Real estate

[moldyhands]

so many people have posted on TR about real estate and the potential money to be made there. this always annoyed me because 99% of the people had never actually been involved in an investment real estate deal and were just talking out of their ass based on some article they read.

well a friend/business associate and i met with a real estate lawyer today to discuss the initial start-up of our venture and with any luck and a lot of work, we'll be making a purchase within the next couple weeks. this is a timeline i've set. this will be my first experience, so obviously i'll learn a lot, but i've done a TON of research and through networking (imagine, that shit does work), i've picked up a lot of tricks of the trade so i don't get fucked. i'll let you know how it goes, hopefully, i'll be replacing the trump within the next few years.

[Dunecune442]

I havent purchased a home yet (im 17 for christs sake). I have written contracts for closings, been in closings, fixed homes, showed homes, blah blah...

Am I in the 1%? C'mon moldy, wheres the love!

All bullshit aside best of luck Moldy. Networking actually does work.

WHEN you replace trump, please destroy any traces remaining of his hair.

[moldyhands]

I havent purchased a home yet (im 17 for christs sake). I have written contracts for closings, been in closings, fixed homes, showed homes, blah blah...

Am I in the 1%? C'mon moldy, wheres the love!

All bullshit aside best of luck Moldy. Networking actually does work.

WHEN you replace trump, please destroy any traces remaining of his hair.
you would be in the 1% yes. scott is obviously also there. like i said though, most of the people talking big and bad about it were doing nothing and that annoyed me.

[RoadRacer]

Good luck!

[TNathe]

Good deal Moldy.

PS to anyone who wants to START investing, I have a great opportunity for you. I am holding the NOTE on a property and it is generating $915 mo. for the next 30 yrs. Im willing to sell it off for $72,000. If anyone is interested PM me for more info.

[_Charles_]

Here is my issue with investing in Real Estate 'Today'. The market is so hot, that if it's a good deal, it's gone same day. Your not the only one looking, your one in 1,000 looking at that property as an investment item. Chances are, you'll offer whatever the asking price is, just to get the property. Is the property truly worth it? Who knows. I think I am starting to see alot of inflated values due to the 'same day' offers that have been going on. It's a huge risk at this point. Alot of people have been using negative equity mortgages, and ARm's in the hope that there income will increase before the reality of the payments hit them. I say that the market has about 2 years of decent growth, than it will level off, before going into the dumper (once these neg-am finacing agreements effect the owners).

just my opinion, and I am just one person. Had you gotten in 5 years ago, that's one thing, but I feel the window to make $$$ is getting smaller by the day.

Charles

[Amortized]

what's your plan with this? where/how are you trying to make your money? Short/long term, looking to generate a monthly income stream, looking to make your money through appreciation? Where do you plan on finding tenants? Have you spoke with any other investors who have the expierence or just the REA? Whoever is doing your mortgage, make sure they know what your financial goals are on this transaction so they can get you in a program that truly fits your needs. Every angle needs to be considered or else a real estate transaction could cost thousands, either at the closing table, through payments/terms that don't meet your goals, when you sell the house, etc. One mistake can mean the difference of profit and loss. I'm not intending this post to scare you, just hoping your covering all the bases. Good luck.

[Dunecune442]

Here is my issue with investing in Real Estate 'Today'. The market is so hot, that if it's a good deal, it's gone same day. Your not the only one looking, your one in 1,000 looking at that property as an investment item. Chances are, you'll offer whatever the asking price is, just to get the property. Is the property truly worth it? Who knows. I think I am starting to see alot of inflated values due to the 'same day' offers that have been going on. It's a huge risk at this point. Alot of people have been using negative equity mortgages, and ARm's in the hope that there income will increase before the reality of the payments hit them. I say that the market has about 2 years of decent growth, than it will level off, before going into the dumper (once these neg-am finacing agreements effect the owners).

just my opinion, and I am just one person. Had you gotten in 5 years ago, that's one thing, but I feel the window to make $$$ is getting smaller by the day.

