Another question requiring expertise far beyond a broker’s license. Fortunately we have two great investment writers, three off-the-charts lenders and a readership of very prosperous people. Here’s the problem:<\/p>\n
I have come into a situation, and was wondering if you could give me your opinion. I have recently come into an inheritance of about $200-$250,000 from a family member who has passed away. I decided that the best use of this money is to invest in real estate. I have narrowed down my choices to four options.<\/p>\n
\n
- A foreclosed house which needs repairing, however it can be bought for past due mortgage payments and past due real estate taxes, legal fees, etc. for $200,000. The fair market value is about $300,000.<\/li>\n
- A housing project which has HUD financing of $1,750,000 and a fair market value of $2,000,000. Rental is locked in for $150,000 per annum, plus certain adjustments. Expenses are the mortgage with interest at 8% and operating expenses of $25,000.<\/li>\n
- A shopping center with tenant rentals on an escalating year-by-year basis. The center is currently 80% rented and receives $200,000 cash flow and operating expenses are $50,000. The seller wants $2,000,000 and he is willing to take back a second mortgage of $250,000. I feel like I can get a $1,500,000 mortgage from the bank at the current rate on a 20 year basis. The second mortgage will probabably be a 2% higher interest rate.<\/li>\n
- A shopping center with tenants who are all NYSE companies. All the leases are triple net with rental income of $500,000 last year. Sales price is about $6,000,000 and I feel I can get a favorable mortgage from an insurance company at a good rate. If I would proceed with this option I would probably cooperate with friends to get around $1,000,000 and get a $5,000,000 bank loan. I feel the property will appreciate at 8-10% per year.<\/li>\n<\/ol>\n<\/blockquote>\n
Who has a good answer for this?
\n<\/p>\nTechnorati Tags: investment<\/a>, real estate<\/a>, real estate marketing<\/a><\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Another question requiring expertise far beyond a broker’s license. Fortunately we have two great investment writers, three off-the-charts lenders and a readership of very prosperous people. Here’s the problem: I have come into a situation, and was wondering if you could give me your opinion. I have recently come into an inheritance of about $200-$250,000 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[12,8,6,5],"tags":[],"class_list":{"0":"post-1260","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-ask-the-broker","7":"category-investment","8":"category-marketing","9":"category-real-estate","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":934,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/934\/ask-the-broker-is-there-any-diversifying-alternative-to-real-estate-investing\/","url_meta":{"origin":1260,"position":0},"title":"Ask The Broker: Is There Any Diversifying Alternative To Real Estate Investing?","author":"Jeff Brown","date":"January 23, 2007","format":false,"excerpt":"Nick writes:Hi. I often scan your site and you seem to have collected a group of savvy and knowledgeable contributors. Here's my question for you and them: What is the opposite of real estate? I know diversification is a smart strategy and many investors limit their risk by investing in\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1242,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1242\/ask-the-broker-says-ask-the-audience-is-now-the-time-to-jump-into-the-housing-market\/","url_meta":{"origin":1260,"position":1},"title":"Ask the Broker says: Ask the audience: Is now the time to jump into the housing market?","author":"Greg Swann","date":"March 31, 2007","format":false,"excerpt":"This came in as an \"Ask the Broker\" question, but it's really a wide open pitch for any informed observer. (That would be you.)So should second-home buyers buy now, or wait? Will lending rates go lower soon? Or is this the time to strike?Have at it, if you like, but\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":602,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/602\/ask-the-broker-who-is-responsible-for-the-mortgage\/","url_meta":{"origin":1260,"position":2},"title":"Ask the Broker: Who is responsible for the mortgage . . . ?","author":"Greg Swann","date":"November 4, 2006","format":false,"excerpt":"Holy smokes! I get questions for appraisers, for inspectors, for real estate attorneys, for everyone involved in a real estate transaction except the ding-dong Realtor. Here comes a question for mortgage lenders, who are entreated to chime in with better answers:Generally speaking, are homeowners personally liable for their mortgage? If\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":448,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/448\/blogoff-post-71-ask-the-broker-so-what-about-the-swanky-house\/","url_meta":{"origin":1260,"position":3},"title":"Blogoff Post #71: Ask the Broker: So what about the big, swanky Realtor’s house . . . ?","author":"Greg Swann","date":"September 26, 2006","format":false,"excerpt":"This is me, confessing:So you drive a crappy little car. Your real secret is that you live in a McMansion, right?Wrong. Our home would be described as modest -- if only it were bigger. We bought it for the dogs, more than anyone. It has many wonderful features that we\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":453,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/453\/blogoff-post-76-ask-the-broker-is-it-too-early-for-anthem\/","url_meta":{"origin":1260,"position":4},"title":"Blogoff Post #76: Ask the Broker: Is it too early for Anthem . . . ?","author":"Greg Swann","date":"September 26, 2006","format":false,"excerpt":"A local question with broad implications:In 2004 I fell in love with Anthem, and was actually thinking of moving there. Last year the housing market went so crazy that I decided to wait. And the way things are looking today, I'm afraid now to move there. I still love the\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":913,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/913\/ask-the-broker-an-undisclosed-verbal-easement\/","url_meta":{"origin":1260,"position":5},"title":"Ask the Broker: An undisclosed verbal easement?","author":"Greg Swann","date":"January 19, 2007","format":false,"excerpt":"This is one for The Hardy Boys: The Case of the Stolen Dirt.As a buyer what rights do I have in the following scenario? I purchased a tract of land in 08\/06. Closed on the deal 10\/06. Visited the tract in 12\/06 to find extensive excavation was performed for road\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1260","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=1260"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1260\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=1260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=1260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=1260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}