"DADDY BUY ME A HOUSE!"
by anita sands hernandez
email@example.com a rewrite of info suppplied by Whitney the smart real estate buff firstname.lastname@example.org (ten years ago, he was there.)
I know TWO L.A. California families with a talented working husband and wife. Both couples have been renting for a long long time, paying nearly 2k a month in one case, 3k in another.... and that huge money just going off a cliff into a void! Yet they're NOT looking for discounted condos or houses!
They know that it IS silly pouring money into the Pacific but they are cash-overextended. NO thirty grand lying about for a down payment. Every month they just pay the rent, both with jobs.
All that means is that no BANK would go near them. But what if they found a discounted piece of property and told their deep pocket relatives that ANNUITIES are all the rage among the super rich, i.e. first mortgages and that their buying YOU A HOUSE and letting YOU pay it off using them as the bank will be a great investment for them! Beat stocks if you look at the last half decade!
I learned about all this from a pal who's comfortable if not rich, his family was in the rag trade for three generations (see why that profession works so well at article on ragpicking in big cities with antique cashmere sweaters (EZ to jewel the holes, old blue jeans, trendy, super hot Hawaiian shirts and stuff, it's HERE) ..... Well, this rich ragpicker was looking for a first mortgage annuity for some cash he inherited from his rich pop, lifetime in the rag trade, a blue jean, hawaiian shirt-dealing deep pocket father.
So my friend told me he was interested in finding two families for two houses and I feel l00k each is what he wanted to put out into this investment. He could do both if he doesn't start spending. And then he could have that monthly cash coming in, the 8% per annum interest --- and he's game as he just got 2 hundred k sitting in a bank vault. We talk regularly and I hear that he's tempted to go on an E-BAY shopping spree and is already looking at collectible cars, but his Guardian Witch is stepping in, as you see.
Because I like these two renting families. I think they can find some cheap HUD properties. A realtor told me to tell prospective home buyers to look for HUD properties as they're firesale bargain basement giveaways. Go visit and find some sample properties near you. Remember, HUD houses are a very competitive market. One can see that if one watches the SALES and remembers the property number of each site. Realtors get 5% commission if you put one to searching for you, but no law says that you can't do it yourself and then run, get a rich relative to do the ANNUITY INVESTMENT. He buys your home, you pay him the monthly payment for 30 yrs. .
So here's the riff. If you qualify for a bank loan, do it, try it. I don't know if there are fees for just feeling around to see if your credit and down makes hearts beat fast, but ask around. Wade out into the loan waters and get familiar with the vocabulary and % points and closing costs, etc. Best thing is to go to the bank you have banked with. Go to their loan department--that way they know you and there is not later dickering with a loan person who is a FRIEND to a local realtor and who might be getting top dollar on selling you your loan--shop shop shop --Won't hurt your credit if you shop a little and a lot can be done to check rates without a complete application for a loan. And people have a way of giving you a thousand dollar college education over a burger.
Real important to never lie to the loan agent---He can and WILL pull up your entire financial history from the beginning. Benefit of that is that he can help you repair any old credit issues. They are all there in black and white. Those glitches last FOREVER until you fix them. And the guy wants to get the loan so HE WILL HELP YOU. They know the tricks. So now it's up to a two thousand dollar college education.
My pal the realtor lady said: "I saw this on a large property in conjunction another realtor--I was new to the game--the other realtor had a loan agent he "always dealt with" -at the end of the sale as escrow closing got close--the loan agent "had to increase the percent for some delaying reason--lies--- $$$$$. Luckily I had mentioned in the very beginning to this buyer that he should shop --maybe the internet and his bank for a good % loan. So he had one in his pocket when the loan agent tried to roll him. The buyer had the confidence to say "No, I'll get a another loan on short notice and the loan agent rolled over -- giving the buyer the original promised rates and points. A game of chicken!!!"
" I also saw a kick back to the agent from the property inspection person. Unbelievable to me that sales people can be so corrupt--- So, do your homework."
Last analysis, an ANNUITY done for you by a rich family member is going to be a similar percentile point to that a bank gives you. The only diff is, no real credit check and no down payment. That you like, no?
