| How to find property to invest in |
|
|
|
|
|
mjc123
New Poster
Cash: $ 0.45
Posts: 2
Joined: 21 Oct 2007
|
| How to find property to invest in |
 |
|
My wife and I are finally at a point where we are ready to invest our money. From everything I have read it looks like real estate is a good way to go.
Problem is: Whenever I look at property to invest in it looks great, but when I add up the mortgage, taxes, insurance, and a small buffer to cover vacancy and repairs I always find the properties show a negative sash flow.
So what gives? I hear again and again about how all these people invest in real estate and make all this money with no or little money down, and I'm here wondering why things won't cash flow when I calculate in a 20% down payment.
Any pointers as to how I should approach this?
|
Sun Oct 21, 2007 4:58 am |
|
|
Apollo
Senior Member
Cash: $ 73.85
Posts: 360
Joined: 10 Sep 2007
Location: New York
|
| Re: How to find property to invest in |
|
|
I would stay away from real-estate right now as the housing problems are nowhere near the end and further price depreciation should be expected in the next few months until at least the second-half of next year.
There are real-estate deals on the market but you need to have plenty of experience to find those. It really all depends on location but since it sounds like you just start out I would recommend to stay away from it right now.
Should you go for it at current market conditions I would recommend to look at foreclosures and bankruptcy related liquidaiton of real estate at the court-house.
Stay away from properties which require investments such as fixing or completing the property.
Once again I would wait until next year when plenty of ARMs reset to a higher interest rate and home owners are forced to sell or face foreclosure.
I know it sounds brutal but if you decide to invest that's what it comes down to sometimes because that's where you may find the best deals. I know several real-estate investors that do just that and the once that buy property the 'normal' way do it in foreign markets right now due to the ongoing housing problems in the U.S.
Since it seems that you're not a pro real-estate investor the 'foreign-option' may be not on the table.
Wait a while and shop around for deals. They are out there.
It is not smart to play it safe but it is safe to play it smart.
|
|
Mon Oct 22, 2007 10:41 am |
|
|
2cents
New Poster
Cash: $ 0.40
Posts: 2
Joined: 13 Apr 2008
|
Some decent advice from Apollo there. Now is a good time to find the property deals that are being put on the market,. Distressed property sales are in abundance and you should have no problem getting property that stacks up easily in figures, if you have achieve a good doscount on your purchase.
K
|
|
Sun Apr 13, 2008 2:58 pm |
|
|
Avino
Preferred Member
Cash: $ 24.80
Posts: 117
Joined: 27 Mar 2006
|
Try to find homes that are near foreclosure and the owners and banks may agree to do a short sale, that is sell the house for less than what is currently due on the mortgage and usually for less than the value of the home. I bought my first house, a multi family, in 2007. I wish I had waited until this year because I would have gotten a better deal. But you never truly know when the market will turn. With that said, since I live in the house and rent the other unit, financially I still make out about the same as if I had rented an apartment, except that this is my house.
People may be loosing their homes, but they will always need a place to live regardless. Keep looking at properties, and try to find a short sale deal or a foreclosure. And when looking at prices consider what people typically pay in the area for rent.
~A.
Also blogging @ avinos2cents.blogspot.com
|
|
Fri Apr 25, 2008 3:21 pm |
|
|
austin
Contributing Member
Cash: $ 7.20
Posts: 36
Joined: 29 Jun 2007
Location: Austin
|
| cashflow |
|
|
Back when this thread started we were not seeing too many positive cashflow properties. I dont know about the rest of the country but at least in the Austin real estate market we are seeing lower prices but higher rents. So there are a lot more properties that cashflow these days. Of course the problem is getting approved for a loan.
|
|
Mon Jun 16, 2008 5:37 am |
|
|
frdsmth9
Member
Cash: $ 2.00
Posts: 10
Joined: 24 May 2009
|
First off, you need to decide exactly what kind of investment you want. Do you need it strictly for a long-term investment, or do you want to try to generate a good income from it? Do you want the security of a long-term local tenant, or the better returns and higher risks of holiday makers?
