Hey, I just got done emailing Mike Kim...and a collegue came up to me and we started talking business...and I want to talk to more people who talk like this and share thoughts and ideas....
I want to learn more about business...not only read about it, but discuss it and really get a feel for it... So I started this...
Anyway, I got to get back to work.... but this is an excerpt from my email to Mike...
If only we can discuss further the investment opportunities..
I want to learn to read financial statements!
(Excerpt)
My question initially.....What is the range for the commercial building price? or residential building price?Should we buy commercial? or residential?We have $40,000 homes for sale is the rough part of Avondale...I can put in $10,000 down and use $10,000 to fix it up and rent it out... Mortgage would be around $300.... I can rent it for $500...with all the other costs....I still should be able to make $100, maybe? I'm just guessing... I should do more research...but I don't know where to go for the research...That would be $100 per month for $1200 per year... for a healthy 12% ROI? Hmmm.... Sounds a little low for the risk I'm taking.... (Do you see how I think out loud...I am actually calculating as I'm typing..... So don't ever...EVER...assume what I say as the final thing... I had friends who did and got frustrated at me... I like to explore options.... out loud...)Anyhoo... If you are thinking about a commercial building how would the numbers look?Where can I go to look for the details for the numbers for the run down houses? Expense would be mortgage, cost to fix up place, property management company, down payment, loan document fee, (real estate agent would be paid by seller), taxes involved... can you think of anything else? I want to make a list and look into what the numbers for each of these would look like...
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So far, I know John Haro and Mike Kim with whom I can talk about investment opportunities. Where can I learn about Financial Statements, ROI?
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteThe game CASHFLOW is AWESOME!
ReplyDeleteIt really teaches you about different strategies to take with investments...
I played 2 computers on Cashflow 202 yesterday...and my initial investment of worthless 20 acres of rural land gave me a $60,000 profit and I used that to get out of all my loans, buy investment properties and got out of my rat race in like 5 turns... Today, I shall play 3 computers and destroy!
The Rich Dad Poor Dad series of investment teaching is pretty cool...
ReplyDeleteThe Automatic Millionair seems pretty conservative AFTER reading Richdad poor dad...
Anythoughts of the value of IRA, 401K?
Time to hit the books!!, FINANCIAL EDUCATION is your most important ASSET.
ReplyDeleteCASHFLOW Quadrant: this book explains Employees, Self-Employed/Specialist(like MD's), Big Business owners(like Michael Dell), and Investors( Warren Buffet)choose where you want to be.....
Rich Dad's Prophecy: a brief yet well explained story about money and the economy; past, present and future and how the financially intelligent use this data to predict and invest in the markets.
The ABC's of Real Estate Investing: for the rookie investor.
The Advanced Guide to Real Estate Investing: explains how the pros invest in real estate.
ABC's of Property Management: Explains the fundamentals of managing your investment properties.
Real Estate Advantages: explains 1031 exchange capital gains tax and other tax benefits of real estate.
Rich Dad's Increase Your Financial IQ: a reminder of why your most valuable asset is your financial education.
Investing is very risky only to the financially ignorant.....
....One can decrease this risk by increasing financial IQ. TIME TO GET OUT OF THE RAT RACE..!!
Niiiiice list... Thanks for the list!
ReplyDeleteI really want to read ABC's of real estate investing, Advanced guide to real estate investing adn ABCs of property mangement...
I was looking at www.rent.com to find rental prices in areas...
then I looked at http://www.desertstaterealty.com to look at mls listings around certain areas....
And some look like the numbers are feasible...but I want to read those books... find out what the details in the numbers are and start looking into buying one...
Dude, now that I'm working for a goal, I feel energized...and I can't sleep....
I'm currently reading six steps to real estate investment... It's pretty cool...
I see a lot of under $100,000 properties in the buckeye area below the I-10...
ReplyDeleteAnd when I look at the Peoria area...these cheap houses are near the Grand Ave and Peoria Ave intersection....
Are these any good?
I found ONE property above the I-10 near avondale....possibly a good area at about 100,000....
John, You are going to have to let me borrow those books if you have them.
ReplyDeleteI can't seem to ..uh...find.... copies.... lying around....in the...web...and stuff...
:) I did buy the work books for the six steps for real estate investment work shop. Oh, my mom and I also found a $100,000 home in Litchfield area...which is an awesome area... Dude...it's tiem to buy
Once again, I could not sleep with too many thoughts running through my mind... Through out the day, I'm reading audio book about real estate, then I go home and play Cashflow, then I go to the internet for more information... My job as a doctor is a hobby compared to this real estate business I wish to start...
