All Forum Posts by: Edward Briley

@Hattie Dizmond  Don't think that I disagree with you in any way while reading this, because I don't.  Slow, boring markets are normally the safest bet.  

Now trying to figure out on what real estate appreciation is impossible at this time.  Detroit at one time was a very safe bet, just like Dallas is today.  Now look at Detroit.  Actually if you invest in Detroit today, many will tell you that it is a risk to buy there, for numerous reasons.  Really, however, when you can buy a property there, flip it and rent it, it may be the safest place to bet on for appreciation.  Look at the property there, and what you can obtain for much less than a penny on the dollar.  Of course there is risk of life and  limb they claim, but really the crime rate has been falling.   Would I do it?  Not today, but who knows what the future may bring if I did?  Really what is the worst can happen, I invest $50,000 into a property, get it insured, for $100,000 and it gets destroyed by gangsters?  Face it, that is why you and I, and another 199,000 people that belong to this forum do not. 

What am I out of, really I still profited at least with $50,000 and have the dirt to boot?  You would have thought that the World Trade Center was a safe investment, I am sure, but look what happened.  So, if you are betting on appreciation in any market, you are being misled.

Think of this, the only thing you can bet on is salaries paid to employees.  Employees in Dallas, may be making good money, allowing them to buy nice homes, but believe me that could change.  How about this for instance?  What if you had the following happen?  Lets say there is a women with a couple of kids that live in a Government complex in Dallas, and is basically get free housing, and rather than someone coming in that is making good money to buy a home, decides to live with her and pays the day to day expenses.  That someone owns a farm, lets say in Houston for instance, and rather investing money in Dallas, they are investing there money back to their farm in Houston.  Welfare rolls increase in Dallas, taxes increase in Dallas, and we can go on and on.  Dallas eventually taxes the real estate so high, that no one wants to buy a home.  Then what happens in Dallas, real estate decreases in value almost overnight?  You may laugh and think this is a theory. politically incorrect etc...  But this is fact.  

Matter of fact, the cities in my area are tearing down city owned communities, and putting people on the street.  Laws have been passed that a person or a family is not allowed to rent a motel room for over a month at at time, before they have to move on.   The city in which I live, no longer has the budget to issue Section 8 vouchers.  So, the people that do not have them, basically have to leave. The people that have received them, are renting private homes with them.   Basically what the city has done, is to turn all of the poor over to the Federal Government, trying to keep the tax base down.  Our city real estate taxes increased over 20% in one year.  Many jobs here pay over $100,000 a year, so were are all of these people living that are making those salaries.  I know we will soon find out.   House values are slowly starting to increase here, but very slowly, and still there is much work that needs to be done.  

Will in increase in population drive up the home values?  No, that has been proven, over and over here.  Will an increase of salary drive up the home values here?  Something else that has been disproved.  Will waterfront homes increase in value here?  Well actually the values have fallen, due to the increase cost of flood insurance or having to buy basically risk homeowners insurance.  Most large insurance companies refuse to insure home owners here.   Consider this also, that this is the safest area to live in the country when it comes to natural disasters. 

Speculate all you want, predicting appreciation is a myth, no matter where you live!!!

If, can and will come true, I live in a market that proves it. It happened. 

I am sure I will get some hate mail on this. 

 That is the way I look at it also, and has paid off!!!

I have a question I would like to know an answer to regarding the MLS.

In the recent past, I have noticed Homes for a specific price listed on MLS. At the end of the listing, it show's Auction. I call the agent, and ask if I can give a full price offer on the property that is shown, and I am told that it is going to be auctioned online and if I want to buy it, that I have to register for the auction and bid on it? Maybe I am stupid? It used to be what ever the price was shown on an MLS listing is what the property was selling for, and the lister would accept that amount of money. There were exceptions in saying that offers would only be excepted this day at this location, and the owner would decide on which offer he would take. But the way it is being used, is that MLS is only an advertiser now for online auctions. I know there have been and always will be bidding wars for properties, this does not bother me, but having to register for an auction and bidding online for a property does not convey conventional wisdom for the MLS in my opinion. Soon I guess car dealers will be doing the same. Advertise a vehicle for sale at a price, and when you get to the dealership, you will have to bid on the car to see if you get it or not. Not only you have to register for the auction, but the winner has to pay another $2500 or 10% of the selling value, which ever is greater, plus additional fees.

Even on Government Auctions, such is HUD, Fannie Mae, and Freddie Mac will accept the posted asking amount, unless you are outbid by the end of the day.

Is the MLS turning into a scam?

Anyone out there specializing in under 30k properties?

Listen, don't call yourself an investor if you don't know where to look or how to do it.

The Government websites are loaded with properties for less than $100,000 all of the time.  An investor knows what it cost to rehab a property to sell or rent after its completion.  As an investor, don't even look at a property until you know these things.   Just because the Government, bank or other entity is asking the moon, does not mean they will not take less.  You have to be fair at the same time.  30K properties are abundant,  real estate agents that will show you these properties are not. 

@Angelique F. 

@Richelle T. 

I just wanted to let you know that I have a property that I am waiting to close now.  I am going to try something different with this property and see what offers I get.  

