I was thinking more about doing assignments. I don't have any cash in hand, but rehabbers do have cash in hand for these kinds of deals.

Personally, I would try to take the time and knock on their door and talk to the people.

Is a win-win situation possible from these kinds of deals?? It seems possible, but that's just what seminars and the like say

Also can anyone tell me why there are so many houses in pittsburgh and buffalo NY going for so cheap?? I see tons of them on the net.

 

IMO the best way to get started in real estate is find someone you know who owns some houses and ask him/her how they got started. Most are more than willing to help you by giving advice on what to avoid (old houses) and where to avoid buying. They have experience that can save you vast amounts of time and money. That is how I got started, I was introduced to a guy who has owned over 30 properties and he sat me down and gave me the best education I didn't have to pay for. One great place to start is with a duplex. Rent one side out and live in the other. It defrays your cost of living and eases you into the "property manager" game. There are many other things with duplexes to consider (make sure there are 2 of everything) but offers cheap living if you decide to live in one of the units.

Just my thoughts.

 

the more thoughts the better.

That's not a bad idea at all. I like opinions from all sides from all sorts of people. The more I hear, the more I learn.

 

the original thread starter never did chime back in to say what direction he was going, etc.......

 

My constractor quotes me more than $30K to remodel my kitchen, and more than $40K for replacing carpet, marble floor and remodel 2 bathrooms, for a total of more than $70K. Just had the roof and windows and patio doors done at the cost or more than $30k. Just fixing the house to my liking would cost me more than $100k. How the heck can a house costs only $40k ? Not in So. Cal.

 

Im looking more into starting small and buying houses that need fixing up, then renting/selling them later. Then I will get into the bigger stuff.

 

that is basically what we did.

we used to pass on houses in this one area that were over $40k....they are now selling for $65k in decent shape and crappy ones that need lots of work now sell for $40k..... hindsight.

 

Vegas, then AZ, then FL, pretty much in that order, got very very hot. No deal to be found in those areas now. Im hearing new mexico now.

With regards to the bay area, a correction will be very minor, given the intirinsic value of the land (you want to pay less? Live further away). LA is more sprawling, there are more options, prices may be more affected in the event of a correction.

The problem is that people have started looking at real estate in terms of a substitute for the stock market. Quick gains? Maybe if you time it perfectly. The last few years have been good to home owners. But if and when it turns, people with longer investment horizons arnt going to care. I personally considerit a blip on the horizon.

Scot is dead on about interest only loans, neg-am programs etc. THOSE are elements in this equation that do make me nervous.

 

someone at my work got some info from Desin (i think) Florida.

Supposed to be 2 decent sized condo buildings (like 15 stories each). They were presold out about 5 months ago, and expected to be built in the next 12 months. Some people are now offering their "spot" (they don't own it yet since it hasn't been built) for about $300k more than what they signed the contract for.

I think he said 2 bedroom gulf front was presold for about $600k....now on sale for you $900k....ahahha... i would love to be able to do that.

Not sure why the builders would sell for "only $600K if it went up that much in so little time.???

 

My friend just moved to Sarasota, FL in April. She said real estate in her area has gone up 35% in the first quarter of this year. Her realtor just signed a contract on a house and assigned the contract to a new buyer for $50k over what he paid, before he even closed on the house!

She said they're very tempted to buy and sell, but they don't want to risk their money by accidentally buying just before the bubble bursts.

I can see how those condos went up in price so quickly.