All Forum Posts by: Danny Webber

find some good agents in the areas you want, get financing ready and pull the trigger when you find a deal

@Neil Narayan   You are a local RockStar Neil! 

Below are 10 realistic things Real Estate Investing has done for me both good and bad!

1. Allowed me to spend much more time with my family (this is a big one for me)

2. Allowed me to travel/vacation anywhere from 45 days a year up to 7 months when desired

3. Made me 2nd/3rd guess all of my assumptions about determining ARV's

4. Helped me learn all facets of construction

5. Made me enough money that allows me to live the lifestyle I choose

6. Made me much better at bookkeeping (try going into a tax return unprepared after completing 30-50 transactions a year.....NO BUENO)

7. Made me distrustful of any contractors wanting money up front unless I've used them multiple times before

8. Made me realize that unless you start with a truck load of money, great credit, lots of income and decades of relative experience you will need to work your butt off to be successful as a RE Investor

9. Allowed me to acquire assets that will assist with my retirement if I ever choose to retire. The good news is that once you get good at this there is no reason you cannot do it forever.

10. Sharpened my analytical abilities and negotiating skills.

#11(freebie) It has helped bring me to a more comfortable and content point in my life (as long as I do not have multiple flips going on at one time.... LOL)

There are so many more..... What has REI done for you or what do you want it to do for you?

This will be tough unless you find something ready to go. I do not think the math will work well on a garage conversion.

Investment vs off set mortgage payments

Look for land with a house that you can park a travel trailer on to live in. You can get a used travel trailer for sub 10k and rent out the house. This can be done the first week you own something.

Short term rentals are projected to be a tough market over the short/mid term. Talk with current owners to get a feel in that area.

I believe CP has less development opportunities than RR so the current inventory of hoes may be more valuable at some point. I also like CP better than RR for shopping, entertainment, ease of access to Austin via 183/Mopac/620.

I do not think either area is a bad choice though. I would buy a deal in both.

welcome

A deal is a deal. I would not invest looking at future probabilities of appreciation alone. I prefer to look at current value 

(80%) and discounted future value (20%) to determine if a deal is a deal. If the future value turns out better than expected.... Yay for me. 

Also keep in mind that the gov't is pushing for high inflation so your future purchasing power will be decreased in real terms using dollars. Buying now using low interest rate long term debt is better than waiting to see what the future might hold in my opinion.

Check out the reviews online. Do you mean 2-4 units or apt complexes?

@JD Martin  is correct. 

Spend some time learning about macro/micro economics, npv, disocunted future earnings and long term debt secured by low interest rates vs inflation.

Also assume that your real annual rate of return after vacancies/repairs/fees/etc  needs to be at least 5% to break even vs the real inflation rate. Most people look at nominal returns which is only half of the equation.

http://www.shadowstats.com/