Real Estate Investing??

[TekChik]

...anyone do any of it?

I'm specifically interested in new homes (which they can't build fast enough in my county), NOT old fixer-uppers or foreclosures...I don't want to have to do that much work...LOL.



If you do invest in new homes, how do you get started? How long do you hold onto them? ...and anything else you'd like to add.

Thanks!

 

[freegeeks]

Originally posted by: TekChik
...anyone do any of it?

I'm specifically interested in new homes (which they can't build fast enough in my county), NOT old fixer-uppers or foreclosures...I don't want to have to do that much work...LOL.



If you do invest in new homes, how do you get started? How long do you hold onto them? ...and anything else you'd like to add.

Thanks!

I guess you need a crapload of money before you can do this kind of stuff

 

[Scarpozzi]

I have a friend that's 34 and owns 5 properties...well, the bank owns them. The way he does it.... He buys cheap foreclosures and goes in with his brother. They fix the houses up and then rent them out. He said that he's able to make the payments with the rent.

 

[sciencetoy]

Real estate investing is a numbers game. You gotta know your numbers.

New house in your area sells for (say) 80,000.

*how can you buy it for cheaper than that? Maybe, build them yourself. Rehabbing is a standard method. Buying forclosures ditto. Getting financing that is really cheap is another good way. ANYTHING you can think of.

*how can you sell it for more than that? Find people who will pay extra - maybe people relocating into the area who can't check the place out for themselves, or maybe you know that the area is a particularly great one because it's exactly midway between two malls, or whatever. Maybe the area has low taxes because the schools are lousy. Lots of times people bet that house prices are going up. Find SOMETHING to sell that house for more than you paid.

*creative financing! Because of the tax advantages of owning a home, and the tax situation of owning a business, and all sorts of intricate things that accountants know how to do, you can sometimes find an edge that way. For example, my sister the bookstore owner bought the building that her store is in, using the equity in her house as payment/collateral, and somehow the building is now many years later making her more profit than her bookstore is.

Them's the basics. All the courses and stuff you take is just ways to find an edge. Motivated sellers MIGHT sell for less. Buyers with bad credit MIGHT buy for more. Etc.

Good luck.

 

[richardycc]

too high risk and too little profit.

 

[Quixfire]

My brother and I just recently started into land development after 15 years of owning rental properties. It takes a lot of cash flow to get a project of the ground and there is very little profit per house, most of the money is made on the entire project.


Example:

100 Homes @ 100K = 10,000,000

Average Profit = 10% or 1,000,000

Takes 2-5 years to complete project

Minus any warranty issues and potential lawsuits from unhappy homeowners can last 1-10 years.

We decided to build apartment complexes instead of new homes.

Of course this is in my area and our experience in this matter.

Basically it takes a lot of cash with a very long 5-10 years for ROI and profit is lower than investing in other areas.

 

[TekChik]

well....maybe i HAVE a crapload of money...

why else would i ask?

 

[Jzero]

I imagine it's easier to profit restoring and reselling distressed properties than new construction.

 

[TekChik]

doesnt anyone read the original post?

I DO NOT WANT TO DO ANY FORECLOSURES OR REHABS.

*the end*

-TekChik

 

[Ferocious]

I don't know of anyone who "invests" in new single family homes. Not really desirable unless you are confident that home appreciation in that area will be significantly higher than the norm.....OR....you are very patient and this is a long term investment.

I do know one builder who builds his own duplexes and rents them out....but even that's sorta rare.

 

[Red]

Not enough profit. The only way a new house can make money in any decent amount of time is if you purchase the home in a developing neighborhood. Once the neighborhood is completely finished (no more construction) the value of all of the homes is raised. I've knew a guy who specialized in this... he would go put small down payments on 3 or 4 developing homes... make payments on all 4 homes for a year or so (yuck) until the neighborhood is finished, then sell them....problem is: ... (1) The homes just might not have appreciated at all, even with the project being finished.... and (2) it might take you 6+ months to sell the homes, especially since you've only "lived" in them for a year or so and all of a sudden you want to sell... and (3) houses do not sell well when other houses are for sale around them... you have those 4 houses for sale in the same neighborhood at the same time, doesn't look good at all. It make take you 2 years to sell the 4 homes you originally purchased and you might be stuck with $4,000 worth of house payments the whole time, just to make $5-10 grand on each house =

not worth it.

