Latest Updates: Real Estate Investing RSS

  • 3:34 pm on July 24, 2009 Permalink
    Tags: Real Estate Investing

    How to successfully flip properties in a downturn? - Mark Y.:

    I'm in the market some say is the worst in the nation, Michigan. So far I'm on track to well surpass any other years in income from real estate investing. This is mainly coming from flipping.

    The margins are tighter, no doubt about it. However, the same basic principals apply: buy low, invest wisely in improvements, and sell for market price. That can be done in any market. But it takes a keen sense of market knowledge and having the right contractors on your team to make it work in a market such as this.

     

  • 3:30 pm on July 24, 2009 Permalink
    Tags: Real Estate Investing

    Success Factors For Investing In Property - Paul B.:

    Some factors are out of your control, such as
    -interest rates
    -changes in laws (e.g. Tax law of 1986)
    -acts of God

    Other factors that can influence your success can be learned, like
    -how to do comps
    -know how and what improvements to make
    -how to find bargains
    -property management skills
    -what strategy you use in your area

    So whether or not it is a good time to sell will depend some on luck, but a lot on skills you can develop.

     

  • 3:26 pm on July 24, 2009 Permalink
    Tags: Real Estate Investing

    Houses vs Commercial Properties for Rental Income vs Capital Gains? - Trace Trajano:

    Don't buy houses and keep them. You've heard me right. Houses are not the way to go as far as generating cashflow, or cash that comes month in and month out whether or not you do some work for that month. Houses are good to sell - houses are capital gains play not cashflow plays. That is I've made money when I buy a house at a low price and then I sell it at a higher price.

    I've bought houses but the cashflow isn't there. I've found that the real passive income comes from commercial properties - apartment buildings, retail mall, office buildings, mobile home parks, assisted living facility, etc.

    However, nationwidepi says in a subsequent post:

    While I agree that commercial is where the big fish swim and eat, and the profits have several more zeros behind them, this sounds more like a plug than anything.
    Beginning investors don't usually jump in to large commercial deals and have success at them. This terrain is also where fish get fried!

     

  • 3:21 pm on July 24, 2009 Permalink
    Tags: Real Estate Investing

    There is no such thing as a bad or good time to flip or sell properties - J S.:

    For those people who think now is a bad time to be flipping and/or selling, you shouldn't be speaking so broadly ... it may be true in your market, but it's not true in every market. In fact, it's probably not true in your market either, if you know what you're doing.

    I'm having no trouble flipping houses in this market. I'm averaging 1-2 per month, my typical DOM is under 30 days, my average profit is about $27K, and there is no shortage of buyers for my properties.

    The key is doing your research. In my area, houses that meet very specific criteria (and also meet the criteria of the available buyers) sell very quickly. If you're buying based on that criteria, you should have no problem selling.

    Just because everyone is saying that now is a horrible time to be flipping, don't assume it's true.

    Note: DOM means Days on Market.

     

  • 3:12 pm on July 24, 2009 Permalink
    Tags: Real Estate Investing

    Making Mistakes When Investing In Property - Travis S.:

    It's better to make mistakes than to do nothing. Ready....... Fire....... Aim. Mistakes are our greatest teacher. You are doing the right thing by asking questions. Take actions and make adjustments. You can't really fail as long as you learn and apply knowledge.

     

  • 3:00 pm on July 24, 2009 Permalink
    Tags: Real Estate Investing

    BiggerPockets Success Story: Two Real Estate Short Sale Flip Deals, Three Months, $50k in profits - Great interview with two successful real estate investing forum members:

    Nick: Since joining BiggerPockets.com only a few months ago I’ve been able to network with some of the greatest minds that are currently investing in Real Estate. I can say that my business has actually made $25,000 dollars so far, since I’ve joined BiggerPockets, thanks to the networking opportunities that are available here.

    Justin: Before joining BP I struggled for months to complete my first real estate (deals). I thought I did not have what it takes to be successful in this business. By joining BP I found a true real estate mentor who helped me close two deals in 3 months and profit $25,000. I am your proven success story that this site can jump start your real estate career.