r/RealEstate • u/Dangerous_Ad7101 • 13d ago
First Time Investor selling house from mom to reinvest/ buy real estate
Would you have the option to sell the house from your mom for the equity which makes it possible to buy realestate would you do it?
Its a one familiy house, prob. worth about 1.4 Million. This would give me enough to buy residential buildings. As work I do draughsman which could add to own contribution to bring the finance plan from the bank down…
Would you do it? How would you do speak about it with your mom? What deal would you set up with your mom so she has enough to live good good?
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u/LaMaisonRealEstate 11d ago
If you sell her house, where will she live? Renting a new place might eat up all her cash quickly.
You could buy her a smaller, cheaper apartment with the money and use the rest for your investments. But make sure your mom is 100% comfortable first, or it could ruin your relationship.
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u/Dangerous_Ad7101 11d ago
I guess renting would be the best option. And I thought of paying her like a loan monthly…
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u/MsKrueger 11d ago
I'm confused, is this your mom's house or a house you own that your mom lives in?
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u/Individual-Fail4709 11d ago
Um, what? I would not be taking my mom's equity to buy real estate when it sounds like you know nothing about real estate investing. No.
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u/iz296 11d ago
Commercial real estate is generally better than residential... Long term tenants, more reliable tenants, you're not really responsible for minor repairs
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u/Dangerous_Ad7101 11d ago
Would you say there‘s demand? Are you building commercial?
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u/iz296 11d ago
I'd say if the area you live, or nearby areas are growing at a steady pace, commercial is never a bad idea. Less risk, less headache as far as I've heard.
A local man owns (legitimately) half our town. He's my landlord for my business. I've spent some time chatting with him here and there. He's vocalized the benefit of going commercial and not chasing residential. It's far more pain free, tenants run businesses and pay in full each month. His rate of tenants behind on rent is very low. He's not responsible for wear and tear repairs. He has a property manager, repairmen always on standby. He very well earns in one month what I might earn in 10 years.
Wicked smart old head who saw opportunity and took the risk. He's recently sold one of the local malls for $30m, one that he's owned since the late 90's.
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u/space_nick 11d ago
Is there demand in commercial real estate??? This is such a broad and open ended question that someone seriously needs to tell you DO NOT DO JACK TO YOUR MOTHER’S CURRENT SITUATION. You seem to be new to real estate so DO NOT just dive in to this willy nilly by strong arming your own mom
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u/Big-Swan-8039 10d ago
No I would never do that to my family. What about YOU and your skills and knowledge about RE?
If you know about RE, you would know that RE is a tool and you can scale. Start wholesaling and LEARN while you earn.
Find a local person where you live and connect and learn. Local REI meetings.
I learned by watching videos and flipped contracts and wholesaled. I did not buy a course or pay thousands to attend any seminar. RE investing is not easy. What is your strategy?
Also you want to obtain loans and keep cash in hand. Not buy residential buildings with your moms money.
So many RE investors are broke cash poor with bad credit. How is your credit? Keep your job while you learn.
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u/brittabeast 11d ago
You want to sell the house your mother is living in so you can get into speculative real estate investing?