BiggerPockets

Was up early a few weeks ago listening to a radio show about RE investing. It was Bob Diamond. Somewhere along the way, I called their number to get their free audio cd's and book. Ive been listening to the cd's on the way to work. At first I was about to throw it out the window, but then a few of the techniques caught my attention and sound like something I could possibly handle.

So now, im on a quest to explore this subject some more. Im reading his book and going to also get RE investing for dummies, as Ive seen it recommended here a few times. I read the table of contents and reviews over at amazon and seems like a good place to start.

Now on to the subject of this post -

I was talking to my neighbor a few days ago about my thoughts on getting into real estate by finding bargains and doing some minor fixing up and then listing them. His reply was "I wouldnt touch real estate right now with a 10 ft pole".

I know that the market as a whole is way off from its highs, but my reply was "its all how you buy the property".

I suppose my question is, what techniques can you use to get an idea of how quickly a property that your interested in might sell ?

Also, If it takes 2-5 months for a property to sell, and you have to finance, wont this just about eat up all your profit ?

So now im off to read RE Investing for dummies to get a place to start.

It's a tough market to sell property, but it can certainly be done (I've sold 5 rehab properties in the past three months)...

Here are some things to keep in mind:

- Take the costs of holding your property for several months into account when doing your analysis. For example, expect to pay 6 months of insurance, mortgage, utilities, etc. And make sure that these holding costs are figured into your analysis and that you can still make a profit even with those costs (YES, you can find plenty of property that can still turn a profit even with months of holding it).

- Get access to the MLS or to a trusted realtor to help you figure out how much properties in your selected area are selling for and how quickly. A good realtor should be able to tell you things like, "If you are trying to sell a 30 year old 3/2 ranch house in a good condition within .75 sq miles, you should expect to get about $146,000 with average days-on-market of 84." This is the information you need to figure out how to price things and how to determine hold times.

- Look at 200 houses before you make an offer on one. If you're motivated, you can do that in a week, though don't rush it.

- Find a competent GC who can help you determine rehab costs for any properties you're considering buying.

- Keep in mind the 90-day FHA rule, which basically says that you can't resell to an FHA buyer within 90 of you purchasing the property. Therefore, expect AT LEAST three months of holding costs (though generally it will be higher, rarely will it be lower.

- Pick up a copy of the book "Flip" by Gary Keller. Before you do that, read "The Millionaire Real Estate Investor" by the same author.

As for your neighbor, he's right...he won't touch real estate these days. And he'll also miss one of the best buying opportunities of our lifetime. You, on the other hand, should start learning everything you can so you can take advantage of this opportunity.

I am new to the game myself, but the condition of everything is exactly why I am in the real estate business. It took me a little longer to convince my partner, but he sees all the upsides of investing in these economic conditions. It's all in the way you look at the world.... I see opportunity

Hey Ben Jamin, welcome to BP, love your ride, I'm a car enthusiast as well, you should introduce yourself in the new members forum, where are you from? Jim

What does your neighbor do? How is he investing today? What is his net worth? Is it growing? Is he the one you want to emulate?

Would you rather buy real estate for 50 cents on the dollar today or 85 cents on the dollar in a couple of years when the market is booming again? I like buying dollars for 50 cents. It's got me looking for 40 and even 30 cent dollars.

When everyone else is greedy, be scared.

When everyone else is scared, be greedy.

If you have a long term outlook, now is an EXCELLENT time to invest in real estate.

It is also a great time to invest in the stock market but not in the traditional ways. But, that is for a different forum.

There is no point in trying to convince others of the wisdom of buying real estate. They either get it or they don't.

My advice? Just quietly go about your business and acquire your properties. Ten years from now you will be glad you did and they will still be wondering why they can't seem to get ahead.

No Name:

Real estate is NOT a fast and easy way to wealth. Then again, it certainly is for a gifted few.

In my own case it has taken persistence, patience and perspiration. And luck! You cannot prepare for every Black Swan event.

I believe most of the succesful investors here live, eat, sleep and dream Real Estate. It's their passion and they love persuing their passion.

Your neighbor's words are good advice for a majority of people. Many people are just not 'wired' to succeed in REI.

But if you are then jump on in! We keep score with dollars, and while it's fun to grow 'em, it really really sucks to run out of 'em.

Will,

You're wrong on this one

I have no problem admitting when I am wrong. What I was saying is that I took the information off their site and copy pasted the verbiage. If it is my responsiblity according to you, then so be it.
If that is the case, every person who posts a bulletin on an article here must accept "responsibility" if the article is incorrect?

I just had this conversation with my lender last week to confirm I will not have a seasoning issue with my FHA approved buyer who I am flipping a short sale to via double close. He told me as for now, we were in the clear but it could change come June 1.