This is a fun hobby that I've started... And my wife doesn't yell at me.....too much... It's better than video games I guess! Anyway, John, when and where does your investment club meet? I need to get involved in meeting more people like us!
John, I need to talk to you about starting a business... What's involved... etc... Franchise sounds too capital intense for me... That will be long time in the future... Even building a business will be long time in the future for me... but I have to keep learning new things... Once the economy picks up, I am not sure if I can buy real estate so easily. That's when I'll have to buy businesses... or start businesses...
And the only thing I can make sense out of that GM financial statement is that they are in the red. :) In billions of dollars. I've always thought, How can anyone lose billions of dollars??? But if you look at their statement, they deal with trillions of dollars... so....what's a billion or two? :)
Anyway, thanks for all your help! And gimme the name of the new audio book!
I've been reading so much rich dad poor dad, that I'm am able to recite all his stories and know exactly what joke/story he's going to say before he says it. So I'll take a little break and read Napolian Hill's book. :)
What do you think one should consider when looking into an investment property?
the audio book is titled "Investing in Gold and Silver". the smart investors hold these precious metals because they know that when times are though real money has greater value than fiat currency. But don't take my word for it, I will give you a copy of the audio book this weekend.
Starting a business is one of the most challenging endeavors I have ever done. I am on my fourth business, the first was selling Mexican candy to the Mexican markets, and it was going well until others began to start selling candy too. The competition got intense and I lacked resources to compete, so I gave in. Then a computer repair business, I opened shop in a city with a large population of Hispanics and with no computer repair stores in miles. All was well until others began to notice the potential and began intruding on my territory. However, this time i did not fail because of competition but because of my lack of understanding Marketing, Sells, and PR, I wanted to do everything on my own, my philosophy was that no one was able to do it better than me. Eventually I sold the shop to a nearby rival. then i went into the building maintenance industry. By this time I had learned a lot from past failures. but unfortunately i failed again. i used other peoples resources and money and gained some big accounts but I had a large accounts receivable with little cash flow so I could not pay my vendors, supplies and bills on time. So I sold the accounts to another company. Notice that even if a company is profitable doesn’t mean it will survive. There are a lot of variables, and you will notice this when you start your own business.
Here is a good book about great companies. titled "from good to great" by Jim Collins. try find the audio for it. also, try "before you quit your job" its by R. Kiyosaki
Got to love the game! Once you get started you are hooked.
Oooh, a four plex... :P Sorry, I do not have the cojones to buy a four plex just yet. Let me see, learn the ropes with a $70,000 single house property first... :) I made an offer for a $55,000 for a $90,000 property today. I'm pretty sure my offer will be struck down... My walk away price is $70,000. We'll see what they say. It's a nice small house next to a school... Nice landscape with little fix up needs. Other houses needed a lot of work. Not that that's bad since I will learn more with a greater fix up house...but since it's my first one... I'll get a counter offer by Friday, I hope.
I found the Jim Collins book, but not Kiyosaki's. :)
Dude, thanks for all your support... Seriously, I wish I had your cojones and build a business... Too many mouths to feed... Residential real estate doesn't seem as risky.....
Anyhoo, I'll keep you posted with my first venture!
Man...even if I was able to buy the property for $70K, my Cash On Cash return is only 3.4%... Sadness. That's a lot less than 10% expected in a long run for mutual funds... Of course, there will be capital gains... I will be 8.6% if I don't hire a property manager... Hmmmmm....
go for it, it will be a good learning experience. but does one really need a property management company for first home investment? How hard can it be to manage? What about your friends Realtor, did he use a management comp on his first investment?....
how long do you plan to keep the investment in your portfolio?.... when do you sell it? can it be sold later for a good cap gains?.....
I found a house and it was on the list for 90K. It was there for 3 months and owned by the bank. So I figure, they are hungry to sell. I offered 55K. The first thing any banks do it seems is to stick to their number initially. So they answered 90K. So with the help of my real estate broker, I offered 62K to "see if they will play ball" So they answered 85K and then asked us to bid our "final offer" So I got excited, since I did have a walk away price adn I figured they would serious consider my bid and say yes if they are willing. So I offered 70K which was my walkaway price. Boy, was I dumb to be excited. The bank did not answer me. Instead they relisted their property for 75K. I guess they'll call me if they don't get a response for 75K. Learning the way the bankers do business... and it didn't cost me a dime.
WOW, you found your first investment, Congrats. here is Gomez Drywall, the dudes name is Salvador we met at a yard sale he has 20+ years working in the drywall/pain industry maybe he can help out with some of the work you need done around ur place. note that i have not work with this guy directly in the past but he seems legitimate and can provide references.
How do you calculate Cash on Cash?
ReplyDeleteDude, I found out that there are condos going for $60,000 in BILTMORE area!!! I love this economy!!!
ReplyDeleteJust beat 3 rats in cashflow 202! Getting the hang of the game.
ReplyDeleteTommorow, will be looking at some cheap property in Good year...
Shopping around...
Will be looking into forming an LLC...
so that I can make a business card and name myself owner, CEO, and president of Smellie Ellie Company, LLC.
John, I need to talk to you about starting a business... What's involved... etc... Franchise sounds too capital intense for me...
ReplyDeleteThat will be long time in the future...
Even building a business will be long time in the future for me... but I have to keep learning new things... Once the economy picks up, I am not sure if I can buy real estate so easily. That's when I'll have to buy businesses... or start businesses...
