Real Estate Investments

[fadi]

Few months ago I decided to wanted to start a side business and I was thinking of franchises but thanks to the advice I received on the forum, I decided against it and decided to look into the real estate investment world. You can see the original thread here: http://www.bodybuildingforyou.com/fo...ad.php?t=31950

Now to give an update. I have spent the last 2.5 months getting as much education on the topic as I can. I have purchased multiple books and courses and I have a much better feel for it.

I have made a great jump in knowledge and I feel much more comfortable in this business to the point that now I am walking into homes and able to estimate the work needed and make an offer on the spot (we will see how acurate my estimates are as I close deals). I made an offer last week that was rejected, and I made an offer this morning and waiting for a reply. If this offer goes through, i will make $12k-$18k on it depending on their counter offer and hidden charges. That includes fixing, and realtor's commition to sell the property if I choose to. This deal would cost me about $10k which would include the closing costs and fixing the property. Renting it would net me about $200-$300 a month.

My plan now is to buy and rent the properties. I am planning on buying at least 3 houses this year, and 5-8 next year. I am also going to get my realtor license to get access to the MLS system and save on closing costs.

I currently have 2 realtors looking for properties for me and making offers on my behalf. I am also listed with few wholesalers who will offload good deals for a fee subject to my approval. I have a loan officer who will get me the best loans that generate the best cashflow. I am currently looking for hard cash lender and good title company that can close quickly in case i find a deal that would net me $30k-$40k and I need to close within days.

I think I have found my new career It will take me about a year to become efficient at it, but within 3 years I will be self employed, and in less than 10 years I will be able to retire if I choose to.

[t_dot_porkchop]

if it were only that easy......i will see you on late-night tv selling your "system" one day....lol

[TrainedMind]

Sounds great Fadi. Too bad you are in San Antone, Otherwise I could be your contractor, for those fixer uppers you may want to buy. That's where the money's at. You buy them cheap, spend around 10k and turn around and sell, which could mean a profit of 80k. I don't know how the market is in your area but where I am at real state is a gold mine.

[fadi]

Originally Posted by t_dot_porkchop

if it were only that easy......i will see you on late-night tv selling your "system" one day....lol

It is actually not difficult. The dificulty is in managing the contractors it is also time consuming and you have to make many offers to get one or two. Not understanding it makes it seem difficult and that is why I have spent at least 20-30 hours over the past 2 months reading and talking to other investors before i even made a move. I am active on two real estate forums online and i have joined the local real estate investors organization as well

[fadi]

Originally Posted by TrainedMind

Sounds great Fadi. Too bad you are in San Antone, Otherwise I could be your contractor, for those fixer uppers you may want to buy. That's where the money's at. You buy them cheap, spend around 10k and turn around and sell, which could mean a profit of 80k. I don't know how the market is in your area but where I am at real state is a gold mine.

San Antonio is listed as #1 city in the states for appreciation over the next two years by fortune magazine. It will not produce the same revenues California would because average houses here are 130k and I am targeting the sub 100k market, but $10k-$20k is average here. San Antonio is growing at an alarming rate as well, so there are plenty of oportunities.

Where are you at?

[TrainedMind]

California, bay area, where there are no more lots left to build on. well almost. Sounds like I should be in San Antone and dip into that market

[TRAZ]

Originally Posted by fadi

Few months ago I decided to wanted to start a side business and I was thinking of franchises but thanks to the advice I received on the forum, I decided against it and decided to look into the real estate investment world. You can see the original thread here: http://www.bodybuildingforyou.com/fo...ad.php?t=31950

Now to give an update. I have spent the last 2.5 months getting as much education on the topic as I can. I have purchased multiple books and courses and I have a much better feel for it.

I have made a great jump in knowledge and I feel much more comfortable in this business to the point that now I am walking into homes and able to estimate the work needed and make an offer on the spot (we will see how acurate my estimates are as I close deals). I made an offer last week that was rejected, and I made an offer this morning and waiting for a reply. If this offer goes through, i will make $12k-$18k on it depending on their counter offer and hidden charges. That includes fixing, and realtor's commition to sell the property if I choose to. This deal would cost me about $10k which would include the closing costs and fixing the property. Renting it would net me about $200-$300 a month.

My plan now is to buy and rent the properties. I am planning on buying at least 3 houses this year, and 5-8 next year. I am also going to get my realtor license to get access to the MLS system and save on closing costs.

I currently have 2 realtors looking for properties for me and making offers on my behalf. I am also listed with few wholesalers who will offload good deals for a fee subject to my approval. I have a loan officer who will get me the best loans that generate the best cashflow. I am currently looking for hard cash lender and good title company that can close quickly in case i find a deal that would net me $30k-$40k and I need to close within days.

