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- Nov 11, 2004
Originally Posted by VaGixxer
Aw yes. The good ol 1031 Exchange. Great tool to avoid paying gains, but be careful what company you choose to do this process with. Poetic is 100% correct though of deferring taxes. A good CPA pays. Biggerpockets.com is a phenomenal site. Enough information there to keep you busy for a very long time.
Don't continue to fool yourselves folks. Yes prices are depreciating, but steadily as compared to say 09. Great time to pick up rentals at a low price. I mean this opportunity market won't last long, your going to see some folks who were small players in the real estate business in your area before become major players.
I just finished a house that I was able to buy for 80k. It sold 6 years ago for 209k. We rehabbed it and put in 35k and sold it full asking price in 19 days at 169,900. It has 12 renovated sold comps in the last year, 3 of those being ours.
Their are different niches in real estate investing and it's important to figure out how you want to be involved first. IE: Wholesaler, rehabber, landlord, developer etc. That's the beauty of it though so many ways to make residual income. I'd encourage anyone that's a newbie to start in wholesaling. Give yourself a chance to meet some major players in your area and make some money at the same time. Wholesaling is what the late night infomercials are about. Now I will say that it isn't free and you won't get rich anytime soon, but I know some folks who make over 200k a year just wholesaling. wholesaling- NO RISK AT ALL. Takes a very little amount of money to complete a wholesale deal and while those late night spots are cheesy they do contain good starter information to help understand basic concepts and verbiage. I have some friends who currently sell courses they have created that I'd recommend over those because they have much more information and are much more realistic.
I do quite well with flips right now, but it's risky business too. There is some hard money out there, but that itself is generally to expensive especially right now. However, if you don't have any credit or a large amount of upfront cash it's a good option.
PRIVATE MONEY is how you fund deals. I fund all my deals using private funds of individuals looking to make a return on their investment that can't be provided in any other investment vehicle. Right now we are giving our investors 9-14% return on their money within 8 months. You can't beat that. Hard part is getting someone you know to see that if they aren't investment minded.
Hey VaGixxer,
where did you learn about the different types of real estate investment? I learned most of what I know from a college professor who basically taught us how he got rich based on the income producing properties. I have most of my capital tied up in that now, but I'd like to learn about the other forms of investment, preferably ones that aren't quite as capital intensive.