We still need a couple of pieces more to give to all the kids... but we are gonna offer 35% of what it sold for in 2007... It worked for this one... although the bank took forever to finally accept our offer then, we're gonna give it a shot with this one too... we have been scraping up as much coins as we could to have a substantial down and make the mortgage less than a car payment... that way, I bet the kid will be able to keep it if I can't stay around breathing air to pay it off. If we can get it for what we think we can, I should be able to pay it down in 6 years. If I don't win the Lotto first that is...
We just put in the offer... After looking at the property, I think I will have about $25K to spend on repairs... and if the frau wants, we may upgrade the place with C/H/A...
Good luck. We're also looking at a place. We've been part-time looking at houses since the bottom fell out, hoping "the one" would come on the market at a decent price. In my mind, it did. We both really like the house, the neighborhood and the multiple remodels and improvements.
For me... since I don't own my retirement... real estate will be how I get money every month... Near the end of year before last, the frau and I decided we would spend the savings on a house down the street... We bought two... and can use the rents to supplant our life after working. We have decided that we will put em all in trust for our kids... the ones that will get something in the will... I am not sorry to say there are some that will only get $50, and the reason is personal... the rest named will get a house each, and a share of the remainder of our estate... and not a coin from the estate to charity... we have agreed to give to our favored causes while we are living, when we pass, our family gets the rest. I am hoping I have sheltered it correctly so the USofA doesn't steal the money from our children in estate taxes.
The estate tax exemption has been proposed to increase to $5 million. Presuming it goes through, it seems that'd be enough. I guess you have no plans on dying soon, though, so that probably isn't much help...
Making money off of other's misfortune? It is a great time to buy real estate unless the bottom just totally falls out of the world. I have purchased two buildings and one dealership in the last year. Bought the dealership for about 30% of the 2007 value.
I also used to be a licensed bonded auctioneer... I know about taking advantage of an opportunity when I am in a favorable position... and I don't feel guilty about it at all. Besides... I'm fully aware that I can't take my fortune with me when I am no longer breathing air... that's why we are planning for our children's future now, while we have the means, and the market is in the best place for the buyer with cash in decades. With any luck, we'll get the little place we looked at a few blocks away for under $100K.
If you have money in an IRA (not 401K), you can use this money to purchase the real estate through a trust and the rental income would enter the trust. This way, you can stretch your purchasing power by buying w/ pre-tax dollars. When, and if, you want to use the real estate for personal reasons, you'd then purchase the real estate from the trust and pay any related taxes and penalties. Pensco Trust in California does a nice job with this. Cash can co-own the real estate with the IRA funds but the respective real estate cannot be leveraged with a mortgage. There are restrictions, so you'd have to make sure this would suit your personal situation. I have no affiliation w/ Pensco. I just know of them as I was lucky enough to locate this option through my business attorney when seeking vacant land. The initial process is cumbersome but annually, it's a breeze.
My two ex-wives own my military pension, the KEOGH and the IRAs... I have little to do with those accounts and have NOT contributed another dime to them since the divorces. But thanks for the sound advice anyways Bra... maybe someone else on this board will be able to take advantage of your thoughtful hint... :tea:
Got a call from the bank this morning... well, the wife did at home, I'm actually at my desk in Rancho Cordova... They countered with $300 more for paperwork... they agreed to split closing, pay for the inspection, pay for the title search, and clean up the property before it is turned over... they will not pay to fix any of the repairs noted in the inspection. Like $300 is something that would be a game killer... The bank wants escrow to close by the middle of June... totally doable... Anyways... I am going to plan on picking up some fixtures for the houses this weekend... another fixer-upper, and I will still have some cash left over that with the rest of our savings through the end of the year, we will be able to get another one maybe in December. Just thought I'd share. Have a good day fellow members... I think my workload just increased 100% on honey-dos.
