What investments would be profitable for me?

9 Replies

I am currently having to use the strategy of taking out commercial real estate loans (or mortgages) and using personal loans to fund the down payments. I am having trouble finding properties that will rent out for more than the combined loan payments, plus maintenance, taxes, etc.

I am only interested in houses, RV parks, mobile home parks, apartment complexes, and hotels. I think only the first three are within my reach right now.

What was your first profitable investment? What do you think I could buy using this strategy that would turn a profit? If I could find it once, I could find it 1000 times.

I have several thoughts, First your strategy will work once you start looking at markets where property will cash flow. I dont know Orlando but I would expect to be able to find property down there. My friend Robyn Thompson just started up a REIA club down there called GoREIA, you should check it out.

My second thought is that you might want to eliminate hotels from your future plans, a hotel is not a normal RE investment, it is more of a business, and that requires a lot more of your time and energy, plus there is a differant skill set involved.

Thirdly, while your strategy of self funding the down payments will work, it is not sustainable.  At some point you will run out of money to put down.  Use your time on BP to learn how to buy without any of your own cash. 

I hope that helps

Josh

Originally posted by @Josh Caldwell :

I have several thoughts, First your strategy will work once you start looking at markets where property will cash flow. I dont know Orlando but I would expect to be able to find property down there. My friend Robyn Thompson just started up a REIA club down there called GoREIA, you should check it out.

My second thought is that you might want to eliminate hotels from your future plans, a hotel is not a normal RE investment, it is more of a business, and that requires a lot more of your time and energy, plus there is a differant skill set involved.

Thirdly, while your strategy of self funding the down payments will work, it is not sustainable.  At some point you will run out of money to put down.  Use your time on BP to learn how to buy without any of your own cash. 

I hope that helps

Josh

I am not limiting myself to Orlando currently. I look all over Florida. How do I find the good markets. I will join that group.

Why should I not do hotels? From what I have seen, hotels are the most profitable real estate of all. It is the same building as an apartment complex, but the guests turn over faster and they charge a higher rate. But that is besides the point for now.

Why would I not be able to continue to fund my down payments with personal loans? Why wouldn't I be able to do this every time? 

Can you point me to how I can fund the investments using none of my own money?

Originally posted by @Account Closed :

I am currently having to use the strategy of taking out commercial real estate loans (or mortgages) and using personal loans to fund the down payments. I am having trouble finding properties that will rent out for more than the combined loan payments, plus maintenance, taxes, etc.

I am only interested in houses, RV parks, mobile home parks, apartment complexes, and hotels. I think only the first three are within my reach right now.

What was your first profitable investment? What do you think I could buy using this strategy that would turn a profit? If I could find it once, I could find it 1000 times.

 Hello John,

First of all, I will to congratulate on seeking more investment opportunities to add to your investment portfolio. You should seek whatever market will make you comfortable. Also, ensure that the risk is something you will be able to handle if things do not work out.

Good luck!

Originally posted by @Gregory Guillet :
Originally posted by @John Farmer:

I am currently having to use the strategy of taking out commercial real estate loans (or mortgages) and using personal loans to fund the down payments. I am having trouble finding properties that will rent out for more than the combined loan payments, plus maintenance, taxes, etc.

I am only interested in houses, RV parks, mobile home parks, apartment complexes, and hotels. I think only the first three are within my reach right now.

What was your first profitable investment? What do you think I could buy using this strategy that would turn a profit? If I could find it once, I could find it 1000 times.

 Hello John,

First of all, I will to congratulate on seeking more investment opportunities to add to your investment portfolio. You should seek whatever market will make you comfortable. Also, ensure that the risk is something you will be able to handle if things do not work out.

Good luck!

 As long as the numbers work, I would do it. I'm having trouble finding anything that will do more than barely break even after accounting for loan payments, maintenance, taxes, etc.

What do you mean which market? Do you mean the location? Do I need to find an area that is expanding? I never plan to sell anything I buy.

Ok let me clarify one of my points.  Lets say that you can 100k saved, and you are putting 20 down per deal.  You can only buy 5 before you have to stop and wait to refil the bank account.  At some point you become limited if you dont learn how to buy with none of your own money. 

I would also be careful about over-leveraging yourself. Just because you can borrow doesn't mean you should. I'm not saying you necessarily need to use your own money to leverage less, but find a way value add with some amount of sweat equity (rehabbing, turning a poorly ran building around, etc).

I don't plan on using my own money. 

I wouldn't take out any loans that I couldn't make sure I would be able to repay with the income.

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