Tips and Preferences for First Investment
Tips and Preferences for First Investment
Ask our audience experts if you have 100,000
How would you prefer to invest them? In one property in a place like Texas for example or 2 properties in Indiana? If you can elaborate, I will be very grateful.
For those in the country a lovely start to the day and for those in the US a good night?
The original responses to the post can be read at the bottom of the current post page on the site or in the link to a post on Facebook and of course you are invited to join the discussion
- Good night. Do not think of myself as an expert, but overall, apart from the monthly refund course, I would also check environmental price increases.
- Thanks for the question
- I think it all depends on the yield you can get
- Hi Jana,
The returns you made sound very high to me and the question of whether it is gross or net! Before, I think there are some important questions that you need to answer, so that you know which investment you want to go. So what is important to understand before making the investment?
- What are your needs?
- What level of risk are you willing to take?
- What do you expect?
- What is your budget?
- and more ...
It is very important to understand all these things before you invest. We Israelis are always looking for cheap.
Even though most of us know the law -
Cheap is Expensive!
We are tempted to buy properties cheaply. The truth is that it is very tempting to buy a property in 30-50 thousand dollars. Almost all of us have that kind of investment. The problem will begin a few months after buying. As we know, there is a direct correlation between the price of the property and its environment. So remember:
Buying a US property 30-50 A thousand dollars means you will buy in a region that is weak in socioeconomic terms.
So I do not recommend doing that !!!What it means ?
- that crime there is probably high
- that education there will probably be low
- The average salary of your potential tenants will probably be low.
- Low rent, and in the event of a breakdown will result in the loss of several months of rent.
- and more ...And why do you care?
- Because in such areas the rent will be low
- The tenant will be at a low level
- And there is a reasonable chance that you will lose some of your money on damages that the tenants will do to you after they leave your home.so what are we doing ?
- Buy through a mortgage in the US!
- Mortgage rates are 4.9-6.5% for 20-25 years
- With equity of 50 thousand dollars you can buy a property in a good area that costs about 120-150 thousand dollars. And generate for yourself a passive income of about 10% net.Successfully !
Gilad Oz - Texas obviously even would have leaked to a higher quality asset
- The tendency is this..2 assets produce a more stable flow (usually..and of course all luck to its body)…
The next step is how quickly you can purchase another property in the area…
Guess indie ..
In the future it will be easier for you to leverage them all under the Loan portfolio…
Everything according to your money making ability..it's a long term vision according to financial planning… regardless..clear needs and goals real not sure your home is the solution but maybe a group investment or investment in debt or diversification (financial planning is to see the whole picture and adapt a Taylor solution Immediately… and not a shelf) - A good question, but the answer is usually yours.
There are investors who invest 100 in one property that will often give them quiet because of a better environment but solid returns.
There are investors who prefer to invest in two properties in slightly less attractive areas, but with a higher yield and even if a tenant comes out, one property still makes money.
Of course, it is important to consider location and value increase.
The bottom line is to get as much information as possible and move on.
I personally would go for two properties in 50. - Most forum members love cheap properties. This does not mean that it is good or not good. The interest in a cheap property requires more constant management and any very significant repair and damages the return and can cause mental distress.
I have been in Texas for 6 years and when I started I also had 100A today I have 5 properties worth over 200A each. Texas is the state with the best investment parameters in the US and you are likely to enjoy both stability and value increase. I would take the 100 and make a mortgage and buy a good property at a stable 200 that would bring you a pitcher of about $ 1600-1750. Really equivalent to a quality apartment in an area of demand in the country.
For those who are a beginning investor, they need a stable area and not a cheap property that is "sharper"
Successfully - Daniel Dahan
The word love a little can be interpreted in my opinion…. - I want to explain from my point of view and forgive me if it will be a little difficult to connect.
There are a lot of deals and when I come to a deal what is important to me is risk / reward and not where a deal is that deals can be done anywhere.
First thing we look at is what kind of deal. There are buy & hold deals and there are flip deals.
Every deal has its risks and I'm going to talk about everything.
The deal has 3 parameters that we look at and examine
Selling price :
We start with comps
We usually take it from a realtor who works in the area. He should also know the area and sell in the past in that area. And it's a must check that he sold and not just a number.
We do not settle for one of these checks with no less than three, but you always have to understand that they do not always really know what the story of the house is.
That's why I prefer to talk to neighbors too, but take it out of anyone who can do it for us and is sane.
I usually also check by the method of the solar cell that houses that a broker has given are not beyond the limits of an area (major roads, sections, reservoirs, etc.). Sometimes across the road in the US it's a different area!
