All Encompassing Mortgage and Real Estate Thread

[TTU13 108]

Super super premature, but considering a second property. Not sure what, everywhere from a condo in Chicago to land in middle of nowhere. Wife and I are on two different spectrums here but there’s a sweet spot on both extremes we’d agree on.

Any recommendations on things to keep in mind when looking? Any gotchas? Extra costs were not thinking about? Minimum time in a place to keep in mind, etc?

[LABEVO 928]

1 hour ago, TTU13 said:

Super super premature, but considering a second property. Not sure what, everywhere from a condo in Chicago to land in middle of nowhere. Wife and I are on two different spectrums here but there’s a sweet spot on both extremes we’d agree on.

Any recommendations on things to keep in mind when looking? Any gotchas? Extra costs were not thinking about? Minimum time in a place to keep in mind, etc?

I have been very very happy with the investment properties I bought in San Antonio. Higher rents than expected plus very strong demand. 

[South Austin 52616]

6 hours ago, TTU13 said:

Super super premature

This is the title of my sex tape.

[Neonmoon 38130]

7 hours ago, TTU13 said:

Super super premature, but considering a second property. Not sure what, everywhere from a condo in Chicago to land in middle of nowhere. Wife and I are on two different spectrums here but there’s a sweet spot on both extremes we’d agree on.

Any recommendations on things to keep in mind when looking? Any gotchas? Extra costs were not thinking about? Minimum time in a place to keep in mind, etc?

Who gets the property in the divorce? (Kidding) (sort of)

[Wulaw Horn 19152]

Double wide in la grange imo. 

Edited August 27, 2021 by Wulaw Horn

[NotActuallyALonghorn 4977]

If you are looking for properties to rent, I would look for smaller towns that are big enough to have a Walmart, another major grocer, Home Depot or Lowes, and a Tractor Supply or Atwoods or similar. Something along a popular or major thoroughfare where there are more restaurants than the local population can realistically support and less than an hour from a mid sized city where people can go to shop for what they can't buy locally without it being a major undertaking. You should end up with somewhere that can support a nice rent payment, yet still have affordable enough housing that you can make a tidy profit if you are looking at houses in the starter house price range.

[Gil Bang 26025]

13 hours ago, Biff Tannen said:

I have looked at it a bit (a tiny bit) in remote Colorado and it didn’t seem much cheaper than stick built, if at all. Can it really be half the price?  

Cost of modular has been way up the last year or two.  "Shortage" there too.  We had a fire that took out 60 manufactured homes in a community where you own the lot, and replacement units were being delivered 9 months after ordered.  

[CHIEF 5095]

13 hours ago, Biff Tannen said:

I have looked at it a bit (a tiny bit) in remote Colorado and it didn’t seem much cheaper than stick built, if at all. Can it really be half the price?  

You can get into a very nice modular for $80-100 sq/ft. You can have a slab poured to put it on, but that is generally a problem in remote areas where concrete trucks may have to come from over 100 miles away. Some modulars come with the slab already attached. They just put all the pieces together, on site, like a giant jigsaw puzzle. You couldn't get a house built in somewhere like Creede or Silverton under $200 sq/ft. stick built with a slab.

CHIEF

[closetohumping 17474]

Rates good or bad today?

[Wulaw Horn 19152]

7 hours ago, closetohumping said:

Rates good or bad today?

Little better than earlier in the week. A little worse than 15 days ago. 

[UT_OB1 2225]

13 hours ago, NotActuallyALonghorn said:

If you are looking for properties to rent, I would look for smaller towns that are big enough to have a Walmart, another major grocer, Home Depot or Lowes, and a Tractor Supply or Atwoods or similar. Something along a popular or major thoroughfare where there are more restaurants than the local population can realistically support and less than an hour from a mid sized city where people can go to shop for what they can't buy locally without it being a major undertaking. You should end up with somewhere that can support a nice rent payment, yet still have affordable enough housing that you can make a tidy profit if you are looking at houses in the starter house price range.

