Real Estate Investment anyone?
 

Real Estate Investment anyone?

Hey anyone Invest into Real Estate here?
What areas are you looking at? Anyone in Northern Jersey?

im looking as well for property in Iraq

Soul_Rebel
Wait a few months I hear the price is coming WAY down! :Graucho

I'll go in with you 50/50:BangBang:

You have to be super savvy right now in RE, especially in developing on spec and commercial props and houses in the $1 to $5 Mil range.

Watch out for the bubble burst.

no doubt!

:thumbsup

unless you really know what you're doing, i would suggest taking a look at REIT's.

I do porn on the side and real-estate as my new job. I am trying to save up a few thousand and buy into some storage units. You pay the mortgage off in 3-4 years and then just sit back and enjoy the checks.

I'll be looking into 2-3 unit apts near CSULB in about 6 months...

Edit: California State Univ. Long Beach... What do you mean...not everyone lives in LA... :)

You should be talking with Carleton Sheets

real estate bubbles wont burst like stocks.. houses keep value. u have to wait until the interest rates go up b4 housing prices go cheaper.

why would there be a bubble on housing? infact, its because ppl dont play stocks they put their money into their homes

Jersey? I have one word for you... Edgewater!

They are still building so you have a nice selection of townhomes and condos. Property value is already high and they're not even finished with the area!

Own three houses, getting 2 more in the next few months. I always buy fixer uper 2-3 bedroom houses. Rent the rooms out to college students, been working very well. Generally get alot more rent doing room rentals over renting the entire house to one family. Averaging 450.00 a month per room, mortgage, tax, and insurance comes in well under 600.00 a month on any property I own. Plus with room rentals I rarely (ok never) have had a house that was costing me money.

We do all the refurbishing ourselves to improve the houses, unless its a "contractor only" job. Due to our buying fixer uppers generally we get a hell of a nice return in equity value after the new appraisal.

nice :thumbsup

The Mrs. and I are on our way up north this weekend actually to look at a few houses. I like the idea of renting to college students. We'd only rent to girls though. After living CollegeFuckFest for the past year I would ABSOLUTELY NEVER rent to guys. They are fucking slobs and basically shit where they sleep.

Girls keep their shit pretty. Messy with clothes and books, but generally clean. Messy, does not mean trashed.

We're looking for a home in the 100k range and up north in this small town that is a very common price for 2-3 bedroom.


The best RE story I ever heard was from a gut right here on GFY. He bought a mobile home for $50.00 and turned right around and sold it for $8,000.00

I have three in Newark (3 unit, 5 unit, 18 unit)and one in Bloomfield (3unit). I have a few more but nothing north of
those.

You have any deals up there? :)

The area matter less to us than the type of tenants leasing the premises and the cash flow being generated by the property. Class B office buildings is our core real estate business and what we prefer to invest in.

My partner and I have just gotten into real estate. We had a simultaneous closing where we made $15k without touching the property and not one cent out of our pocket :)

(we bought the property for $105k and sold it to a guy for 120k, both closings were at the same time and place )

I agree, Dave. It's just a matter of time. Here are some facts for those who doubt if a bubble "exists"

1) record foreclosures

2) record bankruptcies

3) continued dollar erosion against the euro. One of the core reasons for increasing the Fed rate is to prevent dollar exchange erosion.

4) large corp layoffs remain steady

5) uncertainty of war and increased oil costs might undermine other sectors of the economy

6) uneven but gradual degradation of consumer confidence


The Sky is NOT falling :) Just don't take out a 300K loan on a house that will be worth $200K for the next 5 years :thumbsup


Bottom line: If a person seeks to "flip" a home investment, now is NOT the time. If a person wants to buy a home that he/she will live in for the next TEN to 15 years, then GO FOR IT!

RS,

I'm in the LA area as well. Where are you looking? For that price, its definitely past the Lake Castaic area [average 200K]. Are you looking at Fort Tejon or past the Grapevine?

