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Agreed, but you're not allowed to discriminate when it comes to housing. I should ask him, but how does one increase the chance of attracting professionals? I've heard horror stories with section 8 housing for example.
Have a property in a gentrifying area and NYC has one of the biggest real estate industry so there is a middle man who handles much of the administration. The real estate broker is suppose to screen the tenant via credit report, bank statement, and w-2. In NYC, tenant is suppose to pay the real estate broker a commission for finding the apartment, which goes to show how bad the housing crisis is.
Typically you will get transplants who are willing to pay a real estate broker for the convenience and just think that is the way NYC must be. NY native will seek out deals and resent you for the higher rent.
Have a property in a gentrifying area and NYC has one of the biggest real estate industry so there is a middle man who handles much of the administration. The real estate broker is suppose to screen the tenant via credit report, bank statement, and w-2. In NYC, tenant is suppose to pay the real estate broker a commission for finding the apartment, which goes to show how bad the housing crisis is.
Typically you will get transplants who are willing to pay a real estate broker for the convenience and just think that is the way NYC must be. NY native will seek out deals and resent you for the higher rent.
Knew the process but you laid this out nicely to work toward attracting more of a professional crowd and doubles the importance of me getting at or above that important 20% no matter how hard it is! Thank you!
At these property tax rates, I beg to differ. The key is to erase the mortgage as quick as possible because that is something you can control. Why would I want the bank up my ass forever? I'm trying to get rid of them...
My strategy is to use other people’s money to make money. Using that strategy I parlayed 80K into 1.825M in a little more than 10 years.
My strategy is to use other people’s money to make money. Using that strategy I parlayed 80K into 1.825M in a little more than 10 years.
But is it really a strategy rather than just putting down what you can afford or buying what you can barely afford? I knew two friends whose parent brought two properties both in Brooklyn both for about 100k. They put down around 20k and now both properties are inchijng close to 1.5 mil. Neither of their parents were educated so it wasn't really much of a premeditated strategy besides paying what they could afford and stretching their budgets. Sure the dice fell in their favor, but other than that it wasn't much of a strategy since who knew that many people were coming from Ohio.
I also knew business people that brought entire building in Soho in the early 90s for 700k in cash. Needless to say the return they got was nowhere near close to my friend's parents, not even remotely close. Low down payments for a home are really just an indication of how much money or lack thereof a person has and mostly isn't a strategy for people and businesses whose primary concern isn't building real estate or renovating homes for quick flips.
Last edited by bumblebyz; 01-01-2018 at 09:28 PM..
But is it really a strategy rather than just putting down what you can afford or buying what you can barely afford? I knew two friends whose parent brought two properties both in Brooklyn both for about 100k. They put down around 20k and now both properties are inchijng close to 1.5 mil. Neither of their parents were educated so it wasn't really much of a premeditated strategy besides paying what they could afford and stretching their budgets. Sure the dice fell in their favor, but other than that it wasn't much of a strategy since who knew that many people were coming from Ohio.
I also knew business people that brought entire building in Soho in the early 90s for 700k in cash. Needless to say the return they got was nowhere near close to my friend's parents, not even remotely close. Low down payments are really just an indication of how much money or lack thereof a person has and mostly isn't a strategy for people and businesses whose primary concern isn't building real estate or renovating homes for quick flips.
Yep and currently sleeping in it. From all my friends all the ones with high income and hundreds of thousands saved put hundreds of thousands down. All friend who don't have much saved and don't make hundreds of thousands a year put low down payments. If a map existed of down payment % I'm sure that it would show the poorer the neighborhood the lower the % down. And I'm sure that it's not their so called strategy.
But is it really a strategy rather than just putting down what you can afford or buying what you can barely afford?
I once looked up Michael Bloomberg property and notice he has a mortgage. I also read about Mark Zuckerberg took out a mortgage to buy real estate. There clearly a strategy to it, obviously the biggest difference is how poor and rich people use debt differently. Debt itself is not inherently bad, however, some people misapply it poorly.
I believe Steven Croman recently went to jail, part of the prosecution went after him for committing fraud in overstating rent rolls in order to borrow more money. He built his real estate empire on buying lower priced rent stabilized apartments and kicking out the tenants by any means necessary.
I once looked up Michael Bloomberg property and notice he has a mortgage. I also read about Mark Zuckerberg took out a mortgage to buy real estate. There clearly a strategy to it, obviously the biggest difference is how poor and rich people use debt differently. Debt itself is not inherently bad, however, some people misapply it poorly.
I believe Steven Croman recently went to jail, part of the prosecution went after him for committing fraud in overstating rent rolls in order to borrow more money. He built his real estate empire on buying lower priced rent stabilized apartments and kicking out the tenants by any means necessary.
I read about Mark Zuckerberg using interest only loans. The reason he can do that is because he can pay it back as soon as interest rises. Also these people have professionals advising them and turn it into a numbers game that they can quickly exit out of unscath. How about you ask your Wells Fargo mortgage broker for a interest rate swap on 500k if things turn, or better yet embed a futures on the option for the IRS into the loan and he'll be like say what who the heck are you? If leveraging the barn was so good why don't you tell all those people who lost their shirts during the real estate collapse.
Im not saying leverage isnt good but let's be real here low down payments are mostly because people don't have the money. It's not some inherit strategy to purposely do that. It's mostly people betting the farm on properties rising or just wants to own so bad that theyd stretch their budgets.
Im not saying leverage isnt good but let's be real here low down payments are mostly because people don't have the money. It's not some inherit strategy to purposely do that. It's mostly people betting the farm on properties rising or just wants to own so bad that theyd stretch their budgets.
Good point. I was in Starbucks out here in Queens the other day and this Korean couple was having coffee with a real estate agent discussing how they had $300K to put down on a SFH (not sure where but am pretty sure for somewhere here in Queens). They couldn't have been any older than their late 20s.
Here I am with struggling to make it to a 1/3 of that lol.
If leveraging the barn was so good why don't you tell all those people who lost their shirts during the real estate collapse.
People who got in trouble were usually people who live in the property and depend on their own income/job as the only revenue stream (so lose job = lose house). Most of the people I know who use the strategy are more diverse in terms of they rent the property and have their own separate income. They save enough cash reserves to hold them over during a distressed situation. In terms of how common it is, I am not sure as I feel there is a big divide in terms of education and demographics. It is common among the East Asian and Jewish people I know, almost as common as majoring in S.T.E.M.
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