Real Estate People

[lostinfitness]

I have been in the R/E and banking industry for 5 years. I got here a little before the Refi boom and still here afterwards. I can say from experience that without complete dedication, you will just spin your wheels for however long a term you decide to pursue this. You work out and get big, being in real estate goes by the same principles. You need to follow some very important steps, some of which are:

1. Hand out your card and smile at everyone you have a somewhat intelligent conversation with.

2. Advertise, it doesn't matter if it is a major advertisement. You will get people that talk to you based on where you advertise.

3. Cold call, even if you don't like it...it will give you your bread and butter.

4. Network, look into starting a networking group. Groups like this are called...LeTip, Rainmakers and there are other groups out there. Look for CPA's and financial planners, they will be looking for tax deferred investments for their clients.

5. Be organized. Organization is the key to success. Without a well formulated plan and action, it is hard to succeed.

6. Be a slave to working, if you don't in the beginning you will not become successful.


I hope this has helped, I am sorry for my short response earlier in the thread. I was trying to discourage you from getting into such a declining market. If you need any help feel free to email me at [email protected].

Good Luck

Lost

 

[alex2678]

Some great advice up there Lost. Very much appreciated. Especially number 4. I'm going to look into those this week.

The cold calling I always assumed was a waste but I think you're about the fifth person this week to mention it as a positive thing. I'm going to start this as soon as I can. A couple of the agents started off picking a neighborhood, going down the list of phone numbers and just asking them if they plan on selling their home sometime in the near future or if they knew someone who was looking to sell. There's one guy who use to do this all day long until he got a lead or a listing. Today he does nothing but work with referrals and he's got about 5 houses listed for this month. Doesn't really sound like it works but I believe anyone who's been in the business moreso than myself. Will give that a try as well.

Just showed a house this evening as a matter of fact. They didn't like it as much but I'm forwarding them some more houses in the area tomorrow morning. And they still have to sell their house so I'll be listing that when they find something they want to buy. Hopefully it'll be a nice smooth transaction. I've heard some horror stories but I guess that's expected in any business.

 

[perp69]

My personal opinion is that you will make more money doing investing than being an agent plus you get to keep part to all of the commission depending on your arrangement with your broker (I keep 90% on my investments and 100% on personal properties to give you an idea). I got my license for the sole purpose of having access to the MLS to locate properties. Representing people is very time consuming and my time is much better spent buying and flipping or renting.

You can make money in just about any real estate environment because you make money when you buy not when you sell. With the slump right now you can purchase cheaper and get better terms.

No matter what type of investing you do it real comes down to simple math----projected income minus projected expenses. Only mistakes you can really make are underestimating expenses or overestimating income. You will get better at both as time goes on so give yourself more room for error in the begining.

First recommendation would be see if you can work with another investor to get the hang of it, something like an intership. Second would be get a book geared toward what you are interested in doing like flipping or renting, etc. A good resource is www.mrlandlord.com, which has a good list of books and other info.

Perp

 

[alex2678]

Thank Perp for that link. Lots of useful info on there I'll be looking at. Investing and buying is something I'm really interested in doing. There was a property around here that just sold for 134 K. An investor bought it the third day it went on the market and I'm sure he'll get a good return.

Just listed my first condo today. 193,900. Most of the condos in that complex go pretty fast so I'm hoping I can make my first sale soon.

Have 6 people signed for a three month buyer brokerage as of today. One of them has a house he wants to list next month when he narrows down his search for a house.

Investing well or becoming a really good listing agent seems to be a lot more productive than working with buyers. The gas I'm spending running these people around is a bit much.

Thanks again for the replys. Very much appreciated and helpful. I'll post up when I decide to start buying and selling. Some homework on the subject will be required first I'm sure.

 

[BonerBoy]

Condos are good if you can get in on the ground floor. Like get yourself and a bunch of your family members on the waiting list and accumulate like 6-8 of them. Once the building is open you're almost guaranteed a good appreciation, and you have the option to rent the units out and accumulate more wealth or just take your profit and sell.

