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Re: Real Estate Appraisal Fees
[Re: BigPig]
#8671375
08/22/22 10:29 PM
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Joined: Dec 2009
Posts: 9,887
The Dude Abides
THF Trophy Hunter
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[quote=The Dude Abides]
That's how he's able to buy a $450k home with a $130k mortgage. You have good discretion/discipline in handling your money. Think about it. I'll "one up ya"...no mortgage here, living the dream! The practice of buying homes as investment properties is slowly killing the way of life we know. It'll back fire one day. Nobody knows when, but it always does. I wish people would stop looking at their primary residence as an “investment”. If anything it’s a terrible savings account. IDK...the ones that I've bought and sold have done pretty well. Better than any "terrible" savings account I ever had/have.
I am still looking for the perfect apron, one with reinforced knee areas would be perfect.
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Re: Real Estate Appraisal Fees
[Re: The Dude Abides]
#8671648
08/23/22 05:49 AM
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Joined: Aug 2009
Posts: 22,724
BigPig
THF Celebrity
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Joined: Aug 2009
Posts: 22,724 |
[quote=The Dude Abides]
The practice of buying homes as investment properties is slowly killing the way of life we know. It'll back fire one day. Nobody knows when, but it always does. I wish people would stop looking at their primary residence as an “investment”. If anything it’s a terrible savings account. IDK...the ones that I've bought and sold have done pretty well. Better than any "terrible" savings account I ever had/have. Take out the past 4 years, those are an anomaly, and look at the lengthy history of appreciation of home value along with insurance, taxes, and maintenance. If you simply lived in your home for 30 years and paid it off, with zero $ for maintenance, and it followed the typical 3-4% gain per year that would amount to $324,000 value, so a gain of $224,000. Subtract 2% for taxes over 30 years, let’s keep it simple and just say you only paid taxes on the $100,000, that’s $60,000 in taxes, now we are down to $164,000. Let’s use interest at 7% as that’s a pretty common rate over the past 30 years, that’s $139,500 in just interest, leaving you just $24,500. Still have to factor in insurance.
Wade Dews, REALTOR ® Rendon Realty, LLC Frontline Real Estate Team www.RendonRealty.comWadeDews@gmail.com 214-356-2410 Up to 1% for closing costs for First Responders & Veterans Proudly partnered with Assist The Officer Foundation https://atodallas.org/
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8671659
08/23/22 09:06 AM
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Joined: Jul 2019
Posts: 14,298
Hudbone
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"Take out the past 4 years, those are an anomaly, and look at the lengthy history of appreciation of home value along with insurance, taxes, and maintenance."
Add in the fact that most people would spend that money frivolously which they are not spending on their housing and instead of investing it. Home ownership and its accompanying mortgages provide home owner discipline. Something too many are in need of.
Collaterally, it also instills pride in ownership.
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8671685
08/23/22 11:03 AM
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Joined: Apr 2005
Posts: 44,056
Stub
THF Celebrity
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Posts: 44,056 |
Is there a difference in the cost of an appraisal on a new build vs. an existing home?
“I never forget a face—but in your case, I’ll be glad to make an exception.” —Groucho Marx
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Re: Real Estate Appraisal Fees
[Re: Stub]
#8671726
08/23/22 12:38 PM
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Joined: Oct 2004
Posts: 39,593
redchevy
THF Celebrity
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Posts: 39,593 |
Is there a difference in the cost of an appraisal on a new build vs. an existing home? Should be because a proposed house should I Clyde two analysis as proposed and as complete.
It's hell eatin em live
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Re: Real Estate Appraisal Fees
[Re: Hudbone]
#8671727
08/23/22 12:39 PM
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Joined: Oct 2004
Posts: 39,593
redchevy
THF Celebrity
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"Take out the past 4 years, those are an anomaly, and look at the lengthy history of appreciation of home value along with insurance, taxes, and maintenance."
Add in the fact that most people would spend that money frivolously which they are not spending on their housing and instead of investing it. Home ownership and its accompanying mortgages provide home owner discipline. Something too many are in need of.
Collaterally, it also instills pride in ownership.
Tell me about it paid that bill last night lol
It's hell eatin em live
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Re: Real Estate Appraisal Fees
[Re: BigPig]
#8671732
08/23/22 12:48 PM
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Joined: Oct 2006
Posts: 18,572
ducknbass
THF Celebrity
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Joined: Oct 2006
Posts: 18,572 |
[quote=The Dude Abides]
The practice of buying homes as investment properties is slowly killing the way of life we know. It'll back fire one day. Nobody knows when, but it always does. I wish people would stop looking at their primary residence as an “investment”. If anything it’s a terrible savings account. IDK...the ones that I've bought and sold have done pretty well. Better than any "terrible" savings account I ever had/have. Take out the past 4 years, those are an anomaly, and look at the lengthy history of appreciation of home value along with insurance, taxes, and maintenance. If you simply lived in your home for 30 years and paid it off, with zero $ for maintenance, and it followed the typical 3-4% gain per year that would amount to $324,000 value, so a gain of $224,000. Subtract 2% for taxes over 30 years, let’s keep it simple and just say you only paid taxes on the $100,000, that’s $60,000 in taxes, now we are down to $164,000. Let’s use interest at 7% as that’s a pretty common rate over the past 30 years, that’s $139,500 in just interest, leaving you just $24,500. Still have to factor in insurance. Dang you BP!
