Warning: preg_replace(): The /e modifier is deprecated, use preg_replace_callback instead in ..../includes/class_bootstrap.php(430) : eval()'d code on line 134

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19

Warning: Function ereg() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 4

Warning: Function split() is deprecated in ..../includes/class_postbit.php(345) : eval()'d code on line 19
Sold all bullion to purchase real estate. What do you think? - Page 2
Page 2 of 2 FirstFirst 12
Results 11 to 20 of 20

Thread: Sold all bullion to purchase real estate. What do you think?

  1. #11
    Join Date
    Jan 2012
    Posts
    30

    Default

    Quote Originally Posted by collector View Post
    that's the play to make. don't spend a lot on a fancy place to live. buy one that brings in income. i bought a multi-unit at a city tax auction and started showing a positive return by the 2nd month.
    Some amazing deals out there...

  2. #12
    Join Date
    Mar 2012
    Posts
    39

    Default

    To bank $20,000. a seller would have to make a 40,000. profit first. By the time you pay real estate agent fees and capital gains tax, there wouldn't be much left. These is even a chance your investment may go down 10-20% from the time you buy until the time you sell if foreclosures continue and the glut of unsold homes continue thus wiping out all your ability to profit.


    it's not that hard to make a profit in real estate. On my first investment property i lived in the house for two years. Fixing it up as i lived in it and sold it for a profit of $82,000 give or take a few hundred...bought a foreclosure from a bank at $155,000 and sold for $237,500.

    The agent did take a lump sum of 7% off the deal but overall we came out on top.

    To lead people to believe real estate is so hard to make money is just not always the case...this was a couple months ago..since then i have taken the equity and put it into my new home so only really came away with several thousand but i upgraded my family's standard of living as well as our bank account. as they say no risk no reward..isn't that why we are all on this board and many others

  3. #13
    Join Date
    Mar 2012
    Posts
    39

    Default

    Quote Originally Posted by ManagerMatt View Post
    I bought a comerical property for 50k that's making me 2000 a month... So it depends on the property and the investment...
    thats awsome Matt! i would like to take a page from your book in the future

    Silverbulldog

  4. #14
    Join Date
    Dec 2011
    Posts
    113

    Default

    Quote Originally Posted by Mizzle View Post
    Tough to make a dime in real estate.
    Property taxes, fees, commissions, HOAs and maintenance will eat your profits alive.

    More than likely, you're going to lose purchasing power in the long run




    I bought my house as an investment in 2006 for $150k. Its worth $140k 6 years later.

    All I use my house for is for the 27.5 years in depreciation and tax deduction.

  5. #15
    Join Date
    Apr 2008
    Posts
    591

    Default

    "It's not hard to make a profit in real estate" Really? Maybe you should say "it's not hard to loose your shirt in real estate" I know more people in the second place than in the first. If you're talking about getting a real good deal on something that will immediately bring in money, maybe. But who's to guarantee that it will continue to bring in money? Nowadays, nobody.

  6. #16
    Join Date
    Mar 2012
    Posts
    39

    Default

    Quote Originally Posted by clr8ter View Post
    "It's not hard to make a profit in real estate" Really? Maybe you should say "it's not hard to loose your shirt in real estate" I know more people in the second place than in the first. If you're talking about getting a real good deal on something that will immediately bring in money, maybe. But who's to guarantee that it will continue to bring in money? Nowadays, nobody.
    I appreciate your response...somehow i have to disagree with you based solely on my personal experience.

    another example would be my limited partnership that i share with my brothers. We own 1 commercial property which collects rent of $8,000/month from two businesses that are located in our building. In addition we have 2 cell towers that pay combined $3,500/month with a 3% increase and a 4% increase yearly. Adding this up we are bringing in a positive cash flow of $11,500/month. I am hardly losing my shirt here and this is just another example of how real estate can be a great investment. However if you do not know the market and buy a building or house in a bad location you can lose money and end up "losing your shirt"

    Clr8ter do you have personal experience that has got you thinking real estate is a bad option in today's market? I am not asking this in a rude way i am really trying to learn why some people shut down real estate as an investment option. I have found real estate to be a great investment opportunity but every situation is different and this is why i ask.

  7. #17
    Join Date
    May 2011
    Location
    USA - East Coast
    Posts
    387

    Default

    Quote Originally Posted by Silverbulldog View Post
    I appreciate your response...somehow i have to disagree with you based solely on my personal experience.

    another example would be my limited partnership that i share with my brothers. We own 1 commercial property which collects rent of $8,000/month from two businesses that are located in our building. In addition we have 2 cell towers that pay combined $3,500/month with a 3% increase and a 4% increase yearly. Adding this up we are bringing in a positive cash flow of $11,500/month. I am hardly losing my shirt here and this is just another example of how real estate can be a great investment. However if you do not know the market and buy a building or house in a bad location you can lose money and end up "losing your shirt"

    Clr8ter do you have personal experience that has got you thinking real estate is a bad option in today's market? I am not asking this in a rude way i am really trying to learn why some people shut down real estate as an investment option. I have found real estate to be a great investment opportunity but every situation is different and this is why i ask.
    People 'shut down real estate' because it requires a large capital outlay with only the prospect of a low and uncertain margin.
    Right now, your property may be generating positive cash flow (which obviously doesn't factor in any of your expenses. If your current tenants decide to close up shop, will you be able to lease the property to new tenants? If not, is the property financed? If it is, do you think you'll get a positive return on your investment if you have to liquidate?

