REAL ESTATE INVESTING THREAD

al audi

Banned
29,827
4,563
Joined Jun 18, 2009
Any other NTrs have cash flow from real estate? Are you part of any investor communities? success/fails, tips etc?
 
353
11
Joined Nov 11, 2004
Originally Posted by Al Audi

Any other NTrs have cash flow from real estate? Are you part of any investor communities? success/fails, tips etc?



you should check out www.biggerpockets.com

if you have the means, right now is the BEST time to get into real estate investment (income producing properties). You know how everyone always says 'buy low, sell high?'. Well now is the time to buy low. You have a perfect storm:

1) Housing prices at record lows
2) Record low interest rates (lock in a 30 year fixed for something like 4.5%)
3) Foreclosures + short sales = more supply of tenants = rent increases

I live in the Bay Area which has historically been a difficult place to make money off income producing properties due to the high real estate prices. But now, I see plenty of homes where you can easily make 10-15% net profit, after subtracting all operating costs. And this doesn't include the tax benefits from depreciation. Or any appreciation in the future. Even if prices go down even more, you'll still make enough in rent to cover all costs. So it's literally low risk, high return.

Do your homework. Find a good tenant. And stack them checks
 

al audi

Banned
29,827
4,563
Joined Jun 18, 2009
 
might be too late for this topic

edit:

PoeticJays NOW IS A GREAT TIME youre right
 
13,582
968
Joined Feb 19, 2006
Tip #1- Don't believe the BS that informercials try to "sell" you.

It is a lot of work, flipping isn't as easy as it was before the housing bubble burst.  If you plan to be a land lord, it is definitely time consuming.

Tip #2- If you plan on being a landlord, interview your tenants and treat them well.  CUSTOMER SERVICE! 
 

al audi

Banned
29,827
4,563
Joined Jun 18, 2009
Originally Posted by ooIRON MANoo

Tip #1- Don't believe the BS that informercials try to "sell" you.

It is a lot of work, flipping isn't as easy as it was before the housing bubble burst.  If you plan to be a land lord, it is definitely time consuming.

Tip #2- If you plan on being a landlord, interview your tenants and treat them well.  CUSTOMER SERVICE! 
tip number 1...............true and false. i have no shame in sayin i took a leap of faith an found it to be very valuable, education is an investment right? last i checked it was.
tip number 2, def..............a great piece of advice i got from scott from the show income property at a seminar was he was always leave a nice lil welcome gift for new tenants, especially those near college/universities

students would always leave the place in good shape, itd lead to great leads down the road etc, something of that small nature, gesture makes ppl feel like they are at home.

renter walks into a card and some cookies. bottle water etc youd be amazed how much ppl appreciate that.
 
1,556
10
Joined Apr 28, 2011
My sister made money off this back when it was "in," and the market allowed it. It's not as easy as it was back then, but I think it can still be done, especially if you buy multiplexes (duplex, quadriplex, etc.) For example in my city, I saw a 6 plex for 179. It wasn't the nicest, was in a kind of shady neighborhood, but they were all 2 bed 1.5 bath units that would likely rent easily for about 500 ea. Mathematically, at 30yr loan with 10% down and 5% is 1256$ a month. 500 rent x 6= $3,000-$1250= $1750 a month if you rented them all out. Say you don't want to be bothered with the trouble of being a landlord and thereby contract it out to a real estate management group, they usually charge 15-20% so still 3k a month- 600= $2400-$1250= $1150 with minimal work on your part.
 

adiosburritos

Banned
1,038
15
Joined Nov 19, 2010
Originally Posted by Al Audi

Originally Posted by ooIRON MANoo

Tip #1- Don't believe the BS that informercials try to "sell" you.

It is a lot of work, flipping isn't as easy as it was before the housing bubble burst.  If you plan to be a land lord, it is definitely time consuming.