While the work is being performed on the property, I am going to put a "For Sale by Owner" sign in the front yard, and ask for a profit above what I will put into it.  (The asking price will be $80,000).  I not only work with a real-estate, but also with a mortgage broker.  I am going to have the exact cost of what the payment will be on the house in different scenarios, and make a flyer for the home just for that.  On that same flyer I am going to put, what I'll be asking for rent if it is not purchased by completion.  Rent will be about double of the payment.  When I talk to someone they may be interested in purchasing it, I will turn them over to the Real-estate agent. 

Most younger people do not realize that it is possible to buy a home with no credit, what-so-ever.  What kill most younger buyers, is buying something on credit, that is small and not paying for it, or not paying on time.  It is still possible to this day, for an 18 year old to buy a home, providing they have proof of employment for the last 2 years, and make enough at present to afford the payment.  I try to convince high school kids of this all of the time, but they had rather have a car, than a home.  They don't realize after they buy the home, they can have both.  Many want $200,000 or above cost homes, in which most cannot afford, or will ever be able to afford.  That is just fact.  Just look at the foreclosures. 

The neighbors are so happy that what I will be doing to this home, the women next door started crying.  Hope I can get it closed this week, and when I do I will respond with everything. In my opinion it should be closed by now, but I can't rush the title company but so much.  I hate going through this, the bank approved the contract, and I have the cash -  Let's Close Already!!! 

 I AGREE!!!  @Marylyn B, I am not a Realtor, but I am seriously thinking about going to school, just for the fact of being able to get my hands on properties at a reasonable price.  I am also considering of starting a business in which distant investors can contact me on buys they want to make and not know if the property is worth the price they are paying or the condition of the property?   What I would do is to hire a home inspector to do the home inspection/termite, take plenty of pictures of the property, get estimates for repairs on the property, and go "Pro" here to get the property analysis report, on rather it is better to rent it or flip it.  Charge like $750 for it all.   Think of the advantages it would give me alone?  I do know of a broker I could work for at a reasonable price. 

@Ashley Swift 

Very simple to find Cash Buyers, or buyers that can easily get hard money loans.  It is as simple is going to Meetup.com and look for investor groups.  I haven't looked in your area, but I bet there will be more than a few up there. 

Wow, I cannot even believe this post.  How to find sub-$30,000 properties?  They are all over.   Listen in my opinion, if you can pick up dirt (dirt being a lot) with a home on it that is usable for a very reasonable price is a no brainer.   I have even been thinking of Detroit, because of sub $1000 homes.   People listen, until investors get involved cleaning up communities - property values will decline.  Nothing is wrong about buying a property in a bad community, fixing it up, flipping it or renting it out.  Now with this being said, I make sure that if something would happen to the property, that I would be able to rebuild.  Some older properties you may not be able to do it, because of new laws.   In the past when a young couple was looking for a home, the only thing they could afford was a so-called, dilapidated dwelling.  Now a young couple expects to move into a completely rehabbed home is their first property, and people wonder why housing values are not increasing?  Listen Investors, it is up to you and I to rebuild these neighborhoods, that is our job.  The housing market has never been better for someone that has saved their own money to buy a house for cash.  Most people that have saved their money also have decent credit to flip these homes.  Everyday I get up and scan all of the housing sites find homes for less than $30,000.  I look at the property and figure out what it will cost to get it livable, or resell-able.    Many properties I have to refuse or low-ball because it will just take too much money to rehab them, but if I can get it a a reasonable enough price I will buy it.  Many slumlords will buy them, and rent them.  I am not a slumlord, and for this reason realtor's don't like dealing with me, when I am the kind of investor that makes them money in the long run.  Very few have ever made money by buying the best home in a community and letting it dilapidate.   If you are that kind of investor, you are not an investor you are just greedy. 

@William Hochstedler 

I know a bunch of young landlords that rent rooms in their personal residence to students to pay the mortgage.

Where I live, young people do it all over.  However, at the same time it is their "personal residence" like you state.  The owner is one of the roommates and lives in the same apartment.  I am not young, but if it was up to me I would do it myself.  My home could accommodate up to at least 5 tenants.  This is not greed in my opinion either.  It is making the best use of what you have, and it is a very smart thing to do. 

The problem is here, that the landlord may live on the same property, but does not share the same apartment with the tenants.  This keeps her very separated from the day to day activities that are happening.  

Yes, you have to be very strict with the rules.  One warning and then you are out, would cure the problem easily.  But not knowing and doing it on hearsay is a whole lot different. 

About the comment about the parents getting involved:  Now you know as well as I do, if you had a daughter that just left home, that when she goes to mommy because she has a problem, and that problem is that she does not feel safe with the situation she is living in, and that person contacts you, the landlord, with illegal activity happening that any judge would allow the lease to be broken without incident, even though you could not prove it.    Bringing this, someone using drugs in the residence, would most likely put you under a microscope that you may not care for.  

Really she may fix this problem real easily.  Just include herself is one of the tenants.  This way she can enter the apartment anytime she desires, without having to give notice.  She does not have to have a bed in apartment, and still can live where she does on the property, and will know what is happening on a day to day basis. 

 Marcus,

Not that I would not be against this letter, but there are two problems with it.  Now I am not a Lawyer, but I would advise against it.  

First, in the the first line you may have committed "Slander" because you are stating something you don't know, and only have been told about.  You are making an assumption you cannot prove.

Second is actually you have admitted that you know about this activity, and this letter could be used against you in a court of law, to take your property away, because you knew of illegal activity and failed to contact the proper authorities.  

Now in a perfect and just world, it would not be a problem.  But I have not lived in that world for many years now.  

This is just my opinion.