How did you modify your RE strategies this year? - Posted by KevinMuster

import · November 2, 2006, 1:12pm

Posted by David Krulac on November 03, 2006 at 18:05:24:

Somebody had bought it and started doing a rehab. The roof was very bad and had leaked into the house severly causing lots of damage. Well the rehabber put on a new roof and put in new electrical service. Then he got himself arrested and ended up in the big house and could finish this small house. There were liens and judgements on the property. I bought at tax foreclosure sale, where all the liend were wiped out and I was the high bidder at $50.

import · November 2, 2006, 1:12pm

Posted by KevinMuster on November 02, 2006 at 14:12:44:

I dropped my prices and dumped my realtors and did self marketing to move inventory in 2006. Now that the easy money has been made realtors and MLS are useless right now IMO. Buying for quick appreciation is obviously over. I’m looking to share ideas on how to make money in real estate in 2007. Anyone switch to financing deals rather than getting involved with actual buying in selling of real estate? I have alot of money to reinvest but taking my time to decide what to do next since this correction in prices is probably just beginning. Anyone want to brainstorm?

import · November 3, 2006, 12:45pm

Re: Go Commercial - Posted by Brian (NoCA)

Posted by Brian (NoCA) on November 03, 2006 at 13:45:53:

I know this is not what traditional residential investors want to hear, but there is a lot of potential and more diversity in commercial real estate. While there are some sectors of commercial RE that are soft and overpriced, some are poised for huge gains over the next few years. Problem is it takes quite some time to get familiar with all of the differect aspects of commercial investment. And like all RE, markets are very localized. If you do invest the time though, you can jump to different product types as market conditions dictate.

import · November 2, 2006, 9:15pm

RE strategies this year? - Posted by David Krulac

Posted by David Krulac on November 02, 2006 at 22:15:03:

Financing others is one avenue. If you’re HML, then be sure to get sufficient interest and LTV.
Buying very low, selling low always works.
Buying low, keeping and renting can work if posiitve cash flow. Seller financing can help improve cashflow.
Stay on the sidelines, cash is always king, and you could be ready to go when that killer deal comes by.

import · November 2, 2006, 2:22pm

Re: How did you modify RE strategies this year? - Posted by Sailor

Posted by Sailor on November 02, 2006 at 15:22:49:

I’ve always liked bread & butter housing, but now think SFRs are
still too overpriced. I switched to MHs in 2006. I, too, ca$hed out
in anticipation of this mkt. Yes, I am now doing financing, though
am putting my eggs in lots of different baskets. Lonnie Scruggs’
new book, “Taking the Mystery out of Money,” has been a real
inspiration, not only for me, but a lot of savvy investors. Passive
just makes sense to me now–besides, I have 3 quilts to
finish.

Tye

import · November 2, 2006, 1:43pm

REAL ESTATE STRATEDGY NOW - Posted by AL - SO. CAL

Posted by AL - SO. CAL on November 02, 2006 at 14:43:46:

Looking for recession and contraction going toward
2008 with around 35% drop in prices.
Best to hold off and buy at the bottom.
The curious thing about our business cycles is that all the same things are said at the tops and bottoms.
The thing that drew this cycle out was the Bush Tax
Cuts which did a fantastic job with the economy.
But an eventual downturn is inevitable.

import · November 3, 2006, 9:30am

Re: RE strategies this year? - Posted by Kristine-CA

Posted by Kristine-CA on November 03, 2006 at 10:30:17:

Yep, buying low and selling low still works. But it was pretty fun
buying low and selling sky high.

I think it’s very difficult to see the wisdom in your advice unless you’ve
actually had experience buying low enough. This seems to be where a
lot of people I talk to about REI in CA get stuck. They work from
asking prices, from comps, from BPOs and from added value fantasies
but it’s hard for them to imagine buying something for 50 cents on the
dollar–or less!

Kristine

import · November 3, 2006, 11:51am

Re: RE strategies this year? - Posted by David Krulac

Posted by David Krulac on November 03, 2006 at 12:51:25:

We both know that one can buy property at less than 50 cents (not to be confursed with fitty cent).

I bought a lot for $1 and a 8 room brick house with a new roof and electrical service for $50. (both without any mortgages, judgements or liens).

import · November 3, 2006, 12:50pm

Re: RE strategies this year? - Posted by Kristine-CA

Posted by Kristine-CA on November 03, 2006 at 13:50:59:

I’m still looking for that $1 lot–ever since I read those books years
ago about free land and cheap real estate. The best I’ve done is a lot
for $2K purchase price plus closing and then sold for $55K. The seller
actually offered to give the lot to me but I was too embarrased to
accept. He said he hadn’t even thought about that lot in 10 years and
that he was 80 something years old and he had already done well in
REI (he had–thank goodness–because the paper trail of his REI
activity in several counties is how I found him). He said he’d give it to
me since I was the one who had to figure out what to do with it and
that maybe I’d give him some “chicken feed” later on. I opted to make
sure he netted 2K instead.

So, just out of curiousity, what was the story with the brick house for
$50? Kristine