Tip #2- If you plan on being a landlord, interview your tenants and treat them well.  CUSTOMER SERVICE! 
tip number 1...............true and false. i have no shame in sayin i took a leap of faith an found it to be very valuable, education is an investment right? last i checked it was.
tip number 2, def..............a great piece of advice i got from scott from the show income property at a seminar was he was always leave a nice lil welcome gift for new tenants, especially those near college/universities

students would always leave the place in good shape, itd lead to great leads down the road etc, something of that small nature, gesture makes ppl feel like they are at home.

renter walks into a card and some cookies. bottle water etc youd be amazed how much ppl appreciate that.
why would you ever take a leap of faith when it comes to money?

also those infomercial are complete BS

the only people who buy into them are the ones who know nothing about investing 
 
1,556
10
Joined Apr 28, 2011
Oh yea, those infomercials are totally bogus and don't even explain the process correctly. I assume you're talking about the tax lien, I bought this house for 11 dollars because the previous owners didn't pay their taxes ones.
 
12,603
2,640
Joined Jan 22, 2010
Know a few people who have been trying to find forclosures to flip, some succeed some don't. Back in high school we had the top real estate agent in our area come in and talk. Dude rolled up on a Segway and went into detail about how his goal was sell 365 houses in the next year (equates to a house a day), one of the most inspirational speeches ever
 

al audi

Banned
29,827
4,563
Joined Jun 18, 2009
Originally Posted by I AM THAT DUDE

My sister made money off this back when it was "in," and the market allowed it. It's not as easy as it was back then, but I think it can still be done, especially if you buy multiplexes (duplex, quadriplex, etc.) For example in my city, I saw a 6 plex for 179. It wasn't the nicest, was in a kind of shady neighborhood, but they were all 2 bed 1.5 bath units that would likely rent easily for about 500 ea. Mathematically, at 30yr loan with 10% down and 5% is 1256$ a month. 500 rent x 6= $3,000-$1250= $1750 a month if you rented them all out. Say you don't want to be bothered with the trouble of being a landlord and thereby contract it out to a real estate management group, they usually charge 15-20% so still 3k a month- 600= $2400-$1250= $1150 with minimal work on your part.
a lot of ppl own properties they dont even live in
we have one in NY an AL so far an live in CT

right now were workin on rehabs in my state, even still i dont plan to be a land lord nor my mom who is my partner she still works f/t an so do I. thats too much work you can pay others to do that

right now is def an "in" time, def find other real estate investor/groups within your community/state
 

al audi

Banned
29,827
4,563
Joined Jun 18, 2009
Originally Posted by I AM THAT DUDE

Oh yea, those infomercials are totally bogus and don't even explain the process correctly. I assume you're talking about the tax lien, I bought this house for 11 dollars because the previous owners didn't pay their taxes ones.
i dont know what those informericals are
i will tell you that i did attend an i am apart of a huge investor community, the decision is we do not regret at all.

of course ppl will not believe or call something bogus if they are not apart or see something for themselves an i totally understand that.
 
3,069
11
Joined Aug 1, 2009
You've got to look at a) what you want to get out of it, b) how great a risk are you willing to take, and c) are you willing to put in a bit of work?


a - are you looking to buy and then flick them off at a later date or are you looking to keep it as a rental? What kind of costs are involved in both situations eg: agent fees, property taxes etc
b - how financially well off are you? Will you have to take out a small or big loan? Is the property worth it?
c - you can make a lot of money by revamping houses, it's amazing what a bit of paint, new floor coverings or knocking out non-structural walls can do for a house. Are you willing to put a little elbow grease into the property yourself or would/could you hire somebody to do it for you.


And last of all, will it be a rewarding experience? Monetary and otherwise.



Edit:

You've also got to look at where the house is, is it in a good neighbourhood? Is it close to school's? If you're wanting to flick it off, you want to take into consideration what buyers are looking for. A young family will always want a bathroom with a bath. Ensuite's (a private bathroom for the master bedroom, I'm not sure what you call it there) are always a big selling point, internally accessed garage and so on.





