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Anybody actively invest in real estate?

Discussion in 'BlackHat Lounge' started by maleek, Jan 30, 2014.

  1. maleek

    maleek Newbie

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    Hey guys,

    I've been researching how to invest in real estate. Looking to own rental properties (houses and condos). Would eventually like to move my way up into apartment buildings. Currently using methods posted on bhw to fund my first investment property.

    So, any of you invest in property actively? I'd like to hear about how you got in to real estate, maybe posts the ups and downs you've had throughout your time investing and any tips when investing! Also, if you've left the real estate world, post why!

    Cheers
     
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  2. Biznik

    Biznik Regular Member

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    You won't find anyone patient or smart enough to invest in real estate here where everyone has a "do nothing & get rich quick" mentality.
     
  3. pixelgrinder

    pixelgrinder Jr. VIP Jr. VIP

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    While there are a lot of people like that here, there are also quite a few that aren't.

    And who are you to call the entirety of BHW 'not smart enough'? Do you know each and every one of us?
     
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  4. nithinreddy

    nithinreddy Junior Member

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    A friend of mine used to do. He invested about $20,000 in 2007 to buy a few acres of land. He sold it for $30,000 in 2008. He then bought the same land from the person to whom it was sold for $45000 in 2011. Now the value is about $80000. He isn't selling it anymore ;)
     
  5. mickyfu

    mickyfu Jr. VIP Jr. VIP Premium Member

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    I think you will find most of the people here who make a lot of money also have a brain. And that brain tells them not to keep all their money in something as unstable as IM.

    I do not own anything in the UK as the law finds it acceptable for people to move in and not pay rent. It then takes upward of six months of theft to get the scruffs out of your property (at your own cost). Although the none paying tenants are thieving from you, probably to the tune of £3000+, nothing ever happens to the tenants and you will never see the money that you lose.
     
  6. biggerthanmike

    biggerthanmike Junior Member

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    I use to own a apartment building with my step dad. Let me tell you money was nice but headache from hell. I would never toss a single mom out on the streets but if they can't pay up you can't just evicted them & there gone. I had one lady live off me for 6 months out of my pocket
     
  7. maleek

    maleek Newbie

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    We have similar laws here in Canada. Although, I believe it is a criminal offense, and punishable in court.
     
  8. GreyKnight

    GreyKnight Regular Member

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    I do invest in property, but most of the property I acquired are lands, not buildings (houses, condos, apartments).
    I mostly acquire lands, because they are the cheapest, and if invested correctly have better yield than buildings.

    If you buy lands in correct places, in just 4-5 years the value of your land could be up to 4-5 times the price of the purchase. What I am doing when purchasing land is buying lands in undeveloped areas, but in the way or on the progress of development. That's why most of my lands are in Asian countries, because they are the growing market now.

    If I have sufficient capital, usually I turn some of my lands into hotel business or restaurant business. Turning it into homes and condos are too risky, because the demand for homes in some areas are too small or too hard to measure, the same thing goes for condos. But demand for hotel/restaurant/convenience store is easier to analyze and to implement appropriate actions.

    What must be learned from property investing that it takes time. It's not like you will get the money soon. Most likely, 10-20 years is the most logical investment horizon for property investing. Moreover, property is not liquid, meaning that you can't sell it today and hope to have the cash tomorrow. It takes months for a property to be sold, not to mention that some people will pay you in installments, lengthening the process. Bear in mind too, that when dealing in property, there are some pieces of property that is in the middle of legal battle, and there are middleman from everywhere, with fake documents offering you the property. I think this is not common in US, but common in Asian countries.

    But property, at least in Asian market, will continue to grow, at least the next 30-50 years. Countries such as Malaysia, Indonesia, China are the one to focus on. Developed nations such as Singapore, South Korea, and Taiwan have potential too, but with less reward and less risk than the emerging nations. I don't know much about India, but personally I think property investing in India is not very good, if you want to invest in India invest in small & medium business, you will get good profit there.
     
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  9. nickeberle

    nickeberle Regular Member

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    I own a 25 unit apartment building 4 rental houses and 3 pieces of land (just sold 4 parcels off a month ago). If you have any questions I would be happy to skype/email with you. I would be happy to answer anything you want to know about real estate and point you toward good reading material.