You will also understand that all data must be equal. If in comps there is a garage then we also roast, if there is a basement then so do we.
To check a good deal, we need a local who knows a good area or can talk to neighbors.
You have to understand that the house sometimes has a story that you have to get it for example it is close to a train program and everyone is looking for the area which is good or for example there are close drug sellers which is not good.
In the Bible and there is no person who can check then the seller drops a sale for the calculation and goes on to the next thing.
One must understand in the Bible that not working with your team is mandatory to do an inspection. And it does not matter if you buy from a quantity that sells quantities in the country or buys in the sand. This is a must !!!!
There is also a need for someone to understand the report and how to do it, and it is imperative that the inspector be unrelated to the seller. !!!No way !!!
Everyone needs to understand that the sale has a brokerage fee of 6% of a deal and put that into the calculation. My coefficients in the end take this into account. - Renovation Price:
The first thing that is responsible for what level of renovation is the same broker you found in the previous step. You need to understand that renovation in Herzliya and Dimona is different and only a Herzliya mediator can know how to renovate Herzliya.
Any investment beyond what a realtor said this 90% is not going to pay back.
For those who think they will do better, they will sell dearly: they will not work. If a house is not in a luxury area people will want to get a loan and a bank invites an appraiser. The appraiser made a recommendation based on size and home sales around and not on the level of renovation. There is a play area here but it is no more than a few percent in the reading and a buyer pays cash.
You won't get a better price but you will sell faster. And that is a single advantage in my opinion !!!
So we'll go back to the renovation itself:
Here there is a great deal of separation between what is going to be done and why.
Refurbishment for rent is much cheaper and you have to make sure that all materials are very durable and cheap
For sale this is a different story and you need a good realtor to tell you what is needed in the neighborhood.
Also the next figure that goes in here is the size of the renovation. For example, with an 15000 overhaul, then it is likely that it will surf and will need an additional amount of 15000 is smaller than the 50000 overhaul
I look at it very simply. All that can get involved is necessarily get involved and you have to take that into account. From experience if you are ready for everything you will come out better than a deal at the end.
This is true for me in the Bible and I compare two 30% X profits or two 10000 trades I prefer one 50000 because with my mistake in 10000 I am in a big big deal in profit and small in loss. A small one also has to work twice. Verify this by chance and have a whole team that I'm sure of in the area of two small deals and a team that I'm much less confident in the area of one deal I'd rather go for a safe.
You also have to understand that renting is more straightforward and in the reading and mistakenly I will make the money back at Long Run.
If you do a little renovation in a home that is old you should understand that there is a cost in the way that is paid in the Bible and rented. The buyer will also take an inspector and we will probably go down from a sale price probably not when we did, but the price dropped will still be less than we had to invest in the renovation.
Debtors must put one more consideration into the equation of rent. As a matter of course, less than a month a management company (very important what it is but at another time) will charge you higher repairs. - purchase price:
Very much dependent on two previous things and depends on the story of a mother's house.
It also depends on the level of motivation of a familiar person. You, too, must know that the price you closed is probably not the price you bought a property at the end because every opportunity lowers the price.
Anything that sells a few testers and lowers price if possible.
I'll give my example from one of the last flips. We submitted an offer 178 on a house that wanted an 200. The seller comes as an exit because the area can be divided and the house can be upgraded and sold at 400. The first download was when we got offers from two contractors one cheap 130 and one expensive 200. We showed him an offer of 200 and you could talk about 168. After that we received a letter from a city that had no infrastructure on the other side of the house. We downloaded up to 150. Of course we will go over the renovation of 130 and of course we checked that connecting to a nearby street infrastructure would cost us only a few thousand more but the culture of Americans is acceptable to do such things.
I will buy a property according to a certain formula:
Buying Price + Renovation Price = Price Price * Promoter
Coefficient is different from Flip to Rent. For Flip I work by the following formula:
Price of sale property: Coefficient:
Up to 70000: 45%
Up to 90000: 40%
Up to 120000: 35%
Up to 170000: 30%
Up to 250000: 28%
Up to 300000: 26%
For Rent it is the same parts 3 for example 70000 =
45% / 3 = 15%
When you put all things on paper it comes to its informed application that I am usually less dependent on the area if it is a flip and more than the transaction data. And if a region is the same region then a higher price is better.
