Any real estate investors here?
06-07-06, 03:06 AM
#1
Rotary Freak
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Any real estate investors here?
Well, after playing around with rotaries for 6 years and owning 2 FC turbos i decided to take a break and to start investing in real estate. Its been something i wanted to get into for sometime now. Just curious if there is anyone here who is doing wholesale/retail AKA flipping properties or have experience in creative REinvesting.
06-07-06, 08:40 AM
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haha my uncle and cousin are realeters, they buy houses, rent them out for about 600$ a person with like 4people in one house and he sells them like 3-5years later...makes a few 50k, his income is crazy too cause if he sells his house i beelive he gets like 10% lol he is training me to become a realeter so if u need houses to sell hit me up lol
The company name is "Land Capitol"
The company name is "Land Capitol"
06-07-06, 01:57 PM
#5
Rotary Freak
Im an investor sorta. I lost 2 houses in Texas due to not getting title company money in time. Cost me $10,000 out of pocket because I paid the agent/lender their commision when Ididnt have to.
I invest in El Paso Texas. For an investor it's better not to buy in Cali at the moment. Prices are dropping and will stay flat for the next couple years. If your really good I guess you can buy foreclosures in Cali but that is if you know how to flip. It's not easy.
Remember to invest you need capital. Don't listen to get rich quick real estate schemes with no down. They usually have a team of poeple, contractors, lawers and smart poeple to leverage. Normal poeple don't have that.
Im old fashioned. Fortuanately I have enough liquid cash/capital to pay 25% down/ break even on mortgage payments and just ride the train. This is what I suggest.
Net worth is important. Get into cashflow games or whatever and you will see. 3% interest on a 5 mil net worth is a lot of money to leverage. Thats an important word in real estate.
Go get em.
I invest in El Paso Texas. For an investor it's better not to buy in Cali at the moment. Prices are dropping and will stay flat for the next couple years. If your really good I guess you can buy foreclosures in Cali but that is if you know how to flip. It's not easy.
Remember to invest you need capital. Don't listen to get rich quick real estate schemes with no down. They usually have a team of poeple, contractors, lawers and smart poeple to leverage. Normal poeple don't have that.
Im old fashioned. Fortuanately I have enough liquid cash/capital to pay 25% down/ break even on mortgage payments and just ride the train. This is what I suggest.
Net worth is important. Get into cashflow games or whatever and you will see. 3% interest on a 5 mil net worth is a lot of money to leverage. Thats an important word in real estate.
Go get em.
06-07-06, 03:41 PM
#6
Originally Posted by von
Net worth is important. Get into cashflow games or whatever and you will see. 3% interest on a 5 mil net worth is a lot of money to leverage. Thats an important word in real estate.
Go get em.
Go get em.
Positive cash flow on the primary source of repayment, then its your liquidity.
06-07-06, 03:49 PM
#7
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VON- I have joined a local RE investors club in my area. My goal was not to go gangho on purchasing rundown, preforclosures, and REO but rather start very slow until Cali market starts going up again. I have been farming my area and i have noticed alot of houses forsale and stay forsale for a while (not a good sign).. Although my main objective is to find motivated sellers and buy the property low, rehab, and then sell high. Im trying to stay away from agents since i dont want to pay them their fees which if you sum it up means alot of $$$. Also i dont listen to those get rich quick schemes on late night TV shows. Those guys just want people to buy their products. I only listen to mentors who actually do their own deals and still does it. My credit is really good but $$ is the only problem to pay for closing and holding cost and of course rehab.
BTW do you have the CASHFLOW GAME by KIYOSAKI??..
BTW do you have the CASHFLOW GAME by KIYOSAKI??..
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06-07-06, 04:08 PM
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Originally Posted by wackyracer
Positive cash flow on the primary source of repayment, then its your liquidity.
Here is my advice to the thread starter: Buy a low priced-property that needs work. Preferably probate auction. Fix that house up, wait awhile, then sell it. Don't forget the pest control report.
Last edited by KeloidJonesJr.; 06-07-06 at 04:11 PM.
06-07-06, 07:58 PM
#10
Rotary Freak
Ok 30-40 year loans are great and allow you to cash flow ( not in CA ofcourse). As long as you don't have any prepayment fees your ok because you can pay more towards the house. Nobody ever said you have to pay it off in 40 years. Thats just the minimum payment.