I think I have found my new career It will take me about a year to become efficient at it, but within 3 years I will be self employed, and in less than 10 years I will be able to retire if I choose to.

Good for you man! I would expect no less from you. Best of luck!

[fadi]

Originally Posted by TrainedMind

California, bay area, where there are no more lots left to build. well almost. Sounds like I should be in San Antone and dip into that market

There is a lot going on in California. I am somewhat active on the San Diego's investors newsgroups. If you want to do contract work, then you may want to get in touch with some of the investors there

[fadi]

Originally Posted by TRAZ

Good for you man! I would expect no less from you. Best of luck!

Thanks it will be a nice challenge, but I am up for it. No point of waiting for good things to happen, you need to get educated about to minimize the risks, then jump right in

I will keep this post updated as things happens, but it will be slow since I will be traveling a lot.

[TrainedMind]

Yes there is. but currently I am here in the San Fran Bay area and I will probably be here for another 6 months and go home for a while, take a long well deserved vacation and not think of work. San Diego is not as appreciative in realstate as bay area though. Who knows, we might cross paths someday...that would be great.
i'll just call you Mr. Fadi Trump.

[Hitman]

Keep in mind that houses in cali are way more than $120k compared to San Antonio. If you want to buy a decent 3 bedroom family house in San Diego its gona cost you atleast $500k. I thought Scottsdale Arizona was hot. Houses appreciated %30-45 over there last year. Although I did hear the city makes it very hard for outoftowners to purchase homes. Oh yea btw, Cali market is going sideways, just like Vegas did a couple of years back.

[skibumm233]

If you ever want to venture up to DFW there are some great investment properties in my neighborhood.

I wish i had the money right now to buy them, they will be a gold mine in about two years.

[TrainedMind]

Originally Posted by skibumm233

If you ever want to venture up to DFW there are some great investment properties in my neighborhood.

I wish i had the money right now to buy them, they will be a gold mine in about two years.

I don't know, man. Dallas Forth Worth is trying to close down southwest airlines over there so the gold mine theory may not come so soon.

[skibumm233]

Originally Posted by TrainedMind

I don't know, man. Dallas Forth Worth is trying to close down southwest airlines over there so the gold mine theory may not come so soon.

Dallas will never let them shut down southwest air/love field. American is starting service out of Love cause they know what is going to happen.

[TrainedMind]

Originally Posted by skibumm233

Dallas will never let them shut down southwest air/love field. American is starting service out of Love cause they know what is going to happen.

let's hope. I fly southwest and many of my colleagues does as well. So I do hope Dallas don't. A lot would be missed thats for sure.

[fadi]

Originally Posted by skibumm233

If you ever want to venture up to DFW there are some great investment properties in my neighborhood.

I wish i had the money right now to buy them, they will be a gold mine in about two years.

I don't want to venture in an area I am not familiar with, not to mention cannot supervise due to the distance down the road, I may buy rental properties and have someone manage it for me but that would be few years down the road.

[skibumm233]

Originally Posted by TrainedMind

let's hope. I fly southwest and many of my colleagues does as well. So I do hope Dallas don't. A lot would be missed thats for sure.

Southwest air is the city of dallas largest tax payer, they will do what ever it takes to keep them here.

[humberto619]

Originally Posted by Hitman

Keep in mind that houses in cali are way more than $120k compared to San Antonio. If you want to buy a decent 3 bedroom family house in San Diego its gona cost you atleast $500k. I thought Scottsdale Arizona was hot. Houses appreciated %30-45 over there last year. Although I did hear the city makes it very hard for outoftowners to purchase homes. Oh yea btw, Cali market is going sideways, just like Vegas did a couple of years back.

The real estate market is crazy down here in SD. I purchase my home about 2.5 years ago. I paid $320,000 for it and a year later it had gone up to $400,000. Now you cant find a home like mine for anything under $500,000. Thats insane if you ask me. Who knew year round sunshine was so expencive

[fadi]

Hey guys, I have been extremely busy lately working 12-16 hours a day so I have not been active here and I am not sure I will be for a while. I haven't been able to get to the GYM as well, but oh well there are more important things

In any case, I just wanted to give an update. I am still looking into real estate investments and I am currently working on getting my Realtor license. I should have it within 2-3 months.

I am also in the process of purchasing my first house. I it has $29k in equities in it but only $15k profit if I try to sell it due to the cost of repairs, closing costs, and realtor fee (unless I get licensed). This house is a keeper because it is in a great growing area and it should incease $5k-$10k over the next year. This house will cost me about $5k-8k out of my pocket, the rest is financed.

Here are pics of it:
http://216.119.89.91/1sthome/

I am looking for more houses to buy, will keep you updated.

[TRAZ]

That is a cool house...I like the hexagonal window...

Good to hear from you Fadi!