Who's investing? Where? And what strategy??

[linny 0]

Hey y'all... long time no post!

So, I've gone and started educating myself in the lucrative, yet risky (when you don't know what you're doing), affairs of investing in real estate. I'm being mentored in quite a few different strategies, with the intent to be flexible in the various markets I'm currently analyzing.

I'd just love to hear others' experiences with strategies such as wholesaling, short sales, subject-to purchases, foreclosures and pre-foreclosures, or any others you're playing with, or have played with in the past.

I realize our market is slowing down, and that is exactly why I'm choosing to get educated right now. I like buying things when they're on sale, don't you?

Thanks!
Lindsay

[Hausse 0]

I invest in options on Idexes and companys.

You are right that the real estate market is perfect to invest now if you don't need to get a big morgage on it. Just make sure that it gives you a positive cash flow right from the beginning and don't just hope on gain in value.

[JohnMitchell 14]

We have about half of our money invested overseas in an international fund. The way the dollar is falling I make $ that way alone.

[airtwardo 6]

Quote

I invest in options on Indexes and companies.

You are right that the real estate market is perfect to invest now if you don't need to get a big mortgage on it. Just make sure that it gives you a positive cash flow right from the beginning and don't just hope on gain in value.

That's pretty much a regional call...investing in real estate may not be the best option at this time in many markets nationwide.

Yes prices are falling and the interest rate is attractive, but that trend is only beginning, the foreclosure rate is at an all time high in several major markets on both coasts and the northern Midwest...and trust me, you ain't seen nothin' yet!

New homes, though slowing, are also being built at record rate, in the next year or so you will see a major glut on the real estate market driving prices down even further.

The air is finally coming out of the bubble in a lot of areas, again that is a trend that is expected to continue for a while, it's highly possible to go way upsidedown investing right now.

Remember that a positive cash flow of at least 5% of the yearly mortgage is usually required to break even...on the other hand you do get the accumulated value assuming the market you invest in is steady or climbing.

~ If you choke a Smurf, what color does it turn? ~

[nathaniel 0]

Quote

I'd just love to hear others' experiences with strategies such as wholesaling, short sales, subject-to purchases, foreclosures and pre-foreclosures, or any others you're playing with, or have played with in the past.

That sounds a lot more like speculating, not investing per se.

My advice is to do what your parents did; get a job, sir. The bums will always lose. Do you hear me, Lebowski?

[marks 0]

gold.

and copper.

[Hausse 0]

It's too late for gold. At a price of more than 800 there just isn't much room upwards.

[airtwardo 6]

Quote

It's too late for gold. At a price of more than 800 there just isn't much room upwards.

That's why I'm opting for 'Wax Lips' futures!

~ If you choke a Smurf, what color does it turn? ~

[lawrocket 3]

Quote

wholesaling, short sales, subject-to purchases, foreclosures and pre-foreclosures,

Linny - it sounds like you are just getting started, so right now you PICK ONE and learn to master it. Once you've got one down, learn another one. Let your man learn another one. You are in Cali, so pay attention to some of this.

I know nothing about wholesaling.

Short sales? It is very much dependent upon the individual banks and the area - even the individual seller. If the seller has a good agent, then you will be in better shape, but the process for a short sale is lengthier and more complex.

Foreclosures? A simpler solution may be to look for REO's. The cost is better that way and more streamlined.

With pre-foreclosures, stay the hell out of it unless you know what you are doing - REALLY know what you are doing. There is a lot of action right now in going after people doing that that have not followed the law to a tee. The laws are intricate and harsh upon buyers in an equity purchase. First bit of advice to keep you in the law - Until the expiration of the 5 day cancellation period that the seller has, DO NOT:
(1) Obtain or induce the equity seller to execute any instrument of conveyance of any interest in the residence.
(2) Record with the county recorder any document, including, but not limited to, any instrument of conveyance.
(3) Transfer or encumber or purport to transfer or encumber any interest in the residence in foreclosure to any third party.
(4) Pay the equity seller any consideration, as in NO money to the seller.

PLEASE PLEASE get competent legal advice before doign anything. Dropping a grand on an attorney now WILL save you tens of thousands in the future.

Another thing to look at are simple "for sale by owner" properties.

Commercial real estate is getting cheaper now, but your funding options are limited. In many places, commercial vacancies are running upwards of 15 percent. Thus, purchase loans for commercial real estate are hard to get without solid tenancy or a good anchor tenant.

