in the shorter version of that, in fla, we call it flipping properties...many are getting rich doing it here, from all walks of life, so until you have been here to check out the market, plus the fact that the travel channel and other national magzs. called naples the nicest beach in the usa for 2005, i still think all the long comentary is useless, i know what i am talking about...
I'm admittedly a cautious, conservative r/e investor. In the long run, it has served me well. Consequently my personal definition of a hot market is one that I could pick a location from the phone book, buy it at whatever the seller will sell it to me at and know that 12 months later re-sell the property and know I'll make money.
The trouble with looking making a decision on a specific property based solely on statistics drawn from a national data bases would be foolish at best. Much more important are the specifics/characteristics of the property and it's appropriateness (or lack thereof) for the owner or buyer.
postcircle0 write: At least one national survey that I am aware of lists Naples as being over-priced/bought. Meaning in this publications opinion,prices arelikely toactually fall for existinghousing stockwhich may mean that ownersof property will owe more than the property will sell for. This happened in Silicon Valley when the tech bubble broke and also years prior in Houston when the oil market collapsed. But, each market and each property is its own situation. However, those who bouht property at the current market assumming that property will inevitiably increase in value due to abnormally price inflation are in the most vulnerable position.
sorry, don't agree...It's the price you pay for sunshine...That price will never go down...and Naples is so different then say Miami, the price will not be falling....there is much more to read on this then one publication...and I have baby boomer friends that won't be moving to Tenn. to retire...
At least one national survey that I am aware of lists Naples as being over-priced/bought. Meaning in this publications opinion,prices arelikely toactually fall for existinghousing stockwhich may mean that ownersof property will owe more than the property will sell for. This happened in Silicon Valley when the tech bubble broke and also years prior in Houston when the oil market collapsed. But, each market and each property is its own situation. However, those who bouht property at the current market assumming that property will inevitiably increase in value due to abnormally price inflation are in the most vulnerable position.
I am a 9 year full-time residential real estate investor in nashville, tn. I can tell from your questions that you are not ready to begin a real estate investment program. Going into an investment that you know will be cash negative from the beginning is inviting a financial disaster. You do not yet have sufficient information re real estate investment in general and your specific market in particular. Suggest you contact a local non-profit residential real estate investment such as the Minnesota Real Estate Investment Association, contact Mike Jacka
I am looking for a established female who enjoys the world of investment and real estate. I woman who is eager to share her life and dreams with a man of the same interest....Let me put you on a pedestal and make you my Queen as I reign as your King!
I would like to pass on a little advice from a banker cousin of mine who was quite rich by the time he died.
He said that you can make money on property anywhere. (He lived in a very small town, poor area, and made his money right in that area.)
The secret was knowing the local market value of everying - land, timber, houses, tractors, cows, goats, pigs, whatever. Then only buy those things that were seriously undervalued. He knew the value of almost everything in the local area.
Another way I have observed is to buy portable items in places that are depressed and move and sell them in towns or areas that are booming. For instance, I have seen people get rich moving large farm or construction equipment from areas that were hit with bad weather (wet or dry), to areas that were having good crops or good construction weather.
My problem has always been that I can find many more bargins than my pocketbook will allow. They are everywhere.
I believe 12 percent is usually obtainable, especially on smaller tracts.
I did manage 100 percent over 3 years on one tract, but that is probably pretty rare, but I am not sure about that either, since I haven't been shopping for land in 7-8 years. The key the way is see it is to convert it to a higher use, such as housing development, but that takes money for roads, etc.
I am at a decision point on property investments. I have rental houses in Houston that I need to sell because I have moved to Arkansas, and so I am thinking about selling those and using the money to acquire some raw commercial property in Arkansas that is severely undervalued. Another investment I like is timberland, but you really have to know what you are doing in timber and its hard to find the great deals.
The main kicker is that there is low risk on renting a house in Houston and timberland and raw commercial property is usually a much longer term investment with little or no cash flow. However, managing the rentals is getting to be a problem for me because of the distance and my busy schedule.
My estimate on return on timber is about 5% per year in timber growth plus the rate of inflation. If you happen to find land with development potential also, the return can be much much higher.
Since I would look for land with commercial potential I would expect the higher return, but the cash flow could creat problems for me if I bought a large tract. Of course the large tracts are less per acre so the incentive is certainly there to go big.
I am rambling too much. What is the normal expected return on commercial property with risk such as I have indicated.
Gerry, what is the current "rule of thumb" on rental price vs house or property value. Many years ago, it was recommended that you charge 1% of the market value of the house as rent. Thus a $120K house rented for $1200/mo.
Is this still a valid number? I have had rental property for 30 years and it has worked out reasonably well for me, but I haven't bought any property in a long time.
Hey thanks for all the tips..i am buying only one property at a time...am just starting out on the first foreclosure and had equity upon closing...what are the most important remodeling tips you can give to still earn a profit upon selling...I hope to move on to the next project by next year.
Hi Jerry, I live in las vegas, I want to invest without doing any thing else, I guess what I need is a team, group, firm, brokerage company, whatever it's called, that specialize in purchasing non-commercial properties, such as single family homes. Then they live in it about 6 months, make a few upgrades then sell it, After all the research i've done, I feel this to be my favorite, any thoughts, suggestions, warnings, or referals.