Ask tommy2 about Real Estate

[tommy2]

The posts about RE flipping lead me to believe that I might have something to offer to the forum for once.

Me: 7 years of commercial development and redevelopment experience. Have a JD & Masters in Real Estate and Urban Economics FWIW.

Fire away...

[miajag]

How is your JD helpful in your profession? Do you practice real estate law or do you just do development?

[tommy2]

It helps on two fronts: I feel very comfortable with contracts and I feel very comfortable talking to lawyers. Lawyers are great at identifying risks, but usually lousy at quantifying them. I am able to push back more readily because I know where they are coming from.

I do not practice and never have.

[Russ M.]

I keep hearing radio ads from some guy advertising free info on how to make $10k/month in real estate without any startup capital of your own. His ad doesn't sell anything up front but I'm guessing there's a $50-$100 packet o'fun waiting after the initial stuff. Can you shed any light on something like this?

[tommy2]

Not specifically, but these are clearly a scam. RE is a capital intensive business and there is no way around it. Remember, even if you believe in a project or idea you have to sell a lender on the concept too. Most people think that this is much easier than it actually is.

Yes, flipping is real and people make money on it sometimes, but generally it is in an "up" market (think buying dot com stock in 1998). Talk to those guys in a flat or down market and they are usually are busto.

RE is a lucrative business, but not a layup.

[GGrey]

My mom's trying to sell our lakefront home in a developing area in Michigan, however she believes the housing market's in a slump. Is this true? What are the timeframes for the market's fluctuations on average?

[tommy2]

Housing has cooled off as you all know. That being said, most of the cooling is on the coasts. Baby boomers are driving up desirable lakefront properties all over the Midwest, but it isn't overnight. If you need $ now, the market isn't terrible for this kind of product. Get a broker who specializes in this to run some pricing models for your mom (be careful of the hard sell by the broker, though).

RE cycles vary, but we are clearly heading into a cooling period. Interest rates should increase or stay stable for at least the next 12 months.

[GGrey]

[ QUOTE ]
Housing has cooled off as you all know. That being said, most of the cooling is on the coasts. Baby boomers are driving up desirable lakefront properties all over the Midwest, but it isn't overnight. If you need $ now, the market isn't terrible for this kind of product. Get a broker who specializes in this to run some pricing models for your mom (be careful of the hard sell by the broker, though).

RE cycles vary, but we are clearly heading into a cooling period. Interest rates should increase or stay stable for at least the next 12 months.

[/ QUOTE ]

Thanks for the response. How can she go about finding someone who specializes in lakefront properties? She's reaching the point where it's either sell ASAP or succumb to foreclosure. She's fine financially otherwise, (this may not make sense...but..) but we'd really like to liquidate the property as soon as possible. Any advice?

[Vehn]

Tommy:

I am in the process of breaking up with my gf/fiance. ~16 months ago we bought a house together, actually she bought the house, I put down $5k, its in her name though etc. I want to buy it off of her. Because of non existant credit and being unemployed for 3 years I got my father who has terrific credit to agree to cosign a mortage with me. What kind of mortage should I go for/how good can I get it with the cosigner? Where should I go?

[amplify]

What would you say are the three most important things in real estate?