Linny - I've just scratched the surface here.... Really - do these things:

Drop the money and the weekends to take a few classes on this.
Get your broker's license, if you don't have it already. (hint - you can broker your own deal and use your commission for a down payment.Get your mortgage broker's license.
Build a team of attorney, accountant, tax specialist, mortgage brokers, and real estate brokers and trust what they tell you.

My wife is hotter than your wife.

[Cornholio 0]

Quote

It's too late for gold. At a price of more than 800 there just isn't much room upwards.

Yeah, that's what people thought when gold was at $300 10 years ago. Also tell that to people that invested in google when it was at $400/share!

YYMV, but to say there's a limit on something like that is believing that 640K would be enough computer memory. LOL

Butthead: Whoa! Burritos for breakfast!
Beavis: Yeah! Yeah! Cool!
bellyflier on the dz.com hybrid record jump

[lawrocket 3]

There is rarely a bad time to buy real property. There are, however, bad times to sell. Rule to live by!

My wife is hotter than your wife.

[Hausse 0]

I didn't say it's not going to go up at all. But there are just historic limits for gold. If I remember right I saw a study a few days ago which sayed Gold was around 1500$ in todays value during the great depression. So if it really should go up more there has to happen something drastict to the economy. If you belive that something this big will happen you might wanna consider investing in put options where you can make way more profit with less capital invested.

[Remster 24]

Quote

I didn't say it's not going to go up at all. But there are just historic limits for gold. If I remember right I saw a study a few days ago which sayed Gold was around 1500$ in todays value during the great depression. So if it really should go up more there has to happen something drastict to the economy. If you belive that something this big will happen you might wanna consider investing in put options where you can make way more profit with less capital invested.

The fundemmentals for gold, copper, steel, and base metals are driven entirely from China, and to a lesser extent India.

Gold is a bit more tricky since it has more drivers then copper (pretty much a straight industrial requirement), but, I really dont think we'll see the end of the rise in gold and copper for another 2 years. The output hasent gone up that much as of yet since mines take so long to get started, so in the short term, I dont see supply catching up with demand. Like all cyclical markets, it will catch up, probably as a combinaison of supply increasing, and CHina hitting a wall since a lot of its growth is self supported.

Remster

[jtval 0]

Quote

Also tell that to people that invested in google when it was at $400/share!

Tell me about it. I was tyring everythig to find a decent brokerage when Google had its IPO.
(I think they were at $80 per share)
I wanted to buy $2500 in shares.

By the time I had all my ducks lines up they were at a few hundred per share. So I opted to go somewhere else. LAst week they were up to $740


I missed my boat there.

My photos

My Videos

[linny 0]

LawRocket:

Thank you for the advice... and the 5 tips to stay within the law.

I am in the process of getting a thorough education. And right now I'm investigating multiple strategies to get a broad understanding. My plan is to hone in on one particular strategy that will work for my target market.

I've already formulated my educational strategy that will help put my investing strategy into place.

And you're absolutely correct about building a team. That is, without a doubt, the most important aspect of successful investing (other than buy right!).

[Broke 0]

Gold typically doesn't do much better than the rate of inflation anyway. If you want to invest in gold the time to buy is in the spring and then sell off in the fall.

For those who don't want to risk too much you can gain a 17% return on investment from prosper.com.

Also the jpy vs GBP is always fun

Divot your source for all things Hillbilly.
Anvil Brother 84
SCR 14192

[marks 0]

Quote

It's too late for gold. At a price of more than 800 there just isn't much room upwards.

I was answering the question, not making a suggestion.

I invested in a small mining company a few years ago, am still making good money and don't plan to sell till gold hits 1000$ an ounce.

I think it is coming soon, very soon.

[Hausse 0]

Ah okey then I missunderstood you. I thought you would buy gold bars or certificats on gold now. I completely agree that mining companys can be a great investment. Mostly due to the still increasing demand for gold.

[Chizazz 0]

Quote

I didn't say it's not going to go up at all. But there are just historic limits for gold. If I remember right I saw a study a few days ago which sayed Gold was around 1500$ in todays value during the great depression. So if it really should go up more there has to happen something drastict to the economy. If you belive that something this big will happen you might wanna consider investing in put options where you can make way more profit with less capital invested.

Heheh, that time is here again.

[Krip 2]

I'm thinking about investing in a chain of tattoo removal clinic's

Laser removal or belt sander

One Jump Wonder