All Forum Posts by: Andres Duque

@Arpan Patel It makes sense. I am starting to invest in real estate but I would like in the future to diversify by investing in other markets. I do believe that real estate is the best investment you can find and the three financial reasons you mentioned cannot be found any where else. 

@Russell Brazil Interesting. What type of strategy do you use for US stocks? What do you think is a realistic annual return by using that strategy? 

Have you invest in areas other than Real Estate? What are others investments opportunities out there to diversify your portfolio and what are the returns you can expect?

Thanks!

@Account Closed Hello Bryant. I will really appreciate your advice as I have to decide in the following 2 months where to invest. I do not live in the US, I live in a small country. I have a good job and I have learned from books and videos that the best way to increase your net worth and be safe finantially is to invest from young age. 

If you lived in a market where if you find a great deal buying a house 25% off of the asking price with no need for repairs, you have the first year 0 cashflow (rent pays exactly for mortgage, insurance, vacancy, maintenance and CapEx) would you still invest in real estate in the long term so that the tenants pay for an apartment that one day will be 100% owned or would you look somewhere else to invest?

Thank you! 

@Russ Draper I have seen that book recommended in other places, I am going to start reading it this month. 

@Steve Vaughan Yep, very good arguments. The leverage you can have in real estate has no match elsewhere. 

No one to defend value investing??? 

@Russ Draper Thanks for your advice! I think its easier in the US to do so as your bank can lend you money to buy in another city or state as it is part of the same country. In here, it is a small country and the banks does not lend you money to invest in foreign real estate. 

@Austin Youmans First I spent around 9 months learning about the business in my spare time in order to have confidence and understand how to start (videos, books, podecast). Then, when I felt ready I started to look around at deals following Robert Kiyosaki advice to look at 100 deals first. I didn't get to 100 deals but probably saw 70 deals online and visited 30 of them. Then I made my offers, normally about 70% to 75% of the asking price until I found a motivated seller. I think I made a good decision based on location, possible appreciation and having a exit strategy if it does not work out by buying with a safety margin of 25% discount. Again, this are all assumptions as I am new to this, but I tried to be conservative with the numbers. I am excited and kind of nervous haha!

New to real Estate investment, so my humble goal is to succesfully buy my first Buy and Hold investment. Already have my first deal under contract for around 25% discount of the real value, let's hope I am able to closed it and rent it out. Wish me luck!

Hello BP! I would like to start a debate on Buy and Hold investing vs Value Investment in the Stock Market. 

I have read multiple investment books (Rich Dad Poor Dad, The Richest Man in Babylon, etc...) and I am certain that investment is the key to having a stable financial future. I have a career going on so I am not interested in full time RE (flipping houses or wholesale) and trading stocks, I am leaning in long term investing. 

In my market, it is rare to find Buy and Hold deals with significant cashflows (it is similar to Boston, NY or Los Angeles market). What do you think are the minimum Cap Rate and Cash on Cash ratios you have to get to invest in Buy and Hold over Value Investment in the stock market?? 

For those not familiar to Value Investment, it is the kind of investment style that Warren Buffet does where you analyze balance sheets, annual reports, dividends and stock price to figure out intrinsic value of a company in order to find a stock that is undervalued and can potentially grow over time (you can expect around 10% returns). 

@Arpan Patel Thank you very much! In this case, as it is my first investment and have good credit the bank has no problem lending me, but it is very probable that in future deals I would have more trouble justifying the loans. As for the insurance, I will look into it, you have made me realize that I might be missing something out. No problem about the misunderstanding Arpan. Best Regards!