doctorshockalu Posted April 3, 2010 Share Posted April 3, 2010 Some of the other threads of this nature have been informative so I wanted to see if there was any interest in this topic. I will try to answer any and all questions. Link to comment Share on other sites More sharing options...
Fergasun Posted April 4, 2010 Share Posted April 4, 2010 How many times have you declared bankruptcy? Link to comment Share on other sites More sharing options...
SkinsHokieFan Posted April 4, 2010 Share Posted April 4, 2010 Why in the hell are Bruce Smith's ****ty condos by Lane Stadium priced at 800k? Where in the hell do you get that kind of cash from to outbid me on houses? How much do you put into a potential flip, and then what margin do you go after? Link to comment Share on other sites More sharing options...
DeanCollins Posted April 4, 2010 Share Posted April 4, 2010 How many times have you declared bankruptcy? None. credit score is in the mid 800's How much do you put into a potential flip, and then what margin do you go after? I never flip them, too many hands reaching into your pockets at closing time for that. Plus the transaction is entirely too documented. I keep them all as rentals. Link to comment Share on other sites More sharing options...
Fergasun Posted April 4, 2010 Share Posted April 4, 2010 How many homes did you own pre-2000? How many homes did you purchase between 2000 and 2002, 2003 to 2005, 2006 to 2008, 2009 to present? Link to comment Share on other sites More sharing options...
DeanCollins Posted April 4, 2010 Share Posted April 4, 2010 How many homes did you own pre-2000? How many homes did you purchase between 2000 and 2002, 2003 to 2005, 2006 to 2008, 2009 to present? 2 1 2 1 0 looking at few now, selling some land to buy a couple houses cash. Link to comment Share on other sites More sharing options...
Fergasun Posted April 4, 2010 Share Posted April 4, 2010 In general, where are your properties located? Do you have any far away? If someone were to inherit property located across the country how would you recommend property management? Link to comment Share on other sites More sharing options...
Thiebear Posted April 4, 2010 Share Posted April 4, 2010 Can you buy a foresclosure within 40miles of D.C. with 25k in cash? without 500k in effort after that is Link to comment Share on other sites More sharing options...
DeanCollins Posted April 4, 2010 Share Posted April 4, 2010 In general, where are your properties located? Do you have any far away? If someone were to inherit property located across the country how would you recommend property management? 4 of them are within 5 miles of my primary residence (which is also an investment property). 3 of them are single family homes in business districts on main streets that are zoned residential and commercial. They were cheap to buy as the residential value was low because of the busy street and the commercial value hadn't been realized because several things needed to be added to obtain a commercial certificate of occupancy. It was really helpful this year to be able to rent them as residential for the first time, since the commercial market is terrible due to the economy. Out of state properties can be managed by property management companies for about 10% of proceeds. Pick a reputable one. Link to comment Share on other sites More sharing options...
DeanCollins Posted April 4, 2010 Share Posted April 4, 2010 Can you buy a foresclosure within 40miles of D.C. with 25k in cash?without 500k in effort after that is your asking the wrong Dean -----> https://www.bearealestatemillionairenow.com/orderfb/?gclid=CMn7s__H7aACFRSgnAodJCSYFw :laugh: Link to comment Share on other sites More sharing options...
SC_RedskinsFan Posted April 4, 2010 Share Posted April 4, 2010 I do tax sale investments. I have been doing it for about 6 years, and in the past 2-3 years have really gotten serious. I buy only land right now, and from the past 2 years i now own 8 properties. This years tax sale i bought 107 properties, i still have 91 that have not redeemed but they have till Oct to pay or then i own them. Last year i ended up owning about 21% of of the ones i bought. The ones that redeem i make 3% per quarter. Its not to bad of deal, but you gotta have cash to work with. Or do it like i do, i have 4 silent investors. They gave me cash i do the rest.... Link to comment Share on other sites More sharing options...
doctorshockalu Posted April 4, 2010 Author Share Posted April 4, 2010 How many times have you declared bankruptcy? 0 Declaring bankruptcy also makes it very hard to buy property for a few years after that as well. Link to comment Share on other sites More sharing options...
doctorshockalu Posted April 4, 2010 Author Share Posted April 4, 2010 Why in the hell are Bruce Smith's ****ty condos by Lane Stadium priced at 800k? Where in the hell do you get that kind of cash from to outbid me on houses? How much do you put into a potential flip, and then what margin do you go after? Those condos are severely overpriced but these are not investment properties. Would never consider these properties. Most people that are outbidding you either aren't investors or they are paying too much. As for how do you get the cash, you can use a hard money lender so that you can "buy with cash" and close quicker. Banks and sellers love these transactions. I don't have a set number for a flip but I typically go after at least $20,000 profit after ALL expenses. This includes closing costs on buying and selling, holding costs, taxes, etc... On average I make 100% ROI on my cash on cash investment with 3 month typical hold time. Link to comment Share on other sites More sharing options...
doctorshockalu Posted April 4, 2010 Author Share Posted April 4, 2010 How many homes did you own pre-2000? How many homes did you purchase between 2000 and 2002, 2003 to 2005, 2006 to 2008, 2009 to present? I have owned 5 properties pre-2000, all were rentals that I still own. I flipped 9 properties in 2000-2002, 6 properties between 2003-2005, and 14 from 2006-present. I have 15 buy and hold properties that I rent out during that time frame. Link to comment Share on other sites More sharing options...
