| Real Estate - bad investment? |
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HardTimez
New Member
Cash: $ 1.40
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Joined: 05 Mar 2005
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| Real Estate - bad investment? |
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First buy a house- down payment, closing costs. Then rent out to barely pay the mortgage. Maintenance, repairs, Property tax, bad/good tenants. Plus you have to keep your day job. How soon do you plan to be rich like this? Buy, rent, sell? Sure won't be within 5 years.
1 + 1 = 3
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Mon Mar 07, 2005 12:07 am |
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xboxundone
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Not a bad investment where else can you get 4 to 10% return a year? Real estate is one of the best investments out there!
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Mon Mar 07, 2005 12:33 am |
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HardTimez
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Time will consume you. It might be simple investing in single family homes. You might not get a return at the end of the year. Your rental will not cover the Property Tax and the Mortgage. The only way to make big bucks is in Apartment Units, which requires much more work and a bigger risk. Not enough tenants, bad tenants who won't pay, can't find tenants. Repair, Renovating. When you sell, I'm pretty sure you'll make a grip. But in the meanwhile, you have to pump out cash to fight agaisnt circumstances. So you have to have a big stash somewhere in order to start.
Sorry, I'm not trying to be negative. Just want to see people's standing on the subject.
1 + 1 = 3
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Mon Mar 07, 2005 12:46 am |
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xboxundone
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Cash: $ 67.83
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Well sounds like to me you are doing bad business as you want to rent to at minimum to cover your expenses if not make a profit.... so inturn if it is under the circumstances you listed then yes it would be a bad move BUT if you do it right then you would come out way ahead as far as time etc... hire a company to manage it for you Don't forget that when you cover costs you ARE making money as the equity in the home is YOURS!! 
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Mon Mar 07, 2005 2:08 pm |
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klmrebroker
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Joined: 12 Mar 2005
Location: Orlando
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| Timing |
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The key is timingand proper analysis. I have seen areas appreciate by 10% in a matter of 60 days.
Use leverage. Ex: Price 200,000 /down 20,000,/ costs 3300 total.
Sell 220,000, payoff 200,000. Profit 16,700. (Lease option)
www.realtyinternationalgroup.com
Realty International Group
klmrebroker@cfl.rr.com
Florida Real Estate
www.realtyinternationalgroup.com
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Sun Mar 13, 2005 12:29 am |
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Rolo
Yo' Daddy
Cash: $ 309.70
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Joined: 13 Mar 2005
Location: Colorado/Florida
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It's all about Cash Flow. My investment property income pays for the mortgage, taxes, insurance, and puts money in my pocket every month. I get a 30% cash-on-cash return from my property. It also appreciated 110% in the past 8 years, so I have equity in it as well. With that equity, I plan to repeat the process.
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Mon Mar 14, 2005 6:59 am |
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thacarter
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ive seen it work plenty of times...real estate is usually a good payoff
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Sun Mar 20, 2005 1:31 am |
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Rolo
Yo' Daddy
Cash: $ 309.70
Posts: 1551
Joined: 13 Mar 2005
Location: Colorado/Florida
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The bulk of first generation millionaires earned it through their own business and living frugally.
(a real business, not this "Easy Money/Golden Opportunity" crap all over the Internet these days)
For more information, read The Millionaire Next Door.
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Mon Mar 21, 2005 1:26 am |
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Keiron.A.Graffie
Full Member
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Joined: 31 Jan 2005
Location: Trenton,New Jersey,USA
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1 small bussiness ~ 80-90%
2 investing
3 medium ~ tv: tele: ad
4 real estate
rolo :_D imo last gen millionaire = 2 @ net
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Tue Mar 22, 2005 4:04 pm |
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Keiron.A.Graffie
Full Member
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Joined: 31 Jan 2005
Location: Trenton,New Jersey,USA
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sell prop that you do not own: then pay after buyer.
