All Forum Posts by: Leon Y.

Sacramento would probably be a good area to start as I don't know who has the money to buy a place in SF right now. 

Don't put it in a CDs as you're guaranteed to lose money because of inflation. So that's not a good way to start...

Get a FHA loan or something where you have to put little capital down and start small so you can learn about real estate. You don't want to wait for an opportunity and then not knowing what to do.

Depends on the state. For example NY is very tenant friendly and Las Vegas is very landlord friendly. In my state I just use the standard rental lease agreement form from GLVAR. I just get it from my agent for free.

Are those good tenants and does it rent well out there? Check out the rentals around the area first.

@Brandon Heath I think you need to find other areas with potential higher cash flow. You don't need to invest in where you live. I'm sure there are areas close by San Diego that don't requirement such a high price. I know a friend who's cashflowing on a 4plex in Ramona. So just explore other areas starting close by to see if there better options. You can always rent where you want to live and invest where there are higher returns.

I think first you really need to ask what do the sellers want. If the seller is willing to entertain selling with a balloon payment it sounds like the sellers don't need the cash right away in their new market. If they own the property free and clear try to have them finance you with 30-year amortization payment, 5% (or shoot lower) with a 5-year balloon payment. Gives you plenty of time to build up some cash flow and get refinance down the line.

With the current currency crisis in Argentina I wonder if anyone had purchased real estate there before or knows any contacts there?

It definitely feels like a bubble but it is still relatively reasonable enough to invest in... you just have to be more creative in how to get the inventory. I'd also look at how you are buying the property - either cash or financing. With financing it is not as bad if you are looking to hold long term. Cash wise the returns have definitely fallen. As much as I enjoy the good ol' days of 2011 I doubt the market will fall back to that level again. With that being said, if there's another 30-50% increase within the next year or two I'd probably stop buying in Vegas.

Welcome to Vegas! The market is tough but also exciting to make a play in. It is great to see that you have a mindset to achieve financial independence!

Understandably the velocity is important. The banks are holding trillions right now just depositing it with Fed. So the potential for that velocity to spike is realistic and possible - and you end up with China and Australia styled real estate markets.

I doubt deflation would ever happen. All points have been pointing to inflation and governments are extremely interested in keeping it that way.

Also look if you can refinance later. With no prepayment penalty you can always switch to a better loan later on. Lock the property first if it's good.