Selling, Renting, Waiting & Watching
Hi folks,
New to this forum (new to forums in general). Would like some feedback. Thanks in advance.
Seven years ago we were renting a coop apt and the owner filed for bankruptcy. The apt went into foreclosure and we bought our first property on the steps of the courthouse in Brooklyn for half the market value (and remember, this is "7" years ago).
Now we are in contract to sell, and we are making an extraordinary 900%+ profit on our original investment. We are grateful, and extraordinarily happy with this windfall.
I'd like to do it again, or something similar. Since we have money to work with, we are paying off all of our debt, moving into a rental apt with our two children, and taking our time to find the best house at the best price for us.
I'd like to do one or more of the following:
Purchase one or more investment rental properties, and become a landlord.
Purchase one or more foreclosures; rent and/or flip them over time.
Purchase a single family house for our family in a great school district.
I've researched the foreclosure market and it is possible, but very competitive in our area (NYC metro). The market seems to be over-priced at every turn (hence our great profit margin on our sale) and it seems insane to buy right now. I know that any and all of the above ideas can turn into a full time job, or even 2 or three full time jobs, but I don't want to let this opportunity pass.
What I'm asking is for any experience, strength and hope that any of you can share. I appreciate your time, and hope to lend my energies to this forum in the future. Again, thank you.
First, well done on the original deal.
Second, as you seem to be willing to take you time. park the money and work on your REI education. Focus on books and free info. After you get a grip then you can spend a bit more if you like on a course but your mileage will vary with them. Some are no better then the books from the corner book store. As you are in NYC the local library will have most everything.
Third, keep looking for something that works when ti comes to a good school district. See if you can get a better deal by renting there and letting the money stay in cash, etc. You might be able to do something creative. Unless it is the dream home try to keep some cash liquid so you can start creating a passive income create rather then having a lot of dead equity in your home. There is always a line of credit but I was skipping that for now.
Fourth, decide how hands on you want to be. Your skills, your emotional balance, your people skills, etc. You might find that you can do better deals out of the area if you find a way to invest at distance. Many experienced investors do invest at distance. People just starting out generally do not but there are exceptions. Property management and fix up are not a great use of your time if you have the cash to hire others to do that sort of work.
I can recommend some specific books that I have found useful over the years.
Cash is King. Make sure if you use cash you are being treated like a King. If prices are over heated in NYC and you want to get below market deals sit tight and either wait for the market to change, consider other areas or do things that are more on the fringe.
Questions? Keep posting them here as there are lots of experienced folks.
John
[addsig]
Welcome kb,
Good job on your sale.
I would just like to add a couple thoughts to John's excellent coverage of your question.
Don't let that money burn a hole in your pocket. John is right. Some books and courses are very good and others aren't worth any more than you could have researched for a fraction of the cost.
I am not advocating that you do not invest in your REI education. On the contrary, it is very important to your success. Just don't leap at every course and boot camp that comes down the pike.
Also, don't be so anxious to get a deal under your belt that you go out prematurely and involve yourself in a deal you are not sure of. Read the articles on this site and keep asking questions. Good Luck.
Dave
[addsig]