* 0 down payment
*exe mansion @ 1 mill sell @ 2 buyer pay you you pay seller & sell to buyer
:_D
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Wed Mar 23, 2005 4:32 pm |
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bigp
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Joined: 19 May 2005
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Did you have a bad experience with real estate? If you find a good deal, you can see fantastic returns. Many people will blindly go out and buy rental property with no idea what they're getting themselves into and that can lead to problems, but wise investing can be very lucrative.
You should pick up the Forbes Richest Issue and see how many BILLIONAIRES made it with investment properties. It is all about learning the business and treating it like a business.
Good luck to you, and hopefully your attitude on investment property changes for the better. 
BiggerPockets.com
Real Estate Social Network | Real Estate Forums | Real Estate Blog
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Thu May 19, 2005 6:50 am |
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nextmillionaire
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| Real Estate Business |
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Starting real estate business is not that simple. Multiple aspects of stable business should be considered before you invest even 1$ in real estate. Owning real estate is no guarantee of wealth. There are a lot of things you have to do right to receive your reward. One of the most important points is to stay financially healthy, while waiting on your big pay day.
If you're considering real estate investing, you should start from your business plan. Yes, you also will have to read books, attend seminars and have lots of practice.
Common mistakes to avoid:
1. Work with reputable companies. This is the most important choice you can make when starting your business.
2. Don't trust promises which are not written in agreement. If some company tries to make you sign a sales or a purchase contract that does not include any verbal commitments, stop! Written documents almost always override verbal agreements. For instance, when a mortgage company tells you they have locked your rate, get a written statement which details the interest rate, the length of the rate lock, and details about the program.
3. Don’t count on market moves when you lock in to a mortgage rate. Deciding when to lock in to a mortgage rate can be difficult. People usually wait, trying to guess when rates have hit bottom. Unfortunately, a great deal of times they will wait too long and end up with a higher interest rate. There is nothing wrong with floating but keep trace of market indicators as well.
4. When buying a home, don't forget a professional inspection. Unless you are buying a new home with warranties on all equipment and appliances, it is recommended that you get a property inspection, a termite inspection and a roof inspection. Start learning what issues are quite common in inspecting a property. If a professional home inspector tells that certain repairs need to be done, the seller is more likely to agree to do them. If the seller agrees to do the repairs, have your inspector verify that they are done. As always do not trust verbal promises.
5. Beware of hidden fees. Check for certain miscellaneous fees such as notary and document preparation. These types of fees can mean hundreds or even thousands of dollars in closing costs. As always do not trust verbal promises. Ask people questions, if you don't understand something they do.
The choices we make dictate the lives we lead.
Financial Freedom Society Inc.
Master Information
Lazyguides
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Sun May 29, 2005 3:03 am |
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facin
New Member
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Location: Wisconsin
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DUPLEX es my friend it works. I'm 32 I have 2 now and plan to buy one every 18 months. One unit pays for the mortgage and insurance. Thats the idea. Expenses DO pop up, so have some back-up cash. It's all coming back though, in 3 years you can buy another with the equity and keep doing it. It is work though. Oh yeah 3 bedrooms are a big plus.
God loves a cheerful giver. He is more interested in whom he can be a blessing THROUGH than he is whom he can be a blessing to.
That's my $.02
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Thu Jul 07, 2005 11:18 am |
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MattL
Senior Member
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Joined: 25 Jun 2005
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The key is to diversify your Real Estate holdings, just like any other investment portfolio. Don't just buy one type of property, and buy in different markets.
You can easily pay for your retirement with rentals. If you buy a place for 20% down and break even on the rental/maintenence/expenses each year for thirty years you'll still make 80% of the value of the property even if it didn't appreciate. Most likely you will have good appreciation and will make well over 100%.
Do this several times with a view on the long term and you will retire comfortably.
$$$ Debt Elimination
Software | Computers | Electronics
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Mon Jul 11, 2005 3:16 pm |
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