How do I you feel about Brazoria?…the town. Yes there is a town of Brazoria in the county. Under contract for a property with a triplex plus a 3-2 sf house and single wide.  A little scared. The hard money loan is a bit more expensive per month than I’d like. 

[Wulaw Horn 19152]

2 minutes ago, UT_OB1 said:

How do I you feel about Brazoria?…the town. Yes there is a town of Brazoria in the county. Under contract for a property with a triplex plus a 3-2 sf house and single wide.  A little scared. The hard money loan is a bit more expensive per month than I’d like. 

How much if you don’t mind answering. I was talking to a hard money guy the other day So am curious. 

[UT_OB1 2225]

3 minutes ago, Wulaw Horn said:

How much if you don’t mind answering. I was talking to a hard money guy the other day So am curious. 

10.95 interest only loan w Zeus, so it will be about 1600 a month (property isn’t super expensive by surly standards).  Got 9% last time when I used Jet, but they don’t seem to be as willing to go that far out of Houston. Only 2 I’ve tried. 

[Wulaw Horn 19152]

4 minutes ago, UT_OB1 said:

10.95 interest only loan w Zeus, so it will be about 1600 a month (property isn’t super expensive by surly standards).  Got 9% last time when I used Jet, but they don’t seem to be as willing to go that far out of Houston. Only 2 I’ve tried. 

The guy I was talking to said 9 but it seemed like they cared about the property way more than the borrower and he wanted an ass load  down payment. 

[UT_OB1 2225]

31 minutes ago, Wulaw Horn said:

The guy I was talking to said 9 but it seemed like they cared about the property way more than the borrower and he wanted an ass load  down payment. 

I’ll say that was the other nice thing about Jet was that they’d go to 75% LTV, so it was easier to not put anything down the 2 times i used them. But they seemed to be a little more picky on what they loaned on. Zeus is only going 65%, and I’ll have to put $20k down 

[Wulaw Horn 19152]

Just now, UT_OB1 said:

I’ll say that was the other nice thing about Jet was that they’d go to 75% LTV, so it was easier to not put anything down the 2 times i used them. But they seemed to be a little more picky on what they loaned on. Zeus is only going 65%, and I’ll have to put $20k down 

Well- the deal he was talking about is marginally better I guess. 

[HRSchenker 2274]

On 6/11/2021 at 2:35 PM, Dbeasy said:

what give you the impression Forney is anti-growth? That's interesting and not inline with what I've been hearing.

Very late response to you but they're now asking for public comment on a residential construction moratorium. My renters are happy as are the neighbors. Feels short sighted though 

[UT_OB1 2225]

13 hours ago, Wulaw Horn said:

Well- the deal he was talking about is marginally better I guess. 

I misstated a little - 20k to close. That includes origination fee, title, and all the other costs on the sheet. 

[Gil Bang 26025]

Strange experience for me: did an open house yesterday. House was for the entire time. Usually one group would come in while there was someone else already here.

I’m at the same house today. I’ve been here for an hour and a half and no one has shown up.

And, I can’t even jack off. The board of realtors frowns on that sort of thing

[MAUFRAIS 6638]

The frowning helps me finish

[closetohumping 17474]

On 8/26/2021 at 9:50 PM, TTU13 said:

Super super premature, but considering a second property. Not sure what, everywhere from a condo in Chicago to land in middle of nowhere. Wife and I are on two different spectrums here but there’s a sweet spot on both extremes we’d agree on.

Any recommendations on things to keep in mind when looking? Any gotchas? Extra costs were not thinking about? Minimum time in a place to keep in mind, etc?

Like to live in or rent out?  I wouldn't want to be a landlord at the moment.  No CR.