FSBO or for sale by owner is a good way to go as you mentioned but I would not know how to do the paperwork.
I have not played any cash flow games but have done a bit of reading on Richdad.com and agentsonline.net...Thats just good enough to come up with a plan. The detailes can be leveraged. I did this before talking to an investor.
BTW in CALI you can roll your closing costs into the loan. With the way the market is I would imagine you can roll other fees as well depends how desperate the seller is and I know they are desperate. Regardles I would think you have a couple years left anyways.
My strategy is pretty much opposite of yours. In other states with undervalued property you can buy brand new 2004-2006 homes for 100K-125K that rent for a grand. Remember if rents are to high why would they rent when they can buy? Also if it's to low you will have tenate headaches. With new homes you don't have to make unexpected repairs. A roof alone can cost $10,000 minimum.
My credit is 580 and I qualify for 7.4% interest. Your would be much lower like 6% right? Your in a good position you just need a co-buyer but thats a risk to.
FSBO or for sale by owner is a good way to go as you mentioned but I would not know how to do the paperwork.
I have not played any cash flow games but have done a bit of reading on Richdad.com and agentsonline.net...Thats just good enough to come up with a plan. The detailes can be leveraged. I did this before talking to an investor.
BTW in CALI you can roll your closing costs into the loan. With the way the market is I would imagine you can roll other fees as well depends how desperate the seller is and I know they are desperate. Regardles I would think you have a couple years left anyways.
My strategy is pretty much opposite of yours. In other states with undervalued property you can buy brand new 2004-2006 homes for 100K-125K that rent for a grand. Remember if rents are to high why would they rent when they can buy? Also if it's to low you will have tenate headaches. With new homes you don't have to make unexpected repairs. A roof alone can cost $10,000 minimum.
My credit is 580 and I qualify for 7.4% interest. Your would be much lower like 6% right? Your in a good position you just need a co-buyer but thats a risk to.
Last edited by von; 06-07-06 at 08:02 PM.
06-07-06, 09:54 PM
#11
Your credit is 580??! hmmmmmm You'd be lucky if a lender would want lend money for a 2nd property with 580.
30 yr mortgages are hovering about 6.2% w/o points. 3 yrs ago, you could get one around 4%. Interest rates are rising, housing market is flattening, stock market is dropping, inflation is rising.. geeee the economy sucks right now.
more info about mortgages: http://www.bankrate.com/brm/rate/mtg_home.asp
30 yr mortgages are hovering about 6.2% w/o points. 3 yrs ago, you could get one around 4%. Interest rates are rising, housing market is flattening, stock market is dropping, inflation is rising.. geeee the economy sucks right now.
more info about mortgages: http://www.bankrate.com/brm/rate/mtg_home.asp
06-08-06, 02:35 AM
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Originally Posted by eatmyclutch
Are you sure it isn't called equity? House prices in California are insane these days. They got the 30 and 40 year programs? Too long. If I were to buy a house today , I would be paying it off till retirement. First, I need to build my credit, which I don't have yet (collateral bank accounts). Then we got the refiniacning option, negative amortization, balloon mortgage,etc. California is just too insane.
Here is my advice to the thread starter: Buy a low priced-property that needs work. Preferably probate auction. Fix that house up, wait awhile, then sell it. Don't forget the pest control report.
Here is my advice to the thread starter: Buy a low priced-property that needs work. Preferably probate auction. Fix that house up, wait awhile, then sell it. Don't forget the pest control report.
06-08-06, 02:42 AM
#17
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Originally Posted by von
Ok 30-40 year loans are great and allow you to cash flow ( not in CA ofcourse). As long as you don't have any prepayment fees your ok because you can pay more towards the house. Nobody ever said you have to pay it off in 40 years. Thats just the minimum payment.
FSBO or for sale by owner is a good way to go as you mentioned but I would not know how to do the paperwork.
I have not played any cash flow games but have done a bit of reading on Richdad.com and agentsonline.net...Thats just good enough to come up with a plan. The detailes can be leveraged. I did this before talking to an investor.
BTW in CALI you can roll your closing costs into the loan. With the way the market is I would imagine you can roll other fees as well depends how desperate the seller is and I know they are desperate. Regardles I would think you have a couple years left anyways.