I'm not from the States so I don't know what the infomercials are etc, but this is what I would do in the market here in New Zealand if I was in the position to invest.
 

al audi

Banned
29,827
4,563
Joined Jun 18, 2009
Originally Posted by WITNESSkb24

Know a few people who have been trying to find forclosures to flip, some succeed some don't. Back in high school we had the top real estate agent in our area come in and talk. Dude rolled up on a Segway and went into detail about how his goal was sell 365 houses in the next year (equates to a house a day), one of the most inspirational speeches ever
can you remember the guys name? did he tell you his background on how he got started? real estate success stories REALLY are inspirational though.
trying to find foreclosures isnt hard at all, well i have software that helps me do this before the general public even knows about it, part of the "BS" i guess from the informercial i signed up for.

there are also companies out there who do the all the foot work for you if you got that money, property direct kind of companies.

before even finding foreclosures in your area id get a list a tenants, hell even runnin fake ads yes FAKE ads for a test run to get you leads before you even have property is a great technique. no joke.
 
13,582
968
Joined Feb 19, 2006
PoeticJays NOW IS A GREAT TIME youre right
I wouldn't necessarily buy into this.

Best time to buy beat up foreclosures, yes.

However, best time.  Housing prices are not expected to rebound anytime soon so if you are expecting to see profit any time soon it's not going to happen.

Renting out properties takes a lot of work and patience.

Right now is the best time to buy a house for yourself.

3) Foreclosures + short sales = more supply of tenants = rent increases
You know rents have dipped in the last year?  People are sharing dwellings due to the economy.  You up the rent, tenants will up and leave.
 
12,603
2,640
Joined Jan 22, 2010
Originally Posted by Al Audi

Originally Posted by WITNESSkb24

Know a few people who have been trying to find forclosures to flip, some succeed some don't. Back in high school we had the top real estate agent in our area come in and talk. Dude rolled up on a Segway and went into detail about how his goal was sell 365 houses in the next year (equates to a house a day), one of the most inspirational speeches ever
can you remember the guys name? did he tell you his background on how he got started? real estate success stories REALLY are inspirational though.
trying to find foreclosures isnt hard at all, well i have software that helps me do this before the general public even knows about it, part of the "BS" i guess from the informercial i signed up for.

there are also companies out there who do the all the foot work for you if you got that money, property direct kind of companies.

before even finding foreclosures in your area id get a list a tenants, hell even runnin fake ads yes FAKE ads for a test run to get you leads before you even have property is a great technique. no joke.

Guys name was Tom Cain. I'm pretty sure he said for one of his bdays he asked for money towards a down payment on a house and the rest just happened. Dude looks like he would be a total douche but he was one of the most down to earth people I've ever met. I believe his sons in the game now as well.

Here is his site, doesn't have too much about him though
http://www.cainandcompany.com/
 

adiosburritos

Banned
1,038
15
Joined Nov 19, 2010
Originally Posted by DanzInRealLife

You've got to look at a) what you want to get out of it, b) how great a risk are you willing to take, and c) are you willing to put in a bit of work?


a - are you looking to buy and then flick them off at a later date or are you looking to keep it as a rental? What kind of costs are involved in both situations eg: agent fees, property taxes etc
b - how financially well off are you? Will you have to take out a small or big loan? Is the property worth it?
c - you can make a lot of money by revamping houses, it's amazing what a bit of paint, new floor coverings or knocking out non-structural walls can do for a house. Are you willing to put a little elbow grease into the property yourself or would/could you hire somebody to do it for you.


And last of all, will it be a rewarding experience? Monetary and otherwise.



Edit:

You've also got to look at where the house is, is it in a good neighbourhood? Is it close to school's? If you're wanting to flick it off, you want to take into consideration what buyers are looking for. A young family will always want a bathroom with a bath. Ensuite's (a private bathroom for the master bedroom, I'm not sure what you call it there) are always a big selling point, internally accessed garage and so on.





