/biz/ - Business & Finance

>>13471756
Any kind of advice or place to seek information would be appreciated.

>>13471756
You need to save up money (maybe 15k) and get a bank loan. Broke morons won't be given any credit.

>>13471756
>real estate
Its not passive!
The only passive real estate is REITs...even then
best of luck brainlet!
passive income is a meme

>>13471786
>passive income is a meme
Explain.
It's not passive in the beginning, but when everything is done and stable, it's essentially passive income because you don't really do anything. If maintenance issues occur, you can either take care of it or it can be outsourced/handled by management.
I am a brainlet with all this, so this helps.

>>13471756

Get a job, get a credit card, save money, get a FHA loan.
Buy land in the country side and put a el cheapo mobile home on it (single wide preferably). Get the loan to cover both house, land, and improvements such as a septic tank and power/water lines.

Congrats you are now a poor homeowner.
If you do it right your mortgage should only be only $600 a month (assuming you don't live in jew York or commiefornia)

Get licensed to sell real estate. Go to your closest Keller Williams and talk to the CEO of the market place they will literally take anyone and they have good training. After you get some transactions under your belt switch to a boutique brokerage that lets you keep 100% commission

>>13471810
If you're already talking about outsourcing things then you will never make it in real estate. Learn to do things yourself and stop looking for a handout.

>>13471756
lockplicking

>>13471829
It was just an example, I've already accepted that I'll be doing most of the repair and maintenance.

>>13471756

>be a woman
>find a guy with real estate

E Z

>>13471756
The only way to do it with no money/experience is to find a good deal, do all the work and have someone else finance it. There are rich guys who will do this if you bring them good deals

>>13471816
I was thinking apartments.
Would that be a better investment.
Say there's an occupied apartment building for sale for $70,000. 4 active tenants, $1,000/month rent. I put down a 20% down payment on a loan for the property. Then use the money from the tenants to pay off the monthly loan debt.
My knowledge is limited, so if I'm wrong, correct me. I'd really appreciate it

>>13471867
That sounds realistic.

>have someone else finance it
How would I go about doing this?

>>13471756
Real Estate fucking sucks if you don't have a huge network of people who want to buy from you. Your brokerage will start you out driving all over buttfuck to show rental properties, you'll get $100-$200 per rental leased. Take it from me, I'm now a traveling mattress salesman. Don't go into Real Estate.

>>13471756
Talk to some boomer granny, tell her
>"I can get people to pay you half a grand a month for living in ONE (1) of your rooms, let's make a deal!"
>"I know much more about connecting with potential customers through big websites than most people, give me a share and you'll be able to travel to Spain or Italy next Summer."
Rinse and repeat and you'll end up making 20k a month.

>>13471886
I was thinking of owning rental property, like apartments and condos. Properties where I live are around $60k - $90k. Average rent in these areas are around $1k/month, with an average of 4 tenants per building.
What do you think?

>>13471756
Be rich

So buying a 4 unit apartment complex and renting it out is a meme that won’t actually make enough for it to be worth it unless I buy when the real estate bubble pops? Fuck crypto really is our only shot.

>>13471948
It really seems like that.. :/

>>13471843
you have a bad attitude young man. Stop making excuses.

>>13471990
>

Real estate seems more like a game to get in when you have a lot of money. I regret getting multiple propertys so young as rentals when I could have invested elsewhere.

>>13472010
If not a larp, you seem to be experienced.
What would you have done instead if you could've stopped yourself?
What advice would you give to broke young people who are interested in it?

>>13472017
>what advice would you give to broke young people
Get a job.

>>13472025
Okay boomer, that grants a primary source of income, but any advice on where to invest that money into? Especially regarding real estate.

>>13472048
Learning what compounding interest is. Safe = index funds. If you want more risk which I implore you to take cause you're young. Go with individual stocks and commodities. Don't ever touch Forex. It's a scam. Do your research, understand what kind of opportunity you have and seize it. Have fun kiddo.

>>13472017
I put 20% down on 2 propertys in 2008, I still have them both and they are currently worth exactly what I paid 10+ years ago. If I put that money in anything else Id be up so much more. Put down as little as you can, investigate any hidden fees HOA or other. The duplex meme is probably good, living in one unit lowers your property tax in a lot of places. In my area, one of the propertys had a $800/yr property tax. When the county realized I was renting it out, they changed it to $2,200/yr property tax since its non-owner occupied. The banks and the countys want your money, the HOA and planned community areas want your money, your tenants dont mind busting up the place. Had an insurance plan cancel my plan because I reported a leak. They fixed the damage then kicked me off their insurance, Geico said their computer algorithm decides when to kick ppl out if they use the insurance policy.

