Posted by Dan-FL on September 29, 2004 at 06:16:21:
Now is a great time to buy mobiles with land.Get them cheap and re-sell them.Even with the hurricanes,there is a huge market for them.I have done very well with them.I just put one under contract for 8k a few days ago.It needs 3k in work and comps for 40k.A deal is a deal,block homes,frame homes or M.H.
What would you do with 230K? - Posted by Jeff Morelock
Posted by Jeff Morelock on September 24, 2004 at 22:29:43:
If you had an extra 230K to invest, what would you do with it? I live in St. Pete FL, where the rehab market is brutal. I just quit the mobile home investing business. I have been approved to buy a HomeVestors franchise, (the We Buy Ugly Houses Folks) but I am also thinking about buying ten or so houses (if I can find them)with aprox 10K down on each with hard money loans, hiring crews to fix them up & then sell them - maybe through listing them with a realtor. I was also thinking about finding houses and doing them one at a time by paying cash for them. I don’t want to get into the buy and hold just yet. Any ideas?
Re: What would you do with 230K? - Posted by Jeff Morelock
Posted by Jeff Morelock on September 27, 2004 at 23:45:03:
Thanks eveyone for all the input.
Re: What would you do with 230K? - Posted by Nancy
Posted by Nancy on September 27, 2004 at 20:24:55:
I would buy low, rehab and hold for long term cash flow and appreciation. I see long term holding the way to achieve passive income in the long run. If you have the money and can’t decide what to do with them yet, I’m looking to borrow money from other investors on rehab deals, with lots of equity, secured by real estate. In general about 10% interest rate, baloon in 6 months. The properties I purchase are in solid areas, great rental demand. Got a great rehab crew to work with. I’m and loan officer myself, so after rehab, I will refinance the property and pay of the loan.
Re: What would you do with 230K? - Posted by M. Martin
Posted by M. Martin on September 26, 2004 at 22:08:04:
You may want to rethink your strategy on buy and hold. It is the key to long term wealth. Since you already have some capital and reserves it would be a good time. I agree with wholesale flipping and rehabbing also to generate cash but eventually you have to put that money into passive investments. For your rehabs I would work with a local bank that has a 10% down program. Several I work with allow me to put money in their bank as a CD for downpayment against a rehab loan. Your 230k could get you 2.3 million worth of borrowing power. You can get one year interest only type loans at 6.5% with one point. It is a lot cheaper that hard money lenders. What is also nice is that your CD you have pledged looks like a savings account that other banks or mortgage companies will view as liquid assets for other deals.
Re: What would you do with 230K? - Posted by Jeff Morelock
Posted by Jeff Morelock on September 25, 2004 at 10:52:50:
Thanks for the input folks
HomeVestors is the Subway - Posted by JT-IN
Posted by JT-IN on September 25, 2004 at 09:27:49:
Franchise, of the Real Estate business…
When someone wants to get into the restaurant biz, they buy a Subway Franchise… Having been a successful restaurantuer, I can tell you that owning a Subway store is NOT the same as being in the restaurant biz… and IMO, nor would owning a HomeVestors franchise be any closer to being in the RE investment biz, as would be classified by most here on the board…
Spend your time here and other spots, learning what is needed to know to be successful in the RE investment biz, and employ your nestegg toward real, independent entrepenuerial success. That will be a far cry from where you would ever be as a HV robot…
Just the way that I view things…
JT-IN
Re: Don’t do it - Posted by Dan-fL
Posted by Dan-fL on September 25, 2004 at 07:25:55:
I’m right down the st from you in pasco county.Yes it has gotten harder to find deals in the last couple of years,but I still find enough to make me happy.Homevestors=job,noway-to much overhead and rules.I buy and re-sell with very little expenses.If you have 230k to start with then you will do great if you work hard.I started with 23 dollars 6 years ago.
Re: What would you do with 230K? - Posted by rlpii
Posted by rlpii on September 25, 2004 at 06:37:35:
I looked at the HomeVesters franchise in my area and decided that I could buy alot of “ugly houses” with the money that they want on startup. Just my two cents.
Re: What would you do with 230K? - Posted by jasonrei
Posted by jasonrei on September 24, 2004 at 23:24:10:
Nothing wrong with any of those ideas. I prefer rehabs, so that’s where a good chunk of my money goes.
Hard or private money for purchases, my cash for reserves, repairs, and deals where I don’t have time to secure financing.
Re: HomeVestors is the Subway - Posted by rm
Posted by rm on September 25, 2004 at 11:11:58:
Are these things working across the country?
I’ve dealt with a few of their “orphans” recently and it doesn’t appear that the local guys know what they’re doing.
Furthermore, they’ve got about 6-10 billboards across the tri-county area (Gee, THAT’s not expensive).
You would have to do an outrageous amount of volume in order to justify the marketing expense, let alone the start-up costs, franchise fees, etc.
I agree that they’re trying to franchise the wholesale business, but I think that selling subs is a little simpler than doing deals…
Re: HomeVestors is the Subway - Posted by jasonrei
Posted by jasonrei on September 25, 2004 at 12:07:42:
I work with a lot of Homevestors. They are all so different. Some are very good, and others are downright 'tarded. We were offered a franchise. Thought about it, researched, but I just don’t like others having a say in my biz.
Re: HomeVestors is the Subway - Posted by Jeff Morelock
Posted by Jeff Morelock on September 25, 2004 at 22:33:56:
Yeah I am no not so sure abou the HomeVestors now. They unofficially claim I could do at least 60 houses a year but won’t really say or prove anything.
VOLUME is not the issue - Posted by rm
Posted by rm on September 26, 2004 at 09:17:11:
Volume/gross income is not the answer.
If you’re looking at a franchise, you need to know what the pre-tax net is, after ALL of the costs involved.
Re: HomeVestors is the Subway - Posted by jasonrei
Posted by jasonrei on September 26, 2004 at 24:23:16:
I do believe there are franchises in my area that do 50+ houses per year. A couple of them might have done over 100. That isn’t rehabs, that’s a combination of flips and rentals. Doesn’t sound too bad, but then again they spend $100k-200k or more in advertising each yr to do it.
I’ve bought several houses from them this year. None of those were big profit deals, just marginal. They did get some big flip fees from me, though.
I can see the appeal of owning a franchise, it’s just not for me.
Re: HomeVestors is the Subway - Posted by Lydia
Posted by Lydia on September 25, 2004 at 23:41:36:
A Local HomeVestor said he does 20-24 deals a year. There are 4 in my area, and I think they share advertising espenses-not sure exactly.
Lydia
Re: HomeVestors is the Subway - Posted by Jeff Morelock
Posted by Jeff Morelock on September 27, 2004 at 16:09:05:
I think I may keep going it alone for now, but now the hurricanes have thrown a few big monkey wrenches into the mix. I know mobile home investing is out!