[Esque 135]

Not sure where this belongs, but thought I would share it here.  We got estimates from our fencing contractors in March for a residential job.  We're getting bids this week and pricing is coming back +40%.  They're referencing increases in commodity prices and availability of materials for the increases.  Commodity prices have been coming down, so that is a head scratcher.  I believe the lack of material availability, but presumably that would reflect in commodity prices, ignoring lag on timing.  Perhaps bigger issue is everyone is busy and so they're baking in more margin to make it feasible and worth their time to take on additional work.

[UT_OB1 2225]

33 minutes ago, Esque said:

Not sure where this belongs, but thought I would share it here.  We got estimates from our fencing contractors in March for a residential job.  We're getting bids this week and pricing is coming back +40%.  They're referencing increases in commodity prices and availability of materials for the increases.  Commodity prices have been coming down, so that is a head scratcher.  I believe the lack of material availability, but presumably that would reflect in commodity prices, ignoring lag on timing.  Perhaps bigger issue is everyone is busy and so they're baking in more margin to make it feasible and worth their time to take on additional work.

Yeah, I’d look for other bids. Wood prices are down. The impacts are already even seen at the big box stores (I’d been tracking my HD estimate for a deck since 4/7, prices are half or less on most lumber as of a week ago). What is really probably marked up is their labor. 

[Dbeasy 15093]

Had an interesting scenario occur.  Had a house listing under contract.  Buyer backed out the next day, then didn't deliver the earnest money or option fee by the required timeline of the contract. They are now liable for not just the option fee but also the earnest money, and it is substantial.  Anyone had to deal with that before?

[UT_OB1 2225]

6 minutes ago, Dbeasy said:

Had an interesting scenario occur.  Had a house listing under contract.  Buyer backed out the next day, then didn't deliver the earnest money or option fee by the required timeline of the contract. They are now liable for not just the option fee but also the earnest money, and it is substantial.  Anyone had to deal with that before?

Yes. Upthread. I was the buyer. My RE agent told me we didn’t need to deposit check since we were sending in cancellation. Long story short, I paid $125 to the seller in the end and now I make sure the fees are delivered no matter what my agent says so that no one can try to say we have to lay because we skipped from step 3 to 6

[TKthunder2 4997]

1 hour ago, Esque said:

Not sure where this belongs, but thought I would share it here.  We got estimates from our fencing contractors in March for a residential job.  We're getting bids this week and pricing is coming back +40%.  They're referencing increases in commodity prices and availability of materials for the increases.  Commodity prices have been coming down, so that is a head scratcher.  I believe the lack of material availability, but presumably that would reflect in commodity prices, ignoring lag on timing.  Perhaps bigger issue is everyone is busy and so they're baking in more margin to make it feasible and worth their time to take on additional work.

Prices are outrageous, everyone is busy, but contractors are taking advantage.  Get multiple quotes.

[UT_OB1 2225]

1 hour ago, Esque said:

Not sure where this belongs, but thought I would share it here.  We got estimates from our fencing contractors in March for a residential job.  We're getting bids this week and pricing is coming back +40%.  They're referencing increases in commodity prices and availability of materials for the increases.  Commodity prices have been coming down, so that is a head scratcher.  I believe the lack of material availability, but presumably that would reflect in commodity prices, ignoring lag on timing.  Perhaps bigger issue is everyone is busy and so they're baking in more margin to make it feasible and worth their time to take on additional work.

 

35 minutes ago, TKthunder2 said:

Prices are outrageous, everyone is busy, but contractors are taking advantage.  Get multiple quotes.

On top of getting quotes, you might also try ordering the materials yourself and seeing if it cheaper that way. Might be able to at least avoid the material markup. You could even go a step further and see if you could find the labor on FB or Craigslist. It is just a fence, not that complicated. 

[TKthunder2 4997]

15 minutes ago, UT_OB1 said:

 

On top of getting quotes, you might also try ordering the materials yourself and seeing if it cheaper that way. Might be able to at least avoid the material markup. You could even go a step further and see if you could find the labor on FB or Craigslist. It is just a fence, not that complicated. 

