moving when you are a FT RE investor - Posted by Christen

Posted by Brad Crouch on March 28, 2006 at 04:03:04:

Curt,

What do you expect? He’s a PACtruster! I think it’s part of their training.

Brad

moving when you are a FT RE investor - Posted by Christen

Posted by Christen on March 23, 2006 at 10:40:02:

My husband and I are FT rehabbers in Upstate NY. We used to live in Charlotte, NC, loved it, started a family and decided to move back home to be closer to our families. Well several years later and we HATE it here. I hate the weather, the depressed economy, you name it. We do well rehabbing and have everything all set up, local private investors, a fantastic realtor, we feel like we finally have everything streamilined and starting from scratch is not appealing. I am wondering if there are any investors out there that can share their experiences about picking up and starting over in a new area. I know all the rules, go to local club meetings, network, drive around, I get that, I know I am fully capable of starting over and if I can make money here I can do it anywhere, I am just wondering how the transistion was, and how quickly you got to the level you were at before you moved.

Got the T-Shirt for that - Posted by Walt Carey

Posted by Walt Carey on March 23, 2006 at 16:01:34:

Christen,

I made the move from NC to FL about 3 yrs ago. The transition wasn’t as smooth as I’d hoped for, REI-wise. For me, the number one element I failed to consider was the difference in markets. I was under the guise that you can do this “Creative REI Stuff” anywhere. That’s true in theory, but I think certain methods work better in some areas than others. That can be based on the area’s demographics, its overall economy and indicators. That’s something you can figure out by doing your DD.

I was lucky that I had another form of income which allowed me to get through the rough times. How long did they last? In actuality, not that long, but it wasn’t like I hit the ground running either.

Walt Carey

Why not invest in both areas? I did after Katrina - Posted by Ron Cormier

Posted by Ron Cormier on March 23, 2006 at 14:55:48:

Christen,

Even though my situation is a little different, I think it may apply to you as well. After Hurricane Katrina I was forced to leave the New Orleans area. I finally settled in my hometown of Lafayette, which is about 2 hours away. After being here for 6 months, it’s taken me the entire time to study the real estate and foreclosure markets in detail, develop my long term strategy, and build enough contacts and nurturing those contacts into strong relationships. I am already investing in New Orleans on a part-time basis. Once FEMA gets their act together in the New Orleans area, I will return there full time and keep an office in Lafayette. I will hire a few agents and assistants to run the office in my absence.

If your new market is similar to your old market the transition will be easier, since it will take less time to really study the new market. My old market in New Orleans was tons of short sales and abandoned houses. My new market in Lafayette is pretty houses and new construction. There are very few foreclosures to choose short sale candidates. If I were you I would keep my old business on autopilot while nurturing the new market. Locating contacts takes only a few days, but it takes time to build strong RELATIONSHIPS. Both businesspeople and citizens in your new community have to know you and TRUST you to help you close deals and to refer business to you. Just my two cents.

Ron Cormier

Re: moving when you are a FT RE investor - Posted by Luke Hoppel

Posted by Luke Hoppel on March 23, 2006 at 10:48:26:

Christen,
Where are you working in upstate? I grew up in Watertown, near Syracuse. I joined the Marines and am getting out in about 6 months and I alwasy thought upstate NY would be a great place for creative investing.
I’m contemplating moving back there when I get out but I know exactly what you are saying regarding weather and other deterrants.
I think there is a lot of money to be made there but I think you can make money pretty much anywhere.
The funny thing is, is my current ideas are for upstate, NY, Charlotte, NC and Jacksonville, Fl.
There is a lot of competition in Jacksonville and upstate NY is really cold, so maybe I’ll run into you some time and can send some business your way.
Luke

EXACTLY! See my post below… - Posted by Ron Cormier

Posted by Ron Cormier on March 23, 2006 at 22:40:07:

nt

Re: Got the T-Shirt for that - Posted by ski

Posted by ski on March 23, 2006 at 20:15:58:

Left Houston 5 yrs. ago. Had NO r/e experiance. Took some seminars lagrand, sdi, whitney. Got into the “business” and never looked back. Have done very well in swfla.

invest in both areas? I did after Katrina - Posted by John

Posted by John on March 24, 2006 at 20:33:08:

Ron
Just what act are you expecting FEMA to get together In NO?

Re: moving when you are a FT RE investor - Posted by Christen

Posted by Christen on March 23, 2006 at 10:53:54:

how odd, we are also looking into Florida, almost bought a pre-constuction condo, in Orlando however. The problem is I HATE the weather, I love warmer climates and cities that are growing, I have always hated it here. Honestly from an investment standpoint we do great, which is what is making it so difficult. So if you like the area and don’t mond the cold, then go for it because getting into the game is pretty easy here. Oh we are in Utica, but my husband and I grew up in Lowville, which by the way just got a Walmart. And I hear there is a Kohls going in in Watertown, and they said Upstate was dead:)

Re: Got the T-Shirt for that - Posted by Curt Dalton

Posted by Curt Dalton on March 24, 2006 at 03:31:23:

SWFLA? Speculation doesn’t count as investing in my book. Nor does reeping profits b/c of a market that took off.

Now that the speculators are gone down there b/c the market has tanked, lets see what the real investors will do.

Re: invest in both areas? I did after Katrina - Posted by Ron Cormier

Posted by Ron Cormier on March 25, 2006 at 14:51:30:

FEMA flood maps determine food insurance, and whether or not a homeowner has to raise his/her house. Without the flood maps, flood insurance is extremely difficult to obtain.

