Official Real Estate Thread. Advice/Questions/Whatever

[vagixxer]

MrDoeBoI wrote:

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I was wondering if I needed a dealer license to get authority to sell a house like a middleman ?

I know a couple people in real estate and I wanted to get like a foreclosed list from the courts and try to structure up deals and make a contractual agreement with the home owners and try to make a profit off there property from the sale .

That would be considered wholesaling. While it is not quite that simple, it's not relatively hard either. The type of contract used in these transactions are a standard purchase and sale agreement and a option contract.
  

 

[mrdoeboi]

So I wouldn't need a license to do this ? And is it really profitable like 100-200k a year
Also with dealing with that would it be better to go to the courts or a real eastate agent to get a list .

 

[vagixxer]

MrDoeBoI wrote:

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So I wouldn't need a license to do this ? And is it really profitable like 100-200k a year


No you wouldn't, yes 100k a year is def attainable. Having what it takes to make that is a different story.

 

[armenexchange]

interestin thread. im graduatin colelge in couple weeks and thinkin of studyin to get a real estate license to start this off. any direction you guys can guide me in? debatin lookin for comm college classes and take the test soon after. it attainable in a couple months?

 

[armenexchange]

double

 

[reduce523]

Anybody got any good advice for a first time homebuyer with not that much for a down payment??

 

[dublbagn]

Originally Posted by RKO2004

Originally Posted by DublBagn

I would start rehabilitating homes so you get to know the market, its very easy to rehab houses, but selling them is harder now, thats where knowing a few people would come in handy. Besides someone who is willing to do the work at a cheap price (mostly done since you will feed them consistent work) you need to find an agent, and a mortgage guy. These people will push your product and help finance it....

once you get some experience, then the rest (in terms of large projects) is all about acquiring financing......find people with money that believe in your plan and see what you can come up with. But building in and of itself is not crazily expensive....the trick is to make it just nice enough to sell (or rent)...

for example in Michigan (actual property not withstanding) I can build a 3000 sq foot home (colonial 2.5 car attached garage/siding/fiberglass windows/granite couters/tile and pergo flooring/finished basement) for around 100k....maybe lower if I can find some deals and call a few favors in (80k at the lowest).....Other parts of the country it can be done for less (depending on weather/insulation needed/utilities used, etc...)

your main cost is the land in most cases......especially if you are looking at places that are already marginally populated.......

OK. I was also interested in buying some vacant homes around where I live now and renovate them. They are pretty run down but not depleted. The area can use work in many ways.

So a great thing for me to do down the road is find some business partners, correct? I was thinking its one thing to do the task myself, but if I can get a group of investors then I can tackle a lot more projects at once.

Also how would I go about getting property that's no longer used? For example there is a vacant ymca/stores/open lots in the area, how do I go about acquiring those?

go to your city hall and pull some documents about owner ship.  A few tips for those types of properties...if its in a strip mall type place, then its almost always owned by the strip mall itself....YMCA's are either owned by the YMCA foundation or the city, if its the city its going to be hard to get since they are probably looking for something just as big to take its place....info on open lots is all about your city hall....they can give you the ownership and zoning info.....

for the guy looking into buying with almost nothing to put down, look at FHA mortgages, I think the minimum you need to put down is 3% or something like that, but the purchase price is capped....and you will being paying PMI (private mortgage insurance) until you refinance...normally structured mortgages only make you pay PMI until you reach 20% equity in the home.....there use to be ways around PMI, but I dont think anyone is doing 80/20 mortgages anymore.....but I could be wrong...

 

[cruthik3]

I would not buy a house or be in real estate now. If the fed ever stops buying GSEs and MBSs, it will be kaboom for residential real estate again. Commercial real estate is going to blow up soon haha. What a joke this administration is

 

[mrdoeboi]

Originally Posted by VaGixxer

MrDoeBoI wrote:

---

So I wouldn't need a license to do this ? And is it really profitable like 100-200k a year

No you wouldn't, yes 100k a year is def attainable. Having what it takes to make that is a different story.
So what would you recommend I read up on to get a better understanding of this stuff and also would it be better to go get a list from the courts or access it from a real estate agent ?

 

[vagixxer]

MrDoeBoI wrote:

---

Originally Posted by VaGixxer

MrDoeBoI wrote:

---

So I wouldn't need a license to do this ? And is it really profitable like 100-200k a year

No you wouldn't, yes 100k a year is def attainable. Having what it takes to make that is a different story.
So what would you recommend I read up on to get a better understanding of this stuff and also would it be better to go get a list from the courts or access it from a real estate agent ?



Look for public notice or trustee sale sites in your area. Many are free. If you tell me where your located I'll try to find some for you. 

An agent wouldn't have that information. They aren't as resourceful as one might think.

As far as reading, a lot of book are out that can help you get some information. Sub2deals.com Thecreativeinvestor.com httphttp://www.realestateinvestor.com/forum/://www.realestateinvestor.com/forum/. I'd start there. Look under the wholesaling section first. That's the easiest way to get into real estate and make money with little experience. Take some time to read around on the different sites and see what educational material is working for others.
  

