Mostly it’s probably because of a strategy called ‘buy and bail’. Some borrowers with good credit have qualified for a second loan by proposing to rent out their existing residence. They close the loan on the new purchase and then walk away from their current residence often not even renting it out. Some borrowers stop …
Category Archives: Investment Strategy
What Areas and Price Ranges Do You Think Are Best Values?
Real estate right now could be considered under valued for a variety of reasons. The main reason from my perspective is that one can still buy existing homes, industrial, commercial and other buildings for far less than it would cost to construct them today. I like the way you are thinking. Not unlike stock, it’s …
Can The Lender Go After My Retirement Funds?
Retirement accounts are protected in California. Talk to your tax or real estate attorney. They can write a letter addressed to your lender stating that your savings is in a protected retirement account. This should be adequate. Lenders are doing everything they can to minimize their losses.
Is It Always a Lot of Work Maintaining Rentals?
Investors purchase properties expecting a return on their investment. The return can be from rents, appreciation or adding value like you did by fixing up the property. The value added to a property through rehabilitation is generally more immediate and over time can have a much higher rate of return. I don’t understand why you …
What Price Range is Best to Build for in Auburn?
It is a smart question for all builders to ask. I can’t make recommendations about what to build. I can only give you market data that will help you decide for yourself. Bear in mind that markets change, and I know how long it takes from planning to completion, so keep your eye on the …