Charles

No, thats just you afraid to put that kind of money into something youve never done before. There has ALWAYS been competition in the market. Either buy a property in an existing hotspot or narrow your focus down to an area you feel will be booming in the next few years (brooksville + odessa + Ocala). And if the market "only" has two more years of growth, why not invest now instead of twiddling around till the point that the market is slow?

Oh, btw florida is DEFINATLY not going into a flatline anytime soon. We are experiencing higher rates of immigration to this state and an increase in condo purchasing (snowbirds also like summer homes).

So just get alittle balsy and go for it. If its too much money feel free to go in as a partner with someone you REALLY trust, like a childhood friend or family. Good luck.

-Keenan

[_Charles_]

So just get alittle balsy and go for it.
-Keenan

I'll be 31 next week, I have a wife, a 2 year old, and A HOUSE. You are 17, and live at home. It's a little harder for me to be balsy, wouldn't you think?

And it's not the P&I that scares me, it's taxes. On a rental property, you can not use 'homestead exemption', and I odn't think you fall under the 'Save our Homes' tax limit. This means that teh tax rate will rise yearly based off of assesed value.

Currently, $2300 per year per $100,000 adds up. Don't forget about insurance.

just my .02
Charles

[moldyhands]

what's your plan with this? where/how are you trying to make your money? Short/long term, looking to generate a monthly income stream, looking to make your money through appreciation? Where do you plan on finding tenants? Have you spoke with any other investors who have the expierence or just the REA? Whoever is doing your mortgage, make sure they know what your financial goals are on this transaction so they can get you in a program that truly fits your needs. Every angle needs to be considered or else a real estate transaction could cost thousands, either at the closing table, through payments/terms that don't meet your goals, when you sell the house, etc. One mistake can mean the difference of profit and loss. I'm not intending this post to scare you, just hoping your covering all the bases. Good luck.
good shit, yes, i've considered all those. got a buddy that does mortgages, got the lawyer, got a buddy that's making good money at this now for advice, and i know business. i'm not saying it'll be easy, but i'm confident in my chances.

[Penis]

I'll be 31 next week, I have a wife, a 2 year old, and A HOUSE. You are 17, and live at home. It's a little harder for me to be balsy, wouldn't you think?

And it's not the P&I that scares me, it's taxes. On a rental property, you can not use 'homestead exemption', and I odn't think you fall under the 'Save our Homes' tax limit. This means that teh tax rate will rise yearly based off of assesed value.

Currently, $2300 per year per $100,000 adds up. Don't forget about insurance.

just my .02
Charles


You are right about not wanting to invest. Well its your opinion so it can't be wrong. But if you would have bought a home before you got married and before you had a kid you would be very rich. You know that. You really don't understand alot about mortgages. I know you know how to read and research the living shit out of everything but you still don't know alot. You need to become friends with a mortgage broker or real estate agent and have them tell you everything. And not someone that you do business with because they will never tell you the truth. Bottom line if you can afford an extra 5-700 bucks a month then you CAN get into another home. Interest only 2/28 ARM that doesnt move the interest only for 2 years then you sell it before the 2 years is up without a pre payment penalty and boom you just made whatever equity(we all know its alot but different every home and location) But all im sayin is that if you can afford to spend some extra money every month then you can make a shitload of equity(which is cash when you get out of the house).

[_Charles_]

I understand financing options, but how many others are doing the same thing? What happens when you ALL try to dump your houses at the same time? $500-700 a month? What about the escrow items?

And no...I can not afford an extra 500-700 a month right now. Maybe soon, but not right now.

Charles

[Whaazup17]

Good deal Moldy.

PS to anyone who wants to START investing, I have a great opportunity for you. I am holding the NOTE on a property and it is generating $915 mo. for the next 30 yrs. Im willing to sell it off for $72,000. If anyone is interested PM me for more info.

pmed

[Dunecune442]

I understand financing options, but how many others are doing the same thing? What happens when you ALL try to dump your houses at the same time? $500-700 a month? What about the escrow items?

