So I’m getting a million dollars in a few months (inheritance)
My dream is to use it to put a down payment on several different luxury apartments in chicago and then rent them out while living at my house which I already have paid off.
But I don’t have a job, could I still get a loan without a job???
Like I did some math if I put a 20% down payment I could buy 5 1 million dollar apartments and each would bring in like $6,000 a month.
Also I figure with high end apartments I won’t have to worry about nigger tenants who leave cig burns and get dog hair and shit everywhere.
Although Chicago is liberal hell and taxes are insane I live really close so could check up on the apartments easily anytime.
Luis Howard
dear god just give me the money you fuck up
Gabriel Ortiz
>WTF this seems way too easy. What am I missing?? congrats you figured it out. why the rich get richer in the US and the poor get squeezed
Noah Davis
Open a laundromat instead, unless you plan on marking renting your primary source of income.
Logan Peterson
No sorry
Jason Adams
Basically what I’m asking is how I get a loan for buying more houses if I have a lot of money but no current source of income
Grayson Wood
jesus christ dude what the fuck are you asking on here for >buy chainlink
Jason King
Well you have to build credit or arrange a deal with significant collateral. The loan officer you should have asked that question to at the bank you should have gone to for a loan should have told you that.
Carson Ramirez
Shit man, put that million in a high interest rate bank account and live off the interest payments. The interest alone is like 60K a year, your principal amount is not touched.
Parker Lewis
Where are you getting that much on a savings account in current year
Carson Walker
Or I could get 720k a year from rent...
Bentley Stewart
It's a bit more complicated than that. Read up on biggerpockets.com and learn what constitutes a decent RE deal. Your example price-to-rent ratios are fucked.
Ayden Morris
You aren't he doesn't know what he's talking about. 6% without touching principal is the kind of return you get on some of the highest dividend stocks like NLY. SPYD doesn't even get 6%.
He's full of shit. If OP actually wanted to be comfy and live off dividends he could get a safe 8% with the right REITs/ETFs and not manage shit. If OP wanted to do both be could so all his shit wasn'r wrapped up in a grossly bloated real estate market.
I inherited 300k at 18 so I kind of know where he's coming from. It isn't that much money if you look at a lifetime.
Ian King
At 20% down, your borrowing power will be exhausted after 1-2 apartment. If you purchase and take out a mortgage under a company. Expect 30-40% down payment or equivalent collateral. It's not quite as easy as you think to borrow money.
Dylan Martin
Ok, but think about this. You are the landlord. You are responsible for all the apartments/houses you rent. If shit in any one of them breaks,needs work/updating,etc guess what? Your on the hook to deal with it all and pay for it all to. Then tax on the property,etc. So much shit to deal with. Sure you may be rolling in the money but the "little" things will kill you.
Tyler Price
Here’s the building I’m looking at there’s 2b2ba apartments for 800k and the same type also rent for 6500
Seems too good to be true?? Maybe it’s cause you get fucked by taxes or something
>what am i missing? property taxes interest on the mortgages maintenance insurance management fees vacancy rates or value of rent falling due to demographic changes phone calls at 2am on christmas about a burst pipe or broken heating that you will be sued to shit for if not dealt with immediately getting sued to shit over any mishap on your property legal fees appraisal fees realtor fees closing costs special assessments housing court and a whole laundry list of other problems and fees
real estate is the only asset where the common man can get 10x leverage and up fairly easily and as you have demonstrated it often “looks good on paper” like hey im going to collect 720k annually for my 1 million investment. as a consequence, it’s easy to get your balls chopped off if you dont know what youre doing and have bad timing. just make sure to consider all the costs and get in at a price that is sustainable
Connor Wood
That's a terrible deal. Again, please read something about RE before jumping in.
Anthony Howard
How much is the condo fee? And what is the average expected vacancy each year for that class of luxury apartment and neighborhood?
Liam Ortiz
>wait
Put 10% in physical gold and store it in an offshore private vault outside of the banking system. Put the rest in the highest yielding savings accounts you can find on bankrate. Don't put more than 250k in one bank so you get fdic insurance. Right now these accounts are paying 2.25% to 2.3%. At 900k that is $20, 250 a year or $1687.50 a month.
