All Forum Posts by: Chang Maeng

I got my RE license from Masschusetts. I only studied about 10 hours before taking exam without any help. I got my license.

You have to know the vocabs and other than that, its all about common sense.

AND LASTLY, READ QUESTIONS ONE MORE TIME.

for example: exclusive right vs agent exclusive right (something like that but i forgot the vocab)

I am 21 and I am taking same process as you do.

My parents own company that have 200+ employees and I know how that kind of company is being operated.

Why I am saying is this:

Unfortunately, you cannot bring any values to people you want to connect with for now. You do not have knowledge about real estate yet nor you have capital.

I met a lot of people near Boston area and NONE are willing to train me. They just wanted to take my commission. Its a result driven society.

So, if you do not have connection or money, your ONLY way to get into real estate industry is to present your value, which means education. You can either get college degree or RE certificate to prove your value to people, and I think that is the only way you can start RE related job. Currently, I enrolled RE classes at BU to strengthen my education.

Imagine if you own a company and want to hire someone to take your task. If he cannot bring any value to you, would you still hire him?

Many BPs are giving us advice without asking any return. I really appreciate them.

CK HWANG.

Thank you for input.

I agree with you that buildings that are at prime area rarely drop in value, buy they do not appreciate that quickly either.

For example, "Factor in a capital appreciation of say conservatively 8% per annum to give a total of say 13% returns per annum over say a holding of 5 years." is not actually true. You can check appreciation rate at prime location vs less prime location.

If you search real estate cycles, you will see property prices have been risen throughout years, but more STEADLY.

For sure, there are other benefits of purchasing these propertie: easy to re-sell, lower vacancy rates, and etc.

What my concern is are those benefits worth even if its producing negative cashflow.

I think this phenomenon is causing because many people are delusional about outlook of these properties. I am not sure still because its really sophisticated. I just want to hear what others think about this subject.

You are exactly right.

I was talking about people who are currently purchasing as investment. They usually buy with cash or larger down payment. I was thinking maybe there are other factors that affect investors decision to purchase those type of properties.

Based on your answer, I kind of got an answer. Thank you.

I was thinking about that. However, I figured out that some people are purchasing for investment purpose. I am sure there are other things that they think these buildings have value even though they dont produce any income.

Do you think are they buying for appreciation only? I am excluding those who are buying for residential uses.

Hello guys.

This site has been very helpful for me and encouraged me to start as an investor.

Again, thank you for responses and I am looking forward to get some again.

Typically, the more urbanized cities have lesser cap rate, and people are purchasing properties based on appreciation. For example, 1 room condo at the heart of boston costs around 400k and is being rented $2000 per month. If you consider all the fees (including mortgage payment), it will produce negative cash flow. However, property prices are going up for some reason.

I am really confused why this is happening. We know this type of properties already produce negative cash flow, and it seems like the rent is not going to increase tremendously. But, people are purchasing based on appreciation even though those buildings produce negative cash flow. How these types of buildings can be turned into producing positive cash flow in the future when numbers are really hopeless? Why people (including investors) are purchasing those buildings for what reason?

Any inputs will be appreciated. This can help me decide which field I should be concentrating more.

Thank you.

It will be great for me if you can.

Thank you.

Thank you for all tips.

I appreciate it.

Regards.

Hi all.

I am from Boston and am trying to find out properties for investment.

So far, at Back bay, the cap rate is very low, but if I go to Dorchester or any other suburb places, the cap rate is higher.

I know the pros and cons, and the reasons why the cap rate at suburb area is higher.

However, I cannot put all "pros and cons" to the value that I can't determine where to purchase investment properties.

Any tips given well be welcome.

My investors are foreigners so anyone who is expert at this is also welcome to pm me.

Regards.

Thank you for a reply.

Can you give me any tips how to find a qualified mentor in Boston? Should I just search RE companies in Boston? Any tips will be appreciated!

Thank you.