/biz/ - Business & Finance

you're going to need a lot of capital first friend

>>372871
Do you know how to fix and build things? You can affordably flip a house if you do the labor yourself. How much money do you have available to sink into a project, and are you willing to put in the hours and the cash, all on a gamble that may not even break even?

>>372873
Fuck there's IDs

bump then

>>372871
it depends on your location, is that picture somehow related to your location, maybe USA?

>>372871
fuck! it is and didnt see it

>>372878
Pacific Palisades, Los Angeles

pretty uppy area

It seems the trick is latching onto properties you see exponentially appreciating in value.

Also, accounting for inflation, 89500 back then has the same purchasing power as 400000 today

>>372871
US real state market is not what it used to be, real profit comes from investing in exotic locations on a 3rd world country, example mexico where you can buy an 8-12 apartments building and then rent em out for week, month or year. you will need someone to run it for you and may have to pay tax in mexico out of the proceeds but it is a lot less than what what you would have to pay in US due to the treaty wich prevents double taxation.
so instead of a house in US better buy a lot cheaper building in one of this places and get a profit for life.

>>372877

>>372873


jeez you are a loser for having self conversations
why the fuck do people do this?

>>372871
>>372873
Why do this? Why didn't you just say in your OP "I know that I will need a lot of capital but is there anything else?"

I like it how you refered to yourself as "friend" so that you can set a chummy standard for the thread, this way nobody calls you names and tells you that you're stupid.

You didn't even give the thread time to get started. Somebody might have legitimately mentioned starting capital in the first few posts.

sage for terrible samefagging.

Any other posts made in this thread may very well be the OP changing his ID seeing as it is now proven that he likes to manipulate threads and readers to his benefit.

>>372871
>>372873
>>372877
HAHAHAHAHAHAHAHUEHUEUHUEHUHUHUHU

>>372897
>>372900
trying to gain traction, stop being such faggots

>why do this?

fucking dumbasses

>>372903
>le retard face.jpg

thanks for your contribution. have a nice day

Purchasing real estate with cash around in-demand locations is a good investments. Getting a mortgage or buying cheap estates in nowhere is not a good investment.

>>372905
ITT: OP is a giant faggot calling other people faggots

Time to get my popcorn

>>372906

>>372905
lol says the moron who is too much of an idiot to notice the IDs, and has self conversations because his shit isn't getting enough attention

congratulations it worked

>>372921
but that's fucking wrong you retard

>>372920
>>372916
>lel he posted two responses in a row what a fucking loser!!!!!

>>372930
you're going to need a lot of capital first friend

>>372871
Where at?

It can be a great investment. Or you can lose a ton of money. I'm currently in real estate classes in my state. I'll be done tomorrow. While now is a great time to buy, it really depends on what you're looking to do.

There are so many factors that coming in and saying "real estate as an investment" would be the same as me starting a thread titled "stocks as an investment." There's plenty of room to make money, and there's plenty of room to cock it up.

If you think your picture is a prime example, you're probably not in the best position to be a real estate investor.

>>372903
>>372935
>>372916
>>372920
>kek this dude is fucking obsessed!!!

>>372937
regarding your final point. why not?

up and coming area.

1.4 million in the black?

what could be bad about it?

I've been doing some REI on the side for a few years, so obviously I'm biased. But, I think it's a great investment if done right.

And, your picture is an example of how NOT to do it right.

>>372946
What would be? Obviously my example is too long term, just wondering.

>California
>Real Estate

No. Just no.

>>372947
Well, I'm a landlord, so I buy homes that, when rented, generate a positive cashflow after PITI. Depending on the price, usually 200-400 per month.

A common rule of thumb is that the house monthly rent should be 1% of the purchase price.

In your example, you'd have to rent the place out for over 10k / month. Is that the normal rent? If not, look elsewhere.

Also, in general, you've missed the boat on California real estate for the time being. Prices and competition are too high for someone to make a go of it.

>>372871
I bought an apartment in denmark, i had the 20% to put down meaning i could get a interest rate of 1.5% (locked for 5 years).

I dont know what its like in the states but if you can get a low locked interest now inflation will help you later

>>372873
HA! Fucking tard

>>372954
In the US, rates usually lock for the entire duration of the loan (15-30 years). This is part of the reason why REI is so good here.

>>372941
>1.4 million in the black?

>I don't know what an anomaly is

Up and coming areas are prone to boom and bust hard. In my area, for instance, a $400,000 is now selling for around $180,000. What if the area you're in suddenly becomes derelict or poor? What if jobs move away?

California is experiencing major droughts and people are having a hard time getting water. Why the fuck would I want to live there? It's going to experience a mass egress soon. You don't want to be left holding the bag.

>what could be bad about it?
What do you know about real estate apart from this one house seeing a 1,600% return after 40 years and the basic concept of buy low sell high? Everything could be bad about it. You can lose absolutely everything. Apart from the high initial barrier to entry, you're going to have to learn how to analyze a market, predict trends, and know how to improve a home's equity on the cheap. I doubt someone as short-sighted as you're being right now has an investment window of 40 years. You're looking to flip most likely. That's not something a novice to investing does without real estate or construction experience, and vice versa.