>THEN WAIT FOR THE MARKET TO CRASH >gold goes up like crazy >meanwhile learn about real estate investing so you are ready to pull the trigger with the right knowledge.
After there is blood in the streets, then consider buying real estate. Do not buy now. All assets are far overvalued and will drop massively.
At current 30 year fixed mortgage rate of 5.116%. 20% downpayment 100% occupancy rate $6500 rent (monthly) $1500 HoA Fees (monthly) $1000 Insurance (annual) ABSOLUTELY NO REPAIR COST
You will earn a 2.73% return on your investment. Anything that turns out to be less than ideal, you'll be in the red. This doesn't even include mortgage fee, closing cost, lawyer fees and other initial transaction costs.
You will have a monthly cashflow of $364 after paying all your bills, assuming your tenant cover ALL utility.
This does not include equity gained on your mortgage payment, as that is a bit more complicated.
Thomas Ross
I forgot, annual property tax of 12,855 is also included.
Carson Lopez
>several different luxury apartments in chicago >a million dollars
nice, my ex used to work in the hotel there. You could probably do decently well renting one of those out to foreigners who don't know any better than to live downtown
Jeremiah Allen
Safe. Dividend. Stocks.
Literally, with 1 Million you could probably get about 35-40K in dividends alone. Get a job at Costco for their benefits and decent pay for about 5 years and let those dividends grow over time. You'd have a continuous, growing source of passive income which, if right stocks are chosen, will outpace inflation WHILE the current net worth continues to go up too.
Brandon Nguyen
Opinion on VTSAX?
Hudson Thomas
this. I know people meme stocks but stocks and RE is where millionaires become billionaires
Elijah Nguyen
6k/month for a 1MM apartment seems a bit high (but might be doable). Don't forget about property taxes, maintanance expenses and interest on your loans. If the property market dips 20% or more you're basicly fucked.
With no income and no collateral it will be difficult to get even just a single mortage for 800k, it will impossible to get 5.
Anthony Phillips
I wouldn't put it into apartments until you have more money, thus can take a bigger hit. Built up your money first in less-risky endeavors, then consider apartments once you reach a much more comfy spot.
David Morris
i'm not recommending doing the following, but just to give you an idea of how good dividend compounding interest can turn out.
ITW aka Illinois Tools Works is a Dividend King (50+ years of annual increase in dividend). Say you invested $1M at $135 per share. you'd have approximately 7407 shares of ITW. Their dividend yield is currently 3.06%. Good, nothing to write home about but solid. What is going to blow your tits of is their 3 year DivGro rate of 16.5%.
So if you look at the pic related, you could take the fucker off DRIP in 10 years and get a growing passive income of $200K+ for the rest of your life
Not saying its going to continue to grow at 16.5% but its dividend is safe and secure and there's no reason for it not to grow double digits for the next 4 years
Yeah dividend growth investing is the best once you have a large amount of capital to deploy.
Pays off better then real estate by a lot.
Noah Wright
Also, don't be ashamed to be a little frugal as well. Some of the most successful wealthy people have been frugal. You don't have to be like Jean Paul Getty, but also don't waste it on petty ostentatious shit, either.
Michael Rivera
this is the most based post here.
you faggots should listen to this user
Caleb Thompson
You won't get the loan for all of them.
Start small and build it up.
Don't spend it all.
Buy one condo on the north side, near the punk area, and AirBNB it.
Then once you can show a year's revenue from that one, go to a lender and see if you can get approved for the next.
And so on, and so on. Reinvest the profits back into paying off your initial loan.
But yes avoid niggers.
t. real estate agent
John Peterson
Also, how is 5*6k=60k? You'd get 30k/month. And that's ignoring all the expenses and interest I mentioned. Try doing the math on how much property taxes on 5MM in property and interest on 4MM in mortages are lol.
Camden Nelson
Best post. But OP will ignore this.
"A fool and his money..."
Luke Gray
check out /entg/ thread if you want quality discussion lol for passive income