 

[bran987]

Condos are good if you can get in on the ground floor. Like get yourself and a bunch of your family members on the waiting list and accumulate like 6-8 of them. Once the building is open you're almost guaranteed a good appreciation, and you have the option to rent the units out and accumulate more wealth or just take your profit and sell.

no bonerboy. no.

 

[alex2678]

Are multi family's a good investment? This one girl in our office owns 3 so I got curious as to the risks and benefits.

I went in this afternoon and got 3 floor calls. One wants to buy a really banged up house tomorrow in cash. The other wants a condo within the month and her sister wants a house. The third is a guy who's looking for a house for his parents and he's wants one with his wife in the same town.

Hope these all come through but I've heard some horror stories.

 

[bogazo]

do not get discouraged when almost every lead goes to shit,or prior to closing your buyer fucks there credit and the bank requires more down that they dont have...etc.....do everything by the book...no matter how worthless it may be...just keep at it...real estate suxs...pays great if you bust your ass....but it will make you a very bitter person..notice the increase in time you say "this is fuckin bullshit" a day...lololol..good luck!

 

[GatsbyGirl]

Multis are a GREAT investment. With a single family if a tenant moves out you have 100% vacancy; with a 4-plex if a tenant moves out you have 25% vacancy.

I'm a mortgage broker and investor and I make money in any market because I work exclusively with investors and buy according to a formula. In booming times I don't buy a lot but I buy right and in times like these I make 6-7 offers a week.

As a broker (mortgage or RE) you can produce monthly income by working with a small group of serious investors. You get them by bringing them undervalued props that are usually REO's or pocket listings and by making sure they have financing lined up.

My buy formula is:

Assessed value - repairs needed * .75 = my MAX offer
I use 100% financing, roll in closing costs, make the epairs, rent out the units and then do a cash out refi against current value to 80% to recoup my $$.

Last prop I bought I closed on a duplex two weeks ago.

Bought for $132K
Assessed at $196K
Repairs = $7000
Each side ALREADY leased for a Dec 1 move in at $700 per side. When the smoke clears I'll pull out $20K in cash, have $44K in equity and cash flow $300/month.

Don't listen to the geeks that say it can't be done or how hard it is....whiners. Just do it. It's a hell of a lot harder to get to 15% BF than it is to make a living in real estate.

 

[T-Matt]

Multis are a GREAT investment. With a single family if a tenant moves out you have 100% vacancy; with a 4-plex if a tenant moves out you have 25% vacancy.

I'm a mortgage broker and investor and I make money in any market because I work exclusively with investors and buy according to a formula. In booming times I don't buy a lot but I buy right and in times like these I make 6-7 offers a week.

As a broker (mortgage or RE) you can produce monthly income by working with a small group of serious investors. You get them by bringing them undervalued props that are usually REO's or pocket listings and by making sure they have financing lined up.

My buy formula is:

Assessed value - repairs needed * .75 = my MAX offer
I use 100% financing, roll in closing costs, make the epairs, rent out the units and then do a cash out refi against current value to 80% to recoup my $$.

Last prop I bought I closed on a duplex two weeks ago.

Bought for $132K
Assessed at $196K
Repairs = $7000
Each side ALREADY leased for a Dec 1 move in at $700 per side. When the smoke clears I'll pull out $20K in cash, have $44K in equity and cash flow $300/month.

Don't listen to the geeks that say it can't be done or how hard it is....whiners. Just do it. It's a hell of a lot harder to get to 15% BF than it is to make a living in real estate.

Lol.. i love your style.. You're right in a lot of ways though.. All everyone needs to worry about is that monthly cash flow.. When buying or suggesting to buy real estate the only thing that I consider is cash flow.. that's really all that matters... It's all a business.. everything youd o is a business.. cash in minus cash out each month equals what you made. The great thing is is that it's all tax free if youdo it all right. you'd be amazed how quickly you can get rich when you don't have to pay taxes..