G Sharp

looking at $280 asking price for 6 units (in jersey city) 4 rented with monthly gross of $3,200 I have a feeling its a dump but i will look at it anyway. Some good deals in Jersey city and having a friend as a relator does not suck :thumbsup

Houses keep value?

The hell they do. Where did you come up with that belief?

My house in LA was worth over $2 Million until 1/17/94 when the Northridge quake hit. After that the value sunk to about $1.2 Mil, if even that. That's when we said fuck LA and decided to move back to the East coast. Couldn't even get a single decent offer and we finally gave up trying.

Here in South Florida there are beachfront mansions for sale like you can't believe, cause so many people got zonked by the stock market and everyone wanted to get liquid by selling RE. So now the high market is sucking wind.

Residential rental units are usually pretty safe plays. But commercial buildings and luxury properties are where you can really get nailed if the market goes sour.

"Where did you come up with that belief?" take a look at NJ just pick a town and look during the span of 2-4 years
http://www.nj.com/realestate/homesales/

I own a few places down south. If you're looking to rent or live in it, now is the best time you'll ever find in our lifetime because of interest rates. If you are looking to flip it within the next 5 years, now is the worst time possible.

Agree
Buy $50 K
Mortgage $40K
Mortgage payment $300
Taxes $100
Maint $100

Rent $900

$400 a month not too bad hah:ak47:

2-4 years is not signifcant. I started buying in 84 and watched my shit go down for about 6 years. Look longer term and the market will not get you as excited. 20 some year cycles are the norm for residential real estate and we are much closer to a top then a bottom. I am never selling all my buildings as I am not a dope but watch your leverage level if we down turn.

What do you consider is a good ROI?

I call it the sheep factor...


Stocks go way up in value in the late 90's, with many of them being way over priced such as amazon.com. People see their friends make 24% in 3 months and think "HOLY SHIT! TIME TO BUY SOME STOCK!".

Everyone and their sister buys whatever their friends just made 24% on in three months. Those that made their profits see another little boost and dump. Then others start to dump. Then 2 planes hit the trade centers. Then the stock market goes to shit.

Once it hits rock bottom, those that bought in late decide to sell and buy some real estate.

Maybe they should consider BUYING MORE STOCK NOW? I see everyone and their brother now saying "real estate" is the way to go. Watch out folks, because we have a lot of morons that know nothing about property valuation and management putting all their cash into real estate. NOT ONLY putting all their cash in, but overpaying for property assuming that 15% appreciation will continue forever. Not going to happen. If it did, it would be because of drastic inflation. But if inflation holds fairly steady, we won't see 100K homes selling for 500K in 10 years.

Worlds best real estate market taking into account long term return is Canada.

We are resource rich, have a low dollar, and your fucking country might try to invade us one day.

In Warren Buffet's words BUY BUY BUY

Why do you guys invest in such low density residential dwellings? These type of properties are so small that the owner cannot retain the services of a real estate manager to take care of the day-to-day management of such properties.

the cheaper the property the easier it is to flip it if does not go well and buying a "white Elephant property" for 1 mil and renting it for 100,000G a month you carry a great chance of loosing money. If you have a mortgage payment of 7K and you do not have a tenant for one month you just lost 3K on the other hand if you have a mortgage payment of $300 month and your tenant pays $800 it is a lot easier to take a $500 loss then $3k. Also it is so much easier to find someone to rent your apartment for $800 then 100, 000 even if it is 100 times better.

:2 cents: :2 cents:

This statement depends on area.. in South Florida they are expecting the population to double over the next 5 years.. now is the time to buy for the short term gains.. I just closed on one and I'll be looking at more over the next few months..

There's more to real estate that buying single occupant houses and low rise apartments. These type of investiments are time consumming for the owner and not that worth it.

real estate == location location location

You can't really speak in general market terms.

It all depends on your location.

Huh? Well I am sure there is more to it, but really I spend so little time on my rentals it is not even funny. Only real time spent is the initial refurbishing we do to the fixer uppers.

Oh and to who said about college girls above, that is all we rent to as well. No college men.

Location, location, location... Not always true. Nothing I own is in a prime location.