The best advice I could give you would be to buy the worst looking house in the best neighborhood.

>>372957
ok same here but you have to get 3-3.5% instead (long interest rate)

but how low is the interest rate then?

>>372916
>>372940


you guys know what would be so meta... is if OP is having an argument with himself right now

I was watching "Flip This House!" on HGTV the other day and it seemed like a really good idea.

>>372965
We're running in the low 4's for a fixed 30 on primary residence. Investment properties are in the low 5s.

>>372968
Not so bad. but it all depends on time horisont, OP cant just move away in 1 year. If you live in the same area in 10 years, you should buy (if possible)

>>372947

Ah, I just realized that you were actually looking at the original purchase price and not intending to buy it for 1.8M. (Which would be a horrible deal) Now I get where you're coming from.

But, I still think it's a bad deal. Never invest on the assumption that things will go up in price. That's called speculation and is how you become bankrupt. You should always invest in cashflow only. If it appreciates, great for you! Sell it, get the cash out, and remortgage it on, you guessed it, more cashflowing properties.

This is called sticking to old-school fundamentals

>>372873
Sage bitch

>>373018
>lel I did it again mom!!!!

>>372927
these posts say otherwise
>>372873
>>372877


enjoy your daily rides on the short bus

>>373040
>look mom I called him a retard!!!!

How predictable

>>373048
>investing in real estate
>not retarded

pick one

>>373066
I'm 18 going into college just wondering about investment opportunities give me a fucking break holy shit

>>373072
I'd say REI is good for you to at least learn about. Go and join the site biggerpockets.com and start reading. It's an amazing resource.

My god, if you're only 18 and can start even doing some small-time investments after you start working, you can be kicking some serious financial ass by the time you're mid-career.

>>373090
Thanks for the help in this thread

Don't worry OP I also have conversations with myself to bump the thread

>>373112
thanks brah i feel like it's much more common than people are willing to admit

>>372871
>>372873
Sometimes i see lying as an option on 4chan, then i'm asking myself why, then i'm mad/dissapointed at myself for even considering it.

That post made me wut so hard, just why. It wouldnt make any difference making the statement yourself. Not even laughing just pure cringe

>>373126
When people see one reply it moves the thread to the top. I didn't want my post to move to the bottom without at least a few people answering. Making a thread takes balls and I wanted to make it seem like someone replied since no one did for the first two minutes.

>>373126
adding to
>>373146

I just got nervous and in the moment forgot there were IDs. Your spiel about how dumb/pathetic it is is fucking pointless btw.

>>373150
Keep defending it. That will make people forget about everything.

Try remaking the thread in a week from now with a different OP pic.

>>373156
but I'm not defending anything, i was just telling you my thought process

>>372871
>>372873
Smooth.

>>373159
>R: 187 / I: 24

>>373162
fuck you ill make you my bitch fuck you up take your mum to nice dinner never call her again

>>373165
explain your post

>>372871
>>372873
I thought samefagging was a myth. Wow, people really do this.

>>373205
>falling for a ruse

sure is summer

>>373227
Falling for a ruse of another ruse.

Wow sure is trip faggy in here.

>>373235
>lel he uses a trip code

that all you got faggatron

>>372900
If OP was changing his ID's, he'd be the greatest troll of all time. More than likely, he is too dumb to change his ID

>>372871
>>372873
>>372877

>>373259
Only did it once

>>373048
>>373259
right here, but it's not like i was hiding it

>>373237
Loser.

>>373360
Faggot.

Buying a home next tot the beach in mindanao philipines inside malita. 3k USD is that a good deal?

>>373569
Is it a nice area?

>>373569
if that picture is the beach house you're buying then you're getting ripped off lol

it depends on the area but you can buy a land out there for under 2k and the rest of your money can go to build your own non shitty beach house

internet + electricity + water is probably shit in there too

>>373569
Low price != good deal

>>373855
I have not see the area My wife did. Let me post more pics. Its malita davao oriental the new capital of davao oriental

>>373910

>>373920

Its normal for a home to be like this. No paint no finish covering the blocks. Typical for a low middle class home. Normally land in this town is worth 150k pesos this home with lot cost the same. So its better then land alone that i have to built a home later extra cost.

>>373925
my only problem too near the water maybe like 50 feet from beach. inb4 global warming :)

This is the fence of the home about 50 feet from house so maybe a total of 100 feet from home is the beach water. I will try to get at least 200 USD off from it.

>>373884
We can rent her other home thats about the same as this one but in the town center. That home is bigger. If we can get a good price we can fix this home more.

I'm presently working on a down payment for a rental property to diversify my income. My retirement plan is to have my state pension, stock dividends, and 1-4 rental properties paying me. Might do more rentals depending on how well I do with the business. Aside from that, my house should be paid off before I retire, so my expenses should be low.

I think the best 'first' real estate move is to buy your own house, and here is why. Unless you are a parents-house-dwelling NEET, you HAVE to live somewhere. That means, unless you camp out in a tent forever, you HAVE to pay money to live in some sort of shelter. Mortgages are far from a 'good deal', but paying your own is a way better deal than paying another persons.

