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Real Estate Investment Project #1
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| Greedy |
Some of you guys know that me and my dad have been really busy lately doing real estate investment and so far its going pretty well. This last property we just completed took us about 2 months to do and it turned out nicely.
A friend of my dad's who is a broker showed my dad this property and challenged him to do this. We quickly accepted and bought the property off this unfortunate guy going through extreme financial difficulty for $210,000. We hired contractors for roughly $50,000 to basically rip out and replaced everything but the frame. The last month of work, the contractors werent able to finish the work so we had to do it ourselves which included finishing the bathroom, kitchen, painting, cabinets and all the doors. Doesnt sound like much but it is!
so we spent roughly $260,000 total and after everything is done, its on the market for $370,000! Thats a pretty good return in 2 months. This place is located in Woodbridge right off of Route 1 so if you now anyone that's looking to own a house and not a townhouse, let me know!
More pics can be seen here: http://innerdc.com/forum/album_cat.php?cat_id=54 |
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| chanman7483 |
| I'm not in the market for a house, but that's a damn good job... |
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| EliPsE |
Damn good job. I like the lighting thats in the house.
I need to get into RealEstate heh
a house that size for 370,000 wow thats alot, can't really tell how big it is from the picture but thats alot where I live for that size |
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| Porky |
cooL pete
the house looks teh sexy
did u get this house on a foreclosure?
but something that can also be lucrative in addition to 'flipping' properties... renting them out! i'm in the hunt now for my first rental investment property
:cool: |
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| Greedy |
| thanks guys! its not a very big house at all. I would say its a close alternative to ppl who can afford a townhouse and would like to own some land and not worry about disturbing the neighbors. We actually own 2 townhouses that we are renting out but my dad takes care of those two. Im currently in the process of doing my own deals where Ill be able to keep most of the profit. So ive been really busy lately doing this and working my day job. I hope i do well because im tired of working and want to retire by 40. |
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| Greedy |
| quote: | Originally posted by Porky
cooL pete
the house looks teh sexy
did u get this house on a foreclosure?
but something that can also be lucrative in addition to 'flipping' properties... renting them out! i'm in the hunt now for my first rental investment property
:cool: |
not yet foreclosure but the guy was on his way to one. |
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| ZzZ The Goddess |
| Awesome Job! |
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| Porky |
| quote: | Originally posted by Greedy
I hope i do well because im tired of working and want to retire by 40. |
real estate is the way to go...
i've been reading some of kiyosaki's richdad series book, have you read them? did u know? most of america's wealthy get rich from real estate rather than paper (stocks, mutual funds) assets?
there's this ratio that kiyosaki talks about
100:10:3:1
for every 100 properties that you look at, he makes 10 offers, of which 3 get accepted. out of these 3 accepted offers, he buys one.
it's the law of averages, but if you do the work, there are diamonds out there. |
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| kid nyce |
anything that has a direct effect on the economy is what we call "cyclical" you know the wave effect (what goes up must come down) well in theory, the height of the real estate economy has already reached its peak and its slowly on the decline. This is a good time to start looking for property in well populated areas such as arizona, florida, "new orleans", new mexico, and las vegas.
i'm currently doing this in manhattan. I have one piece of property which i'm looking to renovate (completely gut the building and sell front to back apartments in uws) i have another prospect which I've looked at in UES rated at approx 5mil w/store front. i surveyed the area location and i've decided what would be a money-making establishment based on the area. (24hour deli) which would probably be family ran as well.
the piece of property peter is showing above looks GREAT! GREAT JOB on the renovation and the timely market share. 370 is a good number, you should look into one more large feature, possibly a pool or sauna =)
keep up the good work, one day we'll all have summer/winter homes located all over the world. good job! |
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| phuzzyfish12 |
I agree with Kid Nyce. I work in Real Estate and if you know what your doing your all good but a lot of people are jumping on the wagon....I put it this way think of Real Estate (right now) as the new dot-com era. Its on its way and a lot of people are gonna lose there shirts BUT Real Estate is always a booming business (just to many "soccer moms" tryin to get rich quick right now) and if you know what your doing your right you can retire at 40 and have a load of cash in hand. It seems you and your Dad do REAL nice work and with the rental properties, which is gonna be the new "cash cow" especially in larger cities such as New York and D.C., your golden. The rental property basically pays for its self and eventually you make a nice profit on property. Good Luck selling the house, though I am sure you don't need it.
:) |
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| kid nyce |
| quote: | Originally posted by phuzzyfish12
Good Luck selling the house, though I am sure you don't need it.
:) |
that's the thing about these baby-boomers in RE. It's old money making new money. I mean I'm not even in RE as a major or career, it's just such an easy side job to do because 1-you don't do the work, 2-you just pay for the property and other people to fix it 3-it makes lum sums of money.
My financial consultant for my uws historic renovation is estimating 1.2mil for the renovation. We are at that age when we know people in each industry, i know general contractors, plumbers, architects all who can assist me in things like this. And I know meaning my friends are, not business acquaintences. You figure a 1.2mil investment over 1.5yrs of demolition will net me 7-8 apartments moving at 2-3mil each (non-renting brownstone townhouse in upper west side). I can finance the other building in UES which is goin for 5mil and 1.7mil in renovation. this all can flip in 5yrs, 2 pieces of property, mortage and loan consolidated and paid off. any 3rd piece of property after holding 2 pieces of manhattan property will be signed off without hesitation. you get your budget, you fund you friends companies, you open yourself to a new market of real estate all as a side business. just be weary, the decline in the real estate economy is coming, my prediction is 2-3yrs from now we'll see an all time low - this is an strict indication to buy and renovate, cuz within 7yrs we'll be at an all time high once again. go for it =) |
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| Greedy |
| yea interest rates are creeping up for some so we are definately gonna take the conservative route for a lil. |
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