Ask me about real estate investment?

[NoTalent]

What do you think about the Jacksonville market (ie ability to fill rentals)

[RedJoker]

[ QUOTE ]

There are thousands of investors out there buying properties without going out and getting a loan from a bank.

If you want to know how maybe you should ask?


[/ QUOTE ]

How do you buy properties without getting a loan from a bank?

What books/educational resources would you recommend for somebody starting out?

Do you look solely at positive cash flow opportunities or would you take a negative one if it meant better capital appreciation?

Do you ever sell or would you just redraw?

Do you do any renovations and, if so, what do you look for?

Thanks.

[GittyUP]

[ QUOTE ]
What do you think about the Jacksonville market (ie ability to fill rentals)

[/ QUOTE ]

I usually only do wholesale deals in jacksonville, but my investors there seem not to have a problem. Since the subprime crunch alot of people can't get loans to buy so they are forced to rent.

The key to getting a successful rental property is making sure you have a realistic expectation of the rent your going to get. Don't expect to get the upper end of rent spectrum for the area (Do a lot fo research!) Plan on the lower end and figure out your cash flow off of that. If the cash flow i s what your looking for (it doesn't always have to be positive) then the deal is a good one. Since the rent you figured is lower then avg. you should'nt have a problem filling the vacancy. Of course still and try to get max rent possible.

Another option is a lease option. Since renters can't get a mortgage hold the mortgage for them and have them pay you. If they default kick them out like rental tenants.

[billb]

What financing options do you use to purchase real estate?
How would you suggest a newbie go about financing?
Do you mainly buy and rent or buy and sell?
What cap rate do you feel is the brakeven point?

[GittyUP]

[ QUOTE ]
[ QUOTE ]

There are thousands of investors out there buying properties without going out and getting a loan from a bank.

If you want to know how maybe you should ask?


[/ QUOTE ]

How do you buy properties without getting a loan from a bank?

What books/educational resources would you recommend for somebody starting out?

Do you look solely at positive cash flow opportunities or would you take a negative one if it meant better capital appreciation?

Do you ever sell or would you just redraw?

Do you do any renovations and, if so, what do you look for?

Thanks.

[/ QUOTE ]

You don't need a loan if you use hard money. Essentially what this is a loan from a private lender at high interest rate. Say 14% and 2 points upfront. Hard money lenders will lend money with no credit checks. The catch is that they will only lend say 65% of the value of the property. These loans are short term and balloon at 1 year. Either flip the property before then or refi out into a conventional loan credit permitting. Note: beware of the possibility of not being able to flip within a year and being stuck not being able to refi with bad credit.

The next question usually is "How can I find a property for 65% of its value?" Well that is the business of a wholesaler. They find people willing to sell for 50-70% of their houses value then add a few % points profit and assign the contract to an investor. The investor can get a loan because they only need a loan for 65% of the houses actualy value. The hard money lender doesn't care about credit because he has enough room on the loan-to-value ratio for it to make sense.

As for resources to get started I would look at forums ont he internet. REIclub.com is a good one but there are many others. Go to the forums and ask questions and read. I haven't read many books because the same info is on the internet for free. I learned hands on and internet.

Getting positve cash flow is not necessary by any means. Capital build up is much more important IMO. The problem with neg. cash flow is people often don't have the resources to withstand a long period of money out of pocket. A lot of people don't understand though that having someone pay off 80% of your mortgage payments is still a great investment. Essentially your investing 20% of the property's value (one month at a time) in order to get 100% of the value. You can always pull out the equity in a few years in order to get your next deal rolling.

I rehab then flip, just flip, wholesale, rent, rehab rent, lease option. keep all options open and each property and investor has a best choice scenario.

I do renovations a lot. The key is make sure you know what your getting into when buying a rehab. frame houses in florida often have rotting problems. Roofs often have secrets underneith. Most of the other stuff is pretty obvious. i.e. bathroom fixtures, appliances, kitchen, windows, paint. Also being able to estimate actual renovation costs is key to this business!

[Actual God]

how much capital do you need to start in real estate, without risk of going busto?

[Tien]

It's not really about capital in real esate like in the stock market.


It's about your knowledge and education that effects whether or not you go busto.

It is extremely possible to make money with no money in real estate.

[Actual God]

[ QUOTE ]
It's not really about capital in real esate like in the stock market.


It's about your knowledge and education that effects whether or not you go busto.

It is extremely possible to make money with no money in real estate.

[/ QUOTE ]

don't you need like a down payment? you just borrow that too?

[GittyUP]

you need a down payment and some money to make it through the holding period until you refi into postive cash flow or you resell. Minimum 15k or so. of course this 15k could come from anyplace. a small equity loan for instance.

you can wholesale a deal off for about 1k or less of your own money. Net your self 4k-20k in 3 weeks or so

[Acein8ter]

Do you invest out of state? If so, which state looks appealing to you now? Which cities? I think that the cash flow and cap rates around Raleigh Durham / Chapel Hill area of N. Carolina looks OK.