Re: Real Estate!!!
Hi Flyrod,<br /><br />DO NOT waste your money on that junk they try to sell on TV. All of that information can easily be found for free online. Plus, a lot of those programs are centered on getting a rich benefactor to sponsor you. <br /><br />You really need to know what you're doing to be successful in real estate though. Donald Trump made most of his money in real estate I do believe. I am going to get into it hot and heavy within the next few years. I just bought my first house about a week ago. With what I paid for it, I could quite possibly do a few minor repairs, then turn around and make a quick $30,000 or so. Only time will tell.<br /><br />Real Estate can be a very good way to make lots of money over the long haul. The real money is not in renting houses, but in buying, fixing, and then selling them for a profit. Fixing up more expensive houses doesn't necessarily mean more money. Cheaper houses should also be easier to get financed than more expensive ones. Usually, they are smaller and the work can be completed sooner to provide for a faster turnaround. I would highly advise anyone serious about getting into this field to somehow develop an excellent relationship with banks, credit unions, and real estate agents. That is essential. <br /><br />Developing is also great, if you have the money. If I had the money or could get it, I would buy about 2.5 acres here in Knoxville for $50,000. That may seem like a lot, but this is a great location. It is right next to some new condos they've been putting up in that area. These condos are selling for, on average, $85,000 each. It is zoned so that you can put up to 24 units per acre. Do the math. That could potentially be A LOT of profit, especially if I eventually owned the construction company
. Many, many ways to get around paying huge capital gains taxes
. <br /><br />You don't really want to rent out houses. There is too little return for the investment and responsibilities. Especially if there is a mortgage owed on it. Now, if there aren't any mortgages owed then it may be ok. Preferably, you could do Owner Financing with say $5000.00 down. Then charge 10% interest on the loan. In this case, you don't actually own it so you don't have to do repairs and things of that nature. However, if they stop paying, you could foreclose and keep all that money as well as get the house back. Plus, people usually take better care of things that actually "belong" to them. Then, if you did have to foreclose, it "should" be in better shape than if it was rented. Plus you don't have to pay the property taxes nor do you have to have landlords insurance. Which means more profit. <br /><br />Apartment complexes on the other hand are nice to have. You have to know how to run them though. DO NOT become FRIENDS with your tenants. That can be a MAJOR downfall. Like Trump says, "It's nothing personal, It's just business." If you want to get started in this, I would look at somehow acquiring at least a quadriplex. With a quadriplex, you usually have a more stable cash flow than with a house. If two units were empty, you still should have enough money coming in to at least pay most or all of the mortgage payments. It would be best to save up a cash safety net for unexpected expenses, and then pay that thing off. Pay as much as you possibly can to lower that principal balance. Just remember that it will take hard work, and dedication. You also MUST have good business sense. <br /><br />Good Luck,<br /><br />James<br /><br />PS: Sorry that was so long, I just couldn't stop typing LOL
Anyway, I hope that was helpful to anyone interested in Real Estate.