    I have made real money in it and as far as I know it's the only true source of passive income I know of. My building makes me over 30k a year after my management company takes their cut for doing all the work and on top of that I am paying down a massive mortgage that will leave me with a 6 digit passive income in my early 40s.
     
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  10. MadStacks

    MadStacks BANNED BANNED

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    I never put all of my eggs in one basket and some of the cash I make online I invest on tangible items
    like houses or different real estate. Helps build a nice diversified portfolio.
     
  11. Aty

    Aty Jr. VIP Jr. VIP

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  12. Resolution10

    Resolution10 Power Member

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    Where I come from, investing in land is currently huge and bringing tons of solid profits. More and more foreign investors are purchasing and investing in land for the last 2-3 years. Greyknight summed it up pretty much why land is most profitable in certain areas and countries.
     
  13. ozzke

    ozzke Regular Member

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    Bought 2 apartments, planning to buy 3 more this year. I know it can be a real headache but since I really don't like to handle the showing of the apartments, the monthly followup if they have paid or not,... I use a company that does all that for me. They ask 8-10% of the rent and they take care of everything. Also if there has to be taken legal action, they will handle it.
    I know 10% sounds a lot but then it really is passive income and they will also find a new person to rent it, if they other people leave. The more property you have, the lower their percentage will be. I'm loving it
     
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  14. GreyKnight

    GreyKnight Regular Member

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    I would say that real estate is not a truly passive way to gain income.
    Yes, you may gain income from rents, but I don't see rents as a major component in real estate industry.
    What I did in real estate is to purchase lands or properties as low as possible, then sell high at some moment in the future, which makes it not a passive income for me. But then again, it depends on how real estate market is moving at your own country. In well-developed countries, due to existing developments, it's hard to find a good land anymore, while in Asian countries there still exists a lot of opportunities.

    That being said, the best value of land I know now (if you are willing to purchase) is on tourism centers in Asia, such as Bali. You do requires some middle-man though, because it's illegal to sell directly to foreigners, so you need some local person to do the deal (their cut is around 5-10%). Some local companies even purchase the land, and then lease it to you for 20 years, you will only have to pay for the lease upfront.

    A lot of us will do.
    As I say before, you can use real estate as a medium term game (5-10 years) if you are dealing in Asian markets, as you will sell it as soon as possible. Even more, if you have lower purchasing power, real estate in Asian markets can be played in short terms (3-5 years). Lately I purchase a single office space in central Jakarta, which is around $350 K. After only 2 years, the current price is around $550 K, which is a dramatic increase.

    The hard part is to find people to buy your property, but I say again, as Asian market is on the rise, demands are in the high also. Currently I am just leasing the office space, earning me around $140K/year, which is good money. As an added factor, if you are applying for a loan from the bank, mortgaging your property, or using property as your collateral is almost a sure way to get your loan application approved.
     
  15. venins

    venins BANNED BANNED

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    you mean no smart here o_O
     
  16. nickeberle

    nickeberle Regular Member

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    Not seeing rent as income is why you don't see real estate as passive income. If I managed my building myself which is a part time job I would make more income but I choose to have a management team I pay more than I earn to do literally all the work. As for no money to be made in developed nations all my wealth has been earned right here in the USA in real estate.

    By definition "property consisting of land or buildings" is the very definition of real estate if I make income off renting out my property that is real estate income.
     
    Last edited: Feb 1, 2014
  17. IamNRE

    IamNRE Jr. VIP Jr. VIP Premium Member

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    Sorry to hear that, how did it die?

    I'm not in real estate ATM, but I will make money online and dump it into my construction company (yet to be created - this is like 1-3 years from now).

    There is a HUGE demand for cheap affordable accommodation in most countries. It's a no brainer.
     
    Last edited: Feb 1, 2014
  18. silentthunder

    silentthunder Jr. VIP Jr. VIP Premium Member

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    Exactly, a smart old man told me the best business on earth is earth because they're not making anymore of it. My brothers and I were in for a while.
    I definitely intend to get back in. Our mistake was not using a management company.
     
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  19. maleek

    maleek Newbie

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    This is exactly my thought process! In most countries, cheap and affordable is in great demand! And where I currently live, the renters are more numerous than property owners.
     
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  20. boozie

    boozie Power Member

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    I do the same, and this is the way and the only way to do it.