ReplyDeleteI found a site that I thought gave good information for the business...
http://www.twowiseacres.com/
Let me know if you find others like it!
My wife states this website can show how much a property went on the market for before... Not sure how it can help with Rich Dad and Poor Dad scheme....
ReplyDeletehttp://www.azcentral.com/realestate/homes.php
Holy crap...the $110,000 house for sale was bought in 2005 for $232,500.....
ReplyDeleteSo tempted to buy...but need to run the numbers...
Just went to AZAMA.ORG and found out that there is a record high close to 20% vacancies in Peoria and record low rental rates.... averaging $600 in certain areas...and they are mostly in the west side.... Sadness... The actual places that I'm looking at houses for are hit the hardest with the over-abundance of housing. This just means I have to crunch the numbers that much tighter! I have to figure out the numbers!!!
ReplyDeleteOh, Just finished 6 steps to Real Estate Investments...Now reading Retire Young, Retire Rich... Waiting for the Work Book for the 6 steps to Real Estate Investment so I can figure out the numbers... If I get the system/number formula by the end of December, I can start gathering data and narrowing down to 10 houses to buy by the end of January... Hopefully, by that time I'll have the capital to buy one and hopefully by May 2009, I'll have one house fully up and running....
ReplyDeleteI can't wait to start a corporation...LLC... and start this business! My wife says I can be CEO! I want to name my corporation Smellie Ellie Corporation. I can be CEO! Ofcourse, she will make most of the decisions... but I get to be called CEO! Let's get the business cards printed!
ReplyDeleteOoooh....Just found a site where they do market researches... www.realfacts.com
ReplyDeleteI wonder if I need to use their services...
Considering I may not have the time to go out and do all the research.... $150 may be a good price...
I just found a $85,000 property near my house....
ReplyDeleteI'm going to cry....
The properties around it are $140K....
ReplyDeletewww.desertstaterealty.com has houses..and mortgage calculator after you find a property. It's so cool!
ReplyDeleteBased on the calculations.... the mortgage is going to be like &625... With the average of rent being at $600... I don't think this property will work.
ReplyDeleteIf the average rent is $600... I will probably need to charge $500-550 to ensure long tenents... With possible $100 in other costs... My mortgage should be at $450 max... With $10,000 down payment, I would expect to buy only houses that are less than $60,000...
ReplyDeletethat's the beauty of supply vs demand. lots of houses out there for very cheap. You should check out the multi-family homes too. looks like some are selling cheap and with tenants that provide cashflow, also, remember that some online calculators don't include insurance, tax and property management fee's. check out this web page http://www.maricopa.gov/assessor/ it has tax history records and stuff like that.
ReplyDeleteYou should consider a real estate broker, go and interview some of them and ask if they invest in real estate. These people have tremendous resources and if you get a really good one you can get some killer deals. keep in mind that a wise investor uses Other Peoples Resources.
Did you find any more books?.. See if you can find Think and Grow Rich by Napoleon Hill. this is a must read.
Thanks, John!
ReplyDeleteI got a list of houses under $60,000 around my area and will be going to look around this weekend. I will speak to the real estate agents at that time and try and find ones that invest in property. I looked in Avondale, Litchfield Park, El Mirage, and Glendale. And it looks like the houses are concentrated in certain areas... They are most likely slummy areas... but with the rental market down (Average rental is about $600), I have to buy cheap houses to off-set the low rent I will be getting. Once the market picks up, I probably can look at better houses for higher rent. That's good news for me since I am starting and need practice and I'd rather practice with small properties first. Then when market picks up, I will buy apartments.
Now I'm looking into forming and LLC or LLP... Which is better? How much does it cost? Any input? I'll be looking into it from my breaks.
ReplyDeletehttp://www.reinusa.com/
ReplyDeleteNice website to find people who will work together with you?
I will look for that book Napoleon Hill! I just talked to my brother's real estate agent and he also invests! He read Kyosaki's books and he understands where I am coming from. I am so happy I can cry. Finding people who share this passion is so cool. I'm going to meet up with him Saturday.
ReplyDeleteGot the Book with Napoleon Hilll...my wife says I have to read Randy Pausch's Last Lecture first... I have to listen to my boss. I visited a property going for $45K. It was totally messed up. BUT the guy next door says he's paying $850 a month for his house... Which could make this into a DEAL of a lifetime. I have told my father about this property and he's going to check it out and see if he can make it work. My mom heard out conversation and she wants to take the old furniture from our church and fix it up and use it to furnish our property! So I now have a handyman and a seamstress on my team! Dude, my business is going soooooo well.....