If you think you have credit rating and that a bank would fund you, go out and find a HUD HOUSE at the Goldenfeather site. EACH buyer finds his own bank or Home Loan offering the best interest rate available --- on their own. They're ready with that while they're looking at HUD houses. Then the amount of down payment should leave a LOAN one can actually pay. Meaning it's equal to the rent that you have to pay now anyway.
By the way, Teachers get to the front of the line automatically with HUD. COPS do too ..useful as these HUD auctions are real real competitive.
The loan to you by anyone personally known to you -- who is wealthy ---is one way of skinning the cat. They get 8% per annum off you and that's a good rate today. Or, you can find your lenders yourself. When YOU pay an Annuity lender, who can be your Pop, or a wealthy friend of the family, you will pay the monthly directly to HIM instead of to the bank.
Remember, the banks require a minimum down payment which your friend the Annuity seeker may not require, but he will probably have some costs associated with buying your new property for cash and you'll be paying those.
Now what does he, the new owner, care if you go nose up? if your payments are too big and you default, he inherits the house himself and can easily sell it and make a big profit as you've been there painting, flooring it, making it new. Or he rents it out. Makes the payment and more than 8% per annum. If he's very old, his heirs will inherit that house. But if you can make that payment and you get very old, your heirs will. Imagine your kids taking care of you inside your (then worth) a million dollar home! By then your fruit trees are bearing, your grandchildren can shinny up them and bring you lunch. You'll love it!
So, ask around. Talk to real estate agents in your area, because I want to hear any downside to annuity investments on real estate, i.e. a friend or relative holding a first mortgage, back from you.
To get FDIC's info on helping you buy a house. Google the MAIN URL for FDIC.GOV...
Bid4Assets (URL BELOW) is a leading online auction site where you could buy a serious pig in a poke. They tell you it's "where serious buyers and sellers meet to find high-end assets such as land, cars, jewelry, artwork, coins, timeshares, computers,inventory, financial instruments, bankruptcy claims and more from government,non-profits and private sellers". BID FOUR is interesting so look at it, but you can end up buying a squarecre of utter desert where temps go to 120 in what is a spring river wash full of focks, so turn research into a vacation. Bring a tent and stove and a gun! http://www.bid4assets.com/ .
on the date that I looked this SITE had a big piece of land for l00$. Wonder what's wrong with it? It's not somewhere, it's nowhere, far from village. Hey, I'd like that! But unfortunately I wrote this article ten years ago so that piece is gone. SURF there, find new ones.
TWO SITES for GOV CONFISCATED LAND:
http://www.usdoj.gov/marshals/ prob tells you who just got evicted?
SITES you can find sales on:
Every county seat has an auction of tax foreclosed properties at least once a year. Lotsa times the sales are just land that the people bought and paid taxes on for 20 years--did nothing with it and want to unload the expense or they just let the payments slide---good money after bad. Other sales are mandatory printed in your local paper usually on a Monday in the classifieds or financial section. These counties must advertise Often houses in terrible neighborhoods -- but that is where the sales are --check your own city and county govt web site and call the local people. They all know!
I googled up an example in San Luis Obispo county in NoCalif. try googling tax sales in your county.
GET THE HOUSE! Do it, Because you know it's true that the house you rent for $1,200 today is going to be 4k tomorrow and 8 k the decade after. 8 k a month and you're some geriatric? NOT TOO PLEASANT A PICTURE!
Now sit down. Here are the facts that may make your blood run ice cold. You know now that the house you did NOT buy in 1973 for $28,000 is worth a half mil today. In my case, the house that I rented in West Los Angeles for 350$ which sold for 189k when my Dad would NOT help me, is today a million plus. Woman who bought it from my landlady who inherited it from my landlord, got over a mil for it. She'd paid 189k.
GET THE BLESSED HOUSE. The Interest is deductible to you. There ARE propertied people who can pull a twentyfiver out of their paid off home and float you the purchase and make money doing it. As after 2 years of your doing a NICOLE CURTIS to the place, you sell the place, get a tax break, share profits with them. So, On your marks, get set, GO!
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