Id just say get a job and buy crypto. If you are broke and for some reason really want to be involved in real estate, try your hand at being a real estate agent.

Just get into crypto when it's low. 2 years later you will thank me

>>13472128
>get into crypto

Worst advice I’ve read all day

>>13472103
>buy crypto
Yeah don't do this

>>13471786
>>13471816
>>13471864
>>13471867
>>13471886
>>13471905
>>13471948
>>13472010
>>13472103
Is real estate really this much of a meme?

>>13471756
Get your license, read books teaching about how to underwrite commercial real estate, get good at excel and take an excel class specifically teaching about real estate financial modeling, then apply to real estate companies for an internship and put all those skills on there

>buying real estate @ ATH
The fuck wrong with you nigger?

The only strategy that could work would be to pack your bags for an intentional bankruptcy. Otherwise have fun waiting for your equity to break even over the next 20 years.

>yfw interest rates go up and the market crashes 30%+
it's a meme at this point, it can't go up much more
Look up the interest rates, it's the cause why the prices are so high. Anyone can get a 200k mortgage that's why. But the interest rate can't go down anymore

>>13472283

Only if you don't know what you're doing. If you have to ask, you don't.

>>13471829
you are a faggot. you have to delegate asap in order to make it. ofc you cant be a stupid fuck without common sense to do that, or your employees will fuck you over.

>>13471870
An quadplex pulling in $4k a month in rent is closer to $700,000 not $70,000.

>>13472500
depends how poor the region is
can buy a 2 plex here for 70k and get 800 a month for each floor
but housing prices haven't gone up here in years
>>13472471
op doesn't have another source of income, the money he'd save diy would be better than cash flow out

>>13472500
When calculating a potential buy, how would you do the math correctly to ensure your getting a good return?

>>13472531

I use a spreadsheet for preliminary screening. As with most things, it takes knowledge, experience, and a good amount of work to be profitable.

>>13471756
>move out of parents' house
>rent own place

You are now a part of the real estate business, a consumer

>>13471756
Work your ass off for 2 years so you can show high income on paper. That means get a fulltime job in a big city (NYC) paying 70K+ (yes this isnt that much in NYC) and do jobs on the side to get your total income as high as possible.

Lets say you can get a 120K income average over 2 years.

Boost credit to 780+ meanwhile and eliminate all debts.

Now you have an average income of 120K+ and a 780 credit score. Find properties that cash flow and apply for a 3.5% down FHA loan and max it out. This is anywhere from a 400-700K property depending on the city you're buying in. You can get up to 56.99% debt to income on these loans, but aim for at least 50%+.

Now, quit your odd jobs but keep your fulltime and your income will drop to 50K, but you can spend your free time improving your properties so they can generate more income.

Refinance at 20% down when they appraise for more and you've paid down the principal and then use the rental income and job to buy more properties. If you do this in an efficient manner, you could become a slumlord making 300K+ in less than 10 years, quit your job and still make 200K+.

>>13473040
>3.5% down FHA loan
the fuck? is this real? rental yields in student areas are as high as 8-11%. you break even after a few months and can buy another property again

my father wants to pool money with me but I only make about 500 usd a week since I am retarded and devoid of aspiration. We already have two paid off homes and want to pay off the third potential property in 5 years and since we do not live in california, minnesota, texas or new york its not nigger ridden neither is it kiked. The housey will be below 120k.

Would it be incredibly based and redpilled to move forth on this indenture?

>>13471756
>How does a broke 19 year old get into real estate?
You don't

All those threads about young guys flipping houses in the USA or buying apartment complexes and renting them out makes me believe the USA housing bubble is close to its peak

>>13472373
Fucking this

OP, fuck boomer boxes, since you’re young and poor, throw all your money into crypto, you’re going to do a lot better over 15 years than with real estate....

>>13473317

FHA loan have low down payment, but you need to pay for PMI (Mortgage Insurance), which will obviously cut into your profit. They also have requirement on the kind of property that can qualify for FHA loans. Obvious student housing/rental property won't qualify for FHA.

So, it's no secret that hedge funds, pension funds, and your mom has pumped real estate top sky high levels.

It's as of these cold hearted bosses like buffet looked at the market and said, you know what ? Everybody needs shelters. The millenniums need to buy houses in next year's... So they bought housing bags in order to sell it to millenniums for 150 to 400 percent profit.

Qe, etc, every asset classes pumped to all time highs

What think ?