It is an asset in that you can leverage it smartly. You can also sell later and downsize if you want. You can't do either of those with a rented house. If you get some land with your house instead of some suburban shithole or townhouse, the benefits multiply. I grow food for instance, and am planting a stand of quick-growing firewood this fall, which in about 3-6 years will put my heating costs near $0.

The wealthiest person I know is wealthy because he invested early in real estate. He doesn't flip, he doesn't sell. He just bought his own early and got in to rentals.

>>373940
Forgot to mention, regarding buying your own place being a good value: Eventually you DON'T have to pay for it, with the exception of property tax, which even in expensive areas should be a paltry sum compared to paying rent. Think about where you want to be when you are 60. Working at Walmart to pay rent on some shitty 'senior apartment' where your neighbors park shopping carts in the lobby for bizarre reasons? Or sitting on the deck of your paid-off house, your largest potential bill done and gone, deciding if you want to relax there for the summer or take the sailboat down the coast for a month or two?

Buy the fucker now, pay it off early, relax when you're older.

>>373947
This is a great plan, but I'd temper this with one correction. In *most* cases, yes, buying your own home is a great move. But, in certain locations, property values are incredibly high and renting may be better. (e.g Silicon Valley, NYC, Vancouver CA, Toronto, certain parts of AUS, etc.). Here's what to do:

First, always compare your potential mortgage first with your take-home pay. How much can you save after that expense.

Secondly, compare your potential mortgage with what you will pay in rent for an equivalent property. A small premium on ownership is not a huge deal, but in the places that I mentioned, the spread is truly insane.

Finally, be aware of the extra expenses in a home, mainly taxes and insurance. Sometimes these can be still quite high and that will come as a bad surprise to someone new.

>>372873
dammit i was interested but you had to go and fuck it all up

>>374011
lel

>>373368
Cocksucker.

>>372871

From what I read, it's a very active investment if you want it to be lucrative. There is significant risk, but unlike stock investing you can learn to offset risk by actively and intelligently managing properties. You can earn a sound 15-20% return on investment on well managed rental properties. You also only need about 20% of the value of a home to get started which makes real estate pretty appealing imo.

I want to learn more.

>>374132
>20% returns
Hell to the no, show me a property that is posting 20% ROI.

>>374136

I don't actually now what I'm talking about. I saw that number posted somewhere. The jews did it etc.

>>374141
Here's a realistic number: 5% per property. Unless you're a wizard you're not getting 20% off rentals. For selling brand new upscale housing that number would be appropriate but not for rentals.

>>373994
ok, yeah, admittedly I wasnt considering those points. Is it really that bad down there now? My point of view is probably skewed because prices are still pretty low in my area. Even though my taxes rose this year my total expenses are below similar rentals in city limits...

>>374205
Yes, it's pretty bad in these areas. If you want to see scary housing prices, check out www.greaterfool.ca

But, it sounds like you're in a good area. Still, run your numbers and then run them again.

>>374150
BTW, for rentals bought on mortgage, assume 10-15%. For reals. My rock-bottom lowest rental grosses me 10% cash return. My best: over 30%

>>374217
What area? I need more information

>>372873

This guy is right OP. Capital is really important with real estate. All forms of investment really

>>374227
I've either looked into or bought in Tennessee, Indiana, Alabama, Texas. But, weirdly, the 30+% one is in the Bay Area. It's an anomaly though - I bought it during the bust.

There's even better returns in the harder hit areas, though. Take this one:

http://www.restoringcleveland.com/Property/3666-E-131st-St.-Cleveland-OH-44120-17.html

It's 11% without a mortgage, but with, it looks like it's about 60% cash-on-cash return. The problem with these harder areas is that you'll probably get worse tenants and more issues.

Fuck we need a real estate general thread

>>374096
*insult*

>>374963
idk why there some balcony inside the home.

>>375295
You go on it when tsunami

>>375345
There have no reported tsunami in davao del sur mindanao. Check mate.

>>375350
Oh well, maybe you can preach from that pulpit in your house

>>375365
You guys think is a good idea to buy it?

>>375382
>southern mindanao
I hope your not white and if you are be ready to convert to islam or have your head on a stick at some point down the line.

>>375387

Its Davao del sur. not the MORO region. About 3 hours from the city.

>>372871
Hey guys, rent prices are crazy in Scotland at the moment, link related.

http://www.rightmove.co.uk/property-to-rent/property-46776551.html

does this mean if I buy a house like this (they go for around 100k) and modernise it I can make mad shekels?

>>375633
Google "biggerpockets"

>>375658
looks bretty informative, thanks friend

>>375396

>Buying a house at the top of the market

Advice for anyone with around 200/300K of starting capital for property? What should I do, buy up and rent it out or buy and develop?

>>372871
I would much rather invest in gentrifying skid row. In a few years, that place will be worth more than in other place on Earth. 10 minutes from the business district. 30 till the beach. Hiking at your disposal. I actually just bought an empty lot at Skid Row. My goal is to sell it for a bit higher to a developer.