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Re: credit scores. Unbeknownst to me, if you never use credit, your score s-l-o-w-l-y drops lower and lower. My wife has credit cards in her name for perks because she fills out the forms so her score is >800. When we bought our new home, I wasn't liquid enough to pay cash until I sold my current AZ home. Hence, it would have to be contingent (and the seller refused). So I had to get creative. Anyways, I applied for a 2nd mortgage on my paid-off MN home just in case my house sale fell through. Through that experience, I learned my credit score was around 700?! And the reason they gave was that I didn't use credit. It didn't matter about my net worth or how much $ I made. Because legally, if they break rules, that opens them up to all kinds of racism/sexism problems. I get it...
Also, it doesn't matter what my spouse's credit score is, they use the worse score in the family. To help fix this, when I bought my new SUV, I took out a $15K loan with under a percent interest rate. So I learned you never know if you need to borrow money.
Very true. I can set any parameters regarding *income and credit score as long as applications are treated the same.
*Many rental companies income requirement is 3 x the rent. I use 3.5. For a $2100 rental applicants collective monthly gross income needs to be $7350 or 88k a year.
Re: credit scores. Unbeknownst to me, if you never use credit, your score s-l-o-w-l-y drops lower and lower. My wife has credit cards in her name for perks because she fills out the forms so her score is >800. When we bought our new home, I wasn't liquid enough to pay cash until I sold my current AZ home. Hence, it would have to be contingent (and the seller refused). So I had to get creative. Anyways, I applied for a 2nd mortgage on my paid-off MN home just in case my house sale fell through. Through that experience, I learned my credit score was around 700?! And the reason they gave was that I didn't use credit. It didn't matter about my net worth or how much $ I made. Because legally, if they break rules, that opens them up to all kinds of racism/sexism problems. I get it...
Also, it doesn't matter what my spouse's credit score is, they use the worse score in the family. To help fix this, when I bought my new SUV, I took out a $15K loan with under a percent interest rate. So I learned you never know if you need to borrow money.
While living overseas I used my mother's address in the States for my BOA account to make sure my credit score stayed current. I had a Japanese credit card for local bills but use my BOA visa card when I made purchases in the U.S. https://www.forbes.com/advisor/credi...edit%20reports.
Today my wife has a BOA credit card which she uses every so often. I don't know my credit score but guess it's over 800. I pay for almost everything by credit card which I pay off twice a month.
Side note: Interest rates in Japan have generally been much lower than in the States. It wasn't unusual for an American or Canadian to borrow yen and send it back home. Then pay cash for property. I could never do this because I was never employed full time.
Now the J- tax authorities have an agreement with a number of countries including the US in which can request to see a copy of my tax return. Japan taxes world-wide income. Maybe 15 years ago the Japanese tax authority began taking a much closer look at large sums of money coming in/out of Japan (usually anything 10k USD) and co-workers who borrowed large sums of yen to buy assets in their home country started getting caught. They were charged with income evasion.
Around 2017 the J-government implemented an "exit tax" for those leaving Japan. Meaning if caught owning property in the States the J-government could possible tax me on what they assessed my properties to be worth at the time. It wouldn't matter that my properties hadn't been sold. Now, at present RE assets aren't being hit with an exit tax but I'm sure this will change. Nevertheless, I would have been killed for years of unreported US rental income if this ever came to light. Actually I wasn't aware I was required to report US income until several foreigners I knew got into trouble. Esp. after they were caught lying. Those called in were asked a few friendly questions by the J- tax authorities about income they earned back home. If they answered, "None" the J-tax man/woman would say, "Really" and place a copy of their recent US tax return on the table. The Japanese don't look too kindly on income evasion.
Fortunately, the J-government gave non-Japanese like myself until mid 2019 to leave the country. If I stayed longer and they found out about my US rental property... not good.
Like people say- this is definitively a time to go full-on Dave Ramsey. Pay off debt, save rainy-day fund. Do NOT go into more debt here. In a few years it will be time again to go very aggressive with investments of all kinds. So don't become a perma-bear either. Those are the biggest losers IMO.
