/biz/ - Business & Finance

So you decided you want to be a land lord based a tenant defaulting on their rent?

>>936889
>Bernstein

>>936889

Was reading the newspaper when I got to an article about pro football players dying early of horrible brain injuries.

It was at this moment, I knew I needed to be in the NFL. Question is, how do? Any tips would be appreciated.

>>936889
>Berenstain

>>936891
>>936891
>>936902


I had no idea that's how much you could actually charge for rent and people would pay

It looks like this person was paying about 7,000 a month in rent. Say i buy some restaurant building or whatever for 100,000. In 5 years i will have made 320,000 in profit with 7,000 rent

>>936906
>Hollywood Blvd.
More like a couple of million.

>>936906
If you can get a monthly rent of 7000$, you wouldn't normally be able to purchase the building for 100000$

>>936906

If you can buy a restaurant building for only 100,000 then chances are its not good enough quality to rent out for 7,000.

>>936906

How much do you think that building + property taxes cost each month?

I live in bum fuck south carolina and some of the buildings in the down town area of my city go for over two million easily and have a fuck ton of taxes on them.

You're getting too hung up on the gross and not looking at the net.

Every month someone isn't in the property or defaulting, it's money you have to pay plus profit that you're losing.

>>936906
That property costs $2-5 mil, and Jewstein was given it as a gift by his dad or he worked his ass off (plus inheritance invested) to earn it and he's 50-60 now.

It's funny to make fun of the jews but one thing they're phenomenal at is slaving away at worthwhile endeavors so their kids can be rich.

>>936958
exactly

>>936912
>Hollywood Blvd, FL

>>936913
>>936914

;_;

>>936917
You have to pay property tax every month? What the fuck...

>>936961
>You have to pay property tax every month? What the fuck...

In the USA, yeah. Some Europoor countries have us beat the fuck out in that regard because their property tax is something like 15-25% on transaction, and no upkeep cost, but in the US you typically pay 1-3% of the property's cost every year. Let's assume that's a 2 mil property and 1.5% property tax, divide by 12, that's $2,500 given to Uncle Sam in exchange for nothing every month.

>>936961

>It's only paid once a year, so I don't have to have to set a portion aside each month to budget for it

Fucking underage kids and plebs ruining /biz/

>>936965

So subtracting the 2500 from the 7000 shekelsten recieves each month, you're saying it would take 37 years to break even? >>936958 was right, this is a generational investment

>>936974

Im 22 and have never owned property, why would i know anything about how property taxes work

Im sorry your wife divorced you and took all your property, Phillip lol old ass

>>936889

>Bernstein

nuff said

>>936976
Unless your goal is for your kids to have it or live off it in nuke retirement , you don't hold real estate for that long


You wait for it to appreciate while you rent it out and eventually sell it

>>936976
>assuming real estate price are stagnant
>assuming you wont raise rent over time
>assuming you cant find loopholes with a halfway retarded team
>assuming you wont buy more property until you get some tasty economies of scale
trust me anon real estate is great if your in for the long run

>>937095
>assuming you cant find loopholes with a halfway retarded team

Go on...

>>936900
>>936905
>>936996

According to Google maps, the place in question is called Taverna Yiamas. It's only rated 3 stars and has a $$ price rating on Yelp. Sounds like you probably need to be able afford a better restaurant before you can afford a building.

lol, that place is like 10min from my place

scary to know there is another anon running around in my neighborhood

>>937194
>he takes bitches to five star restaurants

Found the betacuck, this place was great for cheap food + a free show

>>937152
Im not American but I know for a fact that taxes in my country really vary depending on zoning and on the city also if you buy a apartment building and live in it the property tax is waaaaaay lower. if your really serious your going to need good contacts in your cities zoning department and maybe a lawyer and unless your a trained accountant i would recommend getting one. the best part is that you dont have to employ these people just hire them on a as needed bases sorry for my bad gramer not my first language

>>936902
Top kek

>>936889

Commercial real estate is totally different from residential. Much higher rents and much more leway on being able to bully your tenants around.

Problem is you're looking at over a few million to get any good commercial properties to rent out.

>>937095
Tfw when your properties appreciate on average by 3-4% and you collect rent.

>>936889
>Abraham
>Bernstein

>>937263
With commerical RE you're also going to be dealing with much higher LVR requirements from the banks if you need to borrow. Here in Aus they want 40% down.

and - if it goes vacant, theres a chance the area is going to shit and no business will want your spot.

>>937475
problem?

>>937495
oy vey

>>937511
?

>>937514

GAS

>>937555

trips confirmed for gas

>>936965

Well, that $2500 pays for shit like roads, street cleaning, emergency services, food and restaurant inspection regimes... You know, stuff, that costs a shitload of money. It's also reflected in the price you pay for the property in the first place. A yearly tax of 1% is going to lessen the value of a building by around 20%.

>>936976
You aren't even factoring in maintenance costs.

Commercial real estate is a different world of it's own, but the general rule of thumb for residential is that everything sans mortgages costs 50% of whatever the rent is. That means maintenance, both scheduled and emergency, costs during vacancies, cleaning expenses, advertising, taxes, and anything else you can think of. Some years it will be 20%. But you should plan on it being 50% until you have a large buffer of liquidity to handle emergencies like a blown furnace, and planned updates like a new roof, or painting.

The other 50% goes towards mortgage payments. If you have money left over, that's your cash flow.

Don't go into real estate blind. You don't live off of 1 or 2 properties. You live off of dozens, and the income from all of them pays for vacancies and other expenses for the ones that are having a bad spell.

Alternatively. Feel free to run into it like a madman, go bankrupt, and be forced to sell off property at 50% of its market rating. Those of us in RE love people like that. Great deals make great money.

>>936996
also
>hollywood
doesn't matter if it isn't the real one either

>>936996
>>936900

/pol/ is right again