Real Estate Investing
 

Anyone else here into Real Estate investing.
I mean where you buy more than 1 other house and are actively in it?

Yes.

from what i recall in my class, at least here in michigan, you cannot sell more that 5 homes in one year without having a real estate license. the fines are a big deal. so check with your area before you get into it.

those late night commercials that tell you you can make millions.. never tell you that :)

that may be true in some areas but getting a license is trivial every other housewife in my neighborhood has one, good way to save on brokerage fees too

so a license takes 3 weeks and about $700

Plus it's 5 transactions, not 5 houses

buy a house, sell a house
that's 2 transactions.

Plus you can get in with lease optiions, pre-foreclosures
tons of ways without breaking the rules.

The late night commercials are just a tip of the whole business.

My advice to everyone, keep the easy money on the web, invest in real estate, I am not selling anything, just know that's where the money is and others do to, so meet me at internext if you ever just want to chew the fat.

i'm thinking of getting involved once i leave adult.

Is now a good time to buy or do you all think prices will start dropping?

real estate is in most cases an investment that always makes you money, if done right ofcourse

but i am not a fan of residential, i have my money in commercial properties :thumbsup

i know alot about the RE in mtl, if u need a helping hand:winkwink:

Each state has different laws. So many rules and regulations. In Florida for example first you have to pass a prelicensing coarse (80 hours i believe) and then you have to apply and get accepted into the FREC Licensing Coarse (60 hours). You need a grade of 70 & 75 to pass these tests. Just because you pass these tests doesnt mean you can start working on your own, you cant become an "active salesperson" until you start working under a broker. If you want to become a broker you need 6 months of real estate experience and another 70 hour class & test.

I dont think Florida has a 5 transaction limit. Individual property owners are free to buy, sell, exchange, or lease their own real estate. If your providing a real estate service for someone else for commission, then you need a license.

Take the class, they even offer it at some colleges, at a slower pace (instead of 8 hours a day for 7+ days at the state schools). Its pretty easy and you'll learn alot.

Yep, each state is different, each state has their own RE commission.

There are two levels of RE involvement, being an agent and/or a broker. Each carries its own advantages and abilities. Both require an education (the 60-80 hrs) and passing an exam to be licensed, which is usually renewed every 2 years.

Very profitable hobby, especially if you learned your marketing skills in the adult industry and are good with people.

my advise is to get out of resi property and get into commerical... thats what we do and we make a killing.... fuck these indivuduals and hoping they make rent.... get with something like the state... then the rent is always there

yeah, i've heard this over and over.

amen to that...a good friend of mine from school's father was into commercial real estate in the 80s...that fucker had houses ALL over Newport Beach on the water, boats, pimp rides, hot chicks, etc....thought the fucker was selling dope....

nope, was just a solid commercial RE biz :)

:thumbsup :thumbsup

Every market is different. I lost $500K once on a high end real estate deal. Markets can change quickly with the volatile economy we live in.

Timing is everything as is buying right.

my uncle's had his RE license (and maintained it) since he was 19... that's like, a long ass time ago. he's an appraiser in colorado now. he's gonna help me get in the biz and do it right. :winkwink:

If you do go residential - get your license (or partner up with someone that has theirs) and get into the knowledge circle of forclosures in your area. Map out the days on your calendar in which the county courthouses are holding their auctions. Go on a nice cold, rainy day (as most auctions are held outside on a Saturday rain or shine) when the bidding competition is weak.

I've partnered up and bought/sold 2 homes like this now. A great way to make $$$.

Good Luck,

-Kel

Actually the commercial market is getting hit hard with vacancies, they are 22% all time high out here. in early 90's they went though a really bad slump. Real estate always can slow down a little but there is way more to it than that. buy houses cheap and buy houses for the long term. Too much to actually talk about in this post.

Dirty your grandpa is doing well, but that's not normal for the average person to own government buildings and lease to the state.

I know people every few days that constantly buy $140,000 houses for $80,000. They make $50,000 in 1 week worth of work.
I can name many people doing it and they are young and old.

Do this math

5 houses $200,000 each. =$1 million
Rent them all out

I have seen a hot market out here 15% in fast growing cities
I"ll just say 7% for the example.

$1 million worth of properties appreciates making you $70,000
a year in appreciation, plus like $25,000 in write-offs, you cashflow probaby $15,000 per year with the rents, they pay down the loan some, you buy each house like $10,000 under value easy to do. You can see how just sitting on your ass you are up near $75,000 per year up to $100,000 per year.

Anyways, real estate has gone up 5% on average for over 100 years.


Go buy 5 homes near no money down or 5% on a couple
that's $1 million, rent them out.

7% appreciation per year
100% divided by 7%= about 15 years

There you go if the market even slows down a lot
you still will double the $1 million within 15 years
even if you dn't buy more. If you sit on your ass within
15 years you are going to be a millionaire.



"95% of all people that become millionaires did it from real estate"

Kel I am glad you are doing well with the foreclosures, there is actually a better way, easier and more money to be made, maybe 2-3 times more.

Your math is way off.

Ok Drew what should the math be?

Our commercial vacancy is at 20% so I am buying. Buy pessimism and sell optimism. always hard to know if you are early or not.

Exactly the right time to buy: prices and interest are both low.

Just be sure you can afford to take a loss in the short term, your goal is to get the high rent when the economy turns around.