New to re investing – tips appreciated!

[CA renter]

[quote=SD Realtor]While your intent is okay there are some vagaries that need to be answered. Most important is, are you talking about San Diego or not? Also while you appear to be quite altruistic, if you are talking about helping people out I am assuming you would purchase the home first, then basically rent the home back to the previous owner correct?

So, if that is the case then you would be purchasing the home at trustee sale. I will say right now that our group is almost at a complete standstill because we have found the trustee sale path to be to competitive as margins are quite small. If your intent is to hold the property for quite awhile then you are okay. However know that you will need to do quite a bit of legwork. If you are thinking you can pull this off with a few hours a week then you are sadly mistaken and you will piss most of your money away. Also I concur with an above post that you may find after awhile that your current owners could not pay the mortgage and they will very likely fall behind on rent so you will end up evicting and getting new tenants. More time, and more money. If your goal is simply to flip that is fine just know that margins are quite thin nowadays.

One thing you may want to learn more about is trust deeds.

Alternately if you are looking at buying a home as a short sale, then renting it back to the original owner, I cannot comment on whether or not that constitutes fraud or not. If you think you can get a short sale, then relist it and resell it and still get margins…. well… good luck with that. Maybe last year you could have however the market has slowed considerably and I think more times then not you will lose money.

Again, all this is predicated on San Diego as well. I don’t know about other cities. I think you need to clarify your goal a little bit more and I could make a better recommendation. Buying and flipping right now is scary at best. You are about 2 years late to that party and right now everybody is into it and people will be getting burned unless you do it right. The best chances are ULTRA low end where you buy it, major rehab and sell it. Other side of the coin is high end and hope the high end doesn’t crumble while you hold it. Just know on the low end you will be competing against guys like Don Rady and people that have good crews, can rehab homes quick and own brokerages so they soak up all those costs.[/quote]

Excellent post, SDR.

I know someone who’s been watching the market for years and has even been involved with foreclosure remediation, so isn’t exactly naive. This person is now thinking of forming a fund to buy foreclosures. My response to him: You’re a day late and a dollar short; the time for that was two years ago. Anyone thinking of getting in at this point — especially those who are not old-timers with a lot of experience under their belts — are in for a world of hurt, IMHO.

As for becoming investors/landlords…my family did this for decades (both had their broker’s license, and my mom was invoved with both residential and industrial RE, so they had more knowledge/experience/tools than most). Lots of money can be made, but even more can be lost. It is not for people who are looking for “passive” income. There is so much that can go wrong with rentals, and there is a lot of competition right now for the good properties, which means there’s a high probability for new landlords to overpay if they outbid the guys who know what they’re doing.

[bearishgurl]

[quote=CA renter]. . . As for becoming investors/landlords…my family did this for decades (both had their broker’s license, and my mom was invoved with both residential and industrial RE, so they had more knowledge/experience/tools than most). Lots of money can be made, but even more can be lost. It is not for people who are looking for “passive” income. There is so much that can go wrong with rentals, and there is a lot of competition right now for the good properties, which means there’s a high probability for new landlords to overpay if they outbid the guys who know what they’re doing.[/quote]

So true, CAR, people just don’t realize how much WORK having tenants can be, whether you own 1-4 units or have to “manage” a resident manager. It’s definitely not a “passive income.”

I can see where a new crop of self-professed “flippers” could come in today and up-bid a property on the courthouse steps in order to obtain the trustee’s deed. If they can’t sell it for a profit and have to put it into rental service, often they don’t realize the vagaries of the particular rental market they have just unwittingly bought into.

[bearishgurl]

[quote=CA renter]. . . As for becoming investors/landlords…my family did this for decades (both had their broker’s license, and my mom was invoved with both residential and industrial RE, so they had more knowledge/experience/tools than most). Lots of money can be made, but even more can be lost. It is not for people who are looking for “passive” income. There is so much that can go wrong with rentals, and there is a lot of competition right now for the good properties, which means there’s a high probability for new landlords to overpay if they outbid the guys who know what they’re doing.[/quote]

So true, CAR, people just don’t realize how much WORK having tenants can be, whether you own 1-4 units or have to “manage” a resident manager. It’s definitely not a “passive income.”

I can see where a new crop of self-professed “flippers” could come in today and up-bid a property on the courthouse steps in order to obtain the trustee’s deed. If they can’t sell it for a profit and have to put it into rental service, often they don’t realize the vagaries of the particular rental market they have just unwittingly bought into.

[bearishgurl]

[quote=CA renter]. . . As for becoming investors/landlords…my family did this for decades (both had their broker’s license, and my mom was invoved with both residential and industrial RE, so they had more knowledge/experience/tools than most). Lots of money can be made, but even more can be lost. It is not for people who are looking for “passive” income. There is so much that can go wrong with rentals, and there is a lot of competition right now for the good properties, which means there’s a high probability for new landlords to overpay if they outbid the guys who know what they’re doing.[/quote]

So true, CAR, people just don’t realize how much WORK having tenants can be, whether you own 1-4 units or have to “manage” a resident manager. It’s definitely not a “passive income.”

