1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

want to buy a property when prices go down

Discussion in 'BlackHat Lounge' started by Bartman, Jul 31, 2011.

  1. Bartman

    Bartman Power Member

    Joined:
    Apr 24, 2010
    Messages:
    569
    Likes Received:
    131
    hi
    I want to buy real estate when prices go lower.
    I want to buy a house, not a condo, because most condos have HOA and I don't want to deal with HOA, I have heard some horror stories about them.
    my goal is to rent it out and collect some $ every month.

    when I daydream, I imagine renting my property to 3 people, each one paying me $500 a month. wow, that's $1500 of passive income...imagine the things I could do with that. I could go to a nice restaurant....I could afford nice clothes....wow.

    With the amount of money that I have right now, I can't afford a good area. The best house that I can afford is located in a bad neighborhood ...one of those places where there is a robbery every night.

    If I go further out (like 4 hours away) I can find decent houses, but the supply is much greater, which is something I don't like.. high supply = lower chances of renting...

    Then there is those states where housing is very cheap...for example, I have heard you can buy a really nice 3 bdr house in Texas for 100K. should I buy in Texas?
    I guess I am just confused because I don't know anything about real estate.

    my question is, how do I know where to buy, which area, which property, what to avoid?
     
  2. DutchTrafficService

    DutchTrafficService Regular Member

    Joined:
    Aug 12, 2010
    Messages:
    473
    Likes Received:
    234
    Buying real estate right now is like going into forex betting the US dollar is going to go up.

    Are you serious or is this a troll?
     
  3. everythingred

    everythingred Jr. VIP Jr. VIP Premium Member

    Joined:
    Jul 21, 2010
    Messages:
    1,871
    Likes Received:
    1,234
  4. Mises

    Mises Junior Member

    Joined:
    Jan 11, 2010
    Messages:
    110
    Likes Received:
    51
    The market hasn't bottomed yet in my opinion, so I suggest waiting if you do this. Note that it varies regionally though and it isn't going to be 100% passive- you will have things to take care of as the landlord.
     
    • Thanks Thanks x 1
  5. DutchTrafficService

    DutchTrafficService Regular Member

    Joined:
    Aug 12, 2010
    Messages:
    473
    Likes Received:
    234
    The US is officially bankrupt, investing in real estate sounds like a suicide mission...
     
  6. Mises

    Mises Junior Member

    Joined:
    Jan 11, 2010
    Messages:
    110
    Likes Received:
    51
    Not really (and even if it were, that doesn't mean people don't still need a place to live). But okay...
     
  7. vrodriguez305

    vrodriguez305 Junior Member

    Joined:
    Dec 30, 2009
    Messages:
    138
    Likes Received:
    44
    $500 a month is nothing. What about property taxes? Find a house in a neighborhood where the other houses have a higher value than the one you want to purchase. You can always fix it up a bit and get it re-appraised and sell it to make some profit.

     
  8. DutchTrafficService

    DutchTrafficService Regular Member

    Joined:
    Aug 12, 2010
    Messages:
    473
    Likes Received:
    234
    Excuse me, not bankrupt?

    Don't tell me i (as a Dutch person) has to explain an american why his country is one of the poorest countries in the world...
     
  9. Mises

    Mises Junior Member

    Joined:
    Jan 11, 2010
    Messages:
    110
    Likes Received:
    51
    You need to do some research. It is one of the richest countries, not the poorest. I have no idea where you are getting that from. The debt situation is bad, but arguably better than the EU's. Do you also realize that the Netherlands has a higher public debt as a % of GDP? If you look at standards of living and production, the US still ranks near the top.
     
  10. DutchTrafficService

    DutchTrafficService Regular Member

    Joined:
    Aug 12, 2010
    Messages:
    473
    Likes Received:
    234
    Here is the point i would have to come up with facts and arguments, but it looks like the propaganda has gotten to you and you are a totall lost case.

    US one of the richest countries? Please....make the hurting stop, my jaws are dieing.

    No words for this other than: L O L
     
  11. everythingred

    everythingred Jr. VIP Jr. VIP Premium Member

    Joined:
    Jul 21, 2010
    Messages:
    1,871
    Likes Received:
    1,234
    If you think the United States is not bankrupt then you have been lied to. Every American citizen has debt owed to China and other nations. These are taxpayers' debts. Just because there is a label of 'government' it doesn't mean that they owe the money. It is you.
     
  12. Mises

    Mises Junior Member

    Joined:
    Jan 11, 2010
    Messages:
    110
    Likes Received:
    51
    You guys do not know what the definition of bankrupt is clearly. If you are using it with some colloquial meaning implying we have passed the point of no return- then arguable. But, the US is not actually bankrupt right now. Personally, I think they can still turn the tide, although I have no faith in the politicians to do so. Trust me, I'm a bear on the US long term, but we still have time. I think the EU is actually in more trouble and am more bearish on them in the next decade than the US. You all need to remember that everyone has to put their money somewhere and right now the US looks like it might just be better than the EU- and those are two huge safehavens of the past that are still riding on past credibility.

    But, really that is a discussion for another topic and it doesn't mean anything to the OP unless you are making the argument that government debt woes mean people will leave the US or not need housing. That is just ridiculous.
     
  13. phluid

    phluid Power Member

    Joined:
    Jan 25, 2011
    Messages:
    749
    Likes Received:
    340
    If it doesn't work out you are welcome to cry on my shoulder.
     