ReplyDeleteBeen talking to real estate agents and contacted a mortgage broker.... hope he calls me back! This is going to be sooo fun.
ReplyDeleteSpoke with mortgage agent regarding investing in real estate and he says that Fred Mac programs where you need 20% down limits your house ownage total to be 4. Then private lender will lend at 25% down for another 4. Then you are done.
ReplyDeleteThere is a site http://www.garcesrealestate.com/
for investing in Philipines... :)
maybe, I need to do that....
or borrow money from the philipines?
I will ask about commercial properties next time...
http://quickfacts.census.gov/qfd/states/04000.html
ReplyDeleteA site to check if the population is certain area is growing or not.
Now, with the limit of owning only four houses, what can I do to increase my assets?
ReplyDeleteShould I invest in foreign country real estate using foreign bankers?
Can I use foreign bankers to borrow money to buy land in the US?
Will I have to buy $40-$50K property outright to rent them out?
Will I have to buy commercial property?
Will I have to start a business?
What are my options to create assets?
If I buy the property outright at 40-50K, then the ROI would be less than 10%. Since the rent I could get for such a run down property would be $400-500 only... I don't wanna be a slum lord.... And the money from appreciation would be low... I need LOANS!!!
ReplyDeleteThe forums at www.richdad.com are awesome!
ReplyDeletehttp://www.richdad.com/Forum/forum.aspx?g=posts&t=220865
ReplyDeleteNice forum discussion on richdad website!
Finally, I got a system set up on Excel to evaluate real estate! Now I can start quickly evaluating property!
ReplyDeleteI still have to find a way to get more loans than 6 more houses...
GREAT NEWS!
ReplyDeleteApartments with 4 units are more are considered commercial and they don't have limits on commercial investment loans!!!
Sweeeeeet... the law is going to force me to grow bigger!
I wonder if the 20% down required by the bank is a non recourse loan...
ReplyDeletei'm looking at homes for sale and businesses for sale... I need assets!!!
ReplyDeletewww.desertstaterealty.com is great for looking for real estate deals....
ReplyDeletewww.bizbuysell.com is great for looking for business opportunities....
I need to learn more about how to manage and find businesses to purchase...
ReplyDeleteread and evaluate financial statements. check out GM's Financials, what can you conclude?
ReplyDeletehttp://www.sec.gov/Archives/edgar/data/40730/000095015208009040/k46806e10vq.htm
try looking over one financial per day from any company. this will familiarize you with terminology and financial structure of a business. also,try some books on reading financial statements.
Did you finish the books on real estate???
what kind of businesses are you interested in? How about a franchise to practice with?? they can be capital intensive but they offer a good learning experience.
ReplyDeleteso many good deals on the market,i.e businesses, real estate; going for cheap.. just need the cash... "CASH IS KING"...
ReplyDeletedid you check out the videos on Richdad.com good advice!!!
check this out, good info about the economy, money , debt, government policy about money, etc... very exiting times are near
ReplyDeletehttp://goldsilver.com/crash_course.php?cat_id=6&video_id=30
w
Haha! Thanks for all your posts John!
ReplyDeleteI'm going to start small for now...
Looking at $70,000 or less houses in Good Year area. Nice area with Cincinatti Reds coming for spring training, cancer center being built, Amazon.com is building a warehouse in Good year... So I think it is a great area to invest in. If I buy a house there for $60,000 it will generate cashflow even if times are bad. I got a real estate agent working on it and I'm looking around to get the feel for the deals out there. Not much houses in that low price range, but I don't want to rush into anything. This is a profession...a slow learning experience... :) I am a slow reader by the way, I am on page 60 on the first real estate book... if only I could find the audio book for it...
You know how they only let you borrow for 4 houses at 20% down and another 4 at 25% down nowadays? Well, after your 8 houses, you have look at commercial properties. Now, I found www.loopnet.com to be excellent for finding 4 units or greater property which is considered comercial so bank will lend. Some of the run down quad plexes in some run down areas go for 180,000... :) I thought that was interesting and that may be the way to go for me to achieve my goal of 100 units by the age of 50. By the way, John. What is your goal?
Check out this place, its near the 10 freeway and has horse privileges.
ReplyDeletehttp://www.flexmls.com/cgi-bin/mainmenu.cgi?cmd=url+other/run_public_link.html&public_link_tech_id=m6qd0loes9m&s=12&id=1%22%3EClick&cid=1
and since it is on rural land it can be 100 percent financed.
My goal, is to retire at age 45 by building businesses and using the profits to buy assets.
By the way i got a good audio book for you to listen to.