For rent think what more capital gains will last longer and put into comparison. You have to understand that an area if a low price which is not a rising area is long overdue will probably be stuck there for life. You need to know the market in these areas to understand and it's different from street to street and not just between state and country. - See Dima learn a thing or two… cannon on
- Knows asset maintenance. There are a lot of people saying that the price of maintenance for a cheaper property is higher and I partially agree with them. I'm going to explain that I also have a management company. Let's say you have to order from an air conditioner. He is paid 150 $ for an order and in relation to the price of the property it costs for example 30% margin. It is more expensive than a property that only costs 10%. But a cheap property that is well renovated and presumably no new air conditioner and refrigerator and no fillings that new plumbing and tenant pays as it is? In this passage, a cheaper property is lucrative because there are no tenants' claims. So what matters is how good a management company is and what your situation is. I have seen expensive properties that are eating out at just about any profit and have cheap maintenance that does not exceed 10% revenue. Even when a tenant leaves coloring in an asset, a lot of an expensive asset costs a lot. So every read in his body and a very simple condition.
As a cheaper asset, more percentages should be put on paper to work. Do not buy assets less than 55000 and require 14-15% to those (55) before less refurbished maintenance as a border.
150000 requires 11-12% and so on
The more renovated and insured a property, the less it costs. Refurbished lowers about 2-4% of the limit
The better a better management company will be, the cheaper it will be to own and ask what it needs to do to make it less expensive.
There are some who know they do everything (at least in the country) and I would look into what goes into it.
For Pam, I look from a woman's point of view, too.
For example, I bought a house that wants to run it as a student house and I have two entrances to the studio. So I said that you have to do airbnb and it turned out that it can make 2-3 from a standard rantle even though a seller is keto - I'm starting from here - Post in the real estate group on Facebook
- What fun did I join the group, thank you all for answering and sharing your knowledge with me ??
- Dmitry Shleymovich Dimitri Thank you for the detail and time you have invested to give me your vision of investments
- My answer to you is that you invest more in property than in property / s! Especially in such cheap properties (up to 100k) the importance to the quality of the entrepreneur (with the ambition of providing management service) is also super high. It is also important to understand what the demand for rent in that area is (to me it is much more important than socioeconomic situation / level of education, etc.)
- A matter of character. I started with some properties in the 50s to 200s three years ago. I have quite a few issues with tenants and also repairs. A year ago I decided to try a property in the Dallas area at 100. Although the yield of homes in Atlanta is better, for me the level of risk is relative to what I get and the amount of problems there are in homes in XNUMX does not pay off for me and does not suit my anxious nature… So I sell in Atlanta and move to Dallas
A matter of character. I started with some properties for 50 to 200 three years ago. I have quite a lot of problems with tenants and also repairs. A year ago I decided to try a property in the Dallas area at 100. Even though the yield of the houses in Atlanta is better, for me the level of risk is relative to what I get and the amount of problems that there are in the houses at XNUMX is not worth it to me and does not suit my anxious nature... That is why I am selling in Atlanta and will move to Dallas
My answer to you is that you invest more in entrepreneurship than in property / s! Especially for such cheap properties (up to 100k), the importance to the quality of the entrepreneur (in an effort to provide management service) is high.
It is also important to understand what the demand for rent in the same area (in my opinion it is much more important than socioeconomic status / level of education, etc.)
Dmitry Shleymovich Dimitri Thank you for the detail and time you have invested to give me your vision of investments
What fun did I join the group, thank you all for answering and sharing your knowledge with me ??
I would start from here;
https://www.facebook.com/groups/ForumNadlanUSA/permalink/2225348327739357/
Knows asset maintenance. There are a lot of people saying that the price of maintenance for a cheaper property is higher and I partially agree with them. I'm going to explain that I also have a management company. Let's say you have to order from an air conditioner. He is paid 150 $ for an order and in relation to the price of the property it costs for example 30% margin. It is more expensive than a property that only costs 10%. But a cheap property that is well renovated and presumably no new air conditioner and refrigerator and no fillings that new plumbing and tenant pays as it is? In this passage, a cheaper property is lucrative because there are no tenants' claims.
So what determines a visitor is how good a management company is and how you are doing. I have seen expensive properties that eat up all the profit and I have cheap ones whose maintenance does not exceed 10% of income. Even when a tenant leaves, painting the property costs a lot in an expensive property. So each reading in its own right and a very simple condition.
As a cheaper asset, more percentages should be put on paper to work. Do not buy assets less than 55000 and require 14-15% to those (55) before less refurbished maintenance as a border.
150000 requires 11-12% and so on
The more renovated and insured a property, the less it costs. Refurbished lowers about 2-4% of the limit
The better a better management company will be, the cheaper it will be to own and ask what it needs to do to make it less expensive.
