June 1, 2010
Real Estate Investing | Investing In Real Estate – Things To Look Out For
When people are in the market for building a new home, the typical assumption of a larger production builder being the best may not always prove to be true. There are many new construction builders available, especially in the San Antonio market. One can find a custom builder, a “build on your lot” builder, or what most in the industry call a “track” builder.
Companies like KB, Newmark, Highland homes, David Weekly are just a few names that are known as “track” builders because the typically build in an entire subdivision or split the lots between two or more big builders. Of course, there are some of the other builders, like David Weekly, that will also build on your lot. Custom home builders may either build a home on a lot they purchased, or may even build on an individual’s lot. Custom home builders are perfect for building one’s dream home and often times recommend an architect that can sit with the homeowner and design the home desired. With a custom home, a homeowner has more freedom to choose what they want in their home; with many track builders one may be limited to specific available interior changes.
A small builder, or one that is just starting out, may not have the leverage these bigger names have, but working with them doesn’t have to mean that service or performance is compromised. Often times a smaller builder is easier to work with because one may have a better opportunity to deal directly with the builder /owner. In my opinion, this can be a benefit to the buyer when dealing with issues that require immediate resolution. Of course, the bigger builders have great communication, but they have a chain of command, like any other business, to follow. A small builder can have a more direct communication form because of their smaller size, which means smaller staff.
A smaller builder can offer the same benefits or features as some of the bigger well known names such as a 10 year structural warranty, great customer service, third party inspections, excellent floor plans, 1-2 years coverage for mechanical and electrical issues, etc. Remember, everyone starts somewhere and even the great ones can fall. Never assume a bigger name is better. There isn’t a single home I think of that has the individual owner building every aspect of the home, however, it is easy to find trades with many skills at anyone of these construction homes.
Liz Voss writes articles for San Antonio Real Estate. Other articles written by the author related to San Antonio Texas real estate and San Antonio Homes for Sale can be found on the net.
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6 Comments on Real Estate Investing | Investing In Real Estate – Things To Look Out For »
March 31, 2011
rhsaunders @ 9:05 pm:
You're stuck. The 1039 rules refer to a "like kind" exchange, which if you start with real estate, ends up in real estate. But you have options: (a) Get a management company to run the place; they usually charge about 10% of the rent. (b) Sell the duplex, and put the proceeds into vacant land via a 1039 exchange. Basically no management hassles. (c) Sell the duplex, and buy rental property close to your new digs with a 1039 exchange. Then you can manage it yourself.
April 9, 2011
Doctor Deth @ 3:04 pm:
use the "Other" category
May 12, 2011
Cr1s @ 9:28 pm:
You have up to 3 years (exactly) from the time you moved to sell your ex primary residence TAX FREE, assuming that you lived in it for 2 years before you moved away. Price it right and offer a higher commission to a selling agent. It works.
You don't have to manage property yourself. Get a professional manager. It's not a 1039 exchange, it's a 1031 Exchange. You don't avoid taxes forever, you just defer them.
What's wrong with paying taxes if you have a long term gain, the tax rates arent that high. Selling the property could become the biggest mistake of your life. People have made fortunes by holding property long term
August 11, 2011
satarnag @ 4:57 am:
When a property gets foreclosed on, and it's the first lien holder that is doing the foreclosing, then the second and third and fourth (etc.) will get wiped out at the foreclosure auction. What an investor will do is to buy/tie up the property from the defaulting owner and see if he can discount the first and second. The second will most likely agree to a small amount (usually 7-10 percent) because they will lose everything once the property gets foreclosed on. The first will usually accept a 20 percent hit.
Now what you quoted is that the second note holder was stating that he will own the property by buying it from the person in default and take over the first position's loan payments and make it current. Therefore, he is not interested in selling his note to the investors. The investors in that example were idiots for not controling the property first or the owner didn't want to sell. The investors were hoping to buy the second note at a discount and bid at the auction and own the property with at least 15 k equity plus whatever the homeowner had in equity.
You can buy any note by approaching the lending institution that holds the note and making an offer to buy it. You will need cash to do so.
Also, to clear up the quoted reference, you can purchase property "subject to" existing liens/loans. Taking property "subject to" means that you will take over the payments, but the old owner is still responsible for the loan(s). So if you stop paying the mortgage/trust deed, the lending institution will go after the old owner and start foreclosing on the property. Buying property "subject to" existing loans is one way where someone with no money and/or credit can get into a home and own it. The second note holder was buying the property from the defaulting owner using the "subject to" clause.
I either confused you or helped you. Either way, I just saved you hundreds of dollars in late night real estate infomercials!
E-mail me if you have any questions.
Regards
September 12, 2011
Doctor Deth @ 8:38 pm:
use the "Other" category
October 5, 2011
satarnag @ 12:07 pm:
When a property gets foreclosed on, and it's the first lien holder that is doing the foreclosing, then the second and third and fourth (etc.) will get wiped out at the foreclosure auction. What an investor will do is to buy/tie up the property from the defaulting owner and see if he can discount the first and second. The second will most likely agree to a small amount (usually 7-10 percent) because they will lose everything once the property gets foreclosed on. The first will usually accept a 20 percent hit.
Now what you quoted is that the second note holder was stating that he will own the property by buying it from the person in default and take over the first position's loan payments and make it current. Therefore, he is not interested in selling his note to the investors. The investors in that example were idiots for not controling the property first or the owner didn't want to sell. The investors were hoping to buy the second note at a discount and bid at the auction and own the property with at least 15 k equity plus whatever the homeowner had in equity.
You can buy any note by approaching the lending institution that holds the note and making an offer to buy it. You will need cash to do so.
Also, to clear up the quoted reference, you can purchase property "subject to" existing liens/loans. Taking property "subject to" means that you will take over the payments, but the old owner is still responsible for the loan(s). So if you stop paying the mortgage/trust deed, the lending institution will go after the old owner and start foreclosing on the property. Buying property "subject to" existing loans is one way where someone with no money and/or credit can get into a home and own it. The second note holder was buying the property from the defaulting owner using the "subject to" clause.
I either confused you or helped you. Either way, I just saved you hundreds of dollars in late night real estate infomercials!
E-mail me if you have any questions.
Regards