 

[vagixxer]

CruThik3 wrote:

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I would not buy a house or be in real estate now. If the fed ever stops buying GSEs and MBSs, it will be kaboom for residential real estate again. Commercial real estate is going to blow up soon haha. What a joke this administration is

I'm thankful for people like yourself. Allows all the deals to keep coming to me. We are in the process of seeing the BIGGEST transition of wealth our generation will ever see. Tycoons and moguls are made in times like these. It's figuring out how you can capitalize in a market. We are getting properties right now for 20 to 30 cents on the dollar. Which are providing rental income or we are doing fire sales and getting property to first time homebuyers. Don't sell yourself short....NOW is the time to be in real estate.

That was the problem everyone wanted to get in when the gettin was good and had no idea what they were doing. Over saturated the market causing a lot of the issues are are seeing now. You get into real estate when you get find bargain deals and can come of with a strategy to profit as markets reemerge.

 

[mrdoeboi]

So VA u feel this real estate market gonna make a lot of millionaires as long as they play there cards right ?

 

[vagixxer]

Originally Posted by MrDoeBoI

So VA u feel this real estate market gonna make a lot of millionaires as long as they play there cards right ?

Yea, as long as people are playing the right cards.

 

[rko2004]

Originally Posted by DublBagn

Originally Posted by RKO2004

Originally Posted by DublBagn

I would start rehabilitating homes so you get to know the market, its very easy to rehab houses, but selling them is harder now, thats where knowing a few people would come in handy. Besides someone who is willing to do the work at a cheap price (mostly done since you will feed them consistent work) you need to find an agent, and a mortgage guy. These people will push your product and help finance it....

once you get some experience, then the rest (in terms of large projects) is all about acquiring financing......find people with money that believe in your plan and see what you can come up with. But building in and of itself is not crazily expensive....the trick is to make it just nice enough to sell (or rent)...

for example in Michigan (actual property not withstanding) I can build a 3000 sq foot home (colonial 2.5 car attached garage/siding/fiberglass windows/granite couters/tile and pergo flooring/finished basement) for around 100k....maybe lower if I can find some deals and call a few favors in (80k at the lowest).....Other parts of the country it can be done for less (depending on weather/insulation needed/utilities used, etc...)

your main cost is the land in most cases......especially if you are looking at places that are already marginally populated.......

OK. I was also interested in buying some vacant homes around where I live now and renovate them. They are pretty run down but not depleted. The area can use work in many ways.

So a great thing for me to do down the road is find some business partners, correct? I was thinking its one thing to do the task myself, but if I can get a group of investors then I can tackle a lot more projects at once.

Also how would I go about getting property that's no longer used? For example there is a vacant ymca/stores/open lots in the area, how do I go about acquiring those?

go to your city hall and pull some documents about owner ship.  A few tips for those types of properties...if its in a strip mall type place, then its almost always owned by the strip mall itself....YMCA's are either owned by the YMCA foundation or the city, if its the city its going to be hard to get since they are probably looking for something just as big to take its place....info on open lots is all about your city hall....they can give you the ownership and zoning info.....

The spot the Y is in, I can't see them putting anything else right there. They built a new one a block or two away.

The empty lot is right across from the old Y. I can almost guarantee they wont use either anytime soon. The lot is just grass and dirt and has been forever now

.

Actually I'm amazed the City has done more to this area overall. Empty space, vacant buildings, but they aren't doing anything with any of it.

I have an idea why but there are ways around that.

 

[juicy j 32]

I like this thread. I'm currently work for a mortgage banker/broker in North Carolina and have plans on getting a Masters in Real Estate Development at some point in the future so I can work for a development firm or myself developing mixed use properties.

I've been around real estate pretty much my entire life as my dad was a home builder turned developer. In school I minored with the department of city and regional planning, but I'd much rather be on the business side of things. Since I started working with my firm I've gained a huge understanding in what happened in the real estate market and where we are today in regards to people obtaining financing.

As TimTeufal said earlier, for residential houses its all about income and debt to income ratios for getting financing. To get financing for an investment property, unless your credit is outstanding, you are looking at having to put more towards 20% down.

I'm more interested in learning about financing for larger residential/commercial projects though. I think if one had enough capital or funding, now would be a great time to try smaller residential developments for a highly discounted price.

Ddot are you a Realtor in SC?

 

[xfile 11]

Originally Posted by af1pops12

Originally Posted by xfile 11

I have been selling for a little over 8 years in Chicago.  Let me know if you have any questions.  I work with everything from first time home buyers to investors to developers. 

I think this is a great topic.  Let me know how I can contribute!

When you say selling what do you mean? I'm trying to get into fliping in a few years.

I have a few clients that flip properties.  There are great opportunities out there right now.  I am actually closing one tomorrow.  I have not done it personally.  I know how to do it, but up until a year ago you could say I was very irresponsible with my money.

 

[xfile 11]

Originally Posted by REDUCE523

Anybody got any good advice for a first time homebuyer with not that much for a down payment??

I would be careful with your money.  Don't buy a house just to buy a house.  Know what you are getting into.  That being said, if you can do it do it.  As

VaGixxer said, now is the time where people are going to make their money in the long run.  Whoever said it, I cannot remember, but 'buy real estate when there is blood in the streets' is something I think about every day..  Thankfully there is not blood in the streets, everywhere anyway, but the analagy is applicable to the currnet times we are in.

Whoever referenced the government ending the purchase fo MBS it is coming at the end of this month unless they make any changes.  This will end up putting upward pressure on rates.  We potentially may never see rates this low again, barring and more major economic collapses.