Re: thinking of buying some foreclosed properties
 

Great response spex!

SF [img]/images/graemlins/cool.gif[/img]

Re: thinking of buying some foreclosed properties
 

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Another thing - it seems to me like you're buying primarily for appreciation. That is not the best way to invest in RE.

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So what is the best way to invest in RE?

Re: thinking of buying some foreclosed properties
 

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Another thing - it seems to me like you're buying primarily for appreciation. That is not the best way to invest in RE.

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So what is the best way to invest in RE?

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There are three ways that work good. First, you can buy properties for cash flow (become a landlord). Second, you can buy properties for less than market value and then sell them at market value. Third, you can 'force' appreciation by buying distressed properties and improving them. A variant to the third option is to buy properties that have 'higer and better' uses or where profitable zoning changes can be made.

Usually you have to do some combination of the three in any one good deal.

Re: thinking of buying some foreclosed properties
 

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Usually you have to do some combination of the three in any one good deal.

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Yeah, that's what I thought was included in the "appreciation" comment. You buy a property you can make money on while it appreciates. Buying it so it can sit and not collect money while it appreciates is ridiculous.

OOC, which facet of RE do you prefer or have the most experience in? (I understand if you don't want to answer).

Re: thinking of buying some foreclosed properties
 

After reading every post in this thread that basically is negative on your idea I can say you can probably do some buying. Although sentiment on this forum hardly has any scientific basis, aren't inflection points reached when the market sentiment is very, very much one sided? Why not make some bids at low prices and see what you can come up with?

Re: thinking of buying some foreclosed properties
 

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You buy a property you can make money on while it appreciates.

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No, not exactly. Income properties only appreciate in as much as the income produced by them increases. Income properties are evaluated in terms of income. There isn't any other way to value them.

Obviously you want your properties to increase in value. But contrary to popular belief, RE DOES NOT always increase in value. Sometimes values stay flat for long periods. Sometimes they decline in value. Since that is the fact of RE investing, the best thing to do is figure out ways OTHER than appreciation to make money in RE.

You get the best prices on income properties by buying distressed properties from distressed sellers. That's what I mean by a combination of all three: you've got to find a property that has the potential to offer you significant cash flow, fix that property, rent the property. The best situation is to find a seller that is way more distressed than the property that he desperately needs to dump. That situation is rare.

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OOC, which facet of RE do you prefer or have the most experience in? (I understand if you don't want to answer).

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I've done all of them. I prefer to be a landlord because, IMO, that is the least amount of work. I decided a while back to only buy mobile home parks and get rid of everything else. But I keep getting distracted by lots of great apartment complexes, etc. that have come available. There is nothing wrong with the other methods, they're just not for me.

Re: thinking of buying some foreclosed properties
 

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After reading every post in this thread that basically is negative on your idea I can say you can probably do some buying.

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I disagree. OP is not nearly ready to buy anything. Learn then buy. "Ready, Fire, Aim" sounds like a bad approach to me.

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aren't inflection points reached when the market sentiment is very, very much one sided?

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Don't get me wrong. I'm a huge advocate of buying RE right now. Now IS the time to buy. Now IS NOT the time for the OP to buy. That's because he doesn't know what he is buying and why. 'Investing' with No plan, no knowledge, and no understanding......hhhhmmmmmmm.......I'd rather play craps.

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Why not make some bids at low prices and see what you can come up with?

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OP - you're not ready yet. Learn first then buy.

Re: thinking of buying some foreclosed properties
 

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After reading every post in this thread that basically is negative on your idea I can say you can probably do some buying. Although sentiment on this forum hardly has any scientific basis, aren't inflection points reached when the market sentiment is very, very much one sided? Why not make some bids at low prices and see what you can come up with?

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Market sentiment is most certainly not one-sided yet, if you include the existing homeowners.

Re: thinking of buying some foreclosed properties
 

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After reading every post in this thread that basically is negative on your idea I can say you can probably do some buying.

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I disagree. OP is not nearly ready to buy anything. Learn then buy. "Ready, Fire, Aim" sounds like a bad approach to me.

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You can tell all that from the 4 or 5 sentences that he's posted in this thread? I give him the benefit of the doubt that he actually has knowledge. Don't know why I shouldn't.

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aren't inflection points reached when the market sentiment is very, very much one sided?

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Don't get me wrong. I'm a huge advocate of buying RE right now. Now IS the time to buy. Now IS NOT the time for the OP to buy. That's because he doesn't know what he is buying and why. 'Investing' with No plan, no knowledge, and no understanding......hhhhmmmmmmm.......I'd rather play craps.

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Again I don't know how you can have that much insight into OPs knowledge or plans.

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Why not make some bids at low prices and see what you can come up with?

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OP - you're not ready yet. Learn first then buy.

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What specifically has he stated that you can draw this conclusion from?

Re: thinking of buying some foreclosed properties
 

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After reading every post in this thread that basically is negative on your idea I can say you can probably do some buying. Although sentiment on this forum hardly has any scientific basis, aren't inflection points reached when the market sentiment is very, very much one sided? Why not make some bids at low prices and see what you can come up with?

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Market sentiment is most certainly not one-sided yet, if you include the existing homeowners.

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???? Don't understand this. Are you saying that every home owner should want to dump their homes before it's decidedly one sided?