All Forum Posts by: Lance Frasier

I'm thinking about becoming involved in real estate investment now that I have free time on my hands. In particular, I want to buy, rehab, and rent out properties (long term holding). Eventually I'd like to get my hands on apartment buildings and commercial buildings.

Anyways, I know that on average real estate appreciates at 3% per year. With that said, the market on average will appreciate at 10% per year. Therefore I know that most real estate investors can not be trying to earn the 3% appreciation per year. That just wouldn't make sense. Especially when they could design a modest ETF portfolio that would provide them with a good chance of earning more than 3%.

So is the goal to buy a property for cheap using hard money, rehab it, refinance the home at a higher valuation, pay off the hard money loan and then pocket the rehab cost plus any gain? Is that where most of the investors are making their money? Buying an asset below market value and raising it to at or above market value?

Thanks

Evening everyone,

I am looking to get started in the world of investment real estate. I am still wet behind the ears on the subject, so I plan on spending the next six months reading and attending meetings of my local real estate investment club (Northern Virginia). I have about $100,000 in cash that I can use to begin investing into real estate with and I was wondering if this is a sufficient amount to get started with? I will still be working full-time while investing. Realizing that your rate of return is dependent on the type of project completed, what is the average rate of return for a real estate investment?

Thank You