All Forum Posts by: Ken M.

I used to think this...but having researched the matter pretty extensively since, I can't begin to fathom the fallout that would have occurred had the major American banks been allowed to fail. It is very likely that it would have cost the average taxpayer substantially more.

But back on topic...more and more I fail to see the benefit of home ownership as being an absolute fact. Is it that we have/had come to expect sustained employment within a tight geographical radius? Or is it the impression that housing was/is a risk-less, liquid asset? Why a mortgaged home purchase is considered any different than buying stock on margin is beyond me.

I'd love to be enlightened though.

And on another note, are our high schools and colleges failing THIS miserably in educating young adults about basic economics? Time to lay off a few of the required gym classes and humanities electives and force some real financial sense into this upcoming generation.

Any cash flow off the MLS in Austin or do you need to go distressed/rehab?

I'll be visiting in a few months. I've only heard wonderful things about the area. Have had a friend raving about Austin for years. He visits from time to time for work and just can't get enough of the place.

Wow lots of great stuff here. Thanks everyone. Much for me to take a look at and start learning.

This is always what I appreciated most about REI, there are just so many different avenues you can take. And just about every single time your investment is going to be backed up by a physical asset.

So no matter what the style of investment is, as long as the property backing it was purchased at the right price, there should be money to be made.

Thanks again!

Thanks for the replies guys..

I know nothing about trust deeds, but I gather that they are a way to get in on hard money lending without actually being the hard money lender?

I have a lot more research to do on that, but who forecloses on the property in the case of default?

The goal is to earn 8+% on my nest egg year over year. Ultimately I want to invest for income, income to live on. Thus far I've researched quite a bit about investing in tax liens, NNN leases, becoming a hard money lender, and of course buying rental homes.

Been in Tampa for a few months now, and I doubt those "2% rule" properties exist. If I put bandit signs on every street corner, I could probably find one. Just not sure I'm that ambitious. At the same time, it is probably safe to say that this market has a better chance of seeing appreciation in the future than towns in upstate NY where I know for sure those 2% rule properties exist. No data to back that up, but much like stocks, I believe the harder a price has been beat down, the better chance it has for a rebound barring some sort of fundamental collapse. As far as I can tell, the beaches are still beautiful, the population is still growing, retirees still prefer warm weather, and at least as far as Tampa goes, it's a city that can support some jobs.

Tax lien investing would seem ideal, but I have no idea how I'd acquire a substantial portfolio with all of the competition. That said I am going to give it a shot in a few months when the Florida auctions come around. NNN leases are a little more interesting, and I'll probably start another thread elsewhere to ask a few more questions about those. Hard money lending...well, I'd have a lot to learn, but in some ways it seems to be the most attractive option.

But I always seem to be coming back to buying rental homes with cash. Theoretically focusing on homes that can use some work, hiring a team to do the rehab, rent and hold. I say cash only because it eliminates a huge monthly expense and increases positive cash flow immediately. Anyway, it's not as if I can go out there and acquire 20 properties all with mortgages? From what I gather there are limits to that. But with money so cheap, I imagine it makes sense to leverage up as much as possible if your goal is to acquire as many units as possible over time...which would lead to more wealth over time.

Any insights would be much appreciated.

Jerry & Ned, thanks for the replies.

Considering today's interest rates, investing in tax liens seems to be an extremely attractive alternative to CD's or treasury bonds. Your money isn't tied up for long (barring a messy foreclosure or three), so if interest rates rise in the future you can take advantage of those easier, even more risk-free investments. But it appears that acquiring a large portfolio of lien certificates would be quite difficult.

Wish I had the guts to get into "real" real estate investing, but my education on the subject is so limited. Ultimately, all I have is some money and no other skills related to the subject. Besides being good at math I guess. It's all quite overwhelming, so back to scouring this forum for ideas.

The gist of what I'm seeing here after having researched tax lien investing over the past few days is that if you are playing w/ a sizable sum of money (say $1M in the state of Florida) it would be extremely time consuming and difficult to do the amount of due diligence required to make safe investments.

Assuming you average 7% over the course of the year, that's $70,000. As a previous poster mentioned, that sounds like a LOT of work for $70,000, especially considering you'll be in tight competition for most of the properties you are looking at.

Is there a play the numbers method worth exploring? Taking Florida for instance, just bidding 0.25% on thousands of single family home liens and hoping you win a bunch, get the 5% penalty and move on.