There are some who know they do everything (at least in the country) and I would look into what goes into it.
For Pam, I look from a woman's point of view, too.
For example, I bought a house that wants to run it as a student house and I have two entrances to the studio. So I said that you have to do airbnb and it turned out that it can make 2-3 from a standard rantle even though a seller is keto
See Dima learn a thing or two… cannon on
purchase price:
Very much dependent on two previous things and depends on the story of a mother's house.
It also depends on the level of motivation of a familiar person. You, too, must know that the price you closed is probably not the price you bought a property at the end because every opportunity lowers the price.
Anything that sells a few testers and lowers price if possible.
I will give my example from one of the last flips. We submitted an offer of 178 for a house that they wanted for 200. The seller wants to leave because the area can be divided and the house can be upgraded and sold for 400. The first downgrade was when we received offers from two contractors, one cheap 130 and one expensive 200. We showed him an offer of 200 and we could talk about 168. After that we received a letter from her that there is no infrastructure on the other side of the house and we presented it to him. We lowered it to 150. Of course we will go for a renovation of 130 and of course we checked that connecting to the infrastructure of a nearby street will only cost us a few thousand more but the culture of Americans is acceptable to do such things.
I will buy a property according to a certain formula:
Buying Price + Renovation Price = Price Price * Promoter
Coefficient is different from Flip to Rent. For Flip I work by the following formula:
Price of sale property: Coefficient:
Up to 70000: 45%
Up to 90000: 40%
Up to 120000: 35%
Up to 170000: 30%
Up to 250000: 28%
Up to 300000: 26%
For Rent it is the same parts 3 for example 70000 =
45% / 3 = 15%
When you put all things on paper it comes to its informed application that I am usually less dependent on the area if it is a flip and more than the transaction data. And if a region is the same region then a higher price is better.
For rent think what more capital gains will last longer and put into comparison. You have to understand that an area if a low price which is not a rising area is long overdue will probably be stuck there for life. You need to know the market in these areas to understand and it's different from street to street and not just between state and country.
Renovation Price:
The first thing that is responsible for what level of renovation is the same broker you found in the previous step. You need to understand that renovation in Herzliya and Dimona is different and only a Herzliya mediator can know how to renovate Herzliya.
Any investment beyond what a realtor said this 90% is not going to pay back.
For those who think they will do better, they will sell dearly: they will not work. If a house is not in a luxury area people will want to get a loan and a bank invites an appraiser. The appraiser made a recommendation based on size and home sales around and not on the level of renovation. There is a play area here but it is no more than a few percent in the reading and a buyer pays cash.
You won't get a better price but you will sell faster. And that is a single advantage in my opinion !!!
So we'll go back to the renovation itself:
Here there is a great deal of separation between what is going to be done and why.
Refurbishment for rent is much cheaper and you have to make sure that all materials are very durable and cheap
For sale this is a different story and you need a good realtor to tell you what is needed in the neighborhood.
Also the next figure that goes in here is the size of the renovation. For example, with an 15000 overhaul, then it is likely that it will surf and will need an additional amount of 15000 is smaller than the 50000 overhaul
I look at it very simply. All that can get involved is necessarily get involved and you have to take that into account. From experience if you are ready for everything you will come out better than a deal at the end.
This is true for me in the Bible and I compare two 30% X profits or two 10000 trades I prefer one 50000 because with my mistake in 10000 I am in a big big deal in profit and small in loss. A small one also has to work twice. Verify this by chance and have a whole team that I'm sure of in the area of two small deals and a team that I'm much less confident in the area of one deal I'd rather go for a safe.
You also have to understand that renting is more straightforward and in the reading and mistakenly I will make the money back at Long Run.
If you do a little renovation in a home that is old you should understand that there is a cost in the way that is paid in the Bible and rented. The buyer will also take an inspector and we will probably go down from a sale price probably not when we did, but the price dropped will still be less than we had to invest in the renovation.
One more consideration must be included in the equation of renting. When a house is gone for less than a month, a management company (it is very important what it is, but that's another time) will charge you higher payments for repairs.
I want to explain from my point of view and forgive me if it will be a little difficult to connect.
There are a lot of deals and when I come to a deal what is important to me is risk / reward and not where a deal is that deals can be done anywhere.
First thing we look at is the type of deal. There are buy&hold transactions and there are flip transactions.
Every deal has its risks and I'm going to talk about everything.
The deal has 3 parameters that we look at and examine
Selling price :
We start with comps
We usually take it from a realtor who works in the area. He should also know the area and sell in the past in that area. And it's a must check that he sold and not just a number.