We priced out our own materials and offered to pay more than the minimum payment up front so they could buy of our materials now so we don’t have any price inflation later into the project.

[CHIEF 5095]

3 hours ago, Esque said:

Not sure where this belongs, but thought I would share it here.  We got estimates from our fencing contractors in March for a residential job.  We're getting bids this week and pricing is coming back +40%.  They're referencing increases in commodity prices and availability of materials for the increases.  Commodity prices have been coming down, so that is a head scratcher.  I believe the lack of material availability, but presumably that would reflect in commodity prices, ignoring lag on timing.  Perhaps bigger issue is everyone is busy and so they're baking in more margin to make it feasible and worth their time to take on additional work.

Wood privacy, or ornamental steel? Steel prices are up 245% for the year. Also skilled labor is through the roof.

https://www.mining-technology.com/comment/us-steel-prices-remain-high-into-2022/

CHIEF

Edited August 30, 2021 by CHIEF
labor

[MAUFRAIS 6638]

[Guest Lobo]

Guy must have stood out like a sore thumb in Silicon Valley with a gas guzzler like that.  He could fit in in Texas easily if not for that dumb fucking bumper sticker.  And he moved here right around a year ago.  Why buy that thing in the East Bay with all the sales taxes, fees, and one year of property taxes when you can buy it here and save a bundle?  He could have used the savings to get a second idiotic sticker.  

Also, I tried Oakmont a couple of weeks ago, really liked it.  /csb 

[Dbeasy 15093]

Ok buyer missed the option fee and escrow deadline. They are now in default on a $800 option fee and $20,000im earnest money that is now due because they missed the deadline, even though they canceled the contract. Which lawyer wants to work with me to go after them and/or put the whole system on trial. 

[Updawg 2286]

How long has this timeline been going?

Sounds like the buyer has a shitty realtor?

[CHIEF 5095]

9 hours ago, Dbeasy said:

Ok buyer missed the option fee and escrow deadline. They are now in default on a $800 option fee and $20,000im earnest money that is now due because they missed the deadline, even though they canceled the contract. Which lawyer wants to work with me to go after them and/or put the whole system on trial. 

I don't know California's Option and Escrow deadlines, but in Texas, it is 72 hours, with Sundays, and holidays extending it. We never go over 48 hours. Did they cancel the contract before the California deadline?

CHIEF

[UT_OB1 2225]

13 hours ago, Dbeasy said:

Ok buyer missed the option fee and escrow deadline. They are now in default on a $800 option fee and $20,000im earnest money that is now due because they missed the deadline, even though they canceled the contract. Which lawyer wants to work with me to go after them and/or put the whole system on trial. 

You’ll be lucky to get three fiddy after the lawyers get their cut. Tell them they owe you the money, a judge is going to rule in your favor, and y’all could go to court and waste everyone’s time OR they can pay $2500 ($5k might be pushing it) to cancel everyone moves on. 

[Gil Bang 26025]

23 hours ago, Dbeasy said:

Ok buyer missed the option fee and escrow deadline. They are now in default on a $800 option fee and $20,000im earnest money that is now due because they missed the deadline, even though they canceled the contract. Which lawyer wants to work with me to go after them and/or put the whole system on trial. 

Did you send a "Notice of Buyer to Perform"?  If not, you need to do so.  Missed deadlines mean nothing unless the buyer is put on notice that he missed a deadline. 

14 hours ago, CHIEF said:

I don't know California's Option and Escrow deadlines, but in Texas, it is 72 hours, with Sundays, and holidays extending it. We never go over 48 hours. Did they cancel the contract before the California deadline?

CHIEF

For the initial deposit into escrow, it's "Three Business Days" per the default language in our contract.   Options aren't really a thing out here.  In fact, the word "option" doesn't appear anywhere in our 10 page Residential Purchase Agreement.   So, @DbeasyI wonder if you'd be kind enough to explain further exactly what it is that you're referring to.  Option for what exactly?

