All Forum Posts by: Nicholas L.

@Matthew Strack

just to confirm, the funds you'll be using for your investment purchase are borrowed?

that is going to make it tougher to get a return that justifies using the funds on an investment.  that money is not the same as cash... you're paying interest on it.

but let me know if i am missing something.

@Sean Timper

if you're not doing so already, maybe go to some meetups and just do some networking?

i've also found that, with respect to those pitch-type meetings, if you go in eyes open, you can still go, listen to the pitch, not buy the thing, and try to use the time to meet / network with other investors.  i used to live in the DC area and that was my strategy - went to lots, got pitched a lot, didn't buy, met some great folks.

hope this helps

@Connor Meehan

can you house hack instead?

@Byoung Bae

just for a countervailing perspective - the macro environment is just about the worst it could possibly be right now for you to pick a random market in a random state and shell out $50K or more to get a random property and then turn it over to random people you haven't met.  

i appreciate you mentioning that you're OK with breaking even - i believe it means that you may have more reasonable expectations than many others in your position - but the market is just tough right now. there is tremendous, tremendous demand for inventory - by homeowners, by investors, small and large. that means - no offense - anything that you can get without doing any work, or anything that someone serves up to you on a platter, or anything on the MLS - has been passed on by lots of other potential buyers.

so with that said, here are my answers.

0. read this thread.

https://www.biggerpockets.com/forums/48/topics/1159104-overl...

1. don't pick a random market. pick one you have ties to or know well or can drive to or hope to move to eventually or like to vacation in.

2. do some more reading - books, forums.  or better yet, go to the market you pick in person, and talk to the people you'll be turning your investment over to in person.

3. yes, you need a team.  i'd start with realtor, lender and PM.  i'd meet people in person (did i mention being in person?)

hope this helps

not trying to be discouraging

just realistic

@Bruce Woodruff

thanks for the predictions!  regardless of my political beliefs, i am of course still hopeful that the economy remains strong.  even the cuts to foreign aid though i don't think will bring that much money back domestically... open to other perspectives on this but i don't see it.

i genuinely don't know what will happen with interest rates.  i do think even if there is a slight decrease, it brings buyers back like you said.

one thing that doesn't get covered a lot is how many properties are owned free and clear - about 40% i believe.  so, these owners are under a lot less pressure to sell than someone with a mortgage payment.  and in my experience they'd rather leave a property vacant than sell for less than what their neighbor got.

Anyone have a real estate related prediction?

@Brendan Lim

hello. i don't invest in Columbus, but here are some miscellaneous reactions to your post.

-"analysis paralysis" is mostly a made up nonsense phrase intended to get people to go ahead and buy real estate even if they aren't ready to do so.  sounds to me like you have valid concerns, not analysis paralysis.  if someone has $500K in cash, and has been analyzing deals for 5 years, and hasn't made a single offer... that's analysis paralysis.  someone show me that person - i haven't met them yet.  you're under contract - how are you in paralysis?

-"pretty much turnkey" - no such thing. they either are or they aren't.  you should know from your inspection what they need now, and what they might need in a few years.

-"barely break even" - that is potentially OK, but see previous point.  if it's barely break even now... but needs 2 furnaces next year and a roof in 3 years and all new appliances now... that's not barely break even.  and guess what - that might be OK too - but only if 1) you're OK with spending that money and 2) the investment justifies it.

-"I feel that time is against me" - that makes me nervous for you.  while i agree that real estate remains a good investment, it doesn't mean you should buy just to buy.

-questions for you: have you seen the property?  did you have it inspected?  do you have enough cash in reserves?  what if the furnaces both break?  is it occupied or vacant?  do you have a PM lined up?  have you met them?  what if appreciation is low for the next 2-5 years?

also i recommend connecting with @Remington Lyman if he is offering...

@Eric Bilderback

the short answer (or at least my own personal answer) to explain the decline in fertility is... it's complicated, and I probably don't know all of the factors behind.  i think both parties have contributed.  

and the apolitical, practical point i was trying to make was that, regardless of why, it will probably lower demand for real estate in the US, but not for another 10-15 years. 

as Jason Hartman points out (again, I don't agree with him on everything, but when he's right, he's right) is that the statistic to watch for real estate is not raw population growth but household formation.

thoughts?

@Ellis Moye

we really don't know a lot about this situation since there aren't many details in your post... but i don't think this makes any sense for anyone involved here...

if it's a flip that's not selling, refinancing may not solve your problem and allow you to pay back the HML in full

and typically a sub to buyer wants a low interest rate... and if you refinance now you won't be getting a low interest rate, you'll just be getting whatever the market offers.

and finally.... the vast majority of loans are NOT assumable.  that is not what sub to is.  sub to is simply taking over payments, it is not assuming the loan.

hope that helps

@Aaron Zimmerman

good post but just curious - where do you see the reduction in the deficit coming from?