It has been a while. My real estate and finances have been quite uneventful over the last couple of years so therefore there havent been any post. Well, thats about to change. I have been remotivated about real estate and I am jumping in with both feet.
A little while ago I bought a hurrican damaged home that was in poor shape, it even had horses living in it. I have just completed fixing it up. I plan to rent hold . The final numbers are not the best but I guess you live and you learn.
I will discussing in this blog the trials and tribulations of a first time landlord through the whole process. I will also be discussing my search for deal number 2.
Before and after pictures, a financial break down and additional details will follow in another post
Sunday, March 25, 2012
Sunday, February 17, 2008
Update
I really dont want to make this a pf blog but I am still struggling to break into the real estate arena.
It is difficult when the median home prices in your area are above 500K. Im not giving up though. I think if I continue to put my energy in right places something has to happen.
I attended a marshal sale last week. It was a good experience. I wasnt quite ready to bid as the opening bid was at 150K. Those marshal auctions require alot of tenacity and access to capital. There is alot of research that one must do before the auction. Often times all this time and energy you spend is in vein because the sale gets cancelled at the last minute. Even after you are the successful bidder the previous owners still have a 6 month redemtion period where they can get the property back. This means you cant do anything with it for 6 months.I would like to note that often times these houses arent in livable condition. I will continue to persue these auctions because even still, the pay off can be tremendous.
Below you will find my networth update. I do this to track my finances. I decided to pay down some of my student loans. As you could see my net worth has gone even more negative. This is for several reasons.
1) I recently got a confirmation that stock picking is not for me. Late last year when the financials were dropping I thought that we had seen a bottom so I purchased shares of bank of America and Blackstone. However, on the tuesday when Bernanke cut the rates by .75 points I panicked. Right before he cut the rates I had sold all of my shares basically at the lowest price possible. That lesson costed my $3000. damn
2) The market down turn has had a negative effect on my portfolio
3) I bought a laptop
4)Paid for a semester of classes.
It is difficult when the median home prices in your area are above 500K. Im not giving up though. I think if I continue to put my energy in right places something has to happen.
I attended a marshal sale last week. It was a good experience. I wasnt quite ready to bid as the opening bid was at 150K. Those marshal auctions require alot of tenacity and access to capital. There is alot of research that one must do before the auction. Often times all this time and energy you spend is in vein because the sale gets cancelled at the last minute. Even after you are the successful bidder the previous owners still have a 6 month redemtion period where they can get the property back. This means you cant do anything with it for 6 months.I would like to note that often times these houses arent in livable condition. I will continue to persue these auctions because even still, the pay off can be tremendous.
Below you will find my networth update. I do this to track my finances. I decided to pay down some of my student loans. As you could see my net worth has gone even more negative. This is for several reasons.
1) I recently got a confirmation that stock picking is not for me. Late last year when the financials were dropping I thought that we had seen a bottom so I purchased shares of bank of America and Blackstone. However, on the tuesday when Bernanke cut the rates by .75 points I panicked. Right before he cut the rates I had sold all of my shares basically at the lowest price possible. That lesson costed my $3000. damn
2) The market down turn has had a negative effect on my portfolio
3) I bought a laptop
4)Paid for a semester of classes.
Monday, December 10, 2007
I have been very busy lately with work so I havent been updating this blog. Well, I had two possible real estate deals, one of them was a result of this whole housing/credit debacle. In both of the possible deals the sellers werent as motivated as they seemed. After these deals didnt go through, I started to feel negative about the whole real estate thing. I put in alot of time and energy calculating and going back and forth with the sellers then nothing.
Also around this time I refinanced my private student loans in order to get my cosigner off of the loan. I was verbally assured that if my credit is good my interest rate would be less than the current 8.5%. However after it went through my loan was 9,5%. damn. So since I was dispondent on REI and I had this new high rate student loan I decided to use the money that I have been saving for a downpayment on my student loans. So I paid off $8000 of the $25000 private student loan. Then I took another $10,000 from my money market account and split it evenly between two stocks. Bank of America and blackstone. Both stocks had a good dividend and in my opinion were way over sold. I got into BAC at about $43 and bx at $22.
I know what they say about diversification and me buying these stocks is throwing off my diversification. But at my age and with the amount of money I have I dont think diversification is as important. Even if in the worse case scenario I loose all $5000 I can make that back in 3 to 4 months of work.
Anyways, Im starting to feel positive about REI again so for the next few months I will be working on my cash position.
Also around this time I refinanced my private student loans in order to get my cosigner off of the loan. I was verbally assured that if my credit is good my interest rate would be less than the current 8.5%. However after it went through my loan was 9,5%. damn. So since I was dispondent on REI and I had this new high rate student loan I decided to use the money that I have been saving for a downpayment on my student loans. So I paid off $8000 of the $25000 private student loan. Then I took another $10,000 from my money market account and split it evenly between two stocks. Bank of America and blackstone. Both stocks had a good dividend and in my opinion were way over sold. I got into BAC at about $43 and bx at $22.
I know what they say about diversification and me buying these stocks is throwing off my diversification. But at my age and with the amount of money I have I dont think diversification is as important. Even if in the worse case scenario I loose all $5000 I can make that back in 3 to 4 months of work.
Anyways, Im starting to feel positive about REI again so for the next few months I will be working on my cash position.
Tuesday, September 4, 2007
Before I get started with real estate investing I thought it would be good to note my current financial condition. Listed below are all my assets and liabilities. I am a little worried about my students loans since about half of them are private loans at 8.25%. Even while having student loans at 8.25%, I still think it is worth it for me to invest my money in real estate instead of paying off these loans right now.
Currently, my net worth is negative. I once heard a financial proffessional insinuate that if you drive a car that is valued more than your networth then that means that your priorities are screwed up. Well I guess that means that I should have been riding a bike to work.
In the mean time I am still looking for that good deal
Currently, my net worth is negative. I once heard a financial proffessional insinuate that if you drive a car that is valued more than your networth then that means that your priorities are screwed up. Well I guess that means that I should have been riding a bike to work.
In the mean time I am still looking for that good deal
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