Real Estate Crash thread

[Benny Profane]

Until you get a $50K special assessment.

Sure, but, again, you'll only be writing a check for a cost shared by others, instead of scurrying about and spending time either doing the work yourself on a house or managing that work. Sooner or later that house is gonna cost you a big chunk of change all at once.

I'm thinking about buying a condo that is going to have an assessment of 23,000 upon it, when the new roofs and siding and common windows are done. It will be paid over a decent period at 190 a month, at a low rate. Easy. The place needs work, for sure, and, when it's done, I easily make my 23,000 back in value, I'm hoping. Or, better yet, there's a nice pool in this complex with hot babes hanging all summer included in the $390 maintenance. No muss, no fuss. Try owning a pool at that minimal expense with no work and time required. Socialism is good, sometimes.

Edit: And, this is a "known". You know, the condo association has fought this out for a few years, and I have a concrete number to work with. Who knows with an old house.

[RootSkier]

So you're buying a place with fixed monthly expenses of $580 that do not include your mortgage or utilities? That's a hefty chunk of change depending on how much the place costs. Like $100K+ worth of value amortized over a 30 year loan at current rates.

[Benny Profane]

Includes heat and hot water.

And, I want a place I can just lock up and leave for three months.

[Mazderati]

Benny - What's keeping you from pulling the trigger?

[Benny Profane]

I'm making an offer tomorrow. I just can't help thinking there's a rude surprise ahead, but, can't find it yet. I think I just got lucky in a bad market. We'll see.

[Mazderati]

Nice. Good luck.

[AdironRider]

buy and hold for rental cashflow = the new easy money everyones chasing. not pointing a finger at you particularly (don't know shit) but there's so many maggot slumlord threads for each and every dumbfuck who thinks they are entitled to a fat rental income stream without doing shit just because they own a place that the "rent and hold for cashflow" gotta fall next. Or something else has to give when each and every desirable mountain town property is owned by slumlords renting to people who'll be stuck renting forever because all of the owners refuse to develop more property in town to make their shit more valuable and close the door on everyone else while talking a really good line about paradise.



if you read md9s posts over the years, he seems to manage costs agressively, puts in lots of leg work to find and buy at the right price, puts in lots of hardwork in planning value added attractive renovations (and has in the past done them himself, might still, dunno), and is flexible whether to rent or dispose of. It would appear he does it better than most, even others here who've tried. I wouldn't try to imitate it unless you think you can do all of that well.

The easy money everyones chasing? Actually more the right way to make money in real estate, not some flip bullshit they saw on TLC.

Hint, its never been easy, even during the 09-10 years at the bottom. There are realistically one to two properties that are true money makers, everything else is mostly shit, even on the courthouse steps.

Ive bought all three of my rentals from families where the actual owner passed away and left a widow or a kid who wants nothing to do with it. They see easy cash with no realtor fees, I get a house at way below market value that cash flows. Again, this is a rare situation. I have found three in an 8 year time frame that just happened to be the best best buyers market in decades. Not an easy find at all.

Everyone sees real estate as easy money, its all made when you buy, not when you sell. Most people have that reversed.

[Hugh Conway]

that's right, you are a fucking genius adironrider, just like rideit and the rest of the TGR moguls. hows that forex killing going, speaking of following the herd.

[rideit]

Haha, your resentment knows no bounds!

[Hugh Conway]

Haha, your resentment knows no bounds!

it can never escape your narcissism rideit. man, but there must be some dumb fucking people in the tetons for you two to make killings.


and yeah, there's plenty of people chasing the rental dream in other markets.

[AdironRider]

that's right, you are a fucking genius adironrider, just like rideit and the rest of the TGR moguls. hows that forex killing going, speaking of following the herd.

Man getting a little frustrated in the parents basement arent we?

[Hugh Conway]

Man getting a little frustrated in the parents basement arent we?

shouldn't you two be getting back to your awesome lives? I'm always pleased when you two genius multitaskers take the time to spar with a tard, it proves... something.

mostly, like stock picking threads, or this thread... that everyone bullshits. it's whats funny about tgr.