 

[Budmantom]

Home prices rise on the average of 5-10% a year, so if you buy the right house and have good renters you should be ok. The more house you buy the more equity you will get from these houses.

Right now prices are artificially high due to the low interest rate, people are use to thinking how much can I afford a month as opposed to I will pay xxx for this house. So the trick is find the right price and getting the right interest rate. Interest rates are higher if you buy investment properties.

IMHO the best houses are 3bed/2bath in lower middle class neighborhoods.

Tom

 

[Jzero]

Originally posted by: TekChik
doesnt anyone read the original post?

I DO NOT WANT TO DO ANY FORECLOSURES OR REHABS.

*the end*

-TekChik

Here's hoping you fail miserably with that attitude.
Ask for help and then yell at the people who bother to respond. Nice one.
:wine:
Cheers.

 

[wyvrn]

doesnt anyone read the original post?

I DO NOT WANT TO DO ANY FORECLOSURES OR REHABS.

*the end*

-TekChik

I don't want to grow old and die, but I don't see a way to stop it from happening. Your attitude sucketh.

 

[TekChik]

thanks for actually responding to the POST...

the reason i want to do this is that the county where i live has experienced crazy housing markets in the last few years. For example - I bought a 2 BR/2 BA middle level condo 2 years ago for $90K. Today I could sell it for $175K. That's almost a 100% return. They can't build houses fast enough, so I wouldn't even have to hold on to the houses for a year. Almost as soon as the neighborhood was done, I could sell. And there's so many new neighborhoods, I wouldn't have to buy 4 in one place - just go buy 1 in each new development.

I dunno...I'm also talking to a realtor and my accountant...we'll see...

 

[TekChik]

Originally posted by: Jzero

Originally posted by: TekChik
doesnt anyone read the original post?

I DO NOT WANT TO DO ANY FORECLOSURES OR REHABS.

*the end*

-TekChik

Here's hoping you fail miserably with that attitude.
Ask for help and then yell at the people who bother to respond. Nice one.
:wine:
Cheers.

If they aren't "helping" by posting comments that do not apply, then I don't see a problem with reiterating in caps. It seemed my point got across because following the reiteration I got some helpful comments that WERE applicable. There was a reason I was specific.

 

[Budmantom]

As a general rule condo's don't go up in value as much as homes(especially 2nd floor), and 3/2 will go up in value faster then 2/2. There are always exceptions to the rule.

I have a condo 3/2, house 3/2and house 4/2.

I think I will do the best with the smaller house (percentage wise), I do love the condo(even though it's on the 2nd floor).

Tom

 

[Budmantom]

In your case I think the best thing to do might be to cash out some equity out of your house, rent it out and buy another. The interest rate is much better if you buy a house you "plan" to live in.

BTW that's great how much your property value has increased, I wish mine would go up half as much.

 

[TekChik]

Originally posted by: Budmantom
In your case I think the best thing to do might be to cash out some equity out of your house, rent it out and buy another. The interest rate is much better if you buy a house you "plan" to live in.

BTW that's great how much your property value has increased, I wish mine would go up half as much.

yeah...i thought about that...but it's not the cash i need - i have some cash and just wanna make sure i invest it well. that's what i mean about crazy house prices here. my county is in the top 10 or so counties in the country in terms of house prices and no sign of that changing.

 

[Budmantom]

Originally posted by: TekChik

Originally posted by: Budmantom
In your case I think the best thing to do might be to cash out some equity out of your house, rent it out and buy another. The interest rate is much better if you buy a house you "plan" to live in.

BTW that's great how much your property value has increased, I wish mine would go up half as much.

yeah...i thought about that...but it's not the cash i need - i have some cash and just wanna make sure i invest it well. that's what i mean about crazy house prices here. my county is in the top 10 or so counties in the country in terms of house prices and no sign of that changing.

Too bad you didn't buy 2 condo's, you could sell one now and live without a mortgage.

Do you plan to rent the one you are in now?

 

[Quixfire]

Originally posted by: TekChik

Originally posted by: Budmantom
In your case I think the best thing to do might be to cash out some equity out of your house, rent it out and buy another. The interest rate is much better if you buy a house you "plan" to live in.