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Re: Real Estate Appraisal Fees
[Re: BigPig]
#8671739
08/23/22 12:56 PM
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Joined: Sep 2016
Posts: 488
Ders26
Bird Dog
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Bird Dog
Joined: Sep 2016
Posts: 488 |
[quote=The Dude Abides]
The practice of buying homes as investment properties is slowly killing the way of life we know. It'll back fire one day. Nobody knows when, but it always does. I wish people would stop looking at their primary residence as an “investment”. If anything it’s a terrible savings account. IDK...the ones that I've bought and sold have done pretty well. Better than any "terrible" savings account I ever had/have. Take out the past 4 years, those are an anomaly, and look at the lengthy history of appreciation of home value along with insurance, taxes, and maintenance. If you simply lived in your home for 30 years and paid it off, with zero $ for maintenance, and it followed the typical 3-4% gain per year that would amount to $324,000 value, so a gain of $224,000. Subtract 2% for taxes over 30 years, let’s keep it simple and just say you only paid taxes on the $100,000, that’s $60,000 in taxes, now we are down to $164,000. Let’s use interest at 7% as that’s a pretty common rate over the past 30 years, that’s $139,500 in just interest, leaving you just $24,500. Still have to factor in insurance. You are paying for those property taxes and insurance whether you own your home or rent it. If renting, it is built into the rental fee. I know quite a few people that have rented the same home for over 20 years. They have been paying those property taxes, insurance and probably the owners interest on the note (assuming he had one) as part of their rent. The difference in renting and owning is the owner has equity at the end of the day and the renter is still at $0. There are better investments out there with discretionary income but you are paying to live somewhere whether you rent it or own it. Land owners are not losing money for you to live in their house.
Last edited by Ders26; 08/23/22 12:57 PM.
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Re: Real Estate Appraisal Fees
[Re: BigPig]
#8671756
08/23/22 01:12 PM
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Joined: Oct 2004
Posts: 39,593
redchevy
THF Celebrity
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Joined: Oct 2004
Posts: 39,593 |
[quote=The Dude Abides]
The practice of buying homes as investment properties is slowly killing the way of life we know. It'll back fire one day. Nobody knows when, but it always does. I wish people would stop looking at their primary residence as an “investment”. If anything it’s a terrible savings account. IDK...the ones that I've bought and sold have done pretty well. Better than any "terrible" savings account I ever had/have. Take out the past 4 years, those are an anomaly, and look at the lengthy history of appreciation of home value along with insurance, taxes, and maintenance. If you simply lived in your home for 30 years and paid it off, with zero $ for maintenance, and it followed the typical 3-4% gain per year that would amount to $324,000 value, so a gain of $224,000. Subtract 2% for taxes over 30 years, let’s keep it simple and just say you only paid taxes on the $100,000, that’s $60,000 in taxes, now we are down to $164,000. Let’s use interest at 7% as that’s a pretty common rate over the past 30 years, that’s $139,500 in just interest, leaving you just $24,500. Still have to factor in insurance. Now think about it… if you hadn’t bought a home and were just renting you would have paid more money and been holding an empty bag at the end of the day. People rent out homes for income… that means the rent is greater than the cost of operation…
It's hell eatin em live
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8671758
08/23/22 01:13 PM
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Joined: Oct 2004
Posts: 39,593
redchevy
THF Celebrity
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Posts: 39,593 |
That’s like saying ag exemption is t worth anything because you don’t make much on hay or cows and completely ignores the tax savings.
It's hell eatin em live
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Re: Real Estate Appraisal Fees
[Re: BigPig]
#8671775
08/23/22 01:31 PM
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Joined: Dec 2009
Posts: 9,887
The Dude Abides
THF Trophy Hunter
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THF Trophy Hunter
Joined: Dec 2009
Posts: 9,887 |
[quote=The Dude Abides]
The practice of buying homes as investment properties is slowly killing the way of life we know. It'll back fire one day. Nobody knows when, but it always does. I wish people would stop looking at their primary residence as an “investment”. If anything it’s a terrible savings account. IDK...the ones that I've bought and sold have done pretty well. Better than any "terrible" savings account I ever had/have. Take out the past 4 years, those are an anomaly, and look at the lengthy history of appreciation of home value along with insurance, taxes, and maintenance. If you simply lived in your home for 30 years and paid it off, with zero $ for maintenance, and it followed the typical 3-4% gain per year that would amount to $324,000 value, so a gain of $224,000. Subtract 2% for taxes over 30 years, let’s keep it simple and just say you only paid taxes on the $100,000, that’s $60,000 in taxes, now we are down to $164,000. Let’s use interest at 7% as that’s a pretty common rate over the past 30 years, that’s $139,500 in just interest, leaving you just $24,500. Still have to factor in insurance. Maybe that's the key. Don't keep it 30 years. Longest I have a kept a house is 6 years. I agree the last 4 years have been the anomaly for sure.
