Ask tommy2 about Real Estate - Page 4

tommy2 · #31 06-22-2006, 12:30 AM

I'd buy. Breakeven period is usually 2-3 years, so worst case scenario you breakeven on a buy.

Hire a buyer broker (paid by the seller's broker in a commission split)--tell them up front you want to find a real good deal and want to see lots of units. A young agent will probably be more honest and more willing to shuttle you around than an older one.

Look also in the RE section of the local paper, especially on Sundays. Usually pretty good articles in there about the local market dynamics.

tommy2 · #32 06-22-2006, 12:34 AM

Google the name of the lake and something like "properties for sale". Broker names should pop up with the listings. Look for ads that make you interested and want to buy and call that agent. Alternatively, call the assesors office (where you pay your property taxes) and ask them for names of brokers for the lakefront properties. Agents are always sniffing around the tax rolls and plat maps.

tommy2 · #33 12-08-2006, 09:30 AM

As an update to the real estate discussion we had about 3 months ago...

I am now seeing clear signs in the commercial real estate market that the commercial real estate market is showing a clear divergence between A&B product (which the REITs and institutions are still overpaying for) and C&D product which is changing dramatically. The spread between contract price and closing price is growing (meaning that retrading abounds) and the appraisers/lenders have tightened up a bunch.

What does this mean? For those of you thinking of putting your money into commercial real estate (strip centers, office buildings, even 4 flats or duplexs that are for investment purposes), be aware that the market is in a state of flux right now and that sellers are starting to panic. Keep your bids low and hold firm. More to come.

Cross posted in Finance and Investing

bwana devil · #34 12-08-2006, 10:45 AM

next year i will probably sell my house and will probably have around $100k in equity in it. what is the best way to leverage this into another home so i can maximize my next purchase?

my wife and i make a modest income and dont want our mortgage payment to increase dramatically. where should this $100k be used?

z28dreams · #35 12-08-2006, 10:54 AM

Tommy,

Really glad you posted this thread. I'm currently in DC (terribly overpriced), and will probably be moving back to the Chicago area in the next 2-3 years.

Any suggestions on the best neighborhoods to look at that still aren't too overpriced? I'd obviously prefer a townhome over a condo, but I'm probably priced out.

I miss chicago!

bwana devil · #36 12-08-2006, 11:01 AM

[ QUOTE ]
There are so many other ways to get into RE than flipping. Honestly, I think this is one of the most dangerous RE plays out there. Even guys who are professional General Contractors lose more often than they win at this game. If I were just starting out, I'd go the syndication route. Get 10-20 people together who have 10-20K each and buy a small retail or light industrial building through an LLC. Keep your leverage reasonable (less than 75%) and you can make a ton of money if you are cautious and patient. Give your partners back small checks on a regular basis and maintain your integrity at all times. Others will flock to you to repeat.

[/ QUOTE ]

could you explain this a bit more? or point me in the direction where i could find out more information.

also to note, your replies are hard to follow since youre not using quotes.

jackdaniels · #37 12-08-2006, 11:16 AM

[ QUOTE ]
As an update to the real estate discussion we had about 3 months ago...

I am now seeing clear signs in the commercial real estate market that the commercial real estate market is showing a clear divergence between A&B product (which the REITs and institutions are still overpaying for) and C&D product which is changing dramatically. The spread between contract price and closing price is growing (meaning that retrading abounds) and the appraisers/lenders have tightened up a bunch.

What does this mean? For those of you thinking of putting your money into commercial real estate (strip centers, office buildings, even 4 flats or duplexs that are for investment purposes), be aware that the market is in a state of flux right now and that sellers are starting to panic. Keep your bids low and hold firm. More to come.

Cross posted in Finance and Investing

[/ QUOTE ]

Excellent follow up to your original thread!

Question: I have for a couple of years now sat on some cash waiting for "blood in the streets" with the intention of buying a few properties I have been interested in. I can either go 75% Commercial (office and retail) and 25% residential (condos in desirable locations which have taken a beating are my target) or the other way around. Any suggestions on the best split for my capital?

tommy2 · #38 12-08-2006, 09:32 PM

[ QUOTE ]
next year i will probably sell my house and will probably have around $100k in equity in it. what is the best way to leverage this into another home so i can maximize my next purchase?

my wife and i make a modest income and dont want our mortgage payment to increase dramatically. where should this $100k be used?

[/ QUOTE ]

Ever thought about buying a 4 flat (depending on where you live this might be more or less property for 100K down) and having other tenants subsidize your mortgage while you build wealth?

tommy2 · #39 12-08-2006, 09:36 PM

[ QUOTE ]
Tommy,

Really glad you posted this thread. I'm currently in DC (terribly overpriced), and will probably be moving back to the Chicago area in the next 2-3 years.

Any suggestions on the best neighborhoods to look at that still aren't too overpriced? I'd obviously prefer a townhome over a condo, but I'm probably priced out.

I miss chicago!

[/ QUOTE ]

I'm in commercial real estate, so I am not that clued in to residential stuff...but, I'd look at Logan Square as a starting point. Is it simply a case of economics? If so, there will be cheap condos all over Chicago in 2 years. Thousands of units are still coming on line into a market that is at best at equilibrium.

john voight · #40 12-08-2006, 09:43 PM

what is your advice for someone in college who wants to invest in RE once he gets out? (m taking finance and computer science in college, and will be out in 2 years. While Im in college I have no living expenses and plenty of free time.

When id' get out, id like to invest in some apartments, or flip some houses.

How would I gain experience? How would I gain capital to purchase the house/land.

Any other info I should know? I live in bay area btw. And dont plan investing in cali (in near future)