Home Investment Strategy... Do Something With Your Affiliate Monies

If all you can get is 5% to 8% a year in real estate, don't do it.

Most of the investments that come across my desk (I'm a real estate agent) start out at 20% a year and I wouldn't go for anything I couldn't make 100% or more per year. A good leveraged deal will do 250% to 500%.
 


FYI , if you really want to look at it , look at some mid-america states (Texas , Oklahoma, Missouri, TN , Kentucky , Ohio , Indiana ,Illinois , ect).

In my area , occupancy is 95% , houses that people want generally run $35k-$50k post rehab , and rent out for $650-$700 a month. 8% to management, 5% to repairs, and 20% down and a 3% appreciation rate would give you a return of 83% per year. Taxes generally run about $500 per rental per year, but that's tax deductable.

Better yet , go all cash in , then cash it out..........it's tax free :)
 
...Or could sell it and grab a down payment (30K) plus 1,400+ per month for 30 years. Then when they default - take it back and do it again.
 
I didn't read all the posts, but if no one already asked:

Where can you find houses in the Bay Area for $100k besides East Oakland and other places you would have to risk your life to visit? Would you really want to deal with tenants in those areas?

I knew a guy who did pretty well buying up the shittiest houses as close to college campuses as possible and making them "look" nice. He would just buy shit that looked good, but wasn't all that high of quality since he knew it would probably not last very long with college students anyway. You have pretty much guaranteed tenants for 9 months out of the year (if you're walking distance to campus) and there aren't many surprises since you can expect to have to replace carpet and paint and repair other minor damage every year. This guy would just buy random discounted shit since college students are normally pretty pumped to find new carpet in an apartment. The other good thing is that ~70% of the time, the parents are paying the rent and they clearly have some money if they're sending their shitty kid to college. A lot of college towns are usually pretty inexpensive as far as real estate goes too (e.g. Chico).

Another good spot is Merced. They have the UC there now and money will pour in from Alumni as time passes. They will build it up like Davis.
 
Ummm...I live in SF and I dunno where you would find a place you can buy outright for $100K...

But def a good strategy looking at this on a broader picture. I currently have a rental condo in Long Beach and keep it occupied with college students year round...not too bad turnover...I've had one gal there for 5 years and she takes care of the place like it was her own...
 
transistor said:
i'm not
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I guess this is where I'm supposed to tell you to reinvest your money into your business, buy established sites to build your empire, snatch up some good domains on SEDO to develop long term, buy more traffic to send to your affiliate sites, etc - all of which will earn you far more than 1% unless you suck at The Internet, in which case go get a job and be glad you have some money in the bank.
 
Unarmed Gunman said:
I guess this is where I'm supposed to tell you to reinvest your money into your business, buy established sites to build your empire, snatch up some good domains on SEDO to develop long term, buy more traffic to send to your affiliate sites, etc - all of which will earn you far more than 1% unless you suck at The Internet, in which case go get a job and be glad you have some money in the bank.
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yeah, that's the plan. i'm just kind of busy with school right now...
 
How much is your time worth?

If you want to put money into real estate just buy a REIT index fund dude. You get most of the diversification (there is some correlation to equity markets...) and NONE of the bullshit. Best if you put this in a tax advantaged account too btw...
 
Bofu2U said:
I'm actually in line to get them whitelabeled, so same place. :)
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I'm pretty new to IM but from what I understand whitelabeled = you'd be using their software/etc to make a site like theirs but run by you? Or just getting a direct affiliate relationship with them? I emailed them a few months back about being a direct affil and it seemed like the terms were good but I really don't have the skills to take advantage of it atm.

Loanwise I just got my first Late (16-31) days :(
 
I like Commercial Real Estate much better. Tenants are sooooo much easier to deal with. Much longer term leases typically. And as a market go it typically lags behind the residential around 2-3 years. So if you want to get out you usually can see when you need to.

Plus big buildings are so much sexier then houses.
 
smaxor said:
I like Commercial Real Estate much better. Tenants are sooooo much easier to deal with. Much longer term leases typically. And as a market go it typically lags behind the residential around 2-3 years. So if you want to get out you usually can see when you need to.

Plus big buildings are so much sexier then houses.
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QFT. A tad harder to find in certain areas though (big buildings). Lately i have noticed old houses/etc being converted.
 
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