Your Questions About Real Estate Investing Tips

James asks…

I’m trying to break into the real estate industry as an does anyone have any tips? Thanks?

I’m looking to invest in a few rental properties in Dayton, Ohio. I’m just lookinng for tip on finding silent investors, propertie research, and landlord laws.

John answers:

I hear the economy is terrible in Ohio…..not a lot of people moving into Dayton that need homes. It may not be a great time to “flip” houses.

I’d just look on the internet for properties.

Carol asks…

Does anyone have tips or experience in flipping houses? Did you hire a contractor or did you do it yourself?

This year, my husband and I are going to begin building our wealth and think real estate investing in the best way to go. Any suggestions?

John answers:

If you are going to get into flipping a house, the most important thing is to realize your limitations.

Each day that the property sits is costing you money (which reduces your potential for profits). You shouldn’t hesitate to hire out any repairs that you do not have the skills to carry out in a timely and efficient manner. Also, remember that when you hire out some of these jobs, the contractor often has a crew of people working for them, instead of just you and your husband.

Your best course of action would be to stay VERY involved in the day to day management of the renovations, but to hire out most of the work. If you do not have the time to supervise, nor the experience, you would probably be better served by a really good general contractor. (If nothing else, hire the general contractor for the first couple of flips you do, and learn from them — then attempt to be your own general contractor.)

Best of luck!!!

Mary asks…

Real estate advice? (suggested reading or quick tips)?

Well I’m 19 and have some money from inheritance about 25k. I would really like to get into real estate and have some life long investment properties to rent out. I am also looking to move out and planning on buying more house than I need to rent out an extra bedroom or two to friends. Which would pay my mortgage and utilities.

I have been reading up on general investing and decided it is a good time for real estate and would like something I can be personally involved in with my investment. But first I would like to educate myself as much as possible.

John answers:

Don –
Many community colleges offer pre-licensing classes for potential real estate agents. You don’t need to get licensed if you are only going to invest yourself, but you should know the basics that all real estate agents in your state know. Start there. Then find a couple of experienced people in the industry and take them to lunch. A property manager can give you good advice on the types of rentals that are in demand in your area, and a good real estate agent can give you some idea of what property will cost you. Buy cheap, fix them up, rent them out and pay them off, all while keeping your day job. The trick is to never spend the income on anything other than the property! If you are diligent, in 20 or 25 years, you could have enough paid-for income property to retire on. Good luck!

George asks…

Real Estate Investment?

I’m interested to invest in Real Estate in Malaysia, any guide or tips to start the investment?

John answers:

To achieve good return on property investment, one should be a risk taker and take positions that go against the general market sentiment. Be a contrarians by buying property during any economic crisis and selling during the boom time. One of my good friend, Mr. TH Ng, he had benefited twice from using the strategy – the first time when he bought his first properties in 1984 for RM89,000 and sold it in 1994 for RM185,000 and the second when his RM450,000 house that he bought in 1996 was sold for RM1.1 million last year. He has so far bought 13 properties, including terraced houses, bungalows and shop offices. Rental income and the sale of 5 properties have made his profits more than RM1mil.

As according to him, “a successful property investment is an ongoing process, a cumulative effort that requires careful planning as well as the hard work. Property investors must leverage on the property market cycle, which follows closely the economic cycle. “Buy on the up cycle and sell on the way down” he added. Malaysia’s property market cycle, from one bull run to the next, takes about 13 years, which means there are plenty of opportunities to make money from viable property deals.

Mr. Ng gave some general tips. “For budding investors, the key is to go for capital appreciation by opting for landed property in good locations. Landed residential properties offer better potential for capital appreciation,” he said. It was also possible to become rich by buying one’s own home if the same rules were followed.

Firstly, it is important to buy the right property in the right location, preferably near the direction of growth, with amenities including shops, schools and proximity to LRT, highways and roads, as the price had not appreciated much yet.

Good feng shui and neighbourhood as well as good physical condition are also important elements to considered. Those who opt for high-rise residences should look around selective locations, especially in strong expatriate market or closed to education center, in order to reap net cash flow from rental income. For commercial property such as shops, his advice is to buy ready-built units with ready tenants to enjoy immediate rental income and eliminated all the pre-build risk.

Mr Ng also said that to be a successful property investor, one must have a holistic property investment plan for the children’s education and early retirement. “The plan will act as a vehicle to take you from where you are financially today to where you want to be in the future,” he said.

According to Mr Ng, it is important to have a personal strategic property investment plan that takes into consideration one’s age, current financial status, current stage of the property cycle, possible economic scenarios, viable investment strategies, and personal vision and goals for the development of one’s own 20-year property investment strategy plan. On the things to avoid, he said: “Do not be carried away and become financially over-committed especially for the property that still under construction or newly launch housing project”.

Investors should also not expect a quick return on investment but must learn to be patient and wait for the right time to transact their deals. Mr. Ng also advised property investors to take up loans that were of the highest quantum and tenure so that one’s capital resources could be spread out to purchase more properties. “Always look for bargain buys, and a good guide will be properties that are priced at least 20% to 30% below market price especially during any economic crisis.” he added.

To avoid unnecessary complications, one should ensure the property can be easily financed and transferred. The most important, tenanted.

Richard asks…

real estate/ Nothing Down?

Hey I’m New to investing and Real estate . I only have what I’ve learned from The books I’ve read and the Videos I’ve seen on YouTube on the subject of Wholesaling and Buying property seller finance.
My question is Do you have any tips or tricks or guidance to help and starting Investor.
Back Ground : I live in the suburbs of Detroit MI

John answers:

There are some situations where you might be able to buy a property for no money down. Read up on double escrows.

Since you are new to investing you might find a few low cost projects to work on, selling them successful or renting them. Keep pictures and an account of each property you do as well as the outcome, weather it sold or you kept if for a rental. This becomes your resume.

Once you have done several of these, you might now place an ad in your local newspaper or real estate trade papers that you are seeking investors.

You might also check for properties that are being sold where the owner is financing the property. If you get this property below market, at times you might be able to negotiate that the owner pay closing cost.

Detroit might be a good place to work as there are many foreclosures and other distressed properties there.

These are techniques, but you must understand the method in how to do these techniques to be successful as an investor.

Because the technique is there you might not want to use the same technique for certain properties that you would buy.

One of the things you might consider is finding the local real estate investment group in Detroit, Michigan and joining it. As a new investor you would be given hands on experience about the investment climate in Detroit. You might also find someone that might want to personally mentor you about real estate investing.

I hope this has been of some benefit to you, good luck.


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4 Responses to Your Questions About Real Estate Investing Tips

  1. Pingback: Your Questions About Real Estate Investing Tips « tradingsecrets1

  2. I’ve been perusing your blog for quite a while yet this really is my 1st comment. Apologies in advance if it’s way too long… I’m approaching retirement- and would like to make certain that my retirement income won’t disappear before my eyes. I have got plenty of funds saved up in my Ira, but I do not want to invest in something chancy like stocks. I’m no expert on finance and would like some investment suggestions. What sort of investment would you propose? I have been reading a whole lot about Swiss annuities recently. . . and think they seem like a safe option. Is it true that they are safe from bankruptcy and divorce proceedings? Furthermore. . . are the tax breaks they provide U.S. investors as great as advertised?

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