Real estate as an investment

[thebacchus]

I haven't found a ttuly "solid" website in and of itself for Real Estate investing. I think the old adage holds true, anyone on the internet can claim to be an expert.

Mostly, I model the successes of others that have been there. Seems to be working so far. My current venture is single family HUD foreclsures, of which there are quite a few these days.

Perhaps this forum would serve us well as a new website?

 

[Mr._johngalt]

Although a fair amount of my meager pile was the
result of real estate investing, I was never involved in a big way, at least as far as my day to day activities were concerned.
I always felt comfortable with real estate, but mostly just "danced around the edges" and got lucky a few times. I thought at one time that this would be my
"part time work" after I semiretired. Didn't turn out that
way. Although I am still most interested in real estate
in all its forms, any active participation is behind me now. It's mostly an age/energy level thing. Interesting
that I feel like I built up a huge stockpile of real estate
knowledge. Probably enough for a couple of books at least. Alas, too lazy now to write them.

 

[baanista]

We have been working with someone who manages a number of rentals. What we have learned is that we have neither the people skills or the handyman skills to be effective at this. If all you can bring to the table is money, you should probably stick to REIT's.

 

[BUM]

I'm considering a "fixer-upper" deal. Buy a single family home in coastal carolina $150k or so... landscape, new kitchen, some paint, carpets. List for $225K six months later.

SOMEBODY talk me out of it!

BUM

 

[JWR1945]

Here are two points to talk you out of it.

Can you fix it up and sell it before hurricane season?

Fixer-uppers can be profitable, but not if you sell them as fixer-uppers.

I have known several people who have overestimated their willingness to finish the job. They got exhausted about a third of the way through. Don't buy something challenging. Buy something very simple. It will turn out to be as much as you can handle.

Have fun.

John R.

 

[wabmester]

My rule of thumb is to buy properties where most of the value is in the land rather than in the house, and that's generally the case with anything "coastal". The other nice thing about costal land is supply and demand. I've never seen the supply go up or the demand go down.

As far as fixers go, my only caveat would be to watch out for water damage. It's amazing how pervasive water damage can be. Inevitably, it'll have destroyed something structural. And if you thought building a house from scratch was hard, try replacing structural members while the structure is already in place.

 

[John Galt]

I have owned all kinds of real estate in four different states. Through good luck (or maybe I made my own luck), in recent years it has been mostly waterfront
or at least water view. We currently own our main home
on a big river in Illinois, a condo we just bought in Texas
which is a chip shot from the largest lake in the state,
and the "Ranch", also in Texas and close to the same lake. No water on that property unless you count the 2 stock ponds
which are real pretty except in dry seasons. This stuff is about 50% of my net worth and currently has a negative
cash flow. However, it is all well located and "bought right" so I am quite comfortable with it. Can see why
others might not be however.

John Galt

 

[John Galt]

This happened yesterday. I noticed that one of the
neighbors has put their place up for sale, so I stopped and picked up an info sheet from the little box attached
to the "FOR SALE" sign. 200 feet of river frontage
and 2 cottages (smaller but nice) for $129,900!!!!!!!!!!!
When I got home and showed my wife, she says
"Let's buy it, that's the deal of the century!" Well, I agree it's the deal of the century, or something close.
However (A) I am "land poor" at the moment (B)
I am trying to simplify my life and (C) No matter how you
slice it this looks like work to me. Ten years ago
the sellers would have had my offer by now. Five
years ago I would have been crunching numbers
furiously. Now, I will happily let someone else buy it.

John Galt

 

[cute fuzzy bunny]

On the other hand, what you've been doing so far has been working for you...so why change now

Place needs work? Find a nice couple that you can let live in the property rent free in exchange for a maintenance and repair schedule. Hire a management company to rent it out.

Just buy it, tweak it a little, raise the sales price to make a small profit and wait for the sale.

 

[John Galt]

Hello Cut-throat! I owned a bunch of land here in
Illinois. We only used it for hunting and I don't hunt any more. I sold it all over the past 2 years and moved all
the money into Texas real estate, which entails more
bother and more expense. However, I think it will work out just
fine. Stay tuned for periodic updates.

John Galt

 

[honobob]

I sold it all over the past 2 years and moved all
the money into Texas real estate, which entails more
bother and more expense. However, I think it will work out just
fine. Stay tuned for periodic updates.
John Galt

John
Sounds like you made the right move when everybody else was zagging. Seems like Texas real estate has been achieving a steady double digit appreciation and has kept that up through the "bubble". Would love to hear an update.

 

[cute fuzzy bunny]

That'd be tough since the guy hasnt posted here in about 3 years.

Nothing else to do with your day, I take it?

I can help you with the end result though. [moderator edit]

I guess that real estate ownership thing isnt all its cracked up to be.

 

[Rich_by_the_Bay]

John
Sounds like you made the right move when everybody else was zagging. Seems like Texas real estate has been achieving a steady double digit appreciation and has kept that up through the "bubble". Would love to hear an update.

So, you are replying to a post that's over 4 years old?! Slow day?

 

[honobob]

That'd be tough since the guy hasnt posted here in about 3 years.

Nothing else to do with your day, I take it?

[moderator edit]

I guess that real estate ownership thing isnt all its cracked up to be.

Well obviously more time than someone keeping up to the minute dossiers on posters 3 years long gone.

Well Eagle Eye, you do make a strong argument for keeping the mortgage. They would have required flood insurance. And don't fault the plan or product when the only problem was implementation. Are you sure your intel is correct? I'd like to think even Wab/Twaddle is lurking still looking for tips to 50% off beach front property.

 

[cute fuzzy bunny]

Well obviously more time than someone keeping up to the minute dossiers on posters 3 years long gone.

Yeah, but that infos a year old and I only knew about it because they interviewed him on the news.

G'bye Bo[-]o[/-]b

 

[honobob]

Stay tuned for periodic updates.

John Galt

Maybe people with patients can be more patient. I wanted my periodic update now! Galt Gone? Who knew?

 

[calmloki]

On the other hand, what you've been doing so far has been working for you...so why change now

Place needs work? Find a nice couple that you can let live in the property rent free in exchange for a maintenance and repair schedule. Hire a management company to rent it out.

Just buy it, tweak it a little, raise the sales price to make a small profit and wait for the sale.

In keeping with the conversation over time theme: Rentals! that's the ticket for BIG MONEY! Why, here's a nice Houston unit one could probably get for not too much - just back up the truck and invest!

How can anyone live like this? (pics)

 

[honobob]

How can anyone live like this? (pics)

OK let's get this thread legal. Is that bacon on the floor?

 

[cute fuzzy bunny]

Only one part of the pig that you're due, and its not bacon. PM me if you'd like a picture.

 

[honobob]

Did anybody hear an "oink"?

 

[cute fuzzy bunny]

Hmm...Lower.

 

[honobob]

Yeah, but that infos a year old and I only knew about it because they interviewed him on the news.

G'bye Bo[-]o[/-]b

And yet it was edited and the reason was "not public info". What radio are you listening to? The shortwave from the mother country?

We must both be boobs then. Don't we make quite a pair?