All Forum Posts by: Michael Carbonare

Finding any deal always comes down to marketing.  The more irons you have in the fire, the greater your chances for success.  I'm sure you've heard this before, but we're not in the real estate business as much as we're in the marketing business.  Your marketing budget, financially and time wise, will determine what marketing strategies to pursue.

Augustin, my market here in south FL is a very difficult one to find deals with numbers that make sense.  Single family?  Impossible.  A starter home will run you about $650K-$700K.  Add $10K/yr in property taxes and another $10K/yr in homeowners insurance, and you can see why the $3200/mo rent won't cover your expenses.  Multi family?  Competition is intense and you're likely going to be looking at handyman specials in rough neighborhoods that require kevlar vests to find anything that cash flows.
For the past decade or so I've been investing virtually.  Out of state deals where the markets are more favorable for buyers and investors.  I use lease option assignments with these because if done correctly they can be risk free and they don't require banks, hard money, or cash out-of-pocket.  Assign/flip the deal, get my cash upfront, and move on.  After 30 years I'm over tenants and toilets.  LOL

Hi, Agustin.  I'm a former NYer.  Born in Brooklyn, grew up on Long Island.  Moved out many years ago.  Don't miss the traffic, the taxes, the overbearing politics and government.
As for lease options, I started investing with this niche about 30 years ago and I still use various lease option strategies today.  Can't say I am familiar with the specifics of NYS law regarding this.  What are you hearing?

Eric, the usual advice given to n00bs is that wholesaling is the path to follow. It may be for some, but the YouTube and TikTok get-rich-quick gurus can lay it on pretty thick with their $30K In 30 Days sales pitches.  An investor friend down my way does very well with his wholesaling business to the tune of $400K - $500K/yr.  But to find his deals he markets to the tune of $30K monthly!
From my personal experience I suggest you take a look at lease options, specifically lease option assignments.  While nothing in this business is easy, this strategy is certainly easier than wholesaling.  If you know what you're doing they are risk free and most deals are done with little to no cash out of pocket or upfront bank financing.  And they lend themselves quite well to doing deals virtually, in any market anywhere in the US.  The willingness to do these virtual deals is a must in today's real estate business.

I agree with your view regarding inflation and the job market.  Those numbers are as fake as the Kardashian backsides.  It only takes a walk down the cereal aisle of the grocery store to know the government is cooking the books.  $8 for a box of Cheerios??  God help us!  LOL  Whether or not this translates to another housing market crash remains to be seen.  I think the biggest factor in housing is the affordability index, more accurately the unaffordability index.  At current prices and interest rates, many would be buyers remain on the sidelines, the possibility of home ownership a distant reality.  The market would need to shake out about 40% to once again to be affordable for the average two income family.  As a property owner I don't want this to happen, but looking beyond my personal interests I wouldn't be disappointed if it does.  I fear the US will become a nation of renters, with the mega hedge funds owning enormous parcels of single family housing all across the country.  Blackstone just purchased Tricon for $3.8B. 
Answering your question about my investing, I started 30 years ago with lease options, particularly with lease option assignments, (cooperative assignments).  This strategy enabled me to raise cash which was desperately needed at the time.  From there I was able branch into other strategies. . .buy and hold, fix and flip, etc.  But I still fall back on those lease option assignments.  I can do them virtually anywhere in the country.  If you know what you're doing  they are risk free and minimal cash out of pocket. 

@Rafael Mercedes  Back in '07-'08, foreclosures were on every street and they were a hot strategy, along with short sales.  Now, however, foreclosures are far and few between and not nearly as fat a market as they were back during the crash.

As Ken has already said, tenants pay rent. They do not pay property taxes, homeowners insurance, or the owner's HOA bill. If the rent covers any or all of those, fine. But ultimately they remain the responsibility of the homeowner.

Good morning, Catie.  I've been investing in real estate for about 30 years. I've worked with and helped many new investors along the way. I don't have all the answers but I'll be happy to offer opinions and advice. Feel free to contact me directly.

Good morning, Oscar.  I've been investing in real estate for about 30 years.  I've worked with and helped many new investors along the way.  I don't have all the answers but I'll be happy to offer opinions and advice.  Feel free to contact me directly.  

@Michael Bunker  The short answer is the cooperative assignment is one of several types of lease option strategies you can use to score some deals.  It's a short term assignment whereby you can make your money from the assignment fee and for knowing how to do these deals and having the necessary agreements to do so.  For someone looking to get started in real estate this is a low risk approach with minimal cash requirements.  I'm a fan.