- Joined
- Sep 18, 2007
- Messages
- 39
Hi all,
I have read the stream of replies and couldn`t resist putting in my own words. It is clear from reading the input that there are varying degress of experience and risk tolerance on the table. I think it is fair to assume (I hope) that Simmy is not a vetern in the world of real estate - please don`t read this the wrong way, we all started at ground zero in this business. As such, go slowly and learn as much as you can from those who have made many mistakes and been in the business for a long time.
I really can`t support the idea of loading up on access to LOC`s as a means of financing down payments- not as an initial strategy . Furthermore, I can`t even imagine where a person is going to buy a $100K investment property with 5% down & revenue of $20K/yr. Unless it is your personal residence (which again $20K revenue?) you need 20% down - assumables are rare and for $5K or less? Sorry, but I`m skeptical this will just be sitting around waiting for a new investor to find. However, I am open to learning where this is even possible. Further to this, it`s easy to say don`t worry if the market falters because you`re holding for 10+ years. Well, life happens and sometimes that 10 year plan turns into a 2 year plan and if the market isn`t performing, a whole other set of financial problems arise. And, I dare say, even the best of investors lose sleep when their portfolio is down 10-20+% even if they know they aren`t selling any time soon.
From my own perspective, I like managed stress and I like feeling peaceful and confident - not worried, frenetic and nervous. Listen to the veterans and if it sounds too good to be true IT IS. This business is hard work and if it wasn`t, everyone would be doing it and the profit would be minimal. If you can, buy a personal residence to learn about what it takes to own, maintain and manage the bills for a property. Get some roommates to help with the rent - they are like a JV partner without any ownership.
If this isn`t possible, Godfried and Thomas have proposed excellent investment options to grow that investment to one that will allow you to buy. You need to learn about these investments as well so that you have multiple streams of income - not just direct real estate investment.
Good luck to you!
Cheryl
I have read the stream of replies and couldn`t resist putting in my own words. It is clear from reading the input that there are varying degress of experience and risk tolerance on the table. I think it is fair to assume (I hope) that Simmy is not a vetern in the world of real estate - please don`t read this the wrong way, we all started at ground zero in this business. As such, go slowly and learn as much as you can from those who have made many mistakes and been in the business for a long time.
I really can`t support the idea of loading up on access to LOC`s as a means of financing down payments- not as an initial strategy . Furthermore, I can`t even imagine where a person is going to buy a $100K investment property with 5% down & revenue of $20K/yr. Unless it is your personal residence (which again $20K revenue?) you need 20% down - assumables are rare and for $5K or less? Sorry, but I`m skeptical this will just be sitting around waiting for a new investor to find. However, I am open to learning where this is even possible. Further to this, it`s easy to say don`t worry if the market falters because you`re holding for 10+ years. Well, life happens and sometimes that 10 year plan turns into a 2 year plan and if the market isn`t performing, a whole other set of financial problems arise. And, I dare say, even the best of investors lose sleep when their portfolio is down 10-20+% even if they know they aren`t selling any time soon.
From my own perspective, I like managed stress and I like feeling peaceful and confident - not worried, frenetic and nervous. Listen to the veterans and if it sounds too good to be true IT IS. This business is hard work and if it wasn`t, everyone would be doing it and the profit would be minimal. If you can, buy a personal residence to learn about what it takes to own, maintain and manage the bills for a property. Get some roommates to help with the rent - they are like a JV partner without any ownership.
Good luck to you!
Cheryl