Thread: Pyriel Real Estate Corner

P- I guess you are still deciding on the amount of contributions you will reallocate. I am sure you will keep in mind matching funds, aka free money.

best of luck...I will be living vicariously through you.

Originally Posted by colonialmike

P- I guess you are still deciding on the amount of contributions you will reallocate. I am sure you will keep in mind matching funds, aka free money.

best of luck...I will be living vicariously through you.

Dang, I wish i know what vicariously means;-) I've thought about it and will most likely keep the 5% for my wife since she gets a matching of 5% from her work. I'm also leaning on keeping the ROTH IRAs for both of us so we can pass that on to the kids. I am looking at the numbers now and will present it here. Then along the way, i'll be showing what I would be receiving in real estate vs. TSP. If I do start within this path, I will most likely start it off at the beginning of the next year which is less than two months from now. Good luck people..
P

Py, are you off tomorrow? Or is that today now? If so, I hope you got to sleep in.............

Originally Posted by mlk_man

Py, are you off tomorrow? Or is that today now? If so, I hope you got to sleep in.............

Just checked the TSP share prices after your post and I see that they are dropping. The thing is I am fully invested. Nevertheless, I am serious about staying in. Yes, I am now getting much more sleep. ;-) and ;-(
P

Pyriel,
Hey, whats the time difference from Quam to say Central time??
Spaf

Originally Posted by Spaf

Pyriel,
Hey, whats the time difference from Quam to say Central time??
Spaf

Spaf, not sure but I know 1200 est Friday is 0300 am Saturday here. So just work your way back an hour or so.

I would like to bring something to everyones attention. I am currently refinancing my home and have gone to several banks to get their supposedly Federal Truth in Lending quotations. After talking to several bank representatives, I decided to go to one bank which is the Government of Guam Federal Credit Union or GGFCU. Since I am not a member, they informed me that i just have to open up an account for $30 and they should be able to give me a loan. Prequalification took less than 3 minutes especially since I provided them my own financial statement. BTW, don't ever walk into a bank trying to borrow money without a financial statement or knowing what you are worth without one since it makes a big difference in the world on how you are treated by them.

Anyway, after they provided me the federal truth and lending paperwork which showed how much im borrowing, how much is the closing cost, and my monthly payment i then did all the paperwork to make a loan. The only difference is that I told them that I want to include the closing cost to the loan so no $$ will be coming off my pocket.

I was amazed when I received a bunch of letter from them a week later informing me that my loan had been approved and they provided me another truth and lending paperwork. BUT this time, this paperwork ended up having $12k more total and would have cost me $200 more monthly payment for the life of the mortgage. I went to see the bank rep and informed them that I decided to pay the closing cost myself and will stick with the original loan. I also started questioning each line item of the new paperwork they provided me.

To make the long story short, I was able to lower my monthly payment by $200. I also did not have to pay bigger closing cost. So, next time you see a bank or lending institution, don't throw away those truth in lending papeerwork they are providing you. Verify them again once they approve you on the loan since they are required to provide you another truth in lending paperwork which is also required by law. BTW, this is the one that really count....

Pyriel

Originally Posted by pyriel

I have decided to create my own Real Estate Corner where i'll talk about what I am doing regarding real estate transactions and my thoughts about this market.

As of now, I am thinking really hard about stopping my max contribution to TSP and ROTH and have these funds reallocated to the real estate market. Currently, my wife and I are maxing our contribution and forking over $38k into these retirement vehicles. After reading "We want you to be rich" written by Robert Kiyosaki and Donald Trump, I have a mind shift on my current outlook for investment and would possibly reallocate them into my pot for real estate investment

Its a big step and i'm uneasy since I am going against the herd. However, unlike playing the market (which i really don't know what the heck i'm doing), real estate planning is something that I know how to do. If I do decide to go this route, i will make every attempt to write down the what why, how am I doing my transactions.

:-) Pyriel

P,
Congratulations on your new RE thread, I always learn from your success.

As far as not putting any more money in an IRA you might want to look into a “Self Directed IRA”, (google that for more info). You can invest into all types of real estate with this vehicle.

I’m going to pick up that new book that you mentioned, maybe you could start a thread with your RE book recommendations.


G

Thanks Gilligan. I'm aware of the self directed IRA using RE as the vehicle for it. What I don't know is the intricacy (spelling?) of what goes on with it. I went surfing with the MLS last night and found several properties that I might be interested with. One is selling for 125k which was foreclosed and VA owned. One thing I know about VA owned is that I could possibly take over the loan without having to put a down payment. My RE agent is verifying that now but I would welcome other people's opinion about this. The other two are selling for 119k and 130k bank foreclosed. I'll be doing an inspections of the properties later with my RE agent. We'll see what happened.

There is one thing I would like inform everyone here and that is about looking over your property boundaries. I really don't know that rules from other places but here the boundary rules when building a home should be 15 feet away from the front, 8 feet from the side and another 15 feet from the rear.
Now what I found out is that if the property is a corner lot, the property has two fronts (both are facing the street) and two sides.

Why is this significant? Well, i'm doing a renovation around the house and putting up a 1240SF patio and garage when I encountered this problem. My house sits in a corner lot and the garage is hitting the corner at around 13 feet. My RE agent who used to be an appraiser informed me to call a surveyor to verify the distance of the boundaries for my lot. I told the contractor to stop working and called in a surveyor. It cost me $500 but it was worth it and saved me thousands of dollars down the road. After he put up the boundaries we just had to readjust our work to meet the 15 feet variance. If I didn't catch this and we proceeded with the work, I would not be able to refinance for my house will be non conforming.

I understand that our zoning and voundary points rules and regulation might be different from others here but my point here is that you must never forget to check everything (to include baoundaries) to ensure that you will be in compliance with the law.

Goodluck to all.... Pyriel

Went surfing at the MLS a couple of days ago. I found several properties that I would like to research. I called my RE agent and we looked at 2 of them. Both are selling for 135k. One was foreclosed by the bank while the other one was VA owned. The lender of the VA owned is willing to finance 100%. The problem is that there is a setback issue. The back of the house only has 8 feet instead of 10 feet. It would probably take 10k for each house to be renovated + throw in closing cost of about 7.5k each. On the other house, i have to put in 30% downpayment since it will be assessed as investment and there is no setback issue. I've done the numbers and the VA owned is coming up with good returns but with a problem. While the other one is coming up with ok returns but without a problem. What to do?
Pyriel

P-
What is the difference in returns? How long will it take t recoup the 30% if you went with that property? How will the setback issue effect your investment? I am not familiar with this.

By the way, what kind of house does 135K buy you in Guam?

Good luck

Colonialmike

Originally Posted by colonialmike

P-
What is the difference in returns? How long will it take t recoup the 30% if you went with that property? How will the setback issue effect your investment? I am not familiar with this.

By the way, what kind of house does 135K buy you in Guam?

Good luck

Colonialmike

will post it here as soon as i get back to Guam. Currently in Hawaii right now. Should be back tomorrow...