Ron Cormier

Re: moving when you are a FT RE investor - Posted by Luke Hoppel

Posted by Luke Hoppel on March 23, 2006 at 12:15:59:

Can you send me an email to my personal account: uslukemc@hotmail.com.
I would like to talk to you some more.
Thanks,
Luke

Re: Got the T-Shirt for that - Posted by Luke Hoppel

Posted by Luke Hoppel on March 24, 2006 at 09:51:37:

I completely disagree with the statement “speculating is not investing”! I’ve heard it so much and I think it’s absurd. If somebody buys a house for themselves and they are not an investor and the market skyrockets and they all of a sudden have 200K of equity, then I agree that is not investing. But if someone buys a house or 20 in an area they expect to skyrocket due to certain economic factors and they make a ton of cash…How is that not investing!! That is the same exact thing that goes on in the stock market. People look at companies that they expect to do well in the year ahead and invest their money in that company. It’s the same thing! You are evaluating a market and making a desicion to buy or sell accordingly.
So you are saying that because he didn’t creatively finance or paint and carpet it that it’s not investing!! That’s ludicrous!
Just my .02
Luke

Re: Got the T-Shirt for that - Posted by Curt Dalton

Posted by Curt Dalton on March 24, 2006 at 16:39:22:

Buying at market price and waiting 3 months for the price to go up 20k BECAUSE THATS HOW THE MARKET IS CURRENTLY GOING isn’t investing. Its crystal ball horse hockey.

You want a stock market comparison? Try Google. Everyone kept saying “buy, buy and buy again! Its going to continue to go up, you can’t miss” are now gagging when they look at their portfolios.

Same view on “speculating” like in SWFLA these past couple of years. There was no research done, they just bought at market price on the MLS and sold it three months later for a nice fat profit. Ponzi scheme in full force. Well, there’s plenty speculators there now holding the bag waiting for the next speculator to cash them out for their $20-30k profit. Problem is, no one’s there to buy it now. Sales are down 50% from a year ago down there. That ain’t investin’. Its speculating. BIG difference.

Re: Got the T-Shirt for that - Posted by Adam-MI

Posted by Adam-MI on March 24, 2006 at 09:59:18:

I agree. Here’s dictionary . com’s definition:

in·vest v. To commit (money or capital) in order to gain a financial return

Re: Got the T-Shirt for that - Posted by Luke Hoppel

Posted by Luke Hoppel on March 24, 2006 at 18:38:38:

So just to be clear; what you’re saying is “if I look at a market and through various means determine that is appreciating rapidly and I also determine that it is has a great chance of continuing to appreciate so I go buy a house in that market, then I’m not investing”?!
Is that what you are saying?

Re: Got the T-Shirt for that - Posted by ski

Posted by ski on March 27, 2006 at 07:24:25:

I said that I started investing in SWFLA 5 YEARS AGO. Not last year. Most of my properties were short sales, preforeclosures, foreclosures, etc. Had to rehab them for added value. MOST of them were purchased for no more than .70 on the dollar, and usually for .50 on the dollar, at that time. Remember this was before the boom. I now have 12 rentals with a positive cash flow and am still doing rehabs. So what do you call what I am doing??? if not investing???

Re: Got the T-Shirt for that - Posted by Curt Dalton

Posted by Curt Dalton on March 25, 2006 at 14:17:12:

Investors Rule #1: You make your profit going in to the deal. Anything else is speculation.

Re: Got the T-Shirt for that - Posted by ski

Posted by ski on March 27, 2006 at 07:33:22:

Oops. Forgot the 3 sub2’s I have done so far this year.

Where did that come from? Some Questions. - Posted by Innovator

Posted by Innovator on March 27, 2006 at 04:58:10:

Who authored your Investors Rule #1?

Are you telling me that when I lease a property I paid full comp price to get, for $300 mo. more than my mortgage payment that is speculation (positive cash flow)?

Are you telling me that when I pay full comp price for a property and then I bump the equity to establish the mutually agreed value to determine the lease contract that is speculation?

Are you telling that if I buy a house at full comp value price and improve the property value (for example: I finish an unfinished basement and improve the value by adding 2 bedrooms and a bath) and then sell or lease it based on the higher appraisal that, that is speculation?

Are you telling me that if I buy a property at todays full comp price (even in a depreciating market), knowing that I can lease it for as long as I want (letting someone else pay my mortgage, upkeep, maintainence, taxes etc.) until the market rebounds and the positive appreciation returns is speculation? If you say yes you are speculating on this one then you are telling me that once the RE market goes down it never goes back up. That is not consistent with the history of RE. If you believe that you should get out of the RE business.

Are you telling me that if I pay full price for a house based on the seller staying on his mortgage while I take over his payments (subject to) and leasing it out with positive cash flow until the appreciation returns and then buying the house for the mutually agreed on value at inception and selling at the new appreciated value is speculation?

If you truely believe that all your profits as a REI are made when you buy (go into the deal) then I think you have a lot to learn about investing.

A couple more questions I’d like you to answer.

Do you think that when you make a profit and immediatly reinvest that profit to get a compounding effect on your profits is speculation?

Do you think that when you can buy a property at full price without any out of pocket cash (no down payment, no financing costs, no closing costs etc,) is speculation? It’s called leverage!

Leverage, compounding and use of money are the GREAT values of RE investing (why so much money is made in RE) and have nothing to do with your Rules.