Like people say- this is definitively a time to go full-on Dave Ramsey. Pay off debt, save rainy-day fund. Do NOT go into more debt here. In a few years it will be time again to go very aggressive with investments of all kinds. So don't become a perma-bear either. Those are the biggest losers IMO.
If RE in AZ all goes to hell and we see house prices crash 50%-60% I'll be jumping in with the other sharks.
But you'd better have cash because it'll be a feeding frenzy.
While living overseas I used my mother's address in the States for my BOA account to make sure my credit score stayed current. I had a Japanese credit card for local bills but use my BOA visa card when I made purchases in the U.S. https://www.forbes.com/advisor/credi...edit%20reports.
Today my wife has a BOA credit card which she uses every so often. I don't know my credit score but guess it's over 800. I pay for almost everything by credit card which I pay off twice a month.
Side note: Interest rates in Japan have generally been much lower than in the States. It wasn't unusual for an American or Canadian to borrow yen and send it back home. Then pay cash for property. I could never do this because I was never employed full time.
Now the J- tax authorities have an agreement with a number of countries including the US in which can request to see a copy of my tax return. Japan taxes world-wide income. Maybe 15 years ago the Japanese tax authority began taking a much closer look at large sums of money coming in/out of Japan (usually anything 10k USD) and co-workers who borrowed large sums of yen to buy assets in their home country started getting caught. They were charged with income evasion.
Around 2017 the J-government implemented an "exit tax" for those leaving Japan. Meaning if caught owning property in the States the J-government could possible tax me on what they assessed my properties to be worth at the time. It wouldn't matter that my properties hadn't been sold. Now, at present RE assets aren't being hit with an exit tax but I'm sure this will change. Nevertheless, I would have been killed for years of unreported US rental income if this ever came to light. Actually I wasn't aware I was required to report US income until several foreigners I knew got into trouble. Esp. after they were caught lying. Those called in were asked a few friendly questions by the J- tax authorities about income they earned back home. If they answered, "None" the J-tax man/woman would say, "Really" and place a copy of their recent US tax return on the table. The Japanese don't look too kindly on income evasion.
Fortunately, the J-government gave non-Japanese like myself until mid 2019 to leave the country. If I stayed longer and they found out about my US rental property... not good.
I moved back the States in Jan of 2019
Sorry if I helped to ruin this for you.
Back in the 90s banks like Dai Ichi Kangyo were making it rain everywhere, I couldn't believe how easy it was to get them to just give me and my co-worker friends money. I knew part time English teachers mailing home $10k loans to invest in index funds.
Just goes to show how nuts banking can get.
Sorry if I helped to ruin this for you.
Back in the 90s banks like Dai Ichi Kangyo were making it rain everywhere, I couldn't believe how easy it was to get them to just give me and my co-worker friends money. I knew part time English teachers mailing home $10k loans to invest in index funds.
Just goes to show how nuts banking can get.
NTA (Japan National Tax Agency) jumped on the bandwagon and started looking at Japanese and foreign residents moving large sums of money (10k USD) in/out of Japan.
Banks like Citibank (now Sumitomo Mitsui Banking Corp) made it easy to convert yen and send it anywhere in the world now required Americans to provide their social security number.
I wasn't bring money into Japan but I was sending money out. It wasn't a lot of money but it was steady. Anywhere between 3k-6k had been going into my US BOA account each month for years. I could see the walls closing in... it was time to leave.
NTA set up an amnesty program of sorts for foreign residents. Start declaring overseas income and past indiscretions might be forgiven or get out. I got out.
My US rental income at the time was roughly 140k gross a year and I didn't want NTA taking a fat slice.
Re: credit scores. Unbeknownst to me, if you never use credit, your score s-l-o-w-l-y drops lower and lower. My wife has credit cards in her name for perks because she fills out the forms so her score is >800. When we bought our new home, I wasn't liquid enough to pay cash until I sold my current AZ home. Hence, it would have to be contingent (and the seller refused). So I had to get creative. Anyways, I applied for a 2nd mortgage on my paid-off MN home just in case my house sale fell through. Through that experience, I learned my credit score was around 700?! And the reason they gave was that I didn't use credit. It didn't matter about my net worth or how much $ I made. Because legally, if they break rules, that opens them up to all kinds of racism/sexism problems. I get it...