|
|
Sun May 24, 2009 2:48 pm |
|
|
LavoniaFontenot
New Poster
Cash: $ 0.40
Posts: 2
Joined: 20 May 2009
|
quote:
Originally posted by frdsmth9
First off, you need to decide exactly what kind of investment you want. Do you need it strictly for a long-term investment, or do you want to try to generate a good income from it? Do you want the security of a long-term local tenant, or the better returns and higher risks of holiday makers?
it's really great information
|
|
Thu Jun 11, 2009 5:40 am |
|
|
george01
Member
Cash: $ 2.05
Posts: 10
Joined: 07 Oct 2008
Location: South Carolina
|
quote:
Originally posted by frdsmth9
First off, you need to decide exactly what kind of investment you want. Do you need it strictly for a long-term investment, or do you want to try to generate a good income from it? Do you want the security of a long-term local tenant, or the better returns and higher risks of holiday makers?
yep... I completely agree with you. First of all we need to decide our priorities whether we want to invest for long term or short term. I personally believe that if you want to invest for a long time like 10 - 15 years, real estate is the best option. If you want to invest for around 3-5 years, Stocks might give you better yield than Real estate. However, as a real estate buyers agent, I would suggest to go with real estate as it's less risky than stock.
|
|
Thu Jun 11, 2009 7:17 am |
|
|
jamesbigger
New Member
Cash: $ 1.40
Posts: 7
Joined: 13 Nov 2010
|
I always take the attitude that when you see the light at the end of the tunnel, it may be possibly the headlamps of an oncoming train. I plan accordingly.That is my risk management model.
|
|
Sat Nov 13, 2010 5:27 am |
|
|
lorealharder
New Member
Cash: $ 0.80
Posts: 4
Joined: 27 Nov 2010
|
Property list are listed on the Jamaica Stock Exchange. They invest in a portfolio of properties and handle the administration while you collect the return on investment. A publicly traded investment real estate for you if you want yields in the long-term income instead of backing speculation.
Four types of listed property investments:
- Property unit trusts.
- Property loan stock companies.
- Listed property com-panies.
- Exchange traded funds.
|
|
Sat Nov 27, 2010 10:52 am |
|
|
pennyp
New Member
Cash: $ 1.00
Posts: 5
Joined: 12 Dec 2010
Location: Australia
|
Properties in The US are cheap as Chips after the Global Financial Crisis.
Houses in Australia are down a little but still over priced.
|
|
Sat Dec 18, 2010 12:58 am |
|
|
janiemorgan
New Member
Cash: $ 1.20
Posts: 6
Joined: 28 Dec 2010
|
It is better to invest in some under developed communities. They will get civilized soon.
|
|
Tue Dec 28, 2010 11:23 am |
|
|
Quick turn properties
New Poster
Cash: $ 0.60
Posts: 2
Joined: 16 Jan 2011
Location: South Florida
|
Being that the original post was done in 2007, right before the real estate market when on a decline, negative cash flow as a common thing.
Now in 2011, if you buy in the right states and areas you should see a ROI of 10% or greater. Florida, California & New York are yielding good returns right now.
|
|
Sun Jan 16, 2011 5:16 am |
|
|
Walter Sanchez
Member
Cash: $ 2.00
Posts: 10
Joined: 18 Jan 2011
|
Believe me, real estate is the craziest source from where you can earn loads! The land value always increases so if you are doing any down payments or so to get one then, I think you must go for it. This time you can get something goos at a cheaper rate whose value is definitely going to increase in future.
|
|
Tue Jan 18, 2011 10:09 am |
|
|
Abdou
New Poster
Cash: $ 0.45
Posts: 2
Joined: 18 Jan 2011
Location: Morocco
|
| real estate in Morocco |
|
|
investing in real estate can be very tricky!
especially in countries like Morocco !
[deleted]
|
|
Tue Jan 18, 2011 11:40 pm |
|
|
|
