Real Estate and Investing

Hogfarmer

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I've always liked real estate and it's the sole reason I was able to retire early. I knew early in life it's the way to go.

Anybody here a Real Estate investor? How did you get started and how did you finance your investments.

I also love day trading stocks. Any tips or advice there is game here too.

Let's roll !
 

Pneumonic

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Soon to be 30 years since I bought my first rental property; a triplex which I still own. I have other investment properties also incl a 6 plex, a small commercial plaza and a 48 unit U-store investment.

I got started by buying the triplex off my landlord. Got a great deal and was able to mortgage it with the rental income available from the 2 other tenant leases.
 
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Hogfarmer

Hogfarmer

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Wholesale flips

Are those like fixer uppers or do you just find below market properties you know you can turn around and just sell.

Do you finance or just pay cash and sit on them until they sell?

Around my area a decent property sells for $90-$100 / sq ft /living space so I know if I can find something in the $75 range without having to do more than paint and clean up I can profit.
 
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Hogfarmer

Hogfarmer

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Soon to be 30 years since I bought my first rental property; a triplex which I still own. I have other investment properties also incl a 6 plex, a small commercial plaza and a 48 unit U-store investment.

I got started by buying the triplex off my landlord. Got a great deal and was able to mortgage it with the rental income available from the 2 other tenant leases.

I might be stupid but what is a U-store?
 

Big/Sky/Fly

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Are those like fixer uppers or do you just find below market properties you know you can turn around and just sell.

Do you finance or just pay cash and sit on them until they sell?

Around my area a decent property sells for $90-$100 / sq ft /living space so I know if I can find something in the $75 range without having to do more than paint and clean up I can profit.

Flips are where you risk $ with remodels...which is more $...BUT, more risk.

Wholesale flipping is the least risky real estate method available. The only risk is your time. You negotiate a specific price and then flip the contract to someone else for $5 -$15K more.

---------- Post added at 06:20 PM ---------- Previous post was at 06:19 PM ----------

Ahh, yep. Those are great investments. I wish I had one or three.

No toilets to futz with...
 

Pneumonic

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Flips are where you risk $ with remodels...which is more $...BUT, more risk.

Wholesale flipping is the least risky real estate method available. The only risk is your time. You negotiate a specific price and then flip the contract to someone else for $5 -$15K more..
Do you use agents to find buyers for you or do you broker the deals yourself?
 

RoadNasty

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I also love day trading stocks. Any tips or advice there is game here too.

Let's roll !

I use IBD (Investors Business Daily) for stock lists and ratings. I get their weekly paper and access to their on line web site. Much information can be had from them. I don't day trade, more of a swing trader - its much less stressful than the day trading stuff IMO.
 
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Hogfarmer

Hogfarmer

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I use IBD (Investors Business Daily) for stock lists and ratings. I get their weekly paper and access to their on line web site. Much information can be had from them. I don't day trade, more of a swing trader - its much less stressful than the day trading stuff IMO.

I'm with you. I misspoke somewhat. I'm more swing trader also mostly really short swings so I can get back in cash and go fishing.

Look at www.finviz.com for some stock screening too as well as

www.marketchameleon.com

Another good site if I am really amped to grab a stock in the AM and do an actual day trade is to sift through www.stocktwits.com which is more of a chat room but people on there will toss out breaking news and you can grab a stock making a big move that day.
 

Big/Sky/Fly

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Do you use agents to find buyers for you or do you broker the deals yourself?

I try to not use any agents...save more $.

If you remodel flips with $...then it would make sense to use agents.

---------- Post added at 09:32 AM ---------- Previous post was at 09:31 AM ----------

I've day traded futures...mixed results.
 
