Anyone here into real estate investing?

CPA

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It may be overvalued but the demand is still steady and would be shocked to see anything done that would lower property tax assessments and collections which local government depends on.
 

Otis1105

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Big Orange#1

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You couldn’t find an article 3 weeks ago predicting a decrease in prices. All I saw was level out or modest 3-5% increase. Now I’m seeing 5-20% decrease articles. An honestly, if people are projecting 9, I’d take the over because I think they will always project low.
Yeah just a few months ago it was. “There will be no decline at all due to low inventory”
 

McDad

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Bursting bubbles hurt for people who FOMO near the top. I’d be lying awake at night if I bought or took a heloc in the last 6 months. If you bought in 2016 you couldn’t care less obviously.
Real estate investing is about managing risk. Helocs, volatile markets, short term plans are not well-managed risk.
 
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Deathandtaxes

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Not commenting on that but did a deep dive into this section… any advice on how to get started into investing in real estate. I just recently started learning the stock market and want to kind of double dip while I am at it. I want my money to work for me and go longer than my hours at a job.
 

Big Orange#1

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Real estate investing is about managing risk. Helocs, volatile markets, short term plans are not well-managed risk.
Yeah over the past two years of insanity thousands of Americans have not been practicing risk management. Offering thousands over asking, waiving inspections in bidding wars. All very characteristic of a bubble. The smart investors in stocks or RE stay solid while the people who fall victim to FOMO, over leveraged, trying to get rich quick lose their tail during the downturns. Just the natural cycle every 10 or 20 years
 

BAJAvol

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Not commenting on that but did a deep dive into this section… any advice on how to get started into investing in real estate. I just recently started learning the stock market and want to kind of double dip while I am at it. I want my money to work for me and go longer than my hours at a job.
Making money work for you instead of the other way around is definitely key. I'm no expert by any means, but I feel like I can try to help get you started in the right direction. I had analysis paralysis for a year before I took the plunge!

My best tips:

1. Jot down a list of the niches you think you may be interested in. For example: house flipping, long term rentals, short term rentals, wholesaling, etc. After doing this, order a minimum of 2 highly rated books on amazon related to those niches and also listen to some podcasts during commutes. Your niches may change overtime. I only wanted to flip and wholesale when I started, now, my strategy has evolved into 80% rentals, 15% flips, and 5% wholesale. STAY AWAY FROM SO-CALLED "GURUS" AND NEVER BUY A COURSE. Everything you need to know can be found for free in a book or online, or from someone you know. If you have the luxury of knowing someone who has been successful in what you want to do, reach out to them and pick their brain. Take them on as a mentor. But remember, you need to provide value to them. I didn't have this luxury except with one person. I took him out to lunch a few times and offered to hook up some sinks at one of his flips for free. A mentor is great, but you need to provide some type of value to them. I also became close with a different guy who is big in the buy/hold game. He needed help with QuickBooks (which I am great at). I offered to help him with that if he could help me with advice.

2. Once you know what you want to do, formulate a plan on how to do the first deal. It is all about the first deal. I know I have already spoken on books, but The Book on Flipping Houses by J Scott is phenomenal. Even if you aren't wanting to flip, this book will give a start on how to find houses and how to build a team. Which brings me to my next point..

3. Build A Team: You may not realize this, but the most successful people in real estate have a team. I don't mean going out and hiring someone. I mean developing strong relationships with people you need. For example, build relationships with excellent contractors, real estate agents, and other people such as CPA's. Unless you plan to use your own money (which I never recommend), build relationships with lenders. Know who you are going to use to finance your transaction so that it is ready to go when you are. Lastly, work with folks who are great at finding off market deals. It's tough to find anything on the MLS with meat on the bones, and even when you do, you will have retail buyers bidding up the price. And do that now! You don't want to have to build a team after you find your first deal.

4. Stick to markets you know. When you first start, I suggest trying to work in a market you live in. You need to know your numbers and it doesn't matter what niche you choose. You need to know After Repair Values, Repair Costs, Rent Prices, etc. This is so important. You have to become an expert in knowing these things because you HAVE to know where your purchase prices need to be at. You literally make your money when you buy. If you overpay for a house, you cannot rehab a house enough to get your money back.

5. Repetition and Consistency: Like anything else, skill comes with repetition. The more you do something, the better you get. It's like practicing a golf swing. It's going to seem stressful and daunting on your first deal. I remember I used to be scared as hell to do anything that needed more than paint and carpets. Now, I will buy anything standing. I don't care if it is a gut job or a cosmetic job. That came with repetition. On consistency, unless you get lucky, it will be awhile before you find that first deal. But don't give up! It took me months to get my first deal. But after the first one, they kind of just fall in your lap. I turn down 3-4 deals a week.

I hope this helps you a little. It is probably full of typos, but I am on mobile and I still need coffee this morning!
 

BAJAvol

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Yeah over the past two years of insanity thousands of Americans have not been practicing risk management. Offering thousands over asking, waiving inspections in bidding wars. All very characteristic of a bubble. The smart investors in stocks or RE stay solid while the people who fall victim to FOMO, over leveraged, trying to get rich quick lose their tail during the downturns. Just the natural cycle every 10 or 20 years
bud, you bring some great information to this thread, but most of what you bring is in regards to ordinary retail buyers. This is a thread for real estate investors. Yeah the market is crazy right now, but investors honestly love turbulent times. I am not sure what you are trying to get out of bringing all of these graphs and charts into this thread. It's not going to scare an investor. You're talking to people who may be flipping, buy/holding, invested in the lending side, invested in STR, and a list of other things. I don't want this to come off as an ******* post. I'm just making a statement.
 

Fun coupon VOL

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Bursting bubbles hurt for people who FOMO near the top. I’d be lying awake at night if I bought or took a heloc in the last 6 months. If you bought in 2016 you couldn’t care less obviously.
Having a Heloc doesn’t mean you use it.

Bunch of people took a heloc and left it unused. Source of liquidity if needed.
 

BAJAvol

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Having a Heloc doesn’t mean you use it.

Bunch of people took a heloc and left it unused. Source of liquidity if needed.
Exactly. I have a 200k HELOC at prime that i use to fund my purchase and renovations. Then pay it off at the sale or refinance of the property. This goes back to 95% of the population has no idea how to use debt, and the ones who do retire at 35. Why would I want to use my own money when I can use someone else's and become financially free doing it?
 

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