Real Estate Investing
10-27-2012, 03:58 AM
#41
Gets Weekends Off
Joined APC: Mar 2007
Position: standing-by
Posts: 287
One has to ask, why would a seller in their right mind, agree to carry loan for a buyer & seller financing?? If someone can sell & get all the money today, why would he wait 5, 10, 15, 20 or 30 yrs for the money???
ONLY BECAUSE HE CAN'T SELL THAT PROPERTY IN THE OPEN MARKET TODAY, either because of financing or price or the condition/location of the property itself......
ONLY BECAUSE HE CAN'T SELL THAT PROPERTY IN THE OPEN MARKET TODAY, either because of financing or price or the condition/location of the property itself......
It's good to be the bank, just ask the too big to fail who were and continue to be the beneficiaries of our taxpayer dollars in an ongoing wealth transfer from us to them- QE 4 anyone?
10-27-2012, 04:06 AM
#42
Gets Weekends Off
Joined APC: Mar 2007
Position: standing-by
Posts: 287
Other real estate advantages - as the purchasing power of the dollar continues to diminish, real estate investors own a "hard" asset instead of a bunch of paper. And we've enjoyed the tax benefits. FYI - I buy and hold.
As to the negatives - dealing with people. Always good to do a thorough back ground check. I look in good school districts, but others do not. Make sure you have a good handyman, or be able to do the work yourself. Try to have good cash flow - because I've found it seems to go right back into the property. If you have a good tenant try and keep them long term cause turning a house is expensive and time-consuming. Know that you'll have to deal with people leaving the house a wreck. I never have had to file a law suit until dealing with tenants.
I'd try one and see what you think- conventional wisdom says the housing market is "bottoming" - I guess time will tell. But if that's the case, you can always sell in a few years if you find real estate is not to your liking. Or perhaps try flipping one.
As to the negatives - dealing with people. Always good to do a thorough back ground check. I look in good school districts, but others do not. Make sure you have a good handyman, or be able to do the work yourself. Try to have good cash flow - because I've found it seems to go right back into the property. If you have a good tenant try and keep them long term cause turning a house is expensive and time-consuming. Know that you'll have to deal with people leaving the house a wreck. I never have had to file a law suit until dealing with tenants.
I'd try one and see what you think- conventional wisdom says the housing market is "bottoming" - I guess time will tell. But if that's the case, you can always sell in a few years if you find real estate is not to your liking. Or perhaps try flipping one.
10-27-2012, 05:09 AM
#43
Banned
Joined APC: Jan 2008
Position: Pilot
Posts: 2,625
I'd find a real estate investing club near your area and start attending meetings for networking purposes. There is private money out there. Plus if you buy it to live in for yourself for a while, you don't need a huge down payment. Also owner financing perhaps.
I was raised by very money-conservative parents. So for years I had an "I can't afford it" mentality. A quote from a popular book put it succinctly "poor dad said I can't afford it, rich dad said how can I afford it? Having said that, make sure your comfort level is such that you can still sleep at night.
I was raised by very money-conservative parents. So for years I had an "I can't afford it" mentality. A quote from a popular book put it succinctly "poor dad said I can't afford it, rich dad said how can I afford it? Having said that, make sure your comfort level is such that you can still sleep at night.
10-27-2012, 06:43 AM
#44
Gets Weekends Off
Joined APC: Mar 2007
Position: standing-by
Posts: 287
No doubt he's highly controversial, and I take advice from anyone with a grain of salt. Does it make the quote less relevant? After all we're conditioned to say I can't afford it as a rationalization - but I've found if it's important enough people find a way. The quote is just a realization of that fact.
10-27-2012, 11:53 AM
#45
Line Holder
Joined APC: Mar 2005
Position: 91K
Posts: 76
I try to take "investing" advise with a grain of salt. Most of the books I've read have good and bad advise. That being said, real estate has been fantastic! I have my properties managed which is more expensive (7-8%) but makes it way less stressful while on the road. I also try to limit myself to two motgages at a time (currently sitting on three).
10-28-2012, 10:20 AM
#46
Self Employed.
Joined APC: May 2005
Position: Corporate Pilot
Posts: 7,119
Invest in what you know
Warren Buffett said to "invest in what you know".
Most of us do not know a lot about stocks however we all have experience with housing. I never buy anything that I would not want to live in.
Stock value lies in the hands of management. If they blow it there is nothing you can do to redeem your investment however if you invest in real estate you can always mow the lawn and administer repairs that have an effect on value.
When a stock tanks you are left with a worthless piece of paper. If a house tanks in value you are still left with at least place to live and eventually the home value will come back (in most cases). When a company goes under it is gone forever.
We all have a basic understanding of the housing market. There are a lot of books out there on real estate. I would read them all if you could even the bad ones have something of value.
Skyhigh
Most of us do not know a lot about stocks however we all have experience with housing. I never buy anything that I would not want to live in.
Stock value lies in the hands of management. If they blow it there is nothing you can do to redeem your investment however if you invest in real estate you can always mow the lawn and administer repairs that have an effect on value.
When a stock tanks you are left with a worthless piece of paper. If a house tanks in value you are still left with at least place to live and eventually the home value will come back (in most cases). When a company goes under it is gone forever.
We all have a basic understanding of the housing market. There are a lot of books out there on real estate. I would read them all if you could even the bad ones have something of value.
Skyhigh
01-19-2013, 10:19 AM
#47
On Reserve
Joined APC: Jan 2013
Position: B-747-400/-8
Posts: 24
His books do not have any details on how to achieve success, but if you take away the idea that you will do better working for yourself instead of making money for someone else. After being furloughed 5 times in my flying career, I have appreciated having the rental income, which I put back into purchasing more properties.
09-28-2013, 04:56 PM
#50
New Hire
Joined APC: Aug 2013
Position: B737 CA
Posts: 4
We have 8 properties with 11 units. 3 we own free and clear. Tax benefits have been great for us. Bad renters can be a pain and make you want to sell them all. The best thing we did was hire a manager to take the calls, deal with problems and advertise and rent the units. The properties are out of town so dealing with issues long distance was very trying. Overall, the rentals have been a great experience and are helping to pay for our kids college and then will supplement our retirement.
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