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Hogfarmer

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I've focused on single family residential properties over the years adding in one duplex. The first three were bought as a primary residence so I was able to obtain 95% mortgage loan.
Most of the rest I bought from a couple of older landlords that were wanting to scale back so when a tenant would move out they would just call me. No Realtor involved. They would finance 20% on a 15 year term with a balloon at 5 years and I would give them 3% over the bank rate so it was a good deal for them as well as myself. The bank would loan me the other 80% therefore getting 100% financing.

My whole goal was to just at least break even plus a small cash flow so with all 15 year notes they would be my retirement.
 

Pneumonic

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I've focused on single family residential properties over the years adding in one duplex. The first three were bought as a primary residence so I was able to obtain 95% mortgage loan.
Most of the rest I bought from a couple of older landlords that were wanting to scale back so when a tenant would move out they would just call me. No Realtor involved. They would finance 20% on a 15 year term with a balloon at 5 years and I would give them 3% over the bank rate so it was a good deal for them as well as myself. The bank would loan me the other 80% therefore getting 100% financing.

My whole goal was to just at least break even plus a small cash flow so with all 15 year notes they would be my retirement.
I've done VTB deals for 2 known purchasers of mine in the past. Back when it was a buyers market and I needed to defer capital gains. The real estate market where I am (Toronto) is crazy expensive and VTB's are making a comeback.
 
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Hogfarmer

Hogfarmer

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I've done VTB deals for 2 known purchasers of mine in the past. Back when it was a buyers market and I needed to defer capital gains. The real estate market where I am (Toronto) is crazy expensive and VTB's are making a comeback.

What kind of terms were you able to get ? Were you able to get a better rate than the bank?

I've sold several properties as Lease/options which are great for the buyer as well as the seller.

What I would do is give the buyer a 5 year contract with a portion of the rent credited towards the purchase price so at the end of 5 years they had a 5% down payment already made and all they had to do was obtain a loan from the bank. What makes it really great for me(seller) is the tenant is responsible for all repairs so it takes that off my back yet at the end of the contract they can walk away if they change their mind.
I would say only about 25% of the time do they actually follow through and purchase the property which is even better as I just mark the purchase price up another 15-20% and do another 5 year contract with the next tenant.

Here in Texas and most likely in other states it is illegal to contract out a "Lease To own" if you have a mortgage on the property but you can contract it as a "Lease/Option to Buy" which is virtually the same thing and it's totally legal.
 

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One of them was a deal with my sons so done for CG offset purposes on my end. The other was a downpayment deal in a housing slump market ….. bank +1.5 with 10% (of 20%) down. Tenant lease with a credit/buy option after 3 years. She purchased.
 
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Anybody have any thoughts on "Beyond Meat Inc" ? (BYND)

News out today they're making a trial run with KFC for imitation Chicken nuggets. Not sure if they're the ones making the patty for the Burger King Impossible Whopper but it looks like they're starting to make a splash in several fast food joints.

Looks like a new stock that IPO'd May 2 at $46 and currently it's at $155
 

Big/Sky/Fly

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Anybody have any thoughts on "Beyond Meat Inc" ? (BYND)

News out today they're making a trial run with KFC for imitation Chicken nuggets. Not sure if they're the ones making the patty for the Burger King Impossible Whopper but it looks like they're starting to make a splash in several fast food joints.

Looks like a new stock that IPO'd May 2 at $46 and currently it's at $155

Lab meat isnt food...and it's fucked up. :shrug_n:

Tyson is already getting into the BS too.
 

RoadNasty

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Anybody have any thoughts on "Beyond Meat Inc" ? (BYND)

News out today they're making a trial run with KFC for imitation Chicken nuggets. Not sure if they're the ones making the patty for the Burger King Impossible Whopper but it looks like they're starting to make a splash in several fast food joints.

Looks like a new stock that IPO'd May 2 at $46 and currently it's at $155

Many of these IPO's are pretty volatile, esp one like this that has a very speculative product. I think this one was over $200 recently, so its kinda akin to playing with fire - you could get burned pretty quickly.
 
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