Also, it doesn't matter what my spouse's credit score is, they use the worse score in the family. To help fix this, when I bought my new SUV, I took out a $15K loan with under a percent interest rate. So I learned you never know if you need to borrow money.
I use an airline mileage credit card that autopay's the entire balance each month we have almost 450k miles since Covid hit we haven't flown anywhere. I also had a lower credit score in the 700 range my wife was over 820. The reason was I had opened several credit cards at home depot 4-6 a year they would offer $100-200 off for opening a credit card when making big purchases. I would pay the card off and close it because I closed the accounts it lowered my score.
I stopped doing that no more then one per year my credit score returned to over 800. The mortgage guy said didn't really matter if your over 700 anyway.
You begin to wonder how many homes on the market are being flipped? I'm going to assume nobody in their right mind buying today plans to flip the property. That sales today are made by those who plan on living in the home.
You begin to wonder how many homes on the market are being flipped? I'm going to assume nobody in their right mind buying today plans to flip the property. That sales today are made by those who plan on living in the home.
Or rent them - actually been thinking about this thread a bit - and I am more and more convinced that institutional investors are NOT going to dump these for asset value. Most are in it for cash flow and if home SALES decline due to all the factors we have been discussing. They will still need places to live - and the population is growing here.
This is evident in the HUGE investment going into the "build to rent" complexes being built all over the place here and now branching out nationally. Just today a Scottsdale company (Walton Group) announced a 300 million dollar investment from a Boston builder to launch this product all over the country. They are not alone. They actually believe the trend will be that people would RATHER rent - but with the benefits of a home along with community amenities (pool, clubhouse, etc.).
But these tend to be smaller in nature and while nicer than a typical apartment are still not geared for families with 4 kids. Those family still need a single family home with a decent lot.
Those same people will still need these even if they would PREFER to buy - but with rates as they are now are priced out.
But unless you think AZ (and Phoenix more in particular) is going to have a large job loss type of economic hit - I am not so sure these larger institutional investors will dump and run.
The mom and pop that get scared? Maybe - but even with the higher than average number of investor buying - it is still not a huge percentage of the overall sales volume.
No way to know for sure of course - but frankly - we may already be PAST the worst as far as inflation etc. - today's FED announcement was shocking - but working off of data several months old already.
Or rent them - actually been thinking about this thread a bit - and I am more and more convinced that institutional investors are NOT going to dump these for asset value. Most are in it for cash flow and if home SALES decline due to all the factors we have been discussing. They will still need places to live - and the population is growing here.
This is evident in the HUGE investment going into the "build to rent" complexes being built all over the place here and now branching out nationally. Just today a Scottsdale company (Walton Group) announced a 300 million dollar investment from a Boston builder to launch this product all over the country. They are not alone. They actually believe the trend will be that people would RATHER rent - but with the benefits of a home along with community amenities (pool, clubhouse, etc.).
But these tend to be smaller in nature and while nicer than a typical apartment are still not geared for families with 4 kids. Those family still need a single family home with a decent lot.
Those same people will still need these even if they would PREFER to buy - but with rates as they are now are priced out.
But unless you think AZ (and Phoenix more in particular) is going to have a large job loss type of economic hit - I am not so sure these larger institutional investors will dump and run.
The mom and pop that get scared? Maybe - but even with the higher than average number of investor buying - it is still not a huge percentage of the overall sales volume.
No way to know for sure of course - but frankly - we may already be PAST the worst as far as inflation etc. - today's FED announcement was shocking - but working off of data several months old already.
The rapid increase in inventory has me guessing it's more than just mom/pop investors, flippers or families deciding to sell today instead of next year.
On the other hand... maybe a good 20% of the inventory is made up of mom/pop investors and flippers looking to get out fast. It would be interesting to know many homes on the market are not owner occupied.
I suspect you're right and large investment companies like Invitation Homes (which rent out some 8k SFH) aren't bailing.
Last edited by john3232; 06-15-2022 at 07:35 PM..
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And the reason they gave was that I didn't use credit. It didn't matter about my net worth or how much $ I made. Because legally, if they break rules, that opens them up to all kinds of racism/sexism problems. I get it...
