Real Estate Profit

[Dilshad]

Hi all,
I have some ideas in a real estate but wasn't quite sure where exactly to head up to. Now I don't mind at all sharing my finance information. I make $80K a year, working as a software engineer, but let's say if I want to invest in real estate commercial or residential something which would profit my investment finance. If I put in $10,000 to $20,000 what kind of a business in real estate would be my best bet that would bring back good results? Any input and advice is welcome! Thanks!

 

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[Dilshad]

Unfortunately, you don't provide nearly enough information to help you determine what your best strategy may be.

What kind of returns are you looking for?

How much time do you want to devote?

How much knowledge do you have about real estate investing?

Where do you live and where do you want to invest?

Do you have good credit or access to other cash?

What is your investing time horizon?

Hi Scott, thanks for your questions, here are the answers:

- I'm looking for any returns which would bring in profit.

- The time I would like to devote is 2 days in a week and those are weekends, since on weekdays im pretty packed up.

- I have no knowledge in real estate but I am willing to take chances to learn by experience. Currently enrolled into the real estate licensing program for my state which is Virginia.

- I live in Virginia and I want to invest into single family homes, or townhouses or even commerical property just not sure how to begin.

- My credit is excellet, no bad history at all. Cash available the most is 20k.

- investment time zone would be 3-4 months if i want to double those 20k to 40k

 

[andviv]

Where in VA?

This is a very diverse state. NoVA is expensive. VA Beach is also on the expensive side. For what I understand, Richmond is not too expensive, and the south part is cheaper. This makes a big difference.

Can I assume correctly you are in Northern VA?

 

[NJRealEstate]

- My credit is excellet, no bad history at all. Cash available the most is 20k.

- investment time zone would be 3-4 months if i want to double those 20k to 40k

Your best bet is to buy a distressed property at a deep discount, fix it up, and sell it. A flip or rehab. This is the quickest way to multiply your money (at least that I have found). Some issues you will have is your limited time involvement. While I would NEVER recommend someone looking to start a real REI business do their own rehab or construction work if you do not have real experience, I still believe that you need to be there enough to make sure that whoever you hire is doing a good job, is getting things done in a timely fashion, and to manage your investment. Once you have a better relationship with your crews you can give them more faith, but you still should be checking in on the place every day or so.

Not sure what prices are like in your area though, as 20k is not nearly enough $ if you live in an are with high prices like many areas of Northern VA. You will need to have money on hand to cover closing costs, down payment, and at least to start the construction before your first draw.

 

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[Dilshad]

Where in VA?

This is a very diverse state. NoVA is expensive. VA Beach is also on the expensive side. For what I understand, Richmond is not too expensive, and the south part is cheaper. This makes a big difference.

Can I assume correctly you are in Northern VA?

Yup your correct im on the Northern Virginia side. Fairfax County area....

 

[Dilshad]

Your best bet is to buy a distressed property at a deep discount, fix it up, and sell it. A flip or rehab. This is the quickest way to multiply your money (at least that I have found). Some issues you will have is your limited time involvement. While I would NEVER recommend someone looking to start a real REI business do their own rehab or construction work if you do not have real experience, I still believe that you need to be there enough to make sure that whoever you hire is doing a good job, is getting things done in a timely fashion, and to manage your investment. Once you have a better relationship with your crews you can give them more faith, but you still should be checking in on the place every day or so.

Not sure what prices are like in your area though, as 20k is not nearly enough $ if you live in an are with high prices like many areas of Northern VA. You will need to have money on hand to cover closing costs, down payment, and at least to start the construction before your first draw.

Thanks for your response, when you say flip and rehab....what exactly is rehab? Here where I am at it is VERY expensive, new houses start off $400K . This is what my plan was though: 1.) To get a reasonable mortgage house loan ( I make $80K a year), downpayment of 20K and then any other cost, "Roll in" into the mortgage, and then sell the house for profit (flip)? Does this sound like a good plan or no? What's your intake. Please do provide more tips advices. Thanks

 

[andviv]

Fairfax County area....

I guess you can use that for an FHA 3% down-payment for a not-so-great townhouse over here...

I recall there was an Alexandria RE Investors group not so long ago, you may want to look for that and see what you find.

I gave up trying to make REI in this area due to its cost. I wish you luck with it.

 

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[Rickson9]

With your limited cash and experience, one option would be to birddog properties for real estate investors in your area. Meet with them, ask them what they are looking for and negotiate a share of profit if you bring them a deal that fits their criteria that ends up closing escrow.

 

[Dilshad]

With your limited cash and experience, one option would be to birddog properties for real estate investors in your area. Meet with them, ask them what they are looking for and negotiate a share of profit if you bring them a deal that fits their criteria that ends up closing escrow.

I have spoken with Real Estate agent, and the most part which they can do for me is give me a refferal bonus, otherwise thats it, nothing more. I guess maybe wait for my promotion to reach 100K to 150K then probably i will be able to do something. Ohio, Cleveland (which is my birthplace) is pretty cheap houses there. Was thinking probably to flip houses in that state but I don't live there. If I flip houses here in Fairfax County or any other County within Virginia, I'm pretty much risking my future, which I am willing to do. I'm going to do it in Feburary or March of this year....wish me luck....though really scared if it doesn't sell....