BTW that's great how much your property value has increased, I wish mine would go up half as much.

yeah...i thought about that...but it's not the cash i need - i have some cash and just wanna make sure i invest it well. that's what i mean about crazy house prices here. my county is in the top 10 or so counties in the country in terms of house prices and no sign of that changing.

Talk to the local builders and see if any of them want/need a partner, then invest in the business and improve the quality of the product.

 

[TekChik]

Originally posted by: Budmantom

Originally posted by: TekChik

Originally posted by: Budmantom
In your case I think the best thing to do might be to cash out some equity out of your house, rent it out and buy another. The interest rate is much better if you buy a house you "plan" to live in.

BTW that's great how much your property value has increased, I wish mine would go up half as much.

yeah...i thought about that...but it's not the cash i need - i have some cash and just wanna make sure i invest it well. that's what i mean about crazy house prices here. my county is in the top 10 or so counties in the country in terms of house prices and no sign of that changing.

Too bad you didn't buy 2 condo's, you could sell one now and live without a mortgage.

Do you plan to rent the one you are in now?

No...for now I just want to stay where I am. I like my neighborhood and my condo.

 

[Red]

Originally posted by: TekChik

Originally posted by: Budmantom

Originally posted by: TekChik

Originally posted by: Budmantom
In your case I think the best thing to do might be to cash out some equity out of your house, rent it out and buy another. The interest rate is much better if you buy a house you "plan" to live in.

BTW that's great how much your property value has increased, I wish mine would go up half as much.

yeah...i thought about that...but it's not the cash i need - i have some cash and just wanna make sure i invest it well. that's what i mean about crazy house prices here. my county is in the top 10 or so counties in the country in terms of house prices and no sign of that changing.

Too bad you didn't buy 2 condo's, you could sell one now and live without a mortgage.

Do you plan to rent the one you are in now?

No...for now I just want to stay where I am. I like my neighborhood and my condo.

Chik, if you like your neighborhood and condo, and you have lots of money, why do you want to invest? Enjoy your life and focus on becoming a better, happier person. You may very well die tomorrow, and your investment, your condo, and your neighborhood mean nothing. Nothing at all...the only thing that matters in this world is making great relationships and enjoying the things you have.

 

[TekChik]

Originally posted by: Redhotjrm

Originally posted by: TekChik

Originally posted by: Budmantom

Originally posted by: TekChik

Originally posted by: Budmantom
In your case I think the best thing to do might be to cash out some equity out of your house, rent it out and buy another. The interest rate is much better if you buy a house you "plan" to live in.

BTW that's great how much your property value has increased, I wish mine would go up half as much.

yeah...i thought about that...but it's not the cash i need - i have some cash and just wanna make sure i invest it well. that's what i mean about crazy house prices here. my county is in the top 10 or so counties in the country in terms of house prices and no sign of that changing.

Too bad you didn't buy 2 condo's, you could sell one now and live without a mortgage.

Do you plan to rent the one you are in now?

No...for now I just want to stay where I am. I like my neighborhood and my condo.

Chik, if you like your neighborhood and condo, and you have lots of money, why do you want to invest? Enjoy your life and focus on becoming a better, happier person. You may very well die tomorrow, and your investment, your condo, and your neighborhood mean nothing. Nothing at all...the only thing that matters in this world is making great relationships and enjoying the things you have.

I'm very happy. I have great relationships and family and friends. But like anyone else, I want to make sure my daughter can go to college, and someday have a bigger house for us. I just mean I'm very content here - doesn't mean I want to stay where I am forever...I just feel like I have the opportunity to invest and I'm not sure any other investments are as stable as real estate where I live right now.

 

[Jzero]

Originally posted by: TekChik

Originally posted by: Jzero

Originally posted by: TekChik
doesnt anyone read the original post?

I DO NOT WANT TO DO ANY FORECLOSURES OR REHABS.

*the end*

-TekChik

Here's hoping you fail miserably with that attitude.
Ask for help and then yell at the people who bother to respond. Nice one.
:wine:
Cheers.

If they aren't "helping" by posting comments that do not apply, then I don't see a problem with reiterating in caps. It seemed my point got across because following the reiteration I got some helpful comments that WERE applicable. There was a reason I was specific.

That applicable comment was that there may be a better way to invest in real estate. You came asking for advice, you bitched when you got advice you didn't like.

All too many people act like they are asking for advice, but really they're just looking for validation.

Good luck.