  14. bobbylove321

    bobbylove321 BANNED BANNED

    Joined:
    Nov 8, 2008
    Messages:
    1,987
    Likes Received:
    2,198
    It is not as easy as you may think. You won't be earning $1,500 per month to be able to do stuff.

    There's property tax, utilities and maintenance that you have to do for the people, loan payoffs that you borrow for the property, etc.

    And on top of that to actually find 3 people that are interested.
     
  15. neeka387

    neeka387 Registered Member

    Joined:
    Feb 7, 2010
    Messages:
    72
    Likes Received:
    20
    You should take a look at some Robert Kiyosaki Books. You mentioned $1,500 in passive income. I think it would be more like 1,500 - (mortgate +insurance+taxes) = passive income. It would be better to invest your money in something that will make you money. If you can work a network marketing program that would be a good place to start. They give you passive income and I'm a member if a really cool one. You can pm for the link.

    You can look in to investing money in silver and goal that is over all still outperforming the stock market as a longer term investment. Especially since the US is a credit whore who will soon enough get her credit card cut up.

    Either way, your best investment at this point is buying or checkout out Robert Kiyosaki books, and looking into a network marketing program or some other money producing venture.
     
  16. marketingwise

    marketingwise Junior Member

    Joined:
    Nov 25, 2009
    Messages:
    109
    Likes Received:
    12
    Obviously you do not have the experience. It is not going to happen, Invest your
    time in something that will make you $ day in and day out. GEt skiilled with BHW stuff
    then automate it.
     
  17. sircoldfire

    sircoldfire Junior Member

    Joined:
    Jul 2, 2011
    Messages:
    104
    Likes Received:
    27
    Occupation:
    motha fu¢kin hu$tla
    Location:
    bank teller window cashin checks
    dunno the avg property prices may go down its possible ... but i wouldnt try to time the bottom we may be there already ... prices are freaking giveaway cheap right now .. in many areas near where i live houses are selling a good bit under build cost... so you couldnt even build a new house for the price you can buy one ...

    when i used to do real estate i always told the people who were trying to wait for the bottom...it may go lower it or it may go up tomorrow ... but overall you dont want it to go lower ... if it gets much lower we already have too many houses for sale... people wont pay on their mortgages if they can buy another home for 1/2 price... that will cause more defaults and more houses on the market that will cause a downward spiral thats hard to stop... also as banks loose tons and tons of money they layoff people this also is a large downward spiral trough the economy... so if prices go down any more they could cause a massive drop in the economy and home prices ... sure it would be nice to get this home for less than its selling for now but could you afford the payment if you had no job? mostly my clients werre business people not just wage earners but i would adjust my speach slight for wage earners and its basicaly the same either way...


    depending on where you live if you can pay the downpayment on a 4 bedroom house renting out 3 of the rooms can be pretty nice .. you can live for free and let them build your equity for you

    tl;dr version
    just buy now in the best area you can afford(that doesnt have robberies nightly)
     
  18. kirkonpolttaja

    kirkonpolttaja Senior Member

    Joined:
    Feb 6, 2010
    Messages:
    1,027
    Likes Received:
    669
    Code:
    http://www.bloomberg.com/news/2010-08-11/u-s-is-bankrupt-and-we-don-t-even-know-commentary-by-laurence-kotlikoff.html
    America is bankrupt, this wont be if war would not be number 1 reason for USA to gain income... You cant start a war everyday to get oil fields under USA banner cause that would look like way too much like crack heads addiction to get that dose of something everyday

    Land of the free is rotten in the end... what do you get if you live with overly cheap luxuries? (USA most luxury is way gasoline)
    You consume and consume money resource like there would be doomsday coming... gasoline cost 3 times less than here in finland (dont know reason for cheap gasoline, cause we manage to live without problems eventough we pay 3x more than USa people)
    We pay 1.8€/liter.

    But i'm not saying that USA would be only one, EU has problems cause we accept poor corrupt countries to join.... greek fuck and portugal... portugal demanded huge paybacks cause portugal supposed not to have money.. reason was that they sent us some preserved food at winter war 1945.. they demanded ALOT for those sardine tins haha :D But after a month they was busted cause they had about 40 times as much gold in their safes than finland haha... poor country in my ass leeching the system.


    EDIT: sorry for offtopic, end of this matter :) BARTMAN! dont do realestate! do dropshipping.
     
  19. johndo

    johndo Newbie

    Joined:
    May 4, 2010
    Messages:
    16
    Likes Received:
    1
    Thats right, they need a place to live, but they cannot aford it anymore to pay much.
     
  20. Monrox

    Monrox Power Member

    Joined:
    Apr 9, 2010
    Messages:
    615
    Likes Received:
    579
    What facts and arguments? Being in debt automatically means bankruptcy only if you are a private entity BECAUSE there are laws allowing the debtor to take whatever you own. There are no such laws for governments and you can be 100% sure that no Chinese bailiff or whatever is going to take my car, house, kidneys etc. You should also take a look at who owns the most gold in the world: it's USA and Germany => they can't be trully bankrupt.

    @OP: unless you are really lucky, it is very hard to make fast money with property. There are taxes (ownership and income from rent), insurance stuff and you have to maintain the property and fix whatever breaks. From what I've seen most landlords start to make a useful profit from the 5th or 10th year on.

    Buying, fixing, selling seems to work a bit better indeed.