We don't settle for one, we check with no less than three, but you always have to understand that they don't always really know what the story of the house is either.
That's why I prefer to talk to neighbors too, but take it out of anyone who can do it for us and is sane.
Usually, I also check according to Valsolar's method that houses given by Natan's broker are not beyond the restrictions of an area (major roads, intersections, water reservoirs, etc.). Sometimes crossing the road in the US is a different area!
You will also understand that all data must be equal. If in comps there is a garage then we also roast, if there is a basement then so do we.
To check a good deal, we need a local who knows a good area or can talk to neighbors.
You have to understand that the house sometimes has a story that you have to accept, for example it is located near a train station and everyone is looking for the area which is good or for example there are drug dealers nearby which is not good.
In the Bible and there is no person who can check then the seller drops a sale for the calculation and goes on to the next thing.
One must understand in the Bible that not working with your team is mandatory to do an inspection. And it does not matter if you buy from a quantity that sells quantities in the country or buys in the sand. This is a must !!!!
There is also a need for someone to understand the report and how to do it, and it is imperative that the inspector be unrelated to the seller. !!!No way !!!
Everyone needs to understand that the sale has a brokerage fee of 6% of a deal and put that into the calculation. My coefficients in the end take this into account.
Daniel Dahan
The word love a little can be interpreted in my opinion….
Most forum members love cheap properties. This does not mean that it is good or not good. The interest in a cheap property requires more constant management and any very significant repair and damages the return and can cause mental distress.
I have been in Texas for 6 years and when I started I also had 100A today I have 5 properties worth over 200A each. Texas is the state with the best investment parameters in the US and you are likely to enjoy both stability and value increase. I would take the 100 and make a mortgage and buy a good property at a stable 200 that would bring you a pitcher of about $ 1600-1750. Really equivalent to a quality apartment in an area of demand in the country.
For those who are a beginning investor, they need a stable area and not a cheap property that is "sharper"
Successfully
A good question, but the answer is usually yours.
There are investors who invest 100 in one property that will often give them quiet because of a better environment but solid returns.
There are investors who prefer to invest in two properties in slightly less attractive areas, but with a higher yield and even if a tenant comes out, one property still makes money.
Of course, it is important to consider location and value increase.
The bottom line is to get as much information as possible and move on.
I personally would go for two properties in 50.
The tendency is this..2 assets produce a more stable flow (usually..and of course all luck to its body)…
The next step is how quickly you can purchase another property in the area…
Guess indie ..
In the future it will be easier for you to leverage them all under the Loan portfolio…
All according to your money production ability ..
This is in the long run according to financial planning…
Regardless..clearly real needs and goals not sure that owning a home is the solution but maybe a group investment or an investment in debt or diversification (financial planning is to see the whole picture and match a Taylor solution right away… and not a shelf)
Texas obviously even would have leaked to a higher quality asset
Hi Jana,
The returns you recorded sound very high to me and the question of whether it is gross or bent!
Before, I think there are some important questions you need to answer, so you know which investment direction you want to go.
So what is important to understand before making the investment?
- What are your needs?
- What level of risk are you willing to take?
- What do you expect?
- What is your budget?
- and more ...
It is very important to understand all of these things before investing.
We Israelis are always looking for cheap.
Even though most of us know the law -
Cheap is Expensive!
We are tempted to buy properties cheaply. The truth is that it is very tempting to buy a property in 30-50 thousand dollars. Almost all of us have that kind of investment. The problem will begin a few months after buying. As we know, there is a direct correlation between the price of the property and its environment. So remember:
Buying a US property 30-50 A thousand dollars means you will buy in a region that is weak in socioeconomic terms.
So I do not recommend doing that !!!
What it means ?
- that crime there is probably high
- that education there will probably be low
- The average salary of your potential tenants will probably be low.
- Low rent, and in the event of a breakdown will result in the loss of several months of rent.
- and more ...
And why do you care?
- Because in such areas the rent will be low
- The tenant will be at a low level
- And there is a reasonable chance that you will lose some of your money on damages that the tenants will do to you after they leave your home.
so what are we doing ?
- Buy through a mortgage in the US!
- Mortgage rates are 4.9-6.5% for 20-25 years
- With equity of 50 thousand dollars you can buy a property in a good area that costs about 120-150 thousand dollars. And generate for yourself a passive income of about 10% net.
Successfully !
Gilad Oz
I think it all depends on the yield you can get
Thanks for the question
Good night. Do not think of myself as an expert, but overall, apart from the monthly refund course, I would also check environmental price increases.