I'm not from the States so I don't know what the infomercials are etc, but this is what I would do in the market here in New Zealand if I was in the position to invest.
 
1,556
10
Joined Apr 28, 2011
I'm talking about those infomercials claiming there are 100s of houses out there in your city you can buy for 5 bucks because the owners are dilequent on the tax by only that much. I never said real estate investing as a whole was bs. They're not as plentiful now, but 10 yrs ago there was probably like 10 different ones. They made it sound like it was really that simple (like go to the courthouse or use the software, find a house, give them the remaining backtax of 10 bucks, own the house).

If I had the money, I would put up an apartment complex. I live in a military town that is actually growing and has a healthy market because of that. There are a few apartment complexes that popped up particularly to cater to that market, like these http://www.lawtonapts.com which I used to live in. Problem is, it's not a groundbreaking idea exactly so assuming I even made the effort and found some people with the capital to put up, no reason to include me in it. They'd just do it their damn selves.

My mom only, or mostly, rents her house out to section 8 tenants. Guaranteed when they move out, your $@*% will be all busted up. Everytime. The current tenants are super white trash and actually got my mom in trouble even though they keep doing $@*%. I don't know if every city is this way, but when they squatted (had MULTIPLE trailers move in and settle in the yard) and when they broke another ordinance by having a bunch of ragedy cars and parts in the yard, my mom somehow got fined and not them. It's a ghetto house she got when her guardian died though and she only charges $400/mo for it so I don't think she cares too much. I think she should just sell it. Zillow claims it's worth 46k
 

al audi

Banned
29,827
4,563
Joined Jun 18, 2009
Originally Posted by ooIRON MANoo


PoeticJays NOW IS A GREAT TIME youre right
You know rents have dipped in the last year?  People are sharing dwellings due to the economy.  You up the rent, tenants will up and leave.


no man, im no way calling this easy or get rich quick, with the work you can an will see cash flow. first goal should be to match your current situation, an that is fantastic id say?
"people are sharing dwelling due to the economy"

agreed

section 8 tenants, that money is GUARANTEED man, but you might have to deal with more of the BS, im doing that within my state though, but then you have some who are greatful an dont wanna screw up. ive heard horror stories an stories thatll make you feel like youre a god send.

but yea we have viewed some properties in the not so good part of town that just need too much work for the asking price already, you also get gov't 

the most cash flow will come from low income properties

there really is a lot to know though i hope we can keep this thread going 
 
3,069
11
Joined Aug 1, 2009
^^
dude is mad cheesy


at those prices! I wish our market was that cheap. Just found one here in my city (admittedly in a pretty good neighbourhood) for US$373,472 and it's smaller than a 1790sq ft house that was on that site for US$179,500. Smh
 

adiosburritos

Banned
1,038
15
Joined Nov 19, 2010
honestly if anyone is interested in learning about real estates you shouldn't rely on TV infomercials, but take real estate classes at your community college or state college

it will be a much better investment than any info those get rich quick schemes could give you
 
353
11
Joined Nov 11, 2004
Originally Posted by ooIRON MANoo


PoeticJays NOW IS A GREAT TIME youre right
You know rents have dipped in the last year?  People are sharing dwellings due to the economy.  You up the rent, tenants will up and leave.





If you're trying to flip, make a quick buck, then yea, it's not a great time. I'm talking about long term investment. You won't see any meaningful appreciation for at least 5 years. I was talking about income producing properties, and yes they take a little work. But do your homework and find a good tenant and it's not that much of a hassle.

And rent depends on the market. I know SF rents are going up big time this year. For how cheap a lot of these houses are, even just charging market rate will net you 10%+ in profit.
 
13,582
968
Joined Feb 19, 2006
It also depends on the area, where in SF? Prices dipped but if you are talking heart of SF, prices didn't dip enough to make a 10%+ profit.

Outside cities, it's doubtful. You have to sit on properties and hope you break even for the next 2-3 years. Finding a good tenant is not as easy as it sounds. Tenants can be a nightmare.
 
Top Bottom