[CHIEF 5095]

21 minutes ago, Gil Bang said:

Did you send a "Notice of Buyer to Perform"?  If not, you need to do so.  Missed deadlines mean nothing unless the buyer is put on notice that he missed a deadline. 

For the initial deposit into escrow, it's "Three Business Days" per the default language in our contract.   Options aren't really a thing out here.  In fact, the word "option" doesn't appear anywhere in our 10 page Residential Purchase Agreement.   So, @DbeasyI wonder if you'd be kind enough to explain further exactly what it is that you're referring to.  Option for what exactly?

In Texas, that $800 option would let the buyer walk away for any reason during the Option Period, bad inspection report, bad appraisal, changed their mind, etc... The escrow money ($20k) would only go hard after the option period. The buyer would only be entitled to it after the Option Period. If the buyer backed out before the option check was given to them, or the Title company, that would have to be hashed out between the former buyer's representative and seller's representative. Are you saying the Option Period was essentially zero days? I have seen that in a few instances around here, where a buyer is basically saying, "I'm buying the house, no matter what." 

CHIEF

[Gil Bang 26025]

18 minutes ago, CHIEF said:

In Texas, that $800 option would let the buyer walk away for any reason during the Option Period, bad inspection report, bad appraisal, changed their mind, etc... The escrow money ($20k) would only go hard after the option period. The buyer would only be entitled to it after the Option Period. If the buyer backed out before the option check was given to them, or the Title company, that would have to be hashed out between the former buyer's representative and seller's representative. Are you saying the Option Period was essentially zero days? I have seen that in a few instances around here, where a buyer is basically saying, "I'm buying the house, no matter what." 

CHIEF

Here, once an offer is accepted, the buyer has 3 business days to deposit their Earnest Money into escrow.  That deposit is, effectively, fully refundable should the buyer change their mind during the first 17 days after acceptance of the offer.  EDIT:  Typical escrow deposit is $5000 or so, or more for an expensive house...maybe as low as 2500 on a VA no-no deal. 

If the appraisal doesn't come in, bad inspection report (and seller unwilling to give adequate credits or make repairs), buyer doesn't like seller disclosures, HOA docs, whatever.  Buyer walks and gets all his money back.  Some of things, like appraisal, occur sooner (default for appraisal is 14 days unless changed).   

No CR: CA is a very consumer-friendly state, and the contract tends to favor the buyer out here. 

Edited September 1, 2021 by Gil Bang

[CHIEF 5095]

3 minutes ago, Gil Bang said:

Here, once an offer is accepted, the buyer has 3 business days to deposit their Earnest Money into escrow.  That deposit is, effectively, fully refundable should the buyer change their mind during the first 17 days after acceptance of the offer.  

If the appraisal doesn't come in, bad inspection report (and seller unwilling to give adequate credits or make repairs), buyer doesn't like seller disclosures, HOA docs, whatever.  Buyer walks and gets all his money back.  Some of things, like appraisal, occur sooner (default for appraisal is 14 days unless changed).  

In Texas, the buyer would be in default after 3 days. As a realtor I would try to get some of the option money, but our Option money in my area is usually less than $500. It's not worth going to court over, and it is generally the buyer agent that ends up with the most egg on his face. I've had a buyer agent pay the Option fee out of his own pocket to not look like a dope, and salvage his reputation of not bringing squirrelly buyers that won't fund their contracts.

CHIEF

[Hmbre97 6331]

Since this site is full of lawyers, anyone practice/familiar with estate probate in Texas where property is concerned? My step-dad is too cheap to pay for a consult and it sounds like whoever is driving the bus is doing it wrong. I would like to see if my thinking is correct and let him know he needs to retain someone, else lose out on money owed.

