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Sion's Guide To Real Estate Investing [ASK A QUESTION - LEARN EVERYTHING YOU NEED TO KNOW AND MORE]

SionSion Moderator, Legion of Trill, AHH Content Producer, AHH EditorPosts: 44,700 Regulator
edited May 2014 in Strictly Business
This thread will be dedicated entirely to real estate and investments of that nature. It will be similar to the stocks thread that is up and it will serve as a tutorial. I hope this thread can be just as successful as the other. If you have any questions please ask away. I will outline a breakdown of the most important aspects of real estate in order to help out anyone who is looking to invest. Even if you're already in the real estate business, this thread will be helpful in showing you things you probably didn't know.

I will cover all bases and even touch on international real estate investing as well. Real estate is perhaps the oldest form of business and investment of all time and it hasn't really changed much after all these generations.

Please be respectful of this thread and if you have information you'd like to share please share it - for anything is plenty. And sometimes it just takes a small piece of information to even make a difference in someone else's life and finances.


Table of Contents:

Part 1 - Getting Started
Part 2 - A Team
Part 3 - Mortgages
Part 4 - Real Estate Investing and the Process
Part 5 - The Types: Residential, Commercial, Industry, Farm, Bare Land, etc.
Part 6 - Real Estate Development and the process
Part 7 - Risk Factors
Part 8 - Taxes & Fees
Part 9 - Equity & Leverage
Part 10 - Licensing
Part 11 - Niche Industries (wholesaling, short selling, foreclosure, state auctions)
Part 12 - Resources
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jono wrote: »
This is the folly of the internet. Its become a bastion of misinformation, rumors, conspiracies and propaganda. A place where a person with no face or name can make accusations at any time with no verification or credentials and brainwash a small segment of people.
T. Sanford wrote: »
Message to the trills of the IC: May Legion Of Trill be your enemies downfall
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Replies

  • SionSion Moderator, Legion of Trill, AHH Content Producer, AHH Editor Posts: 44,700 Regulator
    Part 1 - Getting Started

    Real estate is one of the most common investments people make.... however there's a method to doing it right.

    There is NO easy step to getting started and there is no "nothing to something approach to it". To get started in real estate you have to decide what you want to do. If you're looking to invest, you will need some cash, credit and employment history (or at least 2 of the 3). If you want to sell real estate on people's behalf you will require a real estate license from your state. I don't recommend "wholesaling" or anything like that because there isn't a whole lot of information on it and many of the people trying to get into it don't have any authorization to sell real estate, in Canada at least - you must be registered and licensed to carry on transactions like that as well and it isn't common.

    Assuming you have the above it's time to get started, you're going to need a realtor, your cash, credit and income statements to prove you can hold a mortgage and pay it. Cash will be needed to help with closing costs and the downpayment, credit will aid you with your mortgage rate (getting higher or lower), and income statements are required from most lenders (some don't such as private lenders and hard money lenders - we'll get into this later tho). CONTRARY TO BELIEF IT'S A LOT EASIER THAN YOU THINK. When it comes to income statements lenders generally want to see at least 2 years of income but exceptions can be made and often are. I've seen people who get new jobs and salaries without prior consistency with income still get mortgages based on a few months of employment, I've seen people even get mortgages with no money down (I wouldn't recommend no money down tho).



    Part 2 - The Team

    This section is the most important aspect of getting started. A team can be set up in a various number of ways. Lets differentiate it with the following concepts of Basic team, Investors and Advanced.

    Basic Team:

    Most people will only need to use this form of team, it involves having a real estate agent, a mortgage broker (who will often be accompanied with an agent). This is pretty basic. The realtor will help you find the property you want and they most often have a network of financiers and mortgage people to help finance your goals.


