I'm reading all these RE books, the "Rich Dad" series, etc., and my problem is, I don't know how to guage who's really giving me credible information, or who's a BS'er, or just lucked into success.
Specifically, I'm interested in investing long term, (owning & renting out a single family house), but don't have much money, so I would have to do a "no down" or "low down" deal, but I want a realistic assessment of risk, if it's a good idea to do this, etc.,
All I hear though, is some variation of "get rich! don't use your own money, just buy, buy buy!" so I'm skeptic.
2007-02-12 07:57:44 · 7 answers · asked by dork 7 in Business & Finance ➔ Renting & Real Estate
The Rich Dad theories are good to follow.
Don't borrow money unless you are making money on what you have borrowed.
Another important consideration is to buy Real Estate with long term vision (investing) not short term (flipping). Most markets are cyclical and have periods of rising prices followed by correcting (falling) periods. It is easy to be a hero in the flipping game when markets are increasing by double digit percentages. Good luck being a winner flipping houses in a falling market!
Therefore if you are buying with a long term vision you can take advantage of a rising market if there is enough profit in selling or you can wait out a correctio period because you have done the following...
Rich Dad - passive income rule.
Whatever you buy has to rent for enough to cover the mortgage payments, taxes, insurance, maintenance, vacancy allowance and show some profit (passive income). If it doesn't fit this criteria it is not a good investment.
If the rental market vacancy rate increases is the property you are buying an easily rentable property or is it one that is negatively impacted and harder to rent?
With no money down the lenders are going to want to see a pro-forma showing all these figures and are going to be very interested in whether or not this investment makes sense.
You might try to find vendor take-back situations where the Seller carries the mortgage for you and you pay them the monthly mortgage payments.
Either way, you need to be able to figure the income and expenses realistically, to be able to determine the viability of your investment.
It is a great way to go, best of luck to you...
2007-02-12 19:00:53 · answer #1 · answered by glen s 3 · 0⤊ 0⤋
You are right to be skeptical. If those real estate seminars, programs, books really worked, the people selling the schemes would be out doing the buying.
You can buy a house with no money down, but you have to pay for it. Also, you will have to spend time doing the acquisition, managing the property and doing maintenance and repairs. Your time is valuable, and the real estate gurus don't tell you that you will be working for no wages. Your hope will be that the rent income more than offsets expenses.
If you want to own real estate, consider investing in REITS. You get regular income and possible some appreciation in the value of your shares.
Look into Vestin Realty, trading as VRTA and VRTB on the NASDAQ. Both are trading at a discount right now.
2007-02-12 08:12:55 · answer #2 · answered by regerugged 7 · 0⤊ 0⤋
"The Automatic Millionaire Homeowner" By David Bach is a great book. He is defiantly not a bs'er, the book doesn't necessarily show you any ways of beating the system or secrets of the market but he shows you how being smart and investing in real estate can make you rich. After you read this book go meet with a mortgage consultant at a private firm, bank, or credit union whatever and they will be able to put you into the best loan programs available to you. The mortgage bankers at a private firm will probably be able to find the best programs for you as they shop rates and programs around, which means more options for you.
2007-02-12 08:59:20 · answer #3 · answered by Drew S 2 · 0⤊ 0⤋
There is only one way to make money in real estate. Know the local market! Once these books give you the multipliers, and techniques it's up to you to study what every house sells for and why. After a couple of months you will feel confident in your decisions as an investor. Don't buy a house until you know what it's worth, and no book or program can teach you that.
2007-02-20 02:48:45 · answer #4 · answered by Anonymous · 0⤊ 0⤋
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2007-02-18 09:47:51 · answer #5 · answered by Biancoa 4 · 0⤊ 0⤋
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2016-09-05 08:05:03 · answer #6 · answered by Anonymous · 0⤊ 0⤋
There are lots of people who would make fun of the possibility of altering their fates. This is because it believes that no one gets more that what is written in his fate.
2016-05-17 08:51:22 · answer #7 · answered by ? 2 · 0⤊ 0⤋