Q. I have friends that tell me that they are making a lot of money by using leverage in real estate.
They say that it magnifies their profits while reducing their risks.
What are the drawbacks of using debt to invest in rental properties?
They say that it magnifies their profits while reducing their risks.
What are the drawbacks of using debt to invest in rental properties?
A. Declining real estate values. Tenants who don't pay.
What are some alternative ways to finance a 2nd rental property?
Q. Here is the situation. I have one rental property that is a triplex through a land contract in Columbus Ohio. I have had this property for about 6 months now. I am still learning the business of being a landlord so any advice is greatly appreciated. I am wanting to purchase another property but I don't have enough cash for a down payment on a loan through a bank. What are some options to purchase another property?
A. Oh my brother I have the same problem I find great deals all the time that will cash flow even if I borrowed 100% of the money but no one wants to lend.
Really, your only options are:
1) friends/family loans
2) bring on outside investors
3) hard money lenders
4) real estate investment clubs
2-4 can be found by google searches.
Good luck, I wish it were easier. I really hate lenders. They're the worst part of the work needed to invest.
Really, your only options are:
1) friends/family loans
2) bring on outside investors
3) hard money lenders
4) real estate investment clubs
2-4 can be found by google searches.
Good luck, I wish it were easier. I really hate lenders. They're the worst part of the work needed to invest.
I am 19 years old, Im want to start investing. What would be best?
Q. I would like to invest in something like rental properties or storage units, but i think the storage units would cost a little too much to do. But are there any ideas that are similar? I didn't really want to be in the market, with it being so unstable.
A. I would just assume invest in the market, but then again it's your money.
I assume you want something with decent returns. While starting up a business seems lucrative, the property/real estate game probably isn't the best game to get into as of now and try to turn a profit. However, if you are looking for a long run plan, you might consider a real-estate route simply because of the low prices that you can find.
With that said, how much money do you have? If you have a small amount (below lets say $50,000) you might consider investing in some of your own human capital. By that, I mean college. While college isn't a necessity it sounds like you might really enjoy starting your own business one day. With the proper education you'll be a step ahead, all the while waiting out the economic storm.
While there is no bad move here, you've already shown that you have a good head on your shoulders by wanting to invest rather than squander. All I can really suggest is do something that you're passionate about with your money. If you don't like the stock market, don't let others pressure you into doing it.
If you like real estate try and get some advice from a local agent as to what is "booming" in your area. Just don't get too upset when you don't turn an immediate profit. Rome wasn't built in a day and neither will your wealth.
The best of luck to you!
I assume you want something with decent returns. While starting up a business seems lucrative, the property/real estate game probably isn't the best game to get into as of now and try to turn a profit. However, if you are looking for a long run plan, you might consider a real-estate route simply because of the low prices that you can find.
With that said, how much money do you have? If you have a small amount (below lets say $50,000) you might consider investing in some of your own human capital. By that, I mean college. While college isn't a necessity it sounds like you might really enjoy starting your own business one day. With the proper education you'll be a step ahead, all the while waiting out the economic storm.
While there is no bad move here, you've already shown that you have a good head on your shoulders by wanting to invest rather than squander. All I can really suggest is do something that you're passionate about with your money. If you don't like the stock market, don't let others pressure you into doing it.
If you like real estate try and get some advice from a local agent as to what is "booming" in your area. Just don't get too upset when you don't turn an immediate profit. Rome wasn't built in a day and neither will your wealth.
The best of luck to you!
Is it possible to acquire rental property without much of your own money?
Q. Hi,
I don't have a lot of cash in the bank, but I have good credit. Is it possible to acquire rental property such as apartment buildings, duplexs, ect? If so, how?
I don't have a lot of cash in the bank, but I have good credit. Is it possible to acquire rental property such as apartment buildings, duplexs, ect? If so, how?
A. Great question! Not only is it possible, that is the only way that I invest. I am a full time property investor, I do not flip houses, I invest for cash flow and long term equity. I usually buy property with 10% down, but I ALWAYS try to do it with 0% down first. For some reason, people in this forum like to put forth the proposition that 0% down investing either doesn't exist or is a scam. I will give you an example of a contract that I wrote TODAY for a piece of property in Houston, TX. This property in not expensive, or big, but in very good condition. It is a 3/2, about 1200 sq ft, and the price that the seller is asking is only $64,500. Zillow estimates that is it worth $84k and I believe that I can get $750/month in rent. So I make a full price offer to the seller, I assure them that I am pre-approved for my loan and give them a recent letter from my lender to prove it. I then tell them that I will need them to carry 10% of the loan, or maybe I will tell them I want them to carry 20% and then settle for 15% in negotiation. I then ask for them to contribute $1k towards closing costs in exchange for me overlooking the minor repairs that I have noticed the house needs. At the end of the day I will spend somewhere between $3k and $6k for an asset that after PITI (principle, interest, taxes, insurance) will put about $150/month of free cash flow in my pocket. After I deduct the interest and depreciate every last thing in the house I will realize about twice that in actual gains. So yeah, you can acquire property with nothing or little down. And don't let anyone tell you otherwise. When someone tells me "you can't do that!" (and it happen often) I say, maybe YOU can't, but I can.
You are asking the right questions, and that means that you have the guts to succeed in this business, if you need any direct advice at all, about anything, do not hesitate to email me. I will respond personally. Alqprop@gmail.com.
If you want a head start, go buy two books: Real Estate Riches, by Dolf de Roos. And Rich Dad, Poor Dad, by Robert Kiyosaki.
Good Luck!
C
You are asking the right questions, and that means that you have the guts to succeed in this business, if you need any direct advice at all, about anything, do not hesitate to email me. I will respond personally. Alqprop@gmail.com.
If you want a head start, go buy two books: Real Estate Riches, by Dolf de Roos. And Rich Dad, Poor Dad, by Robert Kiyosaki.
Good Luck!
C
Powered by Yahoo! Answers
No comments:
Post a Comment