    Not everyone has the time or ability to manage real estate investments, let alone the working capital to make something like that profitable.

  8. #18
    Join Date
    Mar 2012
    Posts
    39

    Default

    yes Mizzle you make a valid point but our tenants are Verizon & Sprint which are locked into 25 and 30 year contracts in addition to a growing internet and local distribution company that has been growing steadily over the past 25 years.

    In addition the building is payed off in full and our only real expenses are covered and then some.

    It took a risk in the beginning with some cash outlay but it was not the cash cow that it is now before we developed it. At one point i was just a warehouse for a business now it produces serious passive income.

    I am just trying to figure out if Real estate is not my next move to keep my family's money growing like this what is?

    We had an option to buy our building for much more than we paid but did not liquidate for the reasons i stated above..multiple passive income streams.

    Silverbulldog
    Last edited by Silverbulldog; 23rd March 2012 at 15:14.

  9. #19
    Join Date
    Apr 2008
    Posts
    591

    Default

    Silverbulldog;
    People 'shut down real estate' because it requires a large capital outlay with only the prospect of a low and uncertain margin.
    Right now, your property may be generating positive cash flow (which obviously doesn't factor in any of your expenses. If your current tenants decide to close up shop, will you be able to lease the property to new tenants? If not, is the property financed? If it is, do you think you'll get a positive return on your investment if you have to liquidate?

    Not everyone has the time or ability to manage real estate investments, let alone the working capital to make something like that profitable.
    DAMN! Exactly what I was going to say! LOL In addition to that, back in '04, you could have made a bunch of $ real quick, but at some point in '06-'07, that tide turned in months.

    My mother worked for a doctor who also had a LOT of RE investments back in the late 80's, and he only escaped that FUBAR by the skin of his teeth. In '06 I bought a condo for $140K. Sold it 2 1/2 yrs later for $112K. I consider myself fortunate enough to have had the cash to escape. I think I lost my shirt, though. The current house we live in, it cost us $282K. I do not think we could get even anywhere near that now. Our neighbor lives in the nicest house on the street. She's had the place up for sale 3 or 4 times in the 3 years we've lived here. Different agency every time. One got a "sale pending" out on the sign, it fell thru. She was offered around $70K less than her price at one point, cash. She didn't take it, and still has the house. Just about everything I observe and hear about points to "DON'T DO IT!!"

    However, I recognize that for certain people & situations, it makes sense. The cell tower thing sounds good. (It's not like they can move it to your neighbor's to get a rent decrease, can they?) If you have the money, and the balls, and the LUCK, I am jealous.

  10. #20
    Join Date
    Mar 2012
    Posts
    39

    Default

    Quote Originally Posted by clr8ter View Post
    Silverbulldog;


    DAMN! Exactly what I was going to say! LOL In addition to that, back in '04, you could have made a bunch of $ real quick, but at some point in '06-'07, that tide turned in months.

    My mother worked for a doctor who also had a LOT of RE investments back in the late 80's, and he only escaped that FUBAR by the skin of his teeth. In '06 I bought a condo for $140K. Sold it 2 1/2 yrs later for $112K. I consider myself fortunate enough to have had the cash to escape. I think I lost my shirt, though. The current house we live in, it cost us $282K. I do not think we could get even anywhere near that now. Our neighbor lives in the nicest house on the street. She's had the place up for sale 3 or 4 times in the 3 years we've lived here. Different agency every time. One got a "sale pending" out on the sign, it fell thru. She was offered around $70K less than her price at one point, cash. She didn't take it, and still has the house. Just about everything I observe and hear about points to "DON'T DO IT!!"

    However, I recognize that for certain people & situations, it makes sense. The cell tower thing sounds good. (It's not like they can move it to your neighbor's to get a rent decrease, can they?) If you have the money, and the balls, and the LUCK, I am jealous.
    HI Clr8ter,

    you make some valid points as well...I was more talking about properties that provide positive cash flow and once paid off the cash flow becomes a stream of money with little to no work to keep it coming in. I agree it is a tough place to try and flip properties unless you really know what you are doing. My goals are to create passive income streams from different commercial or multi-unit real estate buildings. As the economy gets worse and more houses go into foreclosure the opportunities to buy cheap and rent out are better. if you think about it more people will need to rent now that they got pushed out of their houses they could not afford.

    From some angles like the quick flip i am not big on..but building up properties that pay out passive income is where is see opportunities....not to mention the all time low interest rates.

    Silverbulldog

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •