Loosing Job, Need Income
along with a crash course on re.
I have some money but lacking greatly in knowledge. I've owned and sold a lot, and have a single-family home investment property that's breaking even.
i reside in ca where the realEstate is hmmm, expensive? Having the ability to drive by my property would give me the warm fuzzies, but maybe i'm being naive and narrowing my search too much.
should i be looking nationwide for apartments, analyzing locations (appreciation, vacancy rates, job opportunities, near a campus)? or should I keep the investment close to home?
i've kind of given up on mobile-home parks, largely due to what's happening with rent control in ca. don't know about commercial props, so apartments seem like a good vehicle for me to get my feet wet.
any advice or links on where to shop for cash flow would be greatly appreciated.
Thank you very much!!
Wow, lots of questions...re: investing out of state plenty of people, especially Californians, are doing it. I know of a real estate broker here in NC that does 300 deals a year with CA investors who never even see the properties they are buying. They are managed here locally and every month they get their check.
It can be done. Granted it there are some risks involved but all investments have some level of risk. I own a few share of Coca Cola and have never once been to cooperate headquarters or a bottling plant. My money is manged by others and I receive the benefit via stock appreciation and dividends when given.
Q
How long can you go without earning any more money before you either have to get a job or starve to death???
If you can go a year plus without working and without using up all of your reserves then you may want to jump into RE. If you can't go that long then start looking for a job and start learning all you can about RE.
The best real estate market in the country is in your backyard when you're starting out (no matter where you live). There are very few places where you can't make money in RE.
What do you have to work with in terms of money, credit, partners, and equity?
There are certain types of investing that have longer learning curves than others. I'd start out with birddogging. Move to "Sub. To's". After that you may want to go to preforeclosures or lease optioning. that's where I would start if I were you. Good luck and keep reading.
runningq,
sorry for all the questions but really appreciate all the answers.
i'd assume the californians would prefer to invest in their own backyard ca, but the busy broker in nc suggests something different, i wonder why? i can't imagine all the ca investors are planning to retire in nc , nothing against nc.
i bought some coke stock for my kids and wish i bought pepsi. my crystal ball wasn't working that day. a national map of vacancy rates, cost per unit, cap rates, etc would be helpful. ever see anything like this?
thank you very much ;o)
hibby76,
i read a link you posted where another was suggesting it's not the best time to be investing right now, something about a five year cycle thing with the last five breaking historical records. i can certainly say it feels that way in california when looking as single family homes. interest rates are good but prices don't pencil out.
i have 100k cash and have 500k equity in our existing residence, and another 60K equity in a 2nd single family home. i really would like to buy cash flow. maybe this way i could choose my career instead of chasing money and living the career it chose for me. i'm not a lazy soul or trying to get out of work. i've been working since 13yrs old and still put 50hrs a week. it might just be nice to have the option of a career change without so much pressure.
i'll take your advise and begin reading. i'm just trying to focus on the type of investment and location.
thank you very much !!!
With the numbers you posted you are in better shape than many that are just starting new careers in REI.
Have you considered refi to get cash out? Many other states out there other than CA with great possibilities. Click on the tab at the top of this site for a sample of properties availble from fellow members.
I have many opps pass me by daily because I do not have any investors with the kind of (possible) cash you have available to you. (with refi. on residence)
Best wishes. Have a great day and be safe.
Barbaradawn Kozlowski
barbaraDawn,
yes, i have considered a refi but cannot identify where or what realEstate vehicle will serve me best. I know that cashFlow is high on the list. I'm just trying to shorten the strokes here, after all, there's only so many years in a lifetime to get experience, and many of those years have been invested in another career.
It would seem that one should identify the beast before the hunt, thus what type of realEstate before bird-dogging.
What do you think?
Thank you very much!!
fuzzwich,
Many people have no money, no credit, don't care which aspect of real estate they get into, and want to run out and find the best place in the country to invest. Sounds like you're in a different situation. There have been some posts on good and "bad" markets for investing. I'm convinced that you can make money in any market that's not turning into a ghost town. You may not be able to make money with every technique in every market, but you can always find motivated sellers, distressed properties, out of town owners, and foreclosures, etc.