And no...I can not afford an extra 500-700 a month right now. Maybe soon, but not right now.

Charles

If your only buying one home then you dont need to worry about dumping "all" your homes. Cross that bridge when you accumulate numerous properties.

BTW I may only be 17 but Im saving every penny my self. I understand your older and have alot more expenses, but if you plan NOW you can start investing soon. Explore your options and listen to penis instead of saying "not now, its not a good time" because come age 40 your STILL going to be saying that. Would your prefer to wait 18 years when your kid is out of the house?

My parents were in the same situation. They had two kids however, just as many payments and LOWER income, plus my mom was going to school and my dad was going to night classes for real estate. I was 8-9 and my sister was even younger. So if expenses and hardship are the problem, you dont have many excuses. Im not trying to come off as rude or arrogant, but dont get stuck working for someone the rest of your life. Start now, itll take some time go slow but once you have a gameplan you are set.

[Dunecune442]

I'll be 31 next week, I have a wife, a 2 year old, and A HOUSE. You are 17, and live at home. It's a little harder for me to be balsy, wouldn't you think?

And it's not the P&I that scares me, it's taxes. On a rental property, you can not use 'homestead exemption', and I odn't think you fall under the 'Save our Homes' tax limit. This means that teh tax rate will rise yearly based off of assesed value.

Currently, $2300 per year per $100,000 adds up. Don't forget about insurance.

just my .02
Charles

BTW my parents total income when they bought their first investment property was 80,000 per year (before other expenses).

[_Charles_]

Start now, itll take some time go slow but once you have a gameplan you are set.

Trust me, I am...as soon as a re-arrange our budget, I will be investing in mutual funds. I'm also returning to school in august. real Estate is too large of a commitment at this time.

Charles

[Whaazup17]

Please tell me more about these mutual funds. I invested in some mutual funds in school in a fake account with fake money and they didn't do so well.

[XtremeVision]

Please tell me more about these mutual funds. I invested in some mutual funds in school in a fake account with fake money and they didn't do so well.

mutual funds are a long term investment...I throw at least 500.00 per month into mine...I have 4 diff ones....tech, real estate, health and some other one...there on direct draft from my bank account...I have had them for a few years and have quite a bit of money in them...I got into them because my dad used to do them when my parents were married and ended up at about 220gs each when they got divorced...that was probly about 10 years of them and only about 200.00 per month but dont quote me on that...they are up and down every month but over time they pay off well and they are fairly safe...its like owning a bunch of diff stock...

[_Charles_]

Please tell me more about these mutual funds. I invested in some mutual funds in school in a fake account with fake money and they didn't do so well.

I remeber those school excercises....

Like already mentioned, they are long term investments.

According to Consumer Reports (3/05):

Choose funds that outperform the market--not just once or twice a decade but repeatedly. With such funds, you would not have to try to time market swings, a pursuit that baffles even professionals. And because you are in all probability pumping money regularly into a 401(k) or some other investment plan, you would know that the money you invest this quarter will get long-run returns similar to those earned by money you invested last quarter. And that if you have to redeem shares in a market downturn, your fund will be less likely to have suffered a steep drop.

Bottom line. Investors would do better to pick a fund with above-average gains and a history of repeating its performance than to find the fund with the showiest returns.

Our test tended to disprove the common investment shibboleth that you have to take big risks to beat the stock-market indices. If you invest in stock funds for the long term, accepting more risk to get higher returns may not be necessary. Two from our final cut, Meridian Value and Vanguard Health Care, were the fifth and sixth best-performing funds of the decade with annual returns above 19 percent. Our conclusion: Lower volatility, conservative management, and avoidance of risk are compatible with beating the market over the long run. Some of our highest scorers were asset allocation funds, which invest conservatively, usually keeping a portion of their holdings in bonds. Yet many regularly outperformed the S & P 500.

