I am pretty new at investing and am just wanting to get some input from folks who actually "walk the walk". Anyone have any opinions about the NC market? Any specific areas recommended? Thanks all.
That was an excellent answer for me....
everyone around me is saying that the "bubble is going to burst", and it is helpful to hear someone experienced to spell out what I was thinking.
My desire to suceed is greater than all of the negative talk out there.
I even find myself in conflict with my real estate agent of six years...she is not an investor and tends to be very conservative in her thinking.
I am glad to have stumbled upon this website where I can find others who want what I want.
sirbiegealot
I want what you got some investment property. Any ideas or words to the wise from an initiate some steps behind you in southern california, land of the $600,000 fixer uppers.
I have owned 2 condos in Winston-Salem now for 10 years. They are managed by Messick Properties Group which I am not related to in any way. They have been great. Winston-Salem city fathers are providing incentives for business to move int. Winston has Wake Forest University and is near enough to mountains, lakes, and driving distance to Greensboro which has University of North Carolina there. The area suffered a lot with manufacturing leaving the area, but now I think Dell is coming and banks are coming in and the downtown is getting fixed up. They also have the North Carolina School of the Arts there. It is a really nice town; I lived there for a year. I am thinking of buying another condo or maybe a lot there now because there are lots of foreclosures. However I noticed property which had been sitting for a long time is now starting to move and also (finally) rents are increasing! Good time to buy...I think it will finally be on the upswing.
[addsig]
In your opinion what is the hottest oceanfront property in North Myrtle Beach right now...whether pre-construction or otherwise. I already have a realtor I am working with, but I was hoping to get an unbiased opinion......Thanks!
$750 x 12 = $9,000 annually. Even if your expenses were $0 the $85,000 represents a sale at a 10.5% cap rate. Assuming there are at least $1200 a year in operating expenses your cap rate falls to 9%. Try to buy and/or hold at cap rates above 12%.
Your initial cap rate calculation is computed with NOI and cost basis (after capital improvements).
After you have owned the property for a few years, you may want to use a few metrics to determine if the property is a candidate for sale. Use local comparable sales to estimate the value of your property against your current year projected NOI. If the cap rate is falling year over year, your property may be appreciating faster than your rents.
When this happens, you end up with a lot of "idle equity" in your property. You can cash out refinance your property to leverage your equity into something else, or use a 1031 exchange to replace your property with something that improves your investment rate of return, increases your cash flow, and increases your net worth all at the same time.
I want to thank all the investors that contacted me on this investment. All shares were sold and many of you were not able to get in before it closed. One note worthy item, it is funny that not one investors responded to the posting here but contacted me by email. Real investors mean business and I thank you. Our next TIC will be posted soon.
Paul, I am not sure what you are asking.
1. The investment: Commercial land holdings.
2. Purpose: Appreciation of assets.
3. Ownership: LLC structure, TIC (Tenant In Common) fractional.
4. Time frame: Three year +- turnaround.
5. Voting power: One vote per fractional owner.
6. Fractional owner resale options: Owners can sell all or a portion of shares at any time.
6a. Must offer to other fractional owners with a 7-day quite period. If no acceptance the fractional owner can resell all or a portion of his or her shares by Broker or fractional owner lead transactions. The managing member “fractional owner voted in” will oversee all purchase and sales transactions.
7. Development: Allowed per by-laws, fractional owner vote approval required.
8. Closeout: By offers to purchase, fractional owner vote approval required.
9. Disposition: LLC TIC is dissolved after distribution of capital and profit.
10. Reporting: IRS Form K.
Note: This type of investment allows small investors to participate in larger deal. Some deals are under 100k others are 1-5 million or more.
That was an excellent answer for me....
everyone around me is saying that the "bubble is going to burst", and it is helpful to hear someone experienced to spell out what I was thinking.
My desire to suceed is greater than all of the negative talk out there.