I am still looking for the perfect apron, one with reinforced knee areas would be perfect.
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8672012
08/23/22 06:53 PM
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Joined: Aug 2009
Posts: 22,724
BigPig
THF Celebrity
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Joined: Aug 2009
Posts: 22,724 |
I’m not saying don’t buy a home, absolutely go buy a home. But the old adage of thinking a home is an investment is simply wrong. Like I said, at best it’s a poor savings account.
Wade Dews, REALTOR ® Rendon Realty, LLC Frontline Real Estate Team www.RendonRealty.comWadeDews@gmail.com 214-356-2410 Up to 1% for closing costs for First Responders & Veterans Proudly partnered with Assist The Officer Foundation https://atodallas.org/
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Re: Real Estate Appraisal Fees
[Re: The Dude Abides]
#8672022
08/23/22 07:05 PM
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Joined: Aug 2009
Posts: 22,724
BigPig
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Posts: 22,724 |
Maybe that's the key. Don't keep it 30 years. Longest I have a kept a house is 6 years. I agree the last 4 years have been the anomaly for sure.
The average is 7 years. So you’re right there at it. Seeing as how you pay considerably more interest at the beginning of the loan than the end, it’s extremely hard to make any gains in 7 years. If your current house has gone up $150,000 in the last 4 years that’s great, sell it and go buy another house, you won’t be dollars ahead though unless you make a drastic change in the home you’re purchasing. We built our house for $409k in 2017. We can sell it today for $759,000, pretty good return, but to replace this house where we want to live would be $900,000 so we would be in the hole. To replace it where we would settle for would be $700-$800k. Here’s your 7 year numbers You’ve paid off $10,000 of the loan, but over $45,000 in interest while only gaining $31,000 in “equity”
Wade Dews, REALTOR ® Rendon Realty, LLC Frontline Real Estate Team www.RendonRealty.comWadeDews@gmail.com 214-356-2410 Up to 1% for closing costs for First Responders & Veterans Proudly partnered with Assist The Officer Foundation https://atodallas.org/
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Re: Real Estate Appraisal Fees
[Re: redchevy]
#8672024
08/23/22 07:07 PM
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Joined: Aug 2009
Posts: 22,724
BigPig
THF Celebrity
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Posts: 22,724 |
That’s like saying ag exemption is t worth anything because you don’t make much on hay or cows and completely ignores the tax savings. Absolutely it’s worth it. Depending on your goals with the property determines how you achieve that exemption and how you make it profitable.
Wade Dews, REALTOR ® Rendon Realty, LLC Frontline Real Estate Team www.RendonRealty.comWadeDews@gmail.com 214-356-2410 Up to 1% for closing costs for First Responders & Veterans Proudly partnered with Assist The Officer Foundation https://atodallas.org/
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Re: Real Estate Appraisal Fees
[Re: BigPig]
#8672047
08/23/22 07:32 PM
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Joined: Jun 2015
Posts: 5,956
Jgraider
OP
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OP
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Posts: 5,956 |
I’m not saying don’t buy a home, absolutely go buy a home. But the old adage of thinking a home is an investment is simply wrong. Like I said, at best it’s a poor savings account. That may be true, but I doubled my money on my home from 1998-2010, made 40% return from 2011-1016, and am up almost 20% from 2017-present. No savings account I've ever had came close to that.
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8672175
08/23/22 10:44 PM
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Joined: Jan 2010
Posts: 22,997
fadetoblack64
giddyup
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giddyup
Joined: Jan 2010
Posts: 22,997 |
Ive done good...........but my approach has been different
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8672176
08/23/22 10:45 PM
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Joined: Jan 2010
Posts: 22,997
fadetoblack64
giddyup
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giddyup
Joined: Jan 2010
Posts: 22,997 |
I’m not saying don’t buy a home, absolutely go buy a home. But the old adage of thinking a home is an investment is simply wrong. Like I said, at best it’s a poor savings account. That may be true, but I doubled my money on my home from 1998-2010, made 40% return from 2011-1016, and am up almost 20% from 2017-present. No savings account I've ever had came close to that. but have you sold it?
