I know it’s raining outside, but this real estate story will bring sunshine into your life.
How to become rich in real estate. It’s a true story from David Streitfeld at the NY Times: Easy Loans in Expensive Areas
In January, Mike Rowland was so broke that he had to raid his retirement savings to move [to San Francisco] from Boston.
A week ago, he and a couple of buddies bought a two-unit apartment building for nearly a million dollars. They had only a little cash to bring to the table but, with the federal government insuring the transaction, a large down payment was not necessary..
The three of them came up with $11,000 each.
“It was kind of crazy we could get this big a loan,” said Mr. Rowland, 27. “If a government official came out here, I would slap him a high-five.”
For decades, most F.H.A. loans were in low-cost states like Texas and Michigan. … The Economic Stimulus Act of 2008 helped change that by temporarily doubling the maximum loan the F.H.A. insured, to $729,750. A two-unit property like the one bought by Mr. Rowland and his friends can be insured for up to $934,200.
Hopefully this will work out for Mr. Rowland and friends, but now for my two favorite quotes:
Mr. Kurkland and Mr. Bedar who are employed in the technology field, and Mr. Rowland a freelancer….their dreams of wealth do not feature stock options.
Of course not. Banking on stock options. That would be insane.
“We’re banking on real estate,” said Mr. Kurland, 24. “Everyone expects prices to keep going up.”
Hmm…I’m sure this story will end well.