Home Buying

I have had several people come through open houses looking at the possiblity of buying rental property.  Many of these people are shopping in neighborhoods they know nothing about.  I think it is imperative that if you are buying your first investment property, use an experienced agent who has sold rental property, owns rental property and will offer assistance in getting the first renter. 

In the heydey of easy lending, many homes now in foreclosure were sold to people who had no idea what they were getting into. They couldn't find good tenants and have let the properties slide.

It is a great time to buy investment property.  Banks have low down, non-owner occupied low interest mortgages on their repos. Be sure to e-mail me if you need help or have a question.

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March 15 2010 - Seattle
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Profile picture for asugradinwa
"It is a great time to buy investment property"

Never a better time to get underwater then now.  I know a lot of people who have rentals that are losing upwards of $1000 a month OCCUPIED.

Want to see how much fun getting a rental property is?  Check this out:

http://seattlebubble.com/blog/2010/03/05/friday-flashback-a-great-time-for-wise-investors/
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March 15 2010
It is a great time to buy investment property.  Banks have low down, non-owner occupied low interest on their repos. Be sure to e-mail me if you need help or have a question.


No they don't.  20% to 25% down payment required.
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March 15 2010
If one has enough equity or capital for down payment such that the monthly carrying costs (if any) are low enough for an investment property to pencil out at break even or a small profit, it could be a good time to buy. No matter what the market climate, each investment purchase is going to vary by specific properties, how rentable the property is (location, conforming units, etc.), what the monthly operating costs are, etc.

In the Seattle area, we have a market that is still depreciating, thus negotiable Sellers. We also have historically low mortgage interest rates available. Given soft housing prices and affordable lending options, it could be a good time to buy. Though the rental market in our area is also soft, so unless a property has good long-term tenants, an investment could be a challenging business proposition. Real estate always has its risks.
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March 15 2010
Profile picture for cmmote
the low downs are 30% to value...the bank will only loan up to 70% on non owner occupied loans and you pay a percent more for the loan....just refied two rentals....with the same bank that held the original loans...and the appraised value was less than several years ago so I had to come up with alot more cash
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March 17 2010
The best investment I found was outside USA, Los Cabos, Baja, even prices are in dollars, they are based on national currency, All of the prices are now subject to an 11.5 exchange rate. With the exchange rate currently moving from 12 and 13, this means that 10% to 12% can be saved on currently listed prices.Values start from $150,000.00 USD which can be rented at $150.00 USD per night, do the math...
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March 19 2010
Profile picture for sunnyview
My understanding was that US citizens could still not own property in Mexico and that all properties for US citizens were on leased land. Why would anyone want to "invest" in a country where their "ownership" rights were not guaranteed?
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March 19 2010
Hi, sunnyview,

As a matter of fact, US citizens can hold title to property in Mexico. So long as a foreign national buys property outside of the costal or any other environmentally protected zone, they can hold title outright. Inside the protected property zones of Mexico, a foreign national has the option of setting up a bank trust to hold title or obtaining an FM3 visa to hold title direct.

As a final option, if one has a self-directed IRA established, their IRA as a corporate entity (via LLC) can hold title to foreign property with the added benefit of being almost entirely US tax exempt on income and/or gains so long as the funds go directly back into the IRA account. Speak with a good CPA about such a program and its benefits.

I too own a home in Mexico, which in its first year doubled in appreciation. Despite my title being held through a bank trust, my property value is unaffected.

With any real estate investment, every property has its own, unique value proposition. One just has to do their homework to determine whether it pencils out/makes sense for them. In this market, I would advise against holding one's breath for a quick return on real estate. Historically, real estate has been used as a long term investment strategy.

All the best,

Brad
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March 19 2010
Profile picture for sunnyview
I am confused about this. What I am hearing is that the US citizen does not hold absolute title as they would if they held property in the US. Is that right?
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March 19 2010
Yes & no, sunnyview. In non-protected zones/non-coastal areas, US citizens can hold title to property. Inside those protected zones, a US citizen can establish a bank trust land lease (which has no affect on property value) or they can obtain an FM3 visa as a means of holding title. There's always more than one way to skin a cat, so-to-speak. Hope this helps clarify your understanding of foreing nationals' property ownership rights in Mexico.
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March 19 2010
 
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