Hello, let me tell you guys a little about me I starting off in the real estate career I e been learning and reading about real estate investing for about 2 years now and now with the market down I want to go I to action , I live in Tampa Florida and the market is supper low here. I guess my question is when it comes to your first investment where do people usualy start with a condo or a house what would rent better a condo or a house I want to start by buying and learning first property management and all that stuff so is don’t want to spend too much because my first investment is goin to be more about learning I guess. Also I’m 22 years old I bought my own house last year in July so I’m going to be a home owner for about a year now I don have alo o cash I have $8000 cash that I can invest but really I’m looking for some startegies I have a mentor but for some reason he’s telling me not to buy real estate even tho he has some but he bought at a high market. Please advice me should I be looking for short sales? What’s the bennefit in them other then just they are cheap, how’s do taxes go with that when buying a short sale any advice would be really appretiated
thank you
You really seem to be doing the right things. You need to make a few minor corrections. You did good by getting a mentor. The problem is that you should always pick your mentor by looking at someone that has what you want and do what they are doing. If your mentor tells you not to buy a house there is probably a reason. The only reason I give people for not buying something is that they won’t make money at it for one reason or another. Don’t ask him if you should buy this house or condo but ask him how do you determine what house or condo you should buy.
The thing with shortsales is that this is how the system adjusts house prices that are too high because of the bubble are adjusted. Somebody has to take that loss. In a short sale is a sale with it’s prices has been adjusted to actual values.
Thanks, my next question is what do people usualy start out with what has the least maintenance fees a gated condo unit or a block house, which of these do people usualy start with? And does anyone know any good benefits to each?
Thank You
Real estate is local. What works in California may not wok in New Jersey and what works in Illinois may not work in Arizona.
But the concept that tends to work no matter what area of the country and what year or era is to find the most desirable type of house and acquire it for the least cost and then your options are the greatest. For example in Houston a 3 bedroom 2 bath 2 car garage house between 1,100 sqft and 1,500 sqft will have a nominal value of $120,000 and tent for $1,100/month. At this price they rent within a week because the median income is $49,000/year. In order to acquire one of these houses at a price that will make you money you will have to find a house that needs to be rehabbed.
Wal-Mart founder Sam Walton said market to the masses eat with the classes. Market to the classes eat with the masses. His point is that you make the most money when you sell to blue collar Joe sixpack types. Those people usually don’t rent gated houses.
Use your local mentor to find out what works there. That is the main problem with national real estate gurus. They don’t know the difference between a 3 bedroom house in Houston on Cypresswood st and one on Calvacade st.
I don’t know the difference in Florida between a gated condo unit or a block house but I would bet you would make more money on a block house.
I think you should go first buying a house because it is a good first step on a beginner then after that enter the real estate marketing to get more ideas.
Thanks alot
Does anyone knw where I need to look or a website to find out area income like average income in certain ares how can I get that information because I’m lookin at a bunch of properties but they ar in diferent zip codes.
Thanks
The U.S. Census Bureau website has tons of information on income, age, etc. of different populations. Also the Chamber of Commerce, which is trying to lure industry to the area, will have statistics you can use.
Good luck and it’s a great idea to do that homework first. It’ll tell you what people can afford when buying or renting.
Furnishedowner