Real Estate

**Tut122** · 09-18-2005 09:46 PM

I live in Philly and over the past several years I have developed a HUGE interest in real estate. I don't know if anyone else here has any experience or interest in real estate and real estate investing, but I am interested to find out.

To tell you a little about me...I am 19 years old and just got my real estate license. I work for Prudential Fox & Roach Realtors in my area, but the job is really just to learn and experience the real estate business, and make money so I can go into my own real estate ventures.

Why I started this thread...I want to start some kind of real estate syndicate....a group of say 5-10 people who all put in a little bit of money to invest in property. Unfortunately, there are very few people in my area that I know that either have/want to put up the money for this. Does anyone have any experience with this type of venture? Does anyone know a way I can attract potential members?

**ericesquire** · 09-18-2005 11:18 PM

How long did it take you to get your real estate license? Did you do it from an online course? Can you E-mail me at e.esquire@gmail.com?

**Sarafina** · 09-19-2005 03:45 AM

What is the market like in Philly? Is it conducive to investing in real estate right now? I haven't seen much action on this board with regards to real estate. You may check more real estate oriented boards if you truly wish to pursue that avenue.

Reiclub.com or The Creative Investor are good options.

**Bscivolette** · 09-19-2005 09:56 AM

The Creative Investor is fantastic for real estate. You can learn more about REI there in 10 minutes than anywhere else in a month.

**Tut122** · 09-19-2005 07:26 PM

Thanks for the advice, I'll check out those sites. The market in Philly is booming. The parts of the city where no one really wanted to be anymore are expanding, and now everything is being torn down and rehabbed by developers and investors. Prices are skyrocketing and just around the suburb I live in, an acre of level ground can go anywhere from $400,000 to over a million dollars...it's getting crazy.

**Bscivolette** · 09-19-2005 08:43 PM

Sounds to me like it is a little late to get in and make serious money. When average people begin to see the opportunities it means most of the good stuff is gone or too expensive. I would recommend reading up and looking out for the next big area. Keep your ears open, it will probably be someplace unexpected.

**paycoguy** · 09-21-2005 12:08 AM

I am currently investing in real estate. I am not purchasing real estate in hot markets, because it involves a lot of guesswork, luck, and is not sustainable long term. I am purchasing homes in areas that have steady, predictable appreciation and I am using leverage to capitalize on this predictable appreciation.

**rbrid** · 09-27-2005 08:17 PM

im 18. this is my last year of high school, but i feel fasinated with the idea of real state. i m gettin my licene as soon as i get out. just a quick question.. do u think there is more room or do you bliv the market is full with agents?

**pentupentropy** · 10-05-2005 10:28 PM

eric: in most states the course for agents is 40-60 hours and the course for brokers is 80-90 hours, not including the actual exam given by your state licensing board.

Tut, I got my RE license a few years back for the same reason, and contrary to what ANYONE might say, there's ALWAYS money in real estate - even in a down market. Things people aren't keen to most times is that in a down market a lot of people tend to want to sell their homes or may even lose them due to the fact that in a good market it's easier for people to get loans.

Sub-prime loans (and this is pretty much tru everywhere in the US), unlike say a standard primary lender giving you a 3% down with PMI, don't require PMI, but are most times at high interest rates and have ARM's rather than FRM standards. Thus when interest goes up some, those people get in sticky situations. Yes this is profiteering to a degree, but real estate is a cutthroat business.

Also, even people with regular mortgages and whatnot may be looking to upgrade or downgrade in the next 2-3 years to either capitalize on their equity or just beat the rising costs of living.

There are good deals everywhere, you just have to look for them. An old couple in florida may be selling one of 3 or 4 rental units at a great price because they're older and it seems like more money to them. My grandfather told my aunt to sell her house for $70K and said I was crazy when I said ask $169 and take 155-160, she's getting $149 right now. Had she listened to him, she would have lost out on $80,000.

I missed the deal, but there was an old inn that was 4000+ sq ft and sold for 80K with 16 acres attached to it, simply because the lady who owned it had lost her husband and needed to liquidate assets.

Real estate is one of the only assets that WILL appreciate given enough time. You're on course and taking the agency exam was definitely a step in the right direction. I have to say I'm actually a little concerned about your wont of involving too many people. It's hard enough to get 2 people to agree on something let alone 5 or more. Just save your money and build your credit until you have enough to get a good down payment. You would also be surprised to learn how many people will hold the mortgage for you for a couple years if need be.

if you have any other questions, just ask, I actually happen to have a bit of experience in this area.

Also, don't forget that as a licensed agent, you have, on some level, a fiduciary responsibility within every real estate transaction you make, irregardless of money, even if you're just giving advice to a family member. Remember that as an agent you need to clarify things and make sure people who may ask you for something are referred to the right source for information so as not to be held accountable for anything yourself. In short, our licenses do not make us lawyers, just well informed sales people

**akula** · 10-06-2005 07:28 AM

Originally Posted by Tut122

I live in Philly and over the past several years I have developed a HUGE interest in real estate. I don't know if anyone else here has any experience or interest in real estate and real estate investing, but I am interested to find out.

To tell you a little about me...I am 19 years old and just got my real estate license. I work for Prudential Fox & Roach Realtors in my area, but the job is really just to learn and experience the real estate business, and make money so I can go into my own real estate ventures.

Why I started this thread...I want to start some kind of real estate syndicate....a group of say 5-10 people who all put in a little bit of money to invest in property. Unfortunately, there are very few people in my area that I know that either have/want to put up the money for this. Does anyone have any experience with this type of venture? Does anyone know a way I can attract potential members?

what is the advantage of investing through a syndicate rather than a listed real estate trust?