My strategy is pretty much opposite of yours. In other states with undervalued property you can buy brand new 2004-2006 homes for 100K-125K that rent for a grand. Remember if rents are to high why would they rent when they can buy? Also if it's to low you will have tenate headaches. With new homes you don't have to make unexpected repairs. A roof alone can cost $10,000 minimum.
My credit is 580 and I qualify for 7.4% interest. Your would be much lower like 6% right? Your in a good position you just need a co-buyer but thats a risk to.
FSBO or for sale by owner is a good way to go as you mentioned but I would not know how to do the paperwork.
I have not played any cash flow games but have done a bit of reading on Richdad.com and agentsonline.net...Thats just good enough to come up with a plan. The detailes can be leveraged. I did this before talking to an investor.
BTW in CALI you can roll your closing costs into the loan. With the way the market is I would imagine you can roll other fees as well depends how desperate the seller is and I know they are desperate. Regardles I would think you have a couple years left anyways.
My strategy is pretty much opposite of yours. In other states with undervalued property you can buy brand new 2004-2006 homes for 100K-125K that rent for a grand. Remember if rents are to high why would they rent when they can buy? Also if it's to low you will have tenate headaches. With new homes you don't have to make unexpected repairs. A roof alone can cost $10,000 minimum.
My credit is 580 and I qualify for 7.4% interest. Your would be much lower like 6% right? Your in a good position you just need a co-buyer but thats a risk to.
06-08-06, 01:00 PM
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Originally Posted by von
FSBO or for sale by owner is a good way to go as you mentioned but I would not know how to do the paperwork.
06-08-06, 01:36 PM
#19
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i'll be getting into the real estate game, too... i've been working for title companies for about 3 years now, just trying to learn the game in and out... i'll be shooting for my real estate license this fall, and hopefully things'll start blowing up...
yes california is crazy! i'm being advised to invest in property in other states, but i'll see how it goes after my first year or two in the field...
yes california is crazy! i'm being advised to invest in property in other states, but i'll see how it goes after my first year or two in the field...
06-08-06, 01:55 PM
#20
Rotary Freak
580 is not to low Im already getting another loan with that. It requires full doc.
Thats fine if you want to buy distressed properties however you won't find that in an MLS. Do you go to the courts? Auctions, read the paper every day and send flyers, make phone calls? The buying at 60-70% seems like an anoying sales game to me. Good luck with that Im sure you will hit the jackpot with enough time and hard work.
Thats fine if you want to buy distressed properties however you won't find that in an MLS. Do you go to the courts? Auctions, read the paper every day and send flyers, make phone calls? The buying at 60-70% seems like an anoying sales game to me. Good luck with that Im sure you will hit the jackpot with enough time and hard work.
06-09-06, 12:04 AM
#23
there is a differnce between owning SFR for rent VS MFR or 5+ apartment bldgs.
To answer eatmyclutch, positive cash flow or at least a DCR of 1.20 is #1 on the list followed by the borrower's real estate ownership and management experience.
With the cash reserves or liquidity, anyone can just say "**** IT" and let it go as in the events after the Northridge Earhquake....the beginning of non-stop BK and REO's.
Current market have stabilized, thats all.
To answer eatmyclutch, positive cash flow or at least a DCR of 1.20 is #1 on the list followed by the borrower's real estate ownership and management experience.
With the cash reserves or liquidity, anyone can just say "**** IT" and let it go as in the events after the Northridge Earhquake....the beginning of non-stop BK and REO's.
Current market have stabilized, thats all.
06-09-06, 01:40 AM
#24
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Originally Posted by von
580 is not to low Im already getting another loan with that. It requires full doc.
Thats fine if you want to buy distressed properties however you won't find that in an MLS. Do you go to the courts? Auctions, read the paper every day and send flyers, make phone calls? The buying at 60-70% seems like an anoying sales game to me. Good luck with that Im sure you will hit the jackpot with enough time and hard work.
Thats fine if you want to buy distressed properties however you won't find that in an MLS. Do you go to the courts? Auctions, read the paper every day and send flyers, make phone calls? The buying at 60-70% seems like an anoying sales game to me. Good luck with that Im sure you will hit the jackpot with enough time and hard work.
Who do you use to get loans???...
06-09-06, 01:41 AM
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Originally Posted by DriveFast7
Just yesterday local news channel on TV said the housing bubble is leaking, but has not burst. Now taking 90 days to sell a house on average in SoCal.