Madison Redskin Posted April 4, 2010 Share Posted April 4, 2010 your asking the wrong Dean -----> https://www.bearealestatemillionairenow.com/orderfb/?gclid=CMn7s__H7aACFRSgnAodJCSYFw :laugh: Wait, so you're selling a program that encourages people to double-down on real estate? Link to comment Share on other sites More sharing options...
doctorshockalu Posted April 4, 2010 Author Share Posted April 4, 2010 In general, where are your properties located? Do you have any far away? If someone were to inherit property located across the country how would you recommend property management? All of my properties are within a 30 minute drive from my main residence. I personally would never use a property management company. They basically just collect payments and charge you 10% for doing this. Obviously they don't care about the property as much as you do and in turn will not keep an eye on small repairs that can save you tons of money down the road. Link to comment Share on other sites More sharing options...
doctorshockalu Posted April 4, 2010 Author Share Posted April 4, 2010 Can you buy a foresclosure within 40miles of D.C. with 25k in cash?without 500k in effort after that is With 25k you could buy numerous properties in the DC area. However, I would buy them pre-foreclosure. By doing this you aren't enabling 50 other investors to outbid you and you can save a homeowner out by not letting them have a bankruptcy or foreclosure on their credit. Link to comment Share on other sites More sharing options...
doctorshockalu Posted April 4, 2010 Author Share Posted April 4, 2010 Wait, so you're selling a program that encourages people to double-down on real estate? I cannot speak on that link but I would say that the next two years will be the most profitable time for buy and hold real estate. Prices are almost at all time lows, people are desperate to sell,and interest rates will probably never be this low again. Please do not confuse this with buying real estate at retail however. Link to comment Share on other sites More sharing options...
chipwhich Posted April 4, 2010 Share Posted April 4, 2010 Prices are almost at all time lows, I am sure this is a typo. Actually prices are still overinflated and when interest rates bump we will see another bubble. Talking DC metropolitan area. Link to comment Share on other sites More sharing options...
Madison Redskin Posted April 4, 2010 Share Posted April 4, 2010 I cannot speak on that link but I would say that the next two years will be the most profitable time for buy and hold real estate. Prices are almost at all time lows, people are desperate to sell,and interest rates will probably never be this low again. Please do not confuse this with buying real estate at retail however. Have lending practices restricted efforts to engage in real estate speculation? If not, they should. Link to comment Share on other sites More sharing options...
Fergasun Posted April 4, 2010 Share Posted April 4, 2010 How do you find your properties? MLS? Have any rental properties started to have a problem with the rent not enough to cover the mortgage in the recession? How much reserve do you keep in case that happens, or would you sell? What percentage of your properties are upside-down? How much of an effort is it to keep the properties in good shape/good repair, is this your only source of income? Link to comment Share on other sites More sharing options...
doctorshockalu Posted April 4, 2010 Author Share Posted April 4, 2010 I am sure this is a typo.Actually prices are still overinflated and when interest rates bump we will see another bubble. Talking DC metropolitan area. Yes talking about areas that didn't "show" 200-300% gains in price over the last couple of years. That being, yes prices will probably drop another 10-15% before they bottom out. However, with the properties I buy this will not cause any problems. Link to comment Share on other sites More sharing options...
doctorshockalu Posted April 4, 2010 Author Share Posted April 4, 2010 Have lending practices restricted efforts to engage in real estate speculation? If not, they should. Lending practices have tightened up. Speculation was a problem of course but the real problem was that they were lending with practically no money down so that when prices did start dropping the home owners were underwater and could not sell. Link to comment Share on other sites More sharing options...
doctorshockalu Posted April 4, 2010 Author Share Posted April 4, 2010 How do you find your properties? MLS? Have any rental properties started to have a problem with the rent not enough to cover the mortgage in the recession? How much reserve do you keep in case that happens, or would you sell? What percentage of your properties are upside-down? How much of an effort is it to keep the properties in good shape/good repair, is this your only source of income? Rental rates have continued to go up in my area but that is because I am near Virginia Tech. I like to have 6 months of reserves for each rental property that I own. I have a buyers list ready with 5 people at any one time so that if I need to sell quickly I can find another investor to sell to. I am upside-down on zero of my properties. I typically buy from 50-60% of retail value so I am prepared to whether any downturn. If my mortgage payment of a property would be $500 then I need to make roughly $1000-$1100 of rents to actually profit from renting. It is not a problem keeping the properties in good shape if you stay on top of it. Paying $100 to fix something quickly is going to save you thousands of dollars down the road of deferred maintenance. An average day is probably spent like the following, 1 hour repairs, talking to tenants, leasing 2 hours driving around town looking for bad looking properties 2 hours looking up owner information, making calls, offers, deals With that said, I did have a 3 month span where I put in 45 offers before one got accepted. It's simply a numbers game where the odds are stacked in your favor. Link to comment Share on other sites More sharing options...
SkinsHokieFan Posted April 5, 2010 Share Posted April 5, 2010 Are you finance professor Bonamo at VT? If so, I enjoyed your course in 2004 Second, how on earth do you get data on pre-foreclosures. This has been an absolute mystery to me and something I have been trying to get in on Link to comment Share on other sites More sharing options...
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