I can see where a new crop of self-professed “flippers” could come in today and up-bid a property on the courthouse steps in order to obtain the trustee’s deed. If they can’t sell it for a profit and have to put it into rental service, often they don’t realize the vagaries of the particular rental market they have just unwittingly bought into.

[bearishgurl]

[quote=CA renter]. . . As for becoming investors/landlords…my family did this for decades (both had their broker’s license, and my mom was invoved with both residential and industrial RE, so they had more knowledge/experience/tools than most). Lots of money can be made, but even more can be lost. It is not for people who are looking for “passive” income. There is so much that can go wrong with rentals, and there is a lot of competition right now for the good properties, which means there’s a high probability for new landlords to overpay if they outbid the guys who know what they’re doing.[/quote]

So true, CAR, people just don’t realize how much WORK having tenants can be, whether you own 1-4 units or have to “manage” a resident manager. It’s definitely not a “passive income.”

I can see where a new crop of self-professed “flippers” could come in today and up-bid a property on the courthouse steps in order to obtain the trustee’s deed. If they can’t sell it for a profit and have to put it into rental service, often they don’t realize the vagaries of the particular rental market they have just unwittingly bought into.

[bearishgurl]

[quote=CA renter]. . . As for becoming investors/landlords…my family did this for decades (both had their broker’s license, and my mom was invoved with both residential and industrial RE, so they had more knowledge/experience/tools than most). Lots of money can be made, but even more can be lost. It is not for people who are looking for “passive” income. There is so much that can go wrong with rentals, and there is a lot of competition right now for the good properties, which means there’s a high probability for new landlords to overpay if they outbid the guys who know what they’re doing.[/quote]

So true, CAR, people just don’t realize how much WORK having tenants can be, whether you own 1-4 units or have to “manage” a resident manager. It’s definitely not a “passive income.”

I can see where a new crop of self-professed “flippers” could come in today and up-bid a property on the courthouse steps in order to obtain the trustee’s deed. If they can’t sell it for a profit and have to put it into rental service, often they don’t realize the vagaries of the particular rental market they have just unwittingly bought into.

[Prairie Dog]

Thank you very much. I’m going to lie down until this urge passes. jk, I really do appreciate the advice and input.

[Prairie Dog]

Thank you very much. I’m going to lie down until this urge passes. jk, I really do appreciate the advice and input.

[Prairie Dog]

Thank you very much. I’m going to lie down until this urge passes. jk, I really do appreciate the advice and input.

[Prairie Dog]

Thank you very much. I’m going to lie down until this urge passes. jk, I really do appreciate the advice and input.

[Prairie Dog]

Thank you very much. I’m going to lie down until this urge passes. jk, I really do appreciate the advice and input.

[NotCranky]

Prarie dog, note that Carenter and BG are saying that it is not “passive’ Income. There is a large factor or passive income in some strategies. Buy and hold with cash flow is one. Yes, you work but depending on how good you do and how lucky you get, the ratio of “passive” to “blood sweat and tears” income goes in favor of passive sooner or later.

You might be in a good position to be a flipper at some point. SDRealtor is very honest about his deals that he does with other investors and good at getting his finger on the pulse of these things. You might want to make a point of connecting with him. I think right now they are kind of cautious with flips, but I think he will know when to go and with what.

BTW if you haven’t seen it,the SDCIA blog has tons of active and archived posts for real estate investing.

[NotCranky]

Prarie dog, note that Carenter and BG are saying that it is not “passive’ Income. There is a large factor or passive income in some strategies. Buy and hold with cash flow is one. Yes, you work but depending on how good you do and how lucky you get, the ratio of “passive” to “blood sweat and tears” income goes in favor of passive sooner or later.

You might be in a good position to be a flipper at some point. SDRealtor is very honest about his deals that he does with other investors and good at getting his finger on the pulse of these things. You might want to make a point of connecting with him. I think right now they are kind of cautious with flips, but I think he will know when to go and with what.

BTW if you haven’t seen it,the SDCIA blog has tons of active and archived posts for real estate investing.

[NotCranky]

Prarie dog, note that Carenter and BG are saying that it is not “passive’ Income. There is a large factor or passive income in some strategies. Buy and hold with cash flow is one. Yes, you work but depending on how good you do and how lucky you get, the ratio of “passive” to “blood sweat and tears” income goes in favor of passive sooner or later.

You might be in a good position to be a flipper at some point. SDRealtor is very honest about his deals that he does with other investors and good at getting his finger on the pulse of these things. You might want to make a point of connecting with him. I think right now they are kind of cautious with flips, but I think he will know when to go and with what.

BTW if you haven’t seen it,the SDCIA blog has tons of active and archived posts for real estate investing.

[NotCranky]

Prarie dog, note that Carenter and BG are saying that it is not “passive’ Income. There is a large factor or passive income in some strategies. Buy and hold with cash flow is one. Yes, you work but depending on how good you do and how lucky you get, the ratio of “passive” to “blood sweat and tears” income goes in favor of passive sooner or later.

You might be in a good position to be a flipper at some point. SDRealtor is very honest about his deals that he does with other investors and good at getting his finger on the pulse of these things. You might want to make a point of connecting with him. I think right now they are kind of cautious with flips, but I think he will know when to go and with what.

BTW if you haven’t seen it,the SDCIA blog has tons of active and archived posts for real estate investing.

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