Posted by Bob Smith on April 16, 2006 at 14:43:28:
In an easy credit cycle (like right now) private notes tend to sell for low yields and are very hard to find because few are originated and most of the existing stock are paid off by refinancing, rather the opposite of what you want, I would think.
Is this the right time to start out? - Posted by Prashant
Posted by Prashant on April 11, 2006 at 01:15:14:
I’m looking to get started in RE investing. I was thinking of getting started with a 4 unit owner occupied residentail property. That way, I can get a high CLTV (hopefully 90-95%). Unfortunately, the properties in the area I live in (Southern California) are extremely overpriced (4-5 cap rates). So, I’m thinking that I should wait a year or two until the market is in a downturn. I really do believe in the concept “buy when no one wants to buy”. But that means a long wait. There could be other risks in waiting - like the lending may get very tight. What would you do?
Re: Is this the right time to start out? - Posted by Patrick S. Lawson
Posted by Patrick S. Lawson on April 11, 2006 at 15:21:31:
Look at properties away from SoCal.
Re: Is this the right time to start out? - Posted by Prashant
Posted by Prashant on April 12, 2006 at 01:08:29:
Can you tell me a few areas where you think the cap rates are still reasonable?
Re: Is this the right time to start out? - Posted by Dons
Posted by Dons on April 13, 2006 at 05:21:10:
How about SLC, Utah…perhaps on the eastern side around Sugar House…or to the North around Clinton?
Don
Re: Is this the right time to start out? - Posted by Randy
Posted by Randy on April 12, 2006 at 10:56:54:
I am in RE pretty deep. But if I was not, I would not get in until interest rates were high, with the idea that when rates fall the market will make a big move up. In the mean time, I would be investing in notes.