Posted by Chris on December 07, 2000 at 12:11:46:
Should I be looking for homes that older or newer? i want think that an older house would have more equity than a newer one? I’ve also pulled up the lastest purchases in the last 6 months to give myself an indicator of what type of homes are going at what price. am I doing this correctly.
thanks ed
Chris
Need to make money - Posted by Chris
Posted by Chris on December 07, 2000 at 08:55:42:
Currently I 'am positioning myself for change in 2001 and would like to use real estate as one means to getting there. I have read posts on here for the last three months and think I’m armed with enough knowledge to be dangerous!!! Yesterday, I went to the courthouse to look at new foreclosures that were filed within the last 30 days. Also, their are a couple of FSBO homes in my area that I would like to make money on. How would I capitalize on this wonderful market here in Maryland?
Re: Need to make money - Posted by Ed Garcia
Posted by Ed Garcia on December 07, 2000 at 10:34:41:
Chris,
You’ve already started. There is no way to learn this business by osmosis. You are looking for sellers that are motivated to sell. That’s why you went to the courthouse. The main thing you have to do is to KNOW YOUR MARKET. You can’t get that from books. You need to drive around and look at various properties, their conditions of sale, locations, amenities, etc. To work just from comparable sales can be misleading if you don’t understand the market.
You ask how would you capitalize on these deal? By making below market offers of course. Don’t be afraid to LOW BALL; also if the equity factor is not there, look at cash flow and leverage. I have a student in Texas who is purchasing 3 duplexes with only $7000 down. He’s paying $105,000, which is $35,000 a piece. The seller is carrying the difference back for 18 months allowing him time to establish equity by seasoning.
These total 6 units are brining in $1,800 per month and he feels he can increase the rents another $25 per unit which ads another $150 per month, totaling $1,950.
This is not a big get rich quick deal, but it’s a cute little leveraged deal that makes sense.
Ed Garcia