Are you working with a couple of real estate agents? These don't sound like auction homes.
Building A Real Estate Empire
- Thread starter schockergd
- Start date
Are you working with a couple of real estate agents? These don't sound like auction homes.
What do you consider 'financial sense'? Turn a profit or factoring in opportunity cost?
I mean, imo the proper way to do any kind of investment and particularly real estate is to have some or most of the financing be offset by a third party without controlling interest.
Whenever I find these real estate guys over here in Asia, they're always selling parts of the projects to whatever sucker they can find and then essentially offset their entire risk by only putting in small amounts of their own money compared to the eventual payoff.
If we're just talking about renting out residential property, then I'd think you'd need to find good deals that are not available to the public. Some guy selling to finance something else urgently or buying foreclosures or having information that others don't have (knowing where public transport will be built for example).
All in all, real estate investment always seemed slightly shady to me due to the need for large information asymmetry, which either takes the form of selling/renting to gullible amateurs or having access to local public info in some form.
I'd like to get into it though. I am always thinking about buying with a proper timeframe based on seeing macro developments on a city and country level. For example, lets say you have enough local knowledge that a city is trying to slash taxes and such to attract the tech crowd. Then you can move in early and wait for the demand to come in. Or buying in developing countries like Indonesia and Vietnam which will probably only move up as China gets too expensive and infrastructure gets built. For example, eventually Ho Chi Minh and Jakarta will have to build some kind of metro or skytrain if they want to attract investment. If you can figure out where it will run then you can buy cheap apartments and just sit on them.
I am the agent, and have worked in foreclosures, short sales and general REOs for around 8 years now.
Currently due to economy slowdown it is not much as market is stagnant here. Political issues are also affecting as next few months we have assembly election here.
However I have seen peoples doubling their money in 1-2 year time span further it can be achievable depending on the local situations and infrastructure buildup.
There are many apartments in habitable areas of the city I'm invested in are selling at 200$ to 400$ per sq ft. The area I'm invested in is still building and currently there is not much habitable infrastructure (hospitals, malls, schools etc.) in place. Although it has great poteitnal so the returns are dependent on how things unfolds. Ofcourse possession of the property also affects resell values here.
I own 4 properties and rent 3 of them out.
My whole mantra is: only buy high end properties (500K+) in areas that I'd want to live myself. 2 of them are vacation rentals (beach / ski) and we use them on occasion.
I'm lazy though, and have a mgt company manage the beach one and they take like 20% after fees and repairs.
My whole mantra is: only buy high end properties (500K+) in areas that I'd want to live myself. 2 of them are vacation rentals (beach / ski) and we use them on occasion.
I'm lazy though, and have a mgt company manage the beach one and they take like 20% after fees and repairs.
That can work in some areas. Granted in my area, you'd be hard pressed to find a $500k house. For $200k or so you can get 6000 finished square feet with a large garage.
In the central Ohio area, our median values are more than double Detroit's values, and higher than areas like Cleveland, Dayton and Cincinnati.
I hope to do the same once I have more money since you can buy houses for around the same price as yours and even lower in my area. If you decide to build a website you might want to look at Build Bankroll - Flipping Houses as inspiration. It was a pretty popular site until the owner decided to no longer update it.
Not a fan of that format, we're going to do a primarily video based site, but will also do weekly articles, some of it will be paid, some of it will be free to build interest. (We'll also build out a decent affiliate system/portal) to sell membership to the premium stuff & coaching.
Big thing this week is changing issuer equity and looking at issuing new shares. On the next round I'm wanting to raise 7 figures, we'll see how that goes.
Just as a quick note we've about completed all the paperwork/disclosures for a second round of funding. We're shooting for $2m-$3m this time around from investors.
I've written out a fantastic 34pg booklet on what we do if anyone wants to take a look at it. Kind of would like feedback on anything I'm missing.
I've written out a fantastic 34pg booklet on what we do if anyone wants to take a look at it. Kind of would like feedback on anything I'm missing.
Wow, you can spend 60.000 on some property that rents out for 1.000? US real estate market is a gold mine!
One of my friend in Europe is doing similar for passive income, but its more like 120k an 1k rent or 60k and 500 rent.
Your numbers are twice as good.
If this is actual market and not 1 in a million lucky deal I would say everybody should go in as with those numbers its peace of cake to become super rich.
One of my friend in Europe is doing similar for passive income, but its more like 120k an 1k rent or 60k and 500 rent.
Your numbers are twice as good.
If this is actual market and not 1 in a million lucky deal I would say everybody should go in as with those numbers its peace of cake to become super rich.
It's a good business to be in, but quite unforgiving. Unless you're doing it on large scale (Which is what we're doing), you can run into problems. For a small landlord a $5k roof repair bill might be killer, but when you're setting back $75 per house per month, on 10 houses, it isn't too big of a bill.
This is the actual market. "Flyover" states in USA are known for good cashflowing property. Without a hefty down it is pretty much impossible to cashflow in any super-desirable area: California, New York, etc..
Wow. Houses are insanely cheap in your area.
Stay away from the low income renters. They are too much hassle and wont pay and will destroy your shit.
Find properties that appeal to middle income working people and families in your area. Basically, get shit in a desirable area with good schools. This will make your life easier.
Remember that no matter what you do, your investment is very much tied to the real estate market in your area. If you are investing in an area that is losing jobs and population, it could be bad for you.
Stay away from the low income renters. They are too much hassle and wont pay and will destroy your shit.
Find properties that appeal to middle income working people and families in your area. Basically, get shit in a desirable area with good schools. This will make your life easier.
Remember that no matter what you do, your investment is very much tied to the real estate market in your area. If you are investing in an area that is losing jobs and population, it could be bad for you.
Im in Kentucky and the market in certain parts here are the same where you're at in Ohio.
I'd like to take a look at the booklet, but I'd also like to maybe have lunch or do a chat with you on other things soon. I will prob revisit this thread in a bit and digest it again before reaching out. Send the booklet though
I'd like to take a look at the booklet, but I'd also like to maybe have lunch or do a chat with you on other things soon. I will prob revisit this thread in a bit and digest it again before reaching out. Send the booklet though
I think you missed the mark on the business model
Slum-lording isn't so profitable when you leave the slums