All Forum Posts by: Clay Huber

You need to work backwards. Meaning, what are your goals both short term and long term? What kind of numbers do you need to accomplish in order to meet these goals?

It's hard for anyone to give you advice on what you "should" do without knowing "where you want to go/be" in the future.

For example, in my case, I could care less about getting big lumps of money. All I want is cash flow every month where I just sit back and walk to the mailbox to pick up checks. While I'm certainly not getting a massive check like I could if I pulled off a properly executed flip, that's just not my goal.

It all comes down to determining your goals.

Buying on land contract will give you equitable interest, but not legal title. That legal title (the deed being transferred to you) does not pass to you until you have met all obligations of the land contract, namely, paying the entire balance on the land contract.

Unless you have cash to make the purchases, then you are going to want some sort of "connection" to money. Whether that be a traditional bank or a hard money lender, I don't know, but they'll be vital.

Wish you lived in Grand Rapids, MI Tony Cavalli! I would certainly want to be on your buyer's list.

Keep up the good work!

Bill Gulley mentioned this already, but in my opinion this "is" the first place you need to start: figure out what the fair market value of the property is.

Don't waste your time going through all these steps to only find that you would be over paying for the home.

Make sure this venture is even worth pursuing before you devote your precious time in lining up all the logistics.

I agree with everything the others have said.

On top of just getting a job so you can get some cash flow, be sure you set up a budget that contains a "get started in real estate investing" section so you can begin setting money aside weekly/monthly for this venture.

Despite what others like to say, it DOES take money to make money in real estate.

For every market Bear, you can find a market Bull. The world was supposed to end back in the late 2000's, and here we are now still kicking and alive.

The only 'true' protection is diversification among all asset classes.

Sure, rate increases affect everyone; however, they are increasing because the Fed is saying they will be tapering their bond purchases (printing money).

The Fed is getting ready to taper because they like where the health of the overall economy is going, particularly with the employment data.

So the way I look at it is this. While rates are increasing, that implies that the job market is strengthening, so rates may be higher, but if there are MORE people WITH JOBS in the economy, that will provide continued supply for the real estate market.

Hard to get a loan at ANY rate if you are unemployed - ya know?

As others have said, there is simply no way to know 'where' interest rates will be.

For me personally (I do have a minor in economics, but I by no means am proclaiming to be an economist), I think the key metric to watch is the employment rate. In my opinion, this will have an inverse relationship with interest rates.

The lower the employment rate goes, the higher interest rates are going to go. In my mind, it only makes sense that the Fed is going to feel better and better about letting interest rates rise as job health is restored.

I know many think that interest rates will rise based solely on the fact of the government printing money; however, that theory has been getting tossed around since the housing crash, and there has been very little inflation.

This debate could go round and round, but like I said, simply my opinion and $.02 :-)

I'm in agreement with Ceasar Rosas. I think interviews with attorneys and CPA's who invest in real estate themselves would be extremely interesting.

Another suggestion is not in regards to guests, but in regards to a new segment where you and Brandon sing together. I think a segment like "Real Estate Headlines" (in your high pitched voices) would be valuable. Just spending 5 minutes or so going over the key news developments since the last podcast.

Where are interest rates? Any new housing data? Are mortgage applications rising or falling? Stuff like that.