I invest overseas in INDIA and now am looking to start investing in US as well.
I live in COlumbus OH. ALso visited Bay area last week and looked at some new build homes in East bay area of San Ramon. Realtor told me that prices over there are increasing @ 15 to 20% a year. Houses are in the range of a million and above. I am wanting to test the waters with soem affordable properties like 100 to 200 range first.
Also saw some news on CNN saying
Sell CA
Hold Texas and
Buy Florida
which confused me more
I want to start with a seed money of 50K or so looking for opportunities and understanding of the business of real estate investing here as well. Last time I checked my credit was in 650’s. I am working on making it better.
Any help any one can extend will be greatly appreciated
I’m new to real estate investing. However, I do own a rental property in Fremont, CA, which is about 25 miles south of San Ramon. I didn’t intend to be an investor, just worked out that way. I’m now going to sell it and am making a conscious decision to be an investor. So, I’m researching areas as well.
My advice, be careful of investing in the Bay Area. Prices are astronomical and in my opinion cannot be sustained over the long term. Prices are starting to fall slightly and properties taking longer to sell. I think a crash is coming (to some degree) and am looking to invest in areas like Las Vegas where you may be able to buy cheap enough to net rental income. I’ve heard different opinions on whether LV investments will net appreciate or rental income. I’ve spoken to a property manager in Las Vegas and she indicated that smaller investment properties are being purchased by larger companies and it’s turning into a luxury resort type rental area. So property values are starting to rise. Therefore, I may have missed the opportunity to buy low and net a positive rental cash flow. But there still may be some opportunities.
I’m also looking into Austin, TX, where there appears to be economic growth and the property values are still reasonable.
I’d love to trade any info or advice you may have on investing, what are the pitfalls, what to watch out for when investing in other states, etc.
The first question is: What are your investing goals? Long-term tax advantages and rental income (holding), new construction and resell (in appreciating markets), or rehab and resell for short-term liquidity? Depending upon what it is that you want to do will decide what area of the country to invest in. I could write a book on this (and I am…)
If you are wanting to buy and hold for 1-3 years or more, Texas is the way to go though our lease-option laws just changed. The appreciation rate (depending on what median-priced house you are investing in and what city) is about 5% - 10% (as low as 2-3% in some areas as well though) Higher-end rehabs (second/third-time homebuyers) are also very lucrative now (again dependent upon area). You cannot compete with new construction on spec homes as they are almost giving away the financing (which you can’t). This probably isn’t your market anyway.
Nevada, Arizona, and Florida have appreciation rates up to and exceeding 20% (which is good for new construction in coastal and urbanized areas), BUT, it’s also expensive to get into a home and building supplies are probably going to become even more of an issue with Hurricane Katrina and Ophelia. I invest nationwide (or did), and each state and city has it’s own demographics, economy, appreciation rates and so forth. There is no ‘hold here and sell there’ rule of thumb, you must reaserch each area individually and make an informed decision in line with your own goals.
Tahnsk a lot for your advice on the SFO area. I am very used to of buying pre-construction in INDIA and holding it untill close to delivery and flipping it. So feel very comfortable with anything like that.
I can not do anything myself as I am very busy with my IT company, So buying holding and flipping is all I want to do.Currently looking at buying some lots from developers in a new housing subdivision and then hold it for a year and sell it for a profit.
Similiarly pre-construction condos or so will be good for me. Now if some one wants to do the upper fixer work and me being silent partner in there. I am up for that as long as this upper fixer guy also has some of his money in buying. Don’t wanna go around lloking for people to do fixer upper if he runs away.
Sunny
I’m new to real estate investing. However, I do own a rental property in Fremont, CA, which is about 25 miles south of San Ramon. I didn’t intend to be an investor, just worked out that way. I’m now going to sell it and am making a conscious decision to be an investor. So, I’m researching areas as well.
My advice, be careful of investing in the Bay Area. Prices are astronomical and in my opinion cannot be sustained over the long term. Prices are starting to fall slightly and properties taking longer to sell. I think a crash is coming (to some degree) and am looking to invest in areas like Las Vegas where you may be able to buy cheap enough to net rental income. I’ve heard different opinions on whether LV investments will net appreciate or rental income. I’ve spoken to a property manager in Las Vegas and she indicated that smaller investment properties are being purchased by larger companies and it’s turning into a luxury resort type rental area. So property values are starting to rise. Therefore, I may have missed the opportunity to buy low and net a positive rental cash flow. But there still may be some opportunities.
I’m also looking into Austin, TX, where there appears to be economic growth and the property values are still reasonable.
I’d love to trade any info or advice you may have on investing, what are the pitfalls, what to watch out for when investing in other states, etc.
Thanks a lot for the insight. Talking about my investing goals
Long-term tax advantages and rental income (holding),
New construction and resell (in appreciating markets),
Rehab and resell for short-term liquidity?
I feel more comfortable starting with 2 above as it involves least amount of hands on work, which I need to do or get done. Not sure if there is anything out there like that.
Later may be get into 1 and 3 as well depending on how much money I got and the comfort level
Very good to hear that you are writing a book on REI. That’s is awesome. 8)
Can you help me understand this statement of yours a little better.
“You cannot compete with new construction on spec homes as they are almost giving away the financing (which you can’t). This probably isn’t your market anyway. “
Are you saying that building a home with a builder and selling it close to completion or as a spec home once built is not a good idea?
Now that I have decided to try to buy a lot or two, wondering what are my financing options other than regular loan ?
Should I create a company to do this business in like an LLC etc or set up a trust? If trust than will it be owned by me and how do we handle income tax and Capital gain tax in a trust ?
What actions or systems can I put in place to save taxes ?