That said, there's no such thing as a "best market". People are flocking to Vegas to invest because of the hyper-inflation. That's a great market for sub. to's and flipping, but there's also a tremendous amount of competition. It can be a great buy and hold market, as long as it doesn't peak and dip here in the near future. Sucks to "buy high". In my particular area the market is pretty soft and I believe will swing in the next 2-3 years. Lots of cash flow deals around, and I think prices will spike in about 6-8 years. Lots of motivated sellers.
You want positive cash flow....your area may not be the best for buy and hold when buying conventionally and at FMV...at least not right now. If it crashes anytime soon, it could be a fabulous place to be. It could be that you're looking at properties rather than sellers. Perhaps you could do preforclosures for buy and hold purposes or sandwhich lease options until your market softens up.
Bottom line, in my opinion, is that there isn't one market that is the best. There isn't one technique that is the best. I'd spend as much time as you can mingling with local RE investors and groups. Find out what other people are doing and see if it interests you. If you're looking for positive cash flow, you need to run the numbers and make sure that they make sense, and not just that the property is "a good deal".
Quote:
On 2004-02-10 03:39, hibby76 wrote:
fuzzwich,
If you're looking for positive cash flow, you need to run the numbers and make sure that they make sense, and not just that the property is "a good deal".
hibby,
thanks for the informative post.. I too am looking for cashflow but the market is very high right now in the NJ area. Would you be better able to example of "running the numbers" to make sure you don't get yourself into something that won't really make you any money..
thanks..
hibby76,
It's interesting that many people run out to find the "best place" in the country to invest. This was my first instinct, why not go global for that matter. But it sounds like you're saying any market that's not a ghost town is good, instead of supporting a national search. Maybe it's just too expensive or difficult to invest in RE across the country, i'm not sure.
Funny you mention Vegas, our rental is there and appreciating 2% monthly, but 0 cash flow, barely breaking even with 25% down on a $160K place. You're statement about competition is compelling.
You're right, i don't look at sellers only properties, it never occurred to me. Bird-dogging must be what you're referring to here, finding an underpriced property.
Something about sandwich leasing doesn't quite settle with me yet. Convincing a distressed seller to hold the mortgage while you sell the place to a third party with credit problems sounds challenging. Not only on the sale side but what if the buyer bails, or gets behind on payments.
It's interesting that you, obviously experienced, selected a 1.2M multi-family for an investment.
I'll take your advise and continue to learn about RE from investors and groups, and always run the numbers.
Thank you very much for the wisdom ;o)
fuzzwich,
I would say it depends on what you have and/or want to invest? People come to California for a reason. Yes it is more expensive then in Carolina but the rents are too so keep in mind that everything happens for a reason and that many mortgage brokers, agents and unscrupulous hustlers come to this board lucking for a victim or easy pray. be patient, stay aboard and you'll learn thing or two. And when you see someone advertise friend with connections or a big experience that leads you to ask for a service, report the violation to moderator because advertising is not what the forums are designed for.
Good luck!
Hibby,
If I remember correctly, you sad earlier that you've been living in Spain for several years, right? I just wonder if you had a chance to live anywhere in this country rather then in CO? The reason I am asking you this is because what you believe is logical but the So, Cali market is now past any logic. Take for example this story: I've been on a probate sell several days ago when a 2 bdr/1bt "house" sold for $287,000 CASH and was a DUMP.!!! Asbestos siding, lead pain ... you name it. All elements of an ugly house was there for you to discount and the price went through the roof. Wonder why? The gut who bought it hope to build the 4plex with sub tereninan garage in the middle of the dump neighborhood. I do that and I can't see him make money so I live you wonder how crazy can it be when you decide to comment on motivated sellers. Yes they exist but so does the needle in the haystag. Go find it.
How about investing on the Mediterranean coast near Ibiza or Majorca? Did you look into investing on Spanish Riviera? Prices are up 20% yearly for the past 4 years. maybe moving to Span or elsewhere is not so bad idea after all...