Anyone Invest in Real Estate?

**DerekS** · 12-30-2009 09:48 AM

I see a lot of internet based business and talk of the markets, but I rarely see real estate threads on here.

I was just curious if anyone invests in real estate either as their primary business, or as passive income? If so, how is your local market? I feel like I've been living in a bubble in the Baltimore/DC market here (which is sucking wind but not as badly as many other parts of the country.) I try to avoid broad-brush articles that you see on news sites, so I'm curious what people who are doing it in real time are experiencing.

Anyone buying/selling/renting/rehabbing/anything?

**Will** · 12-30-2009 09:59 AM

Hi
The reason there is not a lot of talk of real estate on here is that most people are young and won't have the kind of money for real estate investment or development.

I don't know the real estate market in the US at the moment (other than it has taken a quite serious downturn), though I am in real estate/development in Australia and things are going quite well. We were protected from a lot of the economic crisis and in my area property prices are pretty much where they should be, almost hard to imagine there was a worldwide crisis.

Property is totally different even in the city next to yours, so your best bet is to talk to those people investing in the area you are interested in. It is also best to invest in the area you know personally, as you obviously know a lot about what suburbs are good etc.

Are you looking to buy your first property, develop, or to buy investment property?

**DerekS** · 12-30-2009 10:18 AM

I'm not looking for advice, I'm just curious what people are doing in their local markets. This is mostly germane to people in the US (not that I'm uninterested in foreign RE markets, I'm just more curious about North America.)

I know a lot of people on here are young, but there are quite a few twentysomethings on the site.

**KofiLGS** · 02-01-2010 04:47 PM

The California markets are getting stronger especially near college towns. Residential sales are sustaining while commercial is declining. There are a lot of up and coming locales in both Northern and Southern CA that will emerge in the next 5 years. I think buyers should take advantage of Roseville, CA and Playa Vista, CA.

**pacificfame** · 02-01-2010 04:56 PM

Residential real estate investing is a decent investment, but why mess with all the headaches?

I have bird dogged real estate, but never invested on my own. I rather own commercial real estate and lock a tenant into a 5 year lease than mess around with residential.

Either way real estate is a great investment. There is only so much land on earth, why not make a buck off it?

**DerekS** · 02-01-2010 05:07 PM

Originally Posted by pacificfame

Residential real estate investing is a decent investment, but why mess with all the headaches?

I have bird dogged real estate, but never invested on my own. I rather own commercial real estate and lock a tenant into a 5 year lease than mess around with residential.

Either way real estate is a great investment. There is only so much land on earth, why not make a buck off it?

I truthfully don't know enough about the commercial real estate market to debate commercial vs residential. I just happened to land in residential and have come to understand it (to an extent at least, there's always room to learn more.)

Well, there's a little more to it than that: when I was in college, I wanted to become a commercial real estate broker, but upon graduation, I took a look around at all the available commercial space that was sitting unoccupied in the Balto Metro area and thought "is this the business I want to be in?" The rez. housing market was booming and the rest is history. I know that's not the best investment metric, but it was tangible and definitely influenced my decision.

I think after the commercial real estate market finishes its run through the mud, there will be a ton of opportunity, so I should probably start boning up on the subject.

KofiL, ever since I visited Northern Cali I've been interested in that real estate market. I really loved Sacramento. Keep us posted on the happenings locally!

**pacificfame** · 02-01-2010 05:24 PM

Originally Posted by DerekS

I truthfully don't know enough about the commercial real estate market to debate commercial vs residential. I just happened to land in residential and have come to understand it (to an extent at least, there's always room to learn more.

Many individuals have made great profits in both commercial and residential. I personally will invest in commercial when the time is right for me. But I am not saying you can't make a great profit in the residential market.

As of right now I am involved with more ATM's, however real estate is just something I enjoy and would love to venture into.

**andrewwheeler** · 02-01-2010 06:40 PM

I too was extremely interested in Real Estate and upon Graduating with my Masters in Architecture I ventured into a $ 4K training program -- no it was not Rich dad! Hahah. Did I lose the money...YES, but, I did learn about being an entrepreneur and managing a business - even though I didn't make any money with what I was trying to do.

I will get into real estate at some point, but for now I am focusing on internet marketing, specifically in the renewable and solar sector.

In a hurry right now, but I have much more to say about real estate...

**Bodge4** · 02-01-2010 07:18 PM

I currently own commercial and residential real estate. I had a property management biz that I closed 3 years ago. I have done tons of flips, made and lost money there. I love real estate, its like a hobby for me (that you can make money with). I enjoy buying junk and turning it into a great property for someone.

I missed it by an hour, two weeks ago a city auctioned off tax owned property. Two family houses were sold for 2-3k! What a steal! I still have bad dreams that I missed it. I heard today there will be another one in a few months and another city is auctioning 32 houses next month.

**mtnjkwe** · 02-01-2010 07:25 PM

Originally Posted by Bodge4

I currently own commercial and residential real estate. I had a property management biz that I closed 3 years ago. I have done tons of flips, made and lost money there. I love real estate, its like a hobby for me (that you can make money with). I enjoy buying junk and turning it into a great property for someone.

I missed it by an hour, two weeks ago a city auctioned off tax owned property. Two family houses were sold for 2-3k! What a steal! I still have bad dreams that I missed it. I heard today there will be another one in a few months and another city is auctioning 32 houses next month.

I have always loved the idea of buying and transforming!
I will like to ask you, how much did you buy your first property?/how much did you start with in the real estate market?
And what advice will you give anyone about such a business in the current economic climate?

Thanks

**Bodge4** · 02-01-2010 07:38 PM

TO be honest, I did learn a lot from the Carleton Sheets course. I have never used any money to buy a property, everything is 100% financed. I basically used different loans to accomplish this. For example on my commercial building I got a commercial loan, but had to put down 30%. I used a line of credit for the 30%. The building also has my liquor store in it. I got an SBA loan for the liquor store and used a line of credit for the 30% down also.

For the flips, I had partners, and we used loans and lines of credit to purchase and repair.

Now is the time to buy! Learn as much as you can. The only problem with the current times is money is short, but there are tons of properties.

**DerekS** · 02-01-2010 08:58 PM

Originally Posted by Bodge4

Now is the time to buy! Learn as much as you can. The only problem with the current times is money is short, but there are tons of properties.

Ain't that the truth. Hopefully lenders will get a little more aggressive in the near future. Without, of course, lending to every yahoo with a pulse and a head full of HGTV lies.

I'm stoked to see that this thread has come alive, I thought it was dead!