[rideit]

Need a place to crash?

[iceman]

There are no geniuses and market timing is for chumps.

[Hugh Conway]

fucking a maggot without a condom near a pretty alpine lake's safer rideit.

edit: exactly iceman. well, chumps and cramers.

[rideit]

However, buy low/ sell high ALWAYS applies.
(And yes, if you can, rent for more than mortgage in the interim)
Whether its the 80's, 90's, oughts, or beyond.
It seems to work alright.

[4matic]

I easily make my 23,000 back in value, I'm hoping.

Hope is not a strategy. A new roof probably adds little if any resale value to a condo.

[4matic]

Hint, its never been easy, even during the 09-10 years at the bottom.

Easiest money I've ever made was a short sale flip year over year July 2012-13. It's obscene how much money I pulled out of that dump.

http://www.zillow.com/homedetails/15...24958361_zpid/

07/15/2013 Sold $383,000 -- $383 Public Record

07/10/2012 Sold $220,000 -- $220 Public Record

[cramer]

fucking a maggot without a condom near a pretty alpine lake's safer rideit.

edit: exactly iceman. well, chumps and cramers.

lol

[Benny Profane]

Hope is not a strategy. A new roof probably adds little if any resale value to a condo.

Hey, worked for our president.

Whatever. It's a 25% reduction from my present rent, which is going up, like all rents over the next decade or two, the place is bigger and nicer, location solid. I'm not speculating, I'm buying a home.
But, it's a condo. I can always rent the place easily for more than my cost.

[iceman]

It's cheaper than where you live now, and better, and you like the area well enough, and you have a shot at building some equity and you'll get a tax break, just fucking do it already.

[Whiteroom_Guardian]

Shit, well clearly I have alot of learning to do. What about buying cheap/foreclosed places with cash only? I have access to cash, but just need to convince/prove to my lender that I can make them some guaranteed money.

I can run a small business, and realize that doing the labor yourself is NOT a good idea in the long run. My body is already pretty battered and I'm only 29. No way I should still be scrambling around hitting things with a hammer in 10-15 years.

[liv2ski]

There are no geniuses and market timing is for chumps.

Sadly this is very true for most people. No matter how much I think I have done my homework and have it all figured out, the markets have made a monkey of me on multiple occasions. It is amazing I have amassed what little I have, compared to where I could be, if I had made maybe three different decisions.

[RootSkier]

guaranteed money.

Read Foggy's post again. And then read it a third time. There is no such thing as guaranteed money, especially when you are using someone elses. Even assuming you CAN make a profit on such endeavors, the investor is going to want that profit. Where does that leave you?

It's a high-risk game if you don't have every part of it dialed. And even if you do, there's still plenty of risk.

The first thing you should do is read every single one of meatdrink's posts where he discusses how he gets places for so cheap (mostly because Ogden), and then reinvents them. But he's also keeping them for rental income, instead of trying to flip things immediately. Transaction costs are high -- so are holding costs.

[mcsquared]

Shit, well clearly I have alot of learning to do. What about buying cheap/foreclosed places with cash only? I have access to cash, but just need to convince/prove to my lender that I can make them some guaranteed money.

I can run a small business, and realize that doing the labor yourself is NOT a good idea in the long run. My body is already pretty battered and I'm only 29. No way I should still be scrambling around hitting things with a hammer in 10-15 years.

Your "lender" is really your dad isn't it? There is no guaranteed money. Well, outside of treasury bonds but that is the whole idea. My advice is to get started by buying a house. For you. To live in. Pick one that needs some work and has all the characteristics of one you would invest in. Get a regular job like a grownup and work on the house every weekend for the next two two years and then sell. You will get the profit tax free and you can see how good you are at doing this thing. Reinvest that in another place. There is money to be made by working regular jobs and moving every 2-3 years and making smart choices. Worst case scenario is you have a house to live in. Doing this as an investor is a whole different ball game. There is no easy money and you will be competing with people who 1) have been doing this successfully for years 2) have more money than you and 3) work harder than you.