On May 22, 9:56 pm, "InteriorLiving.Com" <w...@[EMAIL PROTECTED]
>
wrote:
> Socrates wrote:
> > On May 12, 8:18 pm, camg...@[EMAIL PROTECTED]
wrote:
> >> On May 12, 7:09 am, "brazilrealesta...@[EMAIL PROTECTED]
"
>
> >> <JazMar...@[EMAIL PROTECTED]
> wrote:
> >>> On May 11, 8:54 pm, Socrates <SocraticMeth...@[EMAIL PROTECTED]
> wrote:
> >>>> I am looking (after graduation) to consider a career in real
estate.
> >>>> Any advice would be helpful.
> >>>> I am also considering (secondary interest) purchasing and
renovating
> >>>> properties as well.
> >>> look at Brazil
> >> AA says that one drink is too many and a thousand isn't enough. Real
> >> estate education is the same. One great idea could make your career
> >> and one thousand pieces of information might not be enough.
>
> >> Risk Management is your most im****tant goal at the beginning. You
> >> need to make at least 100 mistakes before you become experienced.
> >> People will lie, cheat and steal from you and you claim YOU are the
> >> liar, cheater and thief. So start out with low dollar/low risk
deals.
> >> You are trying to eliminate downside, not hit homeruns. As you
become
> >> more experienced you can do larger dollar deals and take more risk
for
> >> more reward.
>
> >> Almost everything will be a learning experience at first. Actually
> >> read all the do***ents and keep copies in labeled folders. Note
every
> >> dirty trick done to you. Soon YOU will be supplying the contracts
and
> >> be in control of the negotiations. It really is true, every problem
> >> is an op****tunity THE NEXT TIME. If your figured out how to solve
the
> >> problem that is an op****tunity to help someone else out (for a fee).
>
> >> CAP rate is the single most im****tant metric. Learn to calculate it
> >> (Net Operating Income/Price).
>
> >> There are two kinds of income: One Time and Recurring. Learn to do
> >> both. When you get stuck with a dog that is bleeding you dry knowing
> >> how to generate recurring income to pay the debt service is very
> >> im****tant.
>
> >> The most common One Time income is appreciation. Flippers do this as
> >> fast as possible. Buy and Hold owners do this as an exit strategy.
> >> Think hard about your exit strategy before you buy. Appreciation can
> >> be because you bought cheap, normal increases in price (inflation
> >> related) or forced appreciation such as adding a parking lot or view
> >> deck.
>
> >> Recurring income is Rent. If your CAP rate is higher than your cost
> >> to borrow you have the basis of a profit. If it is lower you are
> >> going to need big down payments to avoid negative cash flow. CAP
rate
> >> divides by price, ROI divides by down payment and infers leverage and
> >> risk. You can get eye popping ROI with modest CAP rates. Be very
> >> careful believing ROI numbers and promises. O down payment with one
> >> penny of profit is infinite return on nothing, (which may only be a
> >> penny).
>
> >> Stages of Buy and Hold:
> >> Analyzing the deal: 1 hour
> >> Property Management 10 years (learn to do this so you can fix
problems
> >> created by "professional" property managers.)
> >> Exit Strategy (sale) (3 months)
>
> >> Good Luck! and don't drink the hemlock.
>
> > Thanks for your advice. It will help me to make the decision. And, I
> > won't drink the hemlock, either.
>
> Tough time to consider being a real estate agent.
>
> Mitchell
Thanks, I know from what I read. Only a consideration.
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