re: How did you buy your first RE

I think I've seen one or maybe two people in this thread actually answer OP's thread.

It's why buying right is so important. Most people will likely only make a few large RE purchases in their life. You need to make it as sure a thing as possible early on. Build in leeway and take your time.

quote:

---

That's message boards for you.

---

irony from the cat who asked me about healthcare. talk about a thread hijack.

I was 27, did a 80/10/10 piggyback in 2003 on 168k custom built house in Nashville TN.


The good ole days

Good post.

The people that I've known over the years, who have made it in real estate, did what you're doing. If you do your home work, don't overextend or overleverage yourself, treat it like a business (instead of a self-driving car) and manage the property and tenants, real estate rental investing isn't rocket science or a minefield. Of the millionaires that I know, the overwhelming majority (who didn't inherit the money) have made most of their fortunes from real estate. I mean, let's be honest... where else can you get that sort of leverage and insider trading (having material non public information) is perfectly legal? The first real estate attorney that sort of took me under his wing told me that he'd make sure that I was on the right side of the law by an inch... but ethics were something that I'd have to work out for myself. But you don't have to do crazy deals to make damn good money in real estate. Just TREAT IT LIKE A BUSINESS.

The people I know who have gone bust have been spec builders, undercapitalized developers and amateur house flippers. I consider that speculation. I'm not a speculator or a gambler.

Start small and slow. Read everything that you can read on the subject. Go to seminars or join a real estate investing club. Whatever form of learning that works for you, take advantage of it. But have a plan going in... and you won't have to cobble together a plan to get out. It's like most businesses (or diets): the people who fail like to blame outside factors, when usually it's that figure in the mirror who brought the pain and anguish.

Good post Jag.

My first was a spur of the moment on-site house auction. My Dad and I went in halves. I had less risk and felt more secure. I made a few bucks after renting it for a few years, then sold it.

I have bought dozens of houses. Many have been flips, others long-term rentals.

My advice is to buy decent properties and make good tenant selections.

we purchased our first home and kept it as a rental. It has been a lackluster performer as far as rentals go but it got my feet wet in rental property and taught me some lessons while still cashflowing.

I can't speak to that. I've only been to Louisiana twice in my life. But remember, you're not buying the market. Whether the market is high or low, you're looking for "the deal". When I bought my first rental property, I got a 30 year fixed quoted at 11%. When rates came down to 10.5% while I was floating, I thought that I had conquered the world. People now will say that you can't make money with rates at X%. To which I'd say bull. The only way to time any market is to be extremely lucky or extremely blessed - I am neither.

Whatever you buy, however you finance it, you have to have a plan that has contingencies. If you're going to keep this property for 10-15 years, as long as you've put together a solid management plan, who cares if the market dips between year 5-7 (or whatever)? Does that make sense?

But best of luck, whichever path you choose.

I'm confused. Is the "Cash $50,000" how much you want to spend or the price... or something else?

So a ~ a 14% yearly return on the $50,000 before taxes. Unless you see major short term renovations needed, Yeah it's a great deal. Seems like a good deal particularly if you have the tenants already set up for the $725 amount long term.