And the only thing I can make sense out of that GM financial statement is that they are in the red. :) In billions of dollars. I've always thought, How can anyone lose billions of dollars??? But if you look at their statement, they deal with trillions of dollars... so....what's a billion or two? :)
Anyway, thanks for all your help! And gimme the name of the new audio book!
I just heard about these people called portfolio lenders... Who lend money... and they are not banks...
ReplyDeleteI just read about VCs.... Venture Capitalists who can also invest inyour business..
Also... Angels? who can mentor and invest in your business....
Other sources of investment capital other than banks.... I guess...
I've been reading so much rich dad poor dad, that I'm am able to recite all his stories and know exactly what joke/story he's going to say before he says it. So I'll take a little break and read Napolian Hill's book. :)
ReplyDeleteHere is a good example on calculating COC from:
ReplyDeletehttp://realestateinvestmentsoftwareblog.com/8/how-to-calculate-cash-on-cash-return/
check out this four-plex near Downtown Glendale owner/occupied short sale for 165,000 near the University of Phoenix Stadium...
http://c21northwest.com/homesearch.htm?action=detail&id=34712109&cid=2969379&redir=1
What do you think one should consider when looking into an investment property?
the audio book is titled "Investing in Gold and Silver". the smart investors hold these precious metals because they know that when times are though real money has greater value than fiat currency. But don't take my word for it, I will give you a copy of the audio book this weekend.
Check out this interesting fact about Oil, The Economy, and the environment... very persuasive data.
ReplyDeletehttp://www.chrismartenson.com/crashcourse
What do you think?
Starting a business is one of the most challenging endeavors I have ever done. I am on my fourth business, the first was selling Mexican candy to the Mexican markets, and it was going well until others began to start selling candy too. The competition got intense and I lacked resources to compete, so I gave in. Then a computer repair business, I opened shop in a city with a large population of Hispanics and with no computer repair stores in miles. All was well until others began to notice the potential and began intruding on my territory. However, this time i did not fail because of competition but because of my lack of understanding Marketing, Sells, and PR, I wanted to do everything on my own, my philosophy was that no one was able to do it better than me. Eventually I sold the shop to a nearby rival. then i went into the building maintenance industry. By this time I had learned a lot from past failures. but unfortunately i failed again. i used other peoples resources and money and gained some big accounts but I had a large accounts receivable with little cash flow so I could not pay my vendors, supplies and bills on time. So I sold the accounts to another company. Notice that even if a company is profitable doesn’t mean it will survive. There are a lot of variables, and you will notice this when you start your own business.
ReplyDeleteHere is a good book about great companies. titled "from good to great" by Jim Collins. try find the audio for it.
also, try "before you quit your job" its by R. Kiyosaki
Got to love the game! Once you get started you are hooked.
Oooh, a four plex... :P Sorry, I do not have the cojones to buy a four plex just yet. Let me see, learn the ropes with a $70,000 single house property first... :) I made an offer for a $55,000 for a $90,000 property today. I'm pretty sure my offer will be struck down... My walk away price is $70,000. We'll see what they say. It's a nice small house next to a school... Nice landscape with little fix up needs. Other houses needed a lot of work. Not that that's bad since I will learn more with a greater fix up house...but since it's my first one... I'll get a counter offer by Friday, I hope.
ReplyDeleteI found the Jim Collins book, but not Kiyosaki's. :)
Dude, thanks for all your support...
Seriously, I wish I had your cojones and build a business... Too many mouths to feed... Residential real estate doesn't seem as risky.....
Anyhoo, I'll keep you posted with my first venture!
Man...even if I was able to buy the property for $70K, my Cash On Cash return is only 3.4%... Sadness. That's a lot less than 10% expected in a long run for mutual funds... Of course, there will be capital gains... I will be 8.6% if I don't hire a property manager... Hmmmmm....
ReplyDeletego for it, it will be a good learning experience. but does one really need a property management company for first home investment? How hard can it be to manage? What about your friends Realtor, did he use a management comp on his first investment?....
ReplyDeletehow long do you plan to keep the investment in your portfolio?.... when do you sell it? can it be sold later for a good cap gains?.....
Keep me posted!!
Finding a home that will gain good capital gains while getting cashflow is hard...
ReplyDeleteI found a house and it was on the list for 90K.
ReplyDeleteIt was there for 3 months and owned by the bank. So I figure, they are hungry to sell. I offered 55K. The first thing any banks do it seems is to stick to their number initially. So they answered 90K. So with the help of my real estate broker, I offered 62K to "see if they will play ball" So they answered 85K and then asked us to bid our "final offer" So I got excited, since I did have a walk away price adn I figured they would serious consider my bid and say yes if they are willing. So I offered 70K which was my walkaway price. Boy, was I dumb to be excited. The bank did not answer me. Instead they relisted their property for 75K. I guess they'll call me if they don't get a response for 75K. Learning the way the bankers do business... and it didn't cost me a dime.
One house down...99 to go.
ReplyDeleteWOW, you found your first investment, Congrats. here is Gomez Drywall, the dudes name is Salvador we met at a yard sale he has 20+ years working in the drywall/pain industry maybe he can help out with some of the work you need done around ur place. note that i have not work with this guy directly in the past but he seems legitimate and can provide references.
ReplyDelete