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Old 03-09-2008, 09:29 PM
 
19,954 posts, read 29,990,395 times
Reputation: 39972

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also, educate yourself on the many approaches, and definitions of "income" roi (return on investment) cash on cash, cap rates, cash flow, ebit(da), sde (sellers discretionary earnings) net income, grm's, etc, and know the tax implications,, and consequences.

any serious investment, will require,,,"whats my return on investment" and tax implications,,
also, a wise investor will have a good accountant handy, to do step by step proforma's, and valuation methods
also, have a wise real estate agent, that knows the marketing area, trends, appreciation/depreciation in the area
look for a commercial or business broker, if thats what you have in mind for an investment,,,
if you are looking at land,,look for a good land broker.
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Old 03-09-2008, 10:27 PM
 
Location: Thousand Oaks, CA
75 posts, read 542,853 times
Reputation: 82
Default Good Real Estate Investment Book

Quote:
Originally Posted by tangerinepuddle View Post
I've been toying with the idea of buying an investment property - perhaps a SFH I can rent out in an up and coming area without a glut of new builds - I am clueless about how to research and start the process - any books I should read about investment properties? What are the good areas (currently and for the foreseeable 4-8 years ) to maybe do this in? What about financing - how much of a downpayment would I need for something like this? Thanks!!!!
As for books I would say "ABC's of Real Estate Investment." It is written by Ken McElroy. It is one of the books supported/sponsored by Rich Kiyosaki who wrote "Rich Dad Poor Dad." It covers what to look for in investment properties and how to analyze the numbers. If you're motivated you can read it in a few hours. Easy read and motivating.
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Old 03-10-2008, 07:35 PM
 
Location: Columbia, SC
10,887 posts, read 21,841,699 times
Reputation: 10480
You also need a strategy and an out (always). Do you want to flip, hold and rent, move in and fix it up as you go? Fixer upper, new construction, move in ready foreclosure (what kind of prop. do you want to focus on)?
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Old 03-14-2008, 08:45 PM
 
Location: Utah
2 posts, read 5,482 times
Reputation: 10
Exclamation That's bad advice

Quote:
Originally Posted by Brandon Hoffman View Post
Save your time and money on the books. Hire a real estate agent that understands investment properties. Throw out some terms like "creating cash flow" and "10-31 tax exchanges" to make sure they understand investments.
I did that when I first got into Real Estate Investing big mistake it was all about greed they want 6% here 12% there don't do it they only show me investment properties they owned!

Get with An Investor Club and get educated!
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Old 03-16-2008, 11:24 AM
 
Location: Columbia, SC
10,887 posts, read 21,841,699 times
Reputation: 10480
Quote:
Originally Posted by 15khomes View Post
I did that when I first got into Real Estate Investing big mistake it was all about greed they want 6% here 12% there don't do it they only show me investment properties they owned!

Get with An Investor Club and get educated!
The investor club is a good idea. There are agents out there who are good and bad. It sounds like you got a bad one. I'm very good to my investors.
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Old 03-16-2008, 02:03 PM
 
Location: Gilbert - Val Vista Lakes
6,069 posts, read 14,720,839 times
Reputation: 3876
Quote:
Originally Posted by 15khomes View Post
I did that when I first got into Real Estate Investing big mistake it was all about greed they want 6% here 12% there don't do it they only show me investment properties they owned!

Get with An Investor Club and get educated!
The real estate agents that I know who work with investors, including myself, determine what the investors wants, needs, skills, and knowledge are, and help them to find the property that fits the investors criteria.

If I buy a property to sell to an investor the mark up is very small and there is no commission. That's the way it works with wholesaling. If I take an assignment on a property and sell it to an investor, it's the same thing; a very small mark up so that I make a small profit on the deal and the investor gets a good deal to make a profit.

If the investor cannot make a profit then there is no reason for them to use me.

If I own a property that does not have sufficient profit for an investor then it will be sold at retail for a discount to the market; usually it will be to a client who is looking for a certain type property and I happen to find it for him before it hits the market.

We're looking at one to buy right now that has not hit the market. It will not have sufficient profit for an investor unless it's a long term investor looking for rental income and a tax shelter, along with long term appreciation.

The retail value, after taking care of the cosmetic care it needs, is around $237k from recent comps, and if we do buy it, the price to a retail client will be around $210. 3% less if one of our clients buys it before we list it. The 210k will provide a small mark up for us and a 3% co-broke for a buyers agent, and a bargain for a retail client.
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Old 03-29-2008, 11:31 PM
 
Location: Utah
2 posts, read 5,482 times
Reputation: 10
Exclamation No more Agents for me

Quote:
Originally Posted by Captain Bill View Post
The retail value, after taking care of the cosmetic care it needs, is around $237k from recent comps, and if we do buy it, the price to a retail client will be around $210. 3% less if one of our clients buys it before we list it. The 210k will provide a small mark up for us and a 3% co-broke for a buyers agent, and a bargain for a retail client.
I found a sorce direct to the banks on forclosed homes at .25 to .30 cents on the dollar!