I even find myself in conflict with my real estate agent of six years...she is not an investor and tends to be very conservative in her thinking.
I am glad to have stumbled upon this website where I can find others who want what I want.
sirbiegealot
I want what you got some investment property. Any ideas or words to the wise from an initiate some steps behind you in southern california, land of the $600,000 fixer uppers.
Not sure about the Carolinas foreclosure rates. They do not appear in the top five according to this article.
http://www.realtytrac.com/news/press/pressRelease.asp?PressReleaseID=80
I have owned 2 condos in Winston-Salem now for 10 years. They are managed by Messick Properties Group which I am not related to in any way. They have been great. Winston-Salem city fathers are providing incentives for business to move int. Winston has Wake Forest University and is near enough to mountains, lakes, and driving distance to Greensboro which has University of North Carolina there. The area suffered a lot with manufacturing leaving the area, but now I think Dell is coming and banks are coming in and the downtown is getting fixed up. They also have the North Carolina School of the Arts there. It is a really nice town; I lived there for a year. I am thinking of buying another condo or maybe a lot there now because there are lots of foreclosures. However I noticed property which had been sitting for a long time is now starting to move and also (finally) rents are increasing! Good time to buy...I think it will finally be on the upswing.
[addsig]
Thanks All....sounds like I am getting a thumbs up
ring ring
I just bought a duplex in Concord, NC for 87K.
The rents are 1050 per mo., after mgt. fees there looks like a cash flow of 300.00.
Still in escrow.
Joe
Luvdavy,
In your opinion what is the hottest oceanfront property in North Myrtle Beach right now...whether pre-construction or otherwise. I already have a realtor I am working with, but I was hoping to get an unbiased opinion......Thanks!
-Pat
Sell.
$750 x 12 = $9,000 annually. Even if your expenses were $0 the $85,000 represents a sale at a 10.5% cap rate. Assuming there are at least $1200 a year in operating expenses your cap rate falls to 9%. Try to buy and/or hold at cap rates above 12%.
Quote:
On 2006-03-06 21:13, commercialking wrote:
Try to buy and/or hold at cap rates above 12%.
Is that the going-in cap rate or after repairs and releasing?
Your initial cap rate calculation is computed with NOI and cost basis (after capital improvements).
After you have owned the property for a few years, you may want to use a few metrics to determine if the property is a candidate for sale. Use local comparable sales to estimate the value of your property against your current year projected NOI. If the cap rate is falling year over year, your property may be appreciating faster than your rents.
When this happens, you end up with a lot of "idle equity" in your property. You can cash out refinance your property to leverage your equity into something else, or use a 1031 exchange to replace your property with something that improves your investment rate of return, increases your cash flow, and increases your net worth all at the same time.
I want to thank all the investors that contacted me on this investment. All shares were sold and many of you were not able to get in before it closed. One note worthy item, it is funny that not one investors responded to the posting here but contacted me by email. Real investors mean business and I thank you. Our next TIC will be posted soon.
Paul, I am not sure what you are asking.
1. The investment: Commercial land holdings.
2. Purpose: Appreciation of assets.
3. Ownership: LLC structure, TIC (Tenant In Common) fractional.
4. Time frame: Three year +- turnaround.
5. Voting power: One vote per fractional owner.
6. Fractional owner resale options: Owners can sell all or a portion of shares at any time.
6a. Must offer to other fractional owners with a 7-day quite period. If no acceptance the fractional owner can resell all or a portion of his or her shares by Broker or fractional owner lead transactions. The managing member “fractional owner voted in” will oversee all purchase and sales transactions.
7. Development: Allowed per by-laws, fractional owner vote approval required.
8. Closeout: By offers to purchase, fractional owner vote approval required.
9. Disposition: LLC TIC is dissolved after distribution of capital and profit.
10. Reporting: IRS Form K.
Note: This type of investment allows small investors to participate in larger deal. Some deals are under 100k others are 1-5 million or more.