rent" to the "tenant" which should be based on a normal, ...


59

With the standard "I am not a lawyer" disclaimer, consider this question: If you and your girlfriend split up sometime after purchasing the house but before getting married, would you expect her to repay you for the closing costs and downpayment? That is, if you write her a check for $5k, and 6 months after she signs the papers for the house one of you ...


57

First, when a debt collector says, "It's to your advantage to give me money now", I'd take that with a grain of salt. My ex-wife declared bankruptcy and when debt collectors couldn't find her, they somehow tracked me down and told me that I should tell her that it would be to her advantage to pay off this debt before the bankruptcy went through. That was ...


57

I can use that property to get a loan for another real estate? Or that's not how loans work? That's not how secured loans generally work. You could get a mortgage on your rental property, but the bank will most likely ask why you are getting a loan (to find out if it is because you are in financial distress). You might as well just buy the second property ...


57

Where is the risk? The short answer is... Property damage from weather, termites, tenants, whatever. How about tenants who stop paying the rent and you need to go through legal channels to evict them? It doesn't cost a fortune but you had better not need that rent to make the mortgage. How about another GFC (Global Financial Crisis) like 2008 when ...


57

While I think Justin Cave raises some good points about economies of scale, this isn't quite what you asked. Economies of scale are beneficial after you have a lot of capital, but you asked why some people are able to grow their real estate enterprise from an initial small investment, not why the people that have already grown it seem to do better. The ...


56

What you are missing is "leverage", which is the typical case for real estate purchases. Buyers usually only put a percentage of the cash down, not the whole amount. So instead you have something like this: Year 0: Buy $100,000 house for 10,000 down. $10,000 equity, $90,000 debt. Year 5: Sell house for $300,000. Even if the debt was not payed down and ...


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