Southern New Jersey

Comments(14)

• 
  d_random18th May, 2005

  Thanks darogo!
  Please keep us informed how it goes.

• 
  RonnieW5th June, 2005

  I Hope this request was o.k. to post .... if it was not I am sorry, I am just trying to network.

• 
  vikingchild6th June, 2005

  You may want to consider joining a real estate investing club in your area. There you can network with local investors and possibly find someone to mentor you. Look under the groups tab on this website.

• 
  SoCalRookie16th May, 2005

  My home was a new construction home and is located in South Orange County, CA where home prices have gone through the roof the past few years. The funny thing is..........when I was buying it (3 years ago) there was a lot of talk about "buying at the peak". Well, as you can see.........we were far from the peak.
  
  Thanks for the input.

• 
  SantaClarita16th May, 2005

  Good evening SoCalRookie,
  
  Congrats on buying when you did, I was also fortunate (purchased here in Valencia May 2002).
  
  To share my opinion and the experience of a friend, rely only on yourself for investments.
  
  Sure, some have profited with Reddick. There is one thing that worries me though. I have heard more than once how he purchases entire sections of neighborhoods for his investors. Then the homes are up for rental all at once. This has created high vacancies.
  
  Otherwise, I understand that many have done well. If you are able to sustain negative cash flow in hopes of appreciation then it may fit your investment plans.
  
  I refuse to do this, I will not purchase anything with negative cash flow (Never say never!). With the equity that you have you may want to consider a multi unit apartment building. You can get some great cash flow in an emerging market. Of course you must learn how to purchase right.
  
  Take care,
  [addsig]

• 
  SantaClarita17th May, 2005

  Technically it would still cash flow negative, though you bring up a good point. You would just create an even thinner wire to balance on.
  
  I believe that there are too many emerging, or at least stable, markets where you do not have to take a gamble on appreciation. If you buy right it should work out.
  
  1) Purchase below full market value to create instant equity
  
  2) Purchase precon at a discount coupled with lease optioning at completion
  
  3) Multi unit apartments:
  a) Double digit CAP rate
  b) 8 or 9 times NOI selling price (actual NOI, not pro-forma)
  c) High vacancies
  d) Low rents
  e) In need of repair
  
  These types of deals present an opportunity to add value thus increased rents, increased CAP rates, and increased CASH.
  
  Of course you need to be able to interview property management properly, attract the better tenants in the area, and manage the management.
  
  I should get some sleep now, I just forced myself to watch the entire Terminator 3 as I am sitting here on the computer. I thought that it might get better...I was wrong. Damn sequels!
  
  Take care,
  
  [addsig]

• 
  darogo17th May, 2005

  haha, NEVER trust the sequels...
  
  thanks for the input santaClarita.

• 
  d_random17th May, 2005

  See these links for Reddick victims :
  
  http://www.foreclosures.com/pages/gurus_to_avoid.asp?gID=33#Entry
  http://www.realestatelink.net/wwwboard/messages/30398.html

• 
  d_random17th May, 2005

  Also, more telling info on the Reddick network here:
  
  http://www.johntreed.com/Reedgururating.html#anchor535653

• 
  d_random17th May, 2005

  My opinion is that if you want something done right you do it yourself. I would suggest that you do A LOT of homework into this program before you invest into it. Right now you are on a high from the siminar. I researched for a year before I plunked down my hard earned money into my 1st REI. But I am really methodical, might be too slow for some. Just be sure to know the all the good and bad (and willing to listen to the bad) before you make the move.

• 
  d_random17th May, 2005

  Thanks chumah.

• 
  d_random17th May, 2005

  ...another Reddick victim:
  
  http://www.homeownernet.com/chat/realestate/messages/1578.html

• 
  SantaClarita17th May, 2005

  I just do not see using a network like this as necessary.
  
  Each one of us must create our own network and do the work ourselves.
  
  After reading through the links, one very important point is stated:
  
  DO NOT MAKE AN INVESTMENT THROUGH SOMEONE THAT IS PROFITING FROM IT.
  
  It is just too biased of a transaction. I think that maybe I will start an Andy Gibbs Network. I will also purchase homes for people at an inflated price...
  
  Would anyone like to join my network? The homes that you sell I will split the commissions with you. I also have a property management company, it consists of local high school students...it keeps the costs down.
  
  Andy Gibbs
  [addsig]

• 
  SantaClarita19th May, 2005

  Yes, keep us updated. I hope that you are able to rent/resell without incident. Just keep on top of things!
  
  Take care,
  [addsig]