Which ones do u keep & which do u sell? - Posted by disciple

Posted by Cat on July 03, 2007 at 24:11:17:

there is information abt the cata healthy cat is a happy catcat illnessmany manufacturers use good quality ingredients

Which ones do u keep & which do u sell? - Posted by disciple

Posted by disciple on April 22, 2006 at 21:44:03:

Hi all. I was just wondering how everyone decides which properties to keep, and which houses u sell. I know this is a loaded ? with lots of variables, but I’m just looking for how u generally decide this.

you got know when hold them… - Posted by David Krulac

Posted by David Krulac on April 23, 2006 at 13:25:16:

know when to fold them…etc.etc.etc. Kenny Rogers that great real estate investor.

  1. You’re right there are too many variables.

  2. There are a bunch of variables for buying too. sometimes a property provides a roght of way or access to another property. sometimes a second property makes a first property buildable or more valuable. Example: There was a property that had “alley” frontage on 2 sides but the local ordinance said that you needed “road” frontage to build on this land. When combined with an adjoining property with “Road” frontage yielded 17 house lots.
    From zero to 17 makes a big change in the value.

  3. distance from where you are. I’ve sold houses that were not close to others that I owned, or not nearby where I frequented. nothing wrong with the houses, nothing wrong with the location, just not close to me. Each person’s threshold is different, I know some poeple who own rentals 1,000 miles away. Not my cup of tea.

  4. property doesn’t fit your current philosophy. if you want less management then sell the properties that are MORe management intensive and keep the ones with less management.

  5. sometimes the neighborhood changes, for the worse. might be a good time to sell.

  6. sometimes you want to down size.

  7. sometimes you want to re-locate to a different area and sell the properties at the old location.

  8. sometimes you want to change investment type. you may be buying SFH now you want to trade up to multi units and trade up, exchange your equity in the SFH for the apts.

  9. sometimes a straregy might be to sell some and use the proceeds to pay off others that you keep. nothing says psoitive cashflow like a property with no mortgage.

  10. mistakes are made. some proeprties are better investments, more appreciaiton, more cash flow than others. cut loose the dogs and keep the beauty queens.

Re: Which ones do u keep & which do u sell? - Posted by disciple

Posted by disciple on April 23, 2006 at 09:53:24:

Thkanks Craig, your comments were definitely helpful. I’m sitting here kinda wishing that I had kept some of the ones that I have sold… (LOL) hahahahahahahaha… I think my NEW strategy will be to hold and Refi or HELOC when needed. Of course, this could change… HAHAHAHAHAHAHAHAHA… (LOL);

Hey Killer Joe, I read your comments, but somehow I feel that I am completely missing something… (LOL) Please explain what you mean to a part time investor like me… =^) … “Opportunity, without the means of capturing it, is an illusion” … by Alcorn… ???

Re: Which ones do u keep & which do u sell? - Posted by Craig (IL)

Posted by Craig (IL) on April 22, 2006 at 22:57:05:

This quesiton could generate a lot of responses. Perhaps many in the library. You might look there too. Heres some ideas appplicable to SFHs.

I think you will find holding or selling has a lot to do with (a) your situaiton and (b) what you want to do. If you sell a property you get cash but you also get taxes, or you’ll 1031 into just another property. (So why bother?) Likewise, you can keep a property only if you can pay cash (and then refinace to get your cash back) or one way or another find funding. If you keep a property, you have to be in the position–and of the disposition–to manage it.

Local home sales trends are factors too. If property value is not going up or even lowering, then holding is probably the best option. If home sales are sizzling, the you might want to take advantage of that buy selling.

You don’t build wealth by flipping You build wealth by holding property. But you might do some flipping to get the cash to in effect trade up. Note that there should be no good reason to sell unless you know what you are gonng to do with your profit. Normally, you don’t want to sell unless you have a way of reinvesting you gain in a better situation than your current equity situation.

There are factors of the property. Higher end properties can be harder to rent, but some people do rent these. Starter homes make good rentals. Homes with full basements will get you higher price if you sell. Whereas basements are just a headache in rentals.

Another factor is the area. You may have trouble selling a SFH in a neighborhood for rentals, except to another investor, who is gonna be looking for his price. Conversely, it is a bit harder to rent a property in a neighborhood of owners. Owners hate renters.

My 2 cents.

Re: Which ones do u keep & which do u sell? - Posted by Killer Joe

Posted by Killer Joe on April 22, 2006 at 22:40:03:

Here’s the bottom line, and Ray Alcorn says it best “Opportunity, without the capacity to capture it, is an illusion.”

Understanding that principle will save you a lot of grief keep you from making enemies for free.

KJ

Cat - Posted by Cat

Posted by Cat on July 03, 2007 at 24:14:18:

there is information abt the cata healthy cat is a happy catcat illnessmany manufacturers use good quality ingredients