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Re: Real Estate Appraisal Fees
[Re: fadetoblack64]
#8672183
08/23/22 10:51 PM
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Joined: Dec 2010
Posts: 8,841
DocHorton
THF Trophy Hunter
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Posts: 8,841 |
Ive done good...........but my approach has been different Fade, I'd love to learn about your strategy/approach. Feel free to PM if you prefer.
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Re: Real Estate Appraisal Fees
[Re: DocHorton]
#8672195
08/23/22 11:11 PM
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Joined: Jan 2010
Posts: 22,997
fadetoblack64
giddyup
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giddyup
Joined: Jan 2010
Posts: 22,997 |
Ive done good...........but my approach has been different Fade, I'd love to learn about your strategy/approach. Feel free to PM if you prefer. Oh Doc..........the time period has passed......unless they go to 100 year mortgages. Im a precautionary tale
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Re: Real Estate Appraisal Fees
[Re: fadetoblack64]
#8672259
08/24/22 12:34 AM
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Joined: Jul 2019
Posts: 14,298
Hudbone
THF Celebrity
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Posts: 14,298 |
I’m not saying don’t buy a home, absolutely go buy a home. But the old adage of thinking a home is an investment is simply wrong. Like I said, at best it’s a poor savings account. That may be true, but I doubled my money on my home from 1998-2010, made 40% return from 2011-1016, and am up almost 20% from 2017-present. No savings account I've ever had came close to that. but have you sold it? I think his post references two sales and he can sell the 3rd one later, whenever he wants, and still do well. Gotta love the realtor telling us all how poor is the investment he sells.
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8672282
08/24/22 12:52 AM
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Joined: Oct 2004
Posts: 39,593
redchevy
THF Celebrity
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Joined: Oct 2004
Posts: 39,593 |
Lol kinda what I was thinking. What other investment can you get that also provides you a place to live?
It's hell eatin em live
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Re: Real Estate Appraisal Fees
[Re: Hudbone]
#8672285
08/24/22 12:54 AM
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Joined: Aug 2009
Posts: 22,724
BigPig
THF Celebrity
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THF Celebrity
Joined: Aug 2009
Posts: 22,724 |
I’m not saying don’t buy a home, absolutely go buy a home. But the old adage of thinking a home is an investment is simply wrong. Like I said, at best it’s a poor savings account. That may be true, but I doubled my money on my home from 1998-2010, made 40% return from 2011-1016, and am up almost 20% from 2017-present. No savings account I've ever had came close to that. but have you sold it? I think his post references two sales and he can sell the 3rd one later, whenever he wants, and still do well. Gotta love the realtor telling us all how poor is the investment he sells. I’m all for investing in real estate, and there are tons of ways to do it. But too many people have grown up being told their home is their biggest investment. I think the term “investment” is misused and instead should be replaced with “asset” because if it’s not generating passive income every month, is it really a good “investment”? Buy a second home or third home and let tenants pay it off while you collect a few hundred or more every month. If I called you and said I want $4,000,000 in insurance coverage for my $700k home, would you just sign me up or try to educate me as to why that’s too high?
Wade Dews, REALTOR ® Rendon Realty, LLC Frontline Real Estate Team www.RendonRealty.comWadeDews@gmail.com 214-356-2410 Up to 1% for closing costs for First Responders & Veterans Proudly partnered with Assist The Officer Foundation https://atodallas.org/
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8672293
08/24/22 01:01 AM
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Joined: Oct 2004
Posts: 39,593
redchevy
THF Celebrity
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Posts: 39,593 |
Generally investing on land you make no real return till you sell, so you can’t invest invest in land?
It might be investment you don’t like but that might be the end of it.
It's hell eatin em live
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Re: Real Estate Appraisal Fees
[Re: redchevy]
#8672374
08/24/22 03:22 AM
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Joined: Aug 2009
Posts: 22,724
BigPig
THF Celebrity
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THF Celebrity
Joined: Aug 2009
Posts: 22,724 |
Generally investing on land you make no real return till you sell, so you can’t invest invest in land?
It might be investment you don’t like but that might be the end of it. Huh? Can somebody translate? You’re talking like 2Beez
Wade Dews, REALTOR ® Rendon Realty, LLC Frontline Real Estate Team www.RendonRealty.comWadeDews@gmail.com 214-356-2410 Up to 1% for closing costs for First Responders & Veterans Proudly partnered with Assist The Officer Foundation https://atodallas.org/
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Re: Real Estate Appraisal Fees
[Re: Jgraider]
#8672379
08/24/22 03:33 AM
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Joined: Jul 2015
Posts: 23,197
Bee'z
The Beedazzler
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The Beedazzler
Joined: Jul 2015
Posts: 23,197 |
Don't you bring me into this. You made a [censored] show out of an appraisal thread. Color me shocked
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