 

[Rickson9]

A real estate agent isn't an investor. They're salespeople.

 

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[Dilshad]

A real estate agent isn't an investor. They're salespeople.

Nice, thanks for the correction I will speak with a salesperson and see what they can do to help me on this .

 

[roc]

As one person suggested you could be the money man, and have the other do all the work, to flip and/or rent to refi your profit. I would suggest that you continue your research and find something that make your comfortable, because real estate investing is pretty broad. Someone on here may tell you to buy a strip mall because commercial real estate is in the dumps, but that is not going to help you if a anchor tenant leaves and now your stuck fronting the mortgage.

My suggestion is start with a single family house in a nice area, rent it, flip it, lease it, do whatever you feel comfortable with and see what you like.

You may find out that you hate dealing with tenants and may want to go another route. Good luck with whatever you choose. Roc

 

[Dilshad]

As one person suggested you could be the money man, and have the other do all the work, to flip and/or rent to refi your profit. I would suggest that you continue your research and find something that make your comfortable, because real estate investing is pretty broad. Someone on here may tell you to buy a strip mall because commercial real estate is in the dumps, but that is not going to help you if a anchor tenant leaves and now your stuck fronting the mortgage.

My suggestion is start with a single family house in a nice area, rent it, flip it, lease it, do whatever you feel comfortable with and see what you like.

You may find out that you hate dealing with tenants and may want to go another route. Good luck with whatever you choose. Roc

Hi roc, thanks for the suggestions, but did you know one of the most difficult aspect of renting is that sometimes tenants are a pain in the you know what.... when they don't pay ON time, OR even when they just sit there do nothing so difficult. Though I still might try to rent and then flip, the only fear i still have is...I will be the sole earner of income and 80K can't really go long long way in the long run since of other expenses which keep poping out on me. I am going to try the rent idea and buy to sell flip....though back of my head just so much feared what if it doesn't sell, then I have (one mortgage which im helping my mother out on, and the other mortgage will be this one which i will be working on)

 

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[andviv]

My suggestion is start with a single family house in a nice area, rent it, flip it, lease it, do whatever you feel comfortable with and see what you like.

This is one of the reasons why MJ says RE is not fastlane... nothing 'fast' in this approach.

sometimes tenants are a pain in the you know what.... when they don't pay ON time, OR even when they just sit there do nothing so difficult. Though I still might try to rent and then flip, the only fear i still have is...I will be the sole earner of income and 80K can't really go long long way in the long run since of other expenses which keep poping out on me. I am going to try the rent idea and buy to sell flip....though back of my head just so much feared what if it doesn't sell, then I have (one mortgage which im helping my mother out on, and the other mortgage will be this one which i will be working on)

You have a lot of things going against you:

* Too many negative assumptions
* A Can't-do attitude (derived from the previous point)
* Not enough cash to support any issue (and trust me, they will happen)
* Fighting a tough market (nobody is going to sell you a house for cheap in NOVA. There is no 'crisis' or 'troubled economy' over here)
* Prices are going up and rents are not catching up
* you already have too many obligations (choose: help your mom or invest)

Sorry to be negative, but it does not sound to me you are ready to invest in RE in this area.

 

[Dilshad]

This is one of the reasons why MJ says RE is not fastlane... nothing 'fast' in this approach.



You have a lot of things going against you:

* Too many negative assumptions
* A Can't-do attitude (derived from the previous point)
* Not enough cash to support any issue (and trust me, they will happen)
* Fighting a tough market (nobody is going to sell you a house for cheap in NOVA. There is no 'crisis' or 'troubled economy' over here)
* Prices are going up and rents are not catching up
* you already have too many obligations (choose: help your mom or invest)

Sorry to be negative, but it does not sound to me you are ready to invest in RE in this area.

It's true, the odds are 99% against me at this point, but think about it, there are many millionaire stock brokers, who risk their finance and sometimes it triples, and sometimes they are so DOOMED, afterall, it's business and business that's what it means I thought play with risk. Though totally I agree with you, its against my odds, but can't really do anything else since really want to be in business category. Business means to take chances and man am I scared at the same time.....but that is life isnt it.

 

[roc]

Trust me I know all too well about how tenants can be a pain in the a$$. With that said, I would suggest that you join your local real estate investing club before you do anything. Meet up with some like minded LOCAL real estate investors, and get educated. Good luck buddy

 

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[Dilshad]

Trust me I know all too well about how tenants can be a pain in the a$$. With that said, I would suggest that you join your local real estate investing club before you do anything. Meet up with some like minded LOCAL real estate investors, and get educated. Good luck buddy

Thank you thank you I got several business ideas going around in my mind so lets see what the future holds. By the way, another interesting question I had, lets say some business of mine runs really well, how in the world would I handle "Shipping & Handling" so many orders? Is there any service for this for less fee etc? Also Accounting...is Peachtree (now known as Sage 50) a good product to buy for my future business?

 

[roc]

I'll be honest with you, I'm not versed with Ecomm biz, reach out to the guys who know there stuff on the forum.

 

[PopEmersen]

check biggerpockets.com too. Its a Real Estate investment forum.

 

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