Ebay Real Estate
I'm new in RE investing, but has anyone seen realestate advertise on Ebay? Has anyone have success stories with this?
The ones that I'm interested are the ones under 25k. For a rehabber, they look like some good deals. I live in NYC. Some of the houses advertised on Ebay are in Flint, MI, or in Alabama.
Should I invest time and effort travelling to see the houses before I bid? Do you think it is worth it to persue properties like this even though they are out of my state. Will it be too much too manage?
gemsre 
Flint is a joke.
AL has growing areas.
My personal opinion is that you need to be educated in a market before you go buying houses all over the country. I don't think this is the way to start in Real Estate.
Values are different across the country and I don't think Flint, MI or Alabama are a good scale to match it against especially if you are use to NYC prices.
I had my grandfather just sell his 2,800 sq. ft home on a corner lot. Beautiful home with custom wood, wrap around porch and all the updated amenities of today's word, not-high tech, but updated within the last 5 years.
Selling price $30K, why??? it was small town USA. I told him a house like that in Denver would have went for well over 10 times that amount. If we could only get the teleported invented.
My father lives in Alabama, wages are way low in that part of the country compared to most, Real Estate will follow suit. Flint, MI is struggling right now with one of the highest unemployment rates in the country.
There is a reason these properties are listed on Ebay to get additional exposure.
I am not saying DON'T do it, I am just saying make sure you do your homework!
I am definitely interested in what people have experienced with ebay and REI. Any and all comments will be of interest.
On a different note, investing at distance is a different subject. Most of the details have nothing to do with ebay so maybe the two conversations will get mixed up.
To be a successful REI you need to know what you are doing. There are different ways to invest so you do not need to be an expert in all aspects to be successful. We used to call this "T" knowledge in the high tech area. Deep in one aspect but a broad knowledge across the full sector so you can recognize the differences.
I invest across 12 times zones (three countries). I started locally and it grew as I traveled more. A friend started investing at the same time but felt that CA was too expensive and always focused on REI out of state.
There are two main axis to consider. One if knowledge. Knowledge about REI in general and knowledge of the specifics in an area.
The other aspect is time commitment. You have to manage your time and if you invest at distance there are a number of things you can not do as a hands-on laborer.
I was asked for some info on a different web site so maybe what I should do is write up a brief article on investing at distance. Then a discussion could take place with a broader base. Would there be much interest? PM me if you are interested and send specific questions as that will help flush out an article.
John
[addsig]
One other comment that is off topic.
The places that are sold at $25K or less are difficult to finance. There is a limited pool of lenders who will write loans that small. Too much overhead vs. the returns.
I am not saying these deals would not be a good deal. Just that you have to deal with limitations on financing (when you buy, try to refinance or when you sell).
John
PS. I do deals at this level so I am not saying to stay away from the lower end.
[addsig]
"The other aspect is time commitment. You have to manage your time and if you invest at distance there are a number of things you can not do as a hands-on laborer.
I was asked for some info on a different web site so maybe what I should do is write up a brief article on investing at distance. "
Thanks for the comments! I am very interested in information in managing property at a distance.
I'm basically using my parents money and investments to make profits. They are giving me 500K cash to start. So, really, I'm not needing of morgaging (right now). I have also renovated my own rental in another state and am renting it now. They also have a 10 bedrm/4 bath home in the heart of the city Makati, Manila, Philippines. My cousins are basically living there for free. This I'm trying to figure out what to do to maximize investment. So, as you can see I also deal with very different time zones.
Anyway, your advice is welcomed!
gemsre
Active reinvestor
I would also be interested in reading an article about investing at a distance. I own two properties here in CA. Now the market is so high it is difficult to buy multiple properties or units. So I need to go elsewhere. I would be interested in how you find good managers, contractors, realtors, and lenders if you are not there to meet with them face to face.
Anyone else have points they want to see covered in an article on 'long distance investing'?
John
PS. I have PM'ed a few folks who expressed specific interest. Just making sure there is no one else lurking that will want to see specific things covered.
[addsig]
Back to the original question:
I live in Pensacola, Fl, seven miles from the Alabama state line. I have looked at properties here in the $25k range. You can expect to do a full interior at a minimum. That is, new flooring, refinished walls (paint), repaint the ceilings, replace all windows and doors to meet hurricane codes (anyone ever hear of Ivan? - it was BAAAD!), and, most likely, replace the htg/ac. Exterior will require painting/sprucing up at a minimum, and expect to do some yardwork. This assumes the roof is in good repair and that there are no plumbing problems or problems with the slab. Most residences down here are built direclty on slab on grade. There are very few that are built up, except in hurricane evacuation zones.
So, to answer your question, come on down! Alabama's real estate market is expected to do well in the near future, as is northwest Florida after Ivan came through.
Good luck,
Bob
Back to the original question:
I live in Pensacola, Fl, seven miles from the Alabama state line. I have looked at properties here in the $25k range. You can expect to do a full interior at a minimum. That is, new flooring, refinished walls (paint), repaint the ceilings, replace all windows and doors to meet hurricane codes (anyone ever hear of Ivan? - it was BAAAD!), and, most likely, replace the htg/ac. Exterior will require painting/sprucing up at a minimum, and expect to do some yardwork. This assumes the roof is in good repair and that there are no plumbing problems or problems with the slab. Most residences down here are built direclty on slab on grade. There are very few that are built up, except in hurricane evacuation zones.
So, to answer your question, come on down! Alabama's real estate market is expected to do well in the near future, as is northwest Florida after Ivan came through.
Good luck,
Bob
To provide contrast...
There are some areas that have SFR priced lower then the Alabama example. Upstate NY is one area I know. I am told Part of Ohio is similar.
One deal has a place at less then $18,000 for a 2 story home with a full basement (2 bed, 1 ba). The place can be used as is for a rental or it could be improved slightly for a resale. The kitchen is dated but functional in this case.
Side note: One issue of the low end of the market is getting financing. Most lenders will not go lower then 50K with some dipping down to 25K.
John
[addsig]
I've owned some remote properties and to me, the acid test is whether the RE can easily be made to be self-supporting with its rental.
If it can pencil with easy rental, after maybe some cheap rehab/fixup, and my cash outlay is low, I say why not?
After all, with ease of www world, now it's possible for lots of us to live most anywhere and get outa the big city, freeway rat race...which makes the little town in laid back area all the more attractive.
And as I remember the basics, isn't buying low really the key to making money?
Someone once told me" you must be a fool to invest into something you have never seen." Plus start on what you know, local markets, then expand and fly about for tax benefits. Of course this is my unprofessional opinion.