[Whaazup17]

mutual funds are a long term investment...I throw at least 500.00 per month into mine...I have 4 diff ones....tech, real estate, health and some other one...there on direct draft from my bank account...I have had them for a few years and have quite a bit of money in them...I got into them because my dad used to do them when my parents were married and ended up at about 220gs each when they got divorced...that was probly about 10 years of them and only about 200.00 per month but dont quote me on that...they are up and down every month but over time they pay off well and they are fairly safe...its like owning a bunch of diff stock...

So you have to keep putting money into them? Where you get your mutual funds from?

[_Charles_]

So you have to keep putting money into them? Where you get your mutual funds from?


Again, from Consumer Reports:

Quick Picks

For investors starting out:

5 T. Rowe Price Personal Strategy Growth
TRSGX (large-cap blend)

58 Vanguard Asset Allocation
VAAPX (asset allocation)

Both funds offer diversification in stocks and bonds. Neither charges a sales commission, and both have low annual expenses.


For socially conscious investors:

4 Parnassus Equity Income
PRBLX (large-cap blend)

22 Ariel Appreciation
CAAPX (mid-cap blend)

47 Ariel
ARGFX (small-cap value)

61 Pax World Balanced
PAXWX (asset allocation)


For investors who want experience:

7 Clipper
CFIMX (large-cap value)

16 American Funds Washington Mutual
A AWSHX (large-cap value)

30 Weitz Partners Value
WPVLX (mid-cap value)

64 Vanguard Health Care
VGHCX (specialty--health)

69 Stratton Monthly Dividend REIT
STMDX (specialty--real estate)

These funds all have managers with more than 20 years of experience.

[Whaazup17]

Again, from Consumer Reports:

I looked at the two that you gave for beginner investors and they both have big dips and just ended up where they started . They really don't go up to much. And this is over a 5 year period.

I dont see how you could make money

[Amortized]

good shit, yes, i've considered all those. got a buddy that does mortgages, got the lawyer, got a buddy that's making good money at this now for advice, and i know business. i'm not saying it'll be easy, but i'm confident in my chances.

good, use that network for all they're worth. The more info you can get out of them, the better decisions you'll be able to make. Sounds like you've got a lot of the bases covered. Are you good with repairs? If not, find a good reliable handyman. you're going to want to find a good CPA as well.

[_Charles_]

I looked at the two that you gave for beginner investors and they both have big dips and just ended up where they started . They really don't go up to much. And this is over a 5 year period.

I dont see how you could make money


Long term....nothing did good in 02-03 (post 911).
http://ichart.finance.yahoo.com/z?s=TRSGX&t=my&q=l&l=on&z=m&c=VAAPX&a=v&p=s

[Whaazup17]

good, use that network for all they're worth. The more info you can get out of them, the better decisions you'll be able to make. Sounds like you've got a lot of the bases covered. Are you good with repairs? If not, find a good reliable handyman. you're going to want to find a good CPA as well.

i'll be your handy man. 5 years of working with my grandpa. Sheet rock and other stuff like that

[moldyhands]

good, use that network for all they're worth. The more info you can get out of them, the better decisions you'll be able to make. Sounds like you've got a lot of the bases covered. Are you good with repairs? If not, find a good reliable handyman. you're going to want to find a good CPA as well.
we're the handymen:lol:

as for a good CPA - that would be ME.

[Dunecune442]

hey moldy my dad is a general contractor and can help ya out. We mainly do historic homes but have restored everything you can imagine...

-Keenan

[Miles]

I looked at the two that you gave for beginner investors and they both have big dips and just ended up where they started . They really don't go up to much. And this is over a 5 year period.

I dont see how you could make money
damn near everything except lockheed martin and raytheon stocks lost value post 9-11.

[corey r.]

The Vanguard Health Care fund is Closed.