I only invest 15k for the property which includes:

Marketable Title
Warranty Deed
property valued at 45,000
Livable property

They charge 10% of the monthly property managment
and 3% of sale price when property is sold

So I will get any where from $300.00 to $900.00 per month
positive cashflow and as well double my ROI within 9-12 months.

But by using a FHA program I can triple my ROI within 3-6 months

Moderator cut: advertising


Last edited by Marka; 03-30-2008 at 04:12 AM..
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Old 03-30-2008, 12:24 AM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,825,161 times
Reputation: 958
Quote:
Originally Posted by 15khomes View Post
I found a sorce direct to the banks on forclosed homes at .25 to .30 cents on the dollar!

I only invest 15k for the property which includes:

Marketable Title
Warranty Deed
property valued at 45,000
Livable property

They charge 10% of the monthly property managment
and 3% of sale price when property is sold

So I will get any where from $300.00 to $900.00 per month
positive cashflow and as well double my ROI within 9-12 months.

But by using a FHA program I can triple my ROI within 3-6 months
Sorry, but I'm going to have to call you out on this one.

First of all, I actually DO have a source that is direct mandate to tape. We are seeing nothing lower than 50 cents on the dollar, and the buyer is ABSOLUTELY required to proof up, or provide a POF, before the mandate will even consider letting the buyer see the tape. Also, bulk REO moves in packages of millions of dollars (usually a minimum of $5mm), not one unit at a time.

Also, you absolutely cannot use an FHA loan for an investment property, unless you are commiting occupancy fraud. If that is the case, I'm sure that the proper authorities would LOVE to have a word with you.

Thirdly, you obviously have an agenda, judging by your website. I notice that you consistently ask in your online application if the borrowers have funding, and you also mention something about paying their homes off early. Based on that, I would say that you are likely an LO who also happens to be involved with UFirst Financial. How far off am I? I would wager not much.

Also, how old are the BPO's on these properties that you are pushing? Anything over 2 months and the BPO is worthless, at least in the world of bulk REO's.

Please respond to this post. I would LOVE to hear you explain your way out of this one.

EDIT:

One more afterthought. I'm not sure what state you are doing your business in, but here in NV we are required to include a company name, contact name, and a company address and phone number to advertise any real estate services. I would imagine that it's very similar nationwide. Maybe the Realtors on the board could let me know.

Last edited by Marka; 03-30-2008 at 04:13 AM.. Reason: cut quote
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Old 03-30-2008, 01:47 AM
 
Location: Norfolk, VA
1,036 posts, read 3,959,082 times
Reputation: 515
Not to mention his site is a FREE 1 page website light on details and heavy on data gathering. Looks like a cheap attempt to sell you a load. If anyone is making the type of money claimed you would think they could afford a real website, company name, proper disclosures, etc.

There are quite a number of inconsistent or inaccurate items on that post and on the site. One more reason the OP needs to make sure they are educated and dealing with professionals when investing, a whole lot of sharks out there.
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Old 03-30-2008, 08:46 AM
 
Location: Gilbert - Val Vista Lakes
6,069 posts, read 14,720,839 times
Reputation: 3876
Quote:
Originally Posted by 15khomes View Post
I found a sorce direct to the banks on forclosed homes at .25 to .30 cents on the dollar!

I only invest 15k for the property which includes:

Marketable Title
Warranty Deed
property valued at 45,000
Livable property

They charge 10% of the monthly property managment
and 3% of sale price when property is sold

So I will get any where from $300.00 to $900.00 per month
positive cashflow and as well double my ROI within 9-12 months.

But by using a FHA program I can triple my ROI within 3-6 months

Moderator cut: advertising
If it sounds to good to be true, it usually is.

If one has $10m to invest they can buy bulk packages of homes from lenders. That package includes the good, the bad and the ugly. It is not a cherry picked package.

Those investors will wholesale them to smaller investors. They will want to deal with experienced investors who are prepared to come in and make a quick cash deal. That is usually with a hard money loan, or cash out of pocket, depending on the investor.

I suspect that those wholesale prices to the investors will be in the neighborhood of 25 to 40% discount to market, depending on the condition of the home. The prices will be different on each home, so they can balance the fact that they had to pay one price for the good and the bad.

They will most likely not want to deal with individual end users because of the time it takes to get the property sold.

These packages are just now getting started in a small way, and each investor will be different, and as far as I know, no one has information on them yet.

I'm sure there are plenty of scams out there that will surface as this process gets underway.

Daddys//M3, yes there are very strict advertising rules for realtors, that require the name of the brokerage and the agents name and contact information, as well as other information.
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