I am truely amazed at the number of agents that do not own Investment Properties. Those of you that do not own investment properties why do you not invest in your own industry?

I woud love to get involved in the investment side of Real Estate. I have been looking at purchasing some properties and fixing them up & selling or renting them out long term.

im doing buy and hold via sub2 using land trusts and owner financing. been studying SDIRA(roth) for half a year and lately ive been talking to investors to use their SDIRA's to purchase partial beneficial interest of the trust at a discount which is similar to buying mortgage notes.

looking to buy my first apartment next year non-conventionally via sub2/option and do a refi cash out after increasing the NOI and cashing out the owner. also been talking to a few investors by setting up a TIC/1031 company.

btw: brokers wont teach you any of these.

Oh don't get me started on investing!

My husband is crazy! Everytime I take him with me to look at houses (for out of area investor clients) he ends up talking me into writing an offer on something!

I am always amazed at the number of Realtors who don't even own a house period. Sooo many of them rent! Crazy! That's like a car salesman that rides a horse to work!

Alvin, What state are you in?? And I am a broker and I am not 100% familiar with any of the things you discussed. Can you share more with me.

emory3whitt@cs.com

I own one, I'm having issues with my tennants right now though. They are 5 days late and had agreed to pay me on the 8th. Now she tells me they will be short. I'm too nice. I could use some advice on how to deal with rent payments because I have a feeling this will be a constant issue. Our lease says rent is due on the 1st, and after the 5th they owe $100 late fee.

What do you do when they are late or short one month to keep it from becoming a habit?

Check your local eviction proceedings. I do not own any investment properties but I was in property management before getting a sales license.

Ours was due on the first, late after the 5th, with 10%late fee. On the 6th they get a warning letter that they have 5 days to pay or eviction will be filed. Once the eviction is filed they have another 10 days before we could file a Sit Out. They have 2 days from the Sit Out filing to leave or pay. AFter 2 days we go in with the Sheriff's office and set everything in the street. Most would figure out a way to pay once the eviction was served to them. Also all filing fees to the magistrate's office were added to their account balance as well.

Running investment property is a business. Charge your late fee without exception unless something catastrophic happened. I have accepted partial payment and the remaining balance in a week but that included my late fee.
As RachaelatOptions stated become familiar with your local eviction proceedings and Always file when the rent is past the cutoff date.

TIC's are great. I had a class on that and 1031 exchange today. The great thing about a TIC, you can 1031 into it and there is no headace in managing the property. A great Investmet to look at.

My former broker owned investement properties and lost his shirt when the market tanked up in New England. He lost everything, including his home, and had to move in with his daughter. This was a guy who owned a large multi-office franchised company.

If the market turns some people may be in for some trouble.

Sounds like your old broker was a speculator instead of an investor. Sound investment properties do not just tank when the market takes a down turn. Sounds like he made the ultimate error and had all of his properties linked and failed to protect his assets!

Every area of the country is different. Sound investment properties do tank if the market gets bad enough... which it did. He did have some chained together and others he didn't.

The problem with many investors is that are short-sighted. We just had the California Wave move through here. They drove up the values. The ones that got in late are losing their shirts and belts.

If you plan for the worst when making your investments you shouldn't get hurt when the market shifts. A lot of it has to do with timing.

Do your homework and buy based on the worst case scenario. I still have 2 propeties I will close on this year no matter what the market does.

Paul is dead on. Big difference between investor and speculator.

I own a few hundred investment properties and split my time between managing those and serving my clients as an agent.

Doesn't work for everyone, but I wouldn't have it any other way. And the money's great!

I don't own any investment properties, but am contemplating purchasing some lakeshore this winter as an investment if the price is right. I think as far as investing goes, you cannot go wrong with lakeshore. I am a little biased because I own a lake home and have a website for lakefront owners, but it has historically increased in value every year even in down years. Prices in our area have gone up considerably in the last five years, but since the market has slowed down a bit, pricing is becoming more reasonable because properties are not moving as fast. I think give the market some more time to sit and in January would be a good time to buy.

Maria
LakefrontOwner.Com