[Wulaw Horn 19152]

13 minutes ago, Hmbre97 said:

Since this site is full of lawyers, anyone practice/familiar with estate probate in Texas where property is concerned? My step-dad is too cheap to pay for a consult and it sounds like whoever is driving the bus is doing it wrong. I would like to see if my thinking is correct and let him know he needs to retain someone, else lose out on money owed.

I don't mind seeing if my expertise matches up. I'm pretty knowledgeable on real estate law- probably less so on probate law- but the two overlap and I wouldn't mind helping if he wants the help.  My only caveat is I'm not going to charge him for it or represent him or anything (unless it's really easy) but I can be a sounding board or direct him for someone who specializes if his guy is doing a bad job or incompetent.  

Feel free to PM me- if someone else has a specialty in estate/probate/realty that would be a better bet...

[Dbeasy 15093]

3 hours ago, Gil Bang said:

Did you send a "Notice of Buyer to Perform"?  If not, you need to do so.  Missed deadlines mean nothing unless the buyer is put on notice that he missed a deadline. 

For the initial deposit into escrow, it's "Three Business Days" per the default language in our contract.   Options aren't really a thing out here.  In fact, the word "option" doesn't appear anywhere in our 10 page Residential Purchase Agreement.   So, @DbeasyI wonder if you'd be kind enough to explain further exactly what it is that you're referring to.  Option for what exactly?

TI'm in Texas (Austin). Texas has an option period and fee, plus an escrow fee.  If the buyer backs out within the option period, they lose the option fee but not the escrow.

In an update on the situation, the buyer's agent swears the buyer's submitted the option fee after the deadline. I still haven't heard from the title company yet.

[Wulaw Horn 19152]

41 minutes ago, Dbeasy said:

TI'm in Texas (Austin). Texas has an option period and fee, plus an escrow fee.  If the buyer backs out within the option period, they lose the option fee but not the escrow.

In an update on the situation, the buyer's agent swears the buyer's submitted the option fee after the deadline. I still haven't heard from the title company yet.

Why would the option go to the title company?  That should absolutely go directly to seller or to you as sellers agent.  I know title companies that will refuse to even take the check b/c they don't want to be responsible for it, b/c they can't do anything other than put it in an envelope in someones desk and wait for someone to come get it....

[UTPhil2006 3814]

33 minutes ago, Wulaw Horn said:

Why would the option go to the title company?  That should absolutely go directly to seller or to you as sellers agent.  I know title companies that will refuse to even take the check b/c they don't want to be responsible for it, b/c they can't do anything other than put it in an envelope in someones desk and wait for someone to come get it....

Goes to title now as I’ve been informed. 

[Wulaw Horn 19152]

4 minutes ago, UTPhil2006 said:

Goes to title now as I’ve been informed. 

Well don't I feel like the fucking asshole.  

[UTPhil2006 3814]

24 minutes ago, Wulaw Horn said:

Well don't I feel like the fucking asshole.  

It’s a relatively new thing. 

[CHIEF 5095]

2 minutes ago, UTPhil2006 said:

It’s a relatively new thing. 

Yep. Been doing it for only about a month or two.

CHIEF

[Wulaw Horn 19152]

Check made out to the title company and everything?  

[Gil Bang 26025]

Out here, the buyer sends his deposit directly to escrow. It's been that way for many years.  The CAR pushed for this for one simple reason: trust accounting is a PITA and isn't a headache that most brokers want or need, particularly when they cannot profit from it.  We don't touch a dime from any deal until commission checks are issued. 

[Wulaw Horn 19152]

14 minutes ago, Gil Bang said:

Out here, the buyer sends his deposit directly to escrow. It's been that way for many years.  The CAR pushed for this for one simple reason: trust accounting is a PITA and isn't a headache that most brokers want or need, particularly when they cannot profit from it.  We don't touch a dime from any deal until commission checks are issued. 

It wasn’t ever to the agents here. Check directly to seller so nobody had to mess with it as an accounting matter.