Investing RE profits! - Posted by Greg

Posted by GL - ON on June 29, 2003 at 15:45:28:

If you have cash to invest have you considered paper? Mortgages etc. There is a separate board on this site just for paper investors.

Investing RE profits! - Posted by Greg

Posted by Greg on June 29, 2003 at 13:40:08:

Hello All

I am writing to find out what other RE investors are doing with the profits made from their RE transactions.

I have looked into tax lien certifcates but the state I live in is not one of those tax lien cert states.

I looked into other nearby states that have tax lien cert but it seems that one should be in the state and have knowledge of the areas where these homes are found. Plus there seems to be businesses who go to these tax lien states buy up all the deals. Very competitive!

I have no time or interest in the stock market and mutual funds appear dismal. Option trading is another possiblity which seems time consuming and risky.

What are people doing? How would I learn about other options.

I leverage my deals and want to put the profits in an investment.


Problem: Too much profit in RE - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on June 30, 2003 at 01:15:34:


I think that notes are a good way to go. You probably would be able to evaluate the property being used as collateral. Perhaps you know how to do research on the borrows in the county records. Many real estate investors shift over to this approach later in their investment careers.

Also, have you considered investing in NNN commercial properties? They have little management. The return tends to be somewhat lower than with active investments, but they are passive.

How about REIT stocks? You’re not interested in stocks in general, but REITS have to return 90% of their annual free cash flow–close to profits–to the shareholders each year. They typically will pay about 7-9% a year with no management. Knowing real estate as you do, you probably would be better able to evaluate the companies than the typically invesor.

Good InvestingRon Starr***