>>13473373
Um yeah but can u live in a cryptos?

>>13473482
Owning a property to live in is different than “getting into real estate for passive income”

>>13473469

Its not really a conspiracy or anything.

People will always need housing. Housing in areas where a lot of people want to live, will be more expensive, because there are more people fighting over it. Property are inflation protected assets, so while USD devalue, property will continue to rise accordingly.

The more the population grow, whether if its from immigration, or high birth rate, the more housing will cost.

The more restrictive it is to build new housing, the more expensive housing will cost, due to limited supply. Cities have the strictest building code, zoning regulation, and so on, so forth.

All the most expensive areas in the US, meet all of the above. CA/NYC/other major metro areas. They have large amount of immigrant population. People are moving to cities for tech jobs, further increasing population. Cities zoning are restrictive, which places a limit on the amount of housing that can be build to meet demand.

>>13473564
I’m just waiting for my city to change the zoning so I can turn my house into a duplex/triplex and be a slum lord like any good businessman

>>13471762
Pretty much this. You just have to save at least 20% and do the math and know the area very well so you know that renting out will cover the mortage and other expenses. Look for fixed rate mortages for 10 years. Don't worry if you are +0% first 5 years because the inflation will take care of everything.

Investing in real estate is a long-term investment, which is something that is not very popular on this board. People here just want to moon over night and don't put any work.

>>13472741
i know next to nothing about real estate, but how is it that your expected rent income is so high compared to the prices of the house? charging $4350 a month for a $475k house seems very high.

>>13473769

That a mixed use building. 3 store front, and 8 apartments. The rent of each unit isn't high at all.

Generally, these kind of building are more efficient for rentals. This one is also located in the suburbs, so they're harder to sell, so have a more reasonable asking price.

>>13473793
ah so there's more than one tenant for these buildings, i was assuming each of them was a single occupancy home. it's interesting to see the expenses and revenue broken down like that in your spreadsheet, like i said i've never been into real estate.

>>13472528
That sounds really odd, people can afford $800-1k per month when renting and actually prefer that to buying the whole apartment for $35k?
Buying would pay off in 3 years lmao

>>13473317
yes and it's how im retiring by 35

>>13473903

You would be amazed the amount of people who can't save money, even if their life depended on it. The moment they get their hand on any surplus cash, they go blew it all in one night, out drinking and picking up girls.

>>13473902

Yes, but this spreadsheet doesn't account for property value appreciation and vacancy. Cities housing have lower RoI but much higher potential for appreciation and generally lower vacancy rate compared to suburb/rural areas.

>>13473040
>how to go bankrupt during a housing crash

>>13471926
I think that is vert little ROI.
Go for stocks anon, preferably index Funds

Flipping is somewhat antisocial (since it drives up the price of housing).

It requires a lot of seed capital to invest, and your investment is not going to be diversified unless you start with a fortune.

You can reduce the seed capital requirement with a loan, but the lender will then soak up a large chunk of your profits.

It's highly vulnerable to market downturns. Buying a house for $350K and selling it for $330K is not a win, it's time you could have spent more profitably serving coffee to upper middle class women. Market downturns WILL happen - otherwise, the lenders would just spend all their money flipping houses THEMSELVES and leave nothing for you.

Maintaning a house can be surprisingly expensive. While 'living room filled to a depth of two feet with yellowjacket nest' is a bit unusual, mould, rot, water damage, cracked foundations, and all that cool stuff is common.

If you are an experienced contractor (not just an eager-beaver DIYer) then buying fixer-uppers, fixing them up, and reselling them can be a good plan because at that point you're Adding Value.

Is your ultimate goal here 'Money', 'Work in real estate', or 'Be a landlord'?

What I'd suggest you actually should do in the short term is to become a real estate agent. You're still involved in buying and selling homes, but you're less exposed to market fluctuation (people selling at a loss are still selling, and when the market goes down savvy investors will be looking to snap a house up). So - contact your local real estate agents and ask 'em for entry-level positions that train you up. If after a year or two of buying and selling houses you still want to be a flipper, you'll have a good start on the experience you'd need to do a good job and some social contacts that'll help you decide if it's the job you really want.

>>13472072
This is by far the most reliable and smart decision. I would personally not advise investing in real state unless you have a lot of money for down-payment.
The stock market goes up about 7-8% anually. Index funds are the safest option and you can withdraw 4% every year without losing any money ans your portfolio will keeping growing.
If necessary divide 20% stocks 80% index funds

>>13471810
passive income = busting ass for 10 years so you can have 5 where you do whatever