    Investors:

    This team will often involve aspects of the Basic Team except it also adds the component of having investors and a much wider array of mortgage brokers and often more than one realtors. The investors team usually involves a group of people who raise capital together and then invest in property. This is done when people are trying to acquire bigger properties. This is done in order to use the leverage of people to raise more money from banks and to meet requirements of the terms of financing. Usually this will be structured through a corporation/LLC and the investors will often be shareholders and/or board of directors. When investors are involved, it is often better to use the capital to acquire properties without having to use leverage but both methods can yield tremendous results financially.

    A team of investors will often use more than one realtor, the reason for this is b/c there are more than one areas of real estate that certain realtors specialize in. Residential, commercial, industrial, and many more areas. It's nice to have a wide diverse team of realtors and mortgage financiers to accommodate the other areas of real estate.



    Advanced:

    Some people will just invest in property management companies through the stock market or private means and in this case they have everything laid out for them and offered as a service. It can be challenging to find companies like this who will still take up new investors because they either have larger capital requirements or aren't accepting new money b/c they can get it themselves via banks or hoarded profits.



    Things to Look Out For:

    It is imperative you perform due diligence when searching for a realtor and mortgage broker,
    IC Moderator and AHH Editor

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    ^^^ If you need anything go here

    jono wrote: »
    This is the folly of the internet. Its become a bastion of misinformation, rumors, conspiracies and propaganda. A place where a person with no face or name can make accusations at any time with no verification or credentials and brainwash a small segment of people.
    T. Sanford wrote: »
    Message to the trills of the IC: May Legion Of Trill be your enemies downfall
    BelovedAfenitraestarjonosilverfoxx
  • SionSion Moderator, Legion of Trill, AHH Content Producer, AHH Editor Posts: 44,700 Regulator
    I will add more later I'm just pressed for time, I'll open the thread once I'm done with the steps/parts to the thread.
    IC Moderator and AHH Editor

    http://community.allhiphop.com/categories/site-help

    ^^^ If you need anything go here

    jono wrote: »
    This is the folly of the internet. Its become a bastion of misinformation, rumors, conspiracies and propaganda. A place where a person with no face or name can make accusations at any time with no verification or credentials and brainwash a small segment of people.
    T. Sanford wrote: »
    Message to the trills of the IC: May Legion Of Trill be your enemies downfall
    BelovedAfenitraestar
  • pennyda1pennyda1 Posts: 964 ✭✭✭✭
    Good info bro keep going
    Sion
  • King EraunoKing Erauno Posts: 6,749 ✭✭✭✭✭
  • PurrPurr Evil Chuck Season. Jumpman jumpman Jumpman dat girl up to something!!!Posts: 32,342 ✭✭✭✭✭
    I love you for this
    "The most disrespected person in America is the Black woman, the most unprotected person in America is the Black woman. The most neglected person in America is the Black woman."- Malcolm X
    Sion
  • Los216Los216 Posts: 2,304 ✭✭✭✭✭
    @Sion

    You said you recommend putting money down for a mortgage. What about a VA loan. I'm eligible for a VA loan but those don't require money down. Should I still consider the VA loan if the price is right and just carry on?
    giphy.gif



    bb135e64-2d54-4043-bf52-fd6c7197fcd3_zps05c66c47_-_Copy_-_Copy.jpg
  • SionSion Moderator, Legion of Trill, AHH Content Producer, AHH Editor Posts: 44,700 Regulator
    Los216 wrote: »
    @Sion

    You said you recommend putting money down for a mortgage. What about a VA loan. I'm eligible for a VA loan but those don't require money down. Should I still consider the VA loan if the price is right and just carry on?

    If your interest rate is low enough and you're getting a mortgage you know you can manage over the duration of your loan term you should be fine. Typically whenever I hear "no money down" tho they often come with high interest rates. If the price is right, you know you can manage it and your rate is low I say carry on.
    IC Moderator and AHH Editor

    http://community.allhiphop.com/categories/site-help

    ^^^ If you need anything go here

    jono wrote: »
    This is the folly of the internet. Its become a bastion of misinformation, rumors, conspiracies and propaganda. A place where a person with no face or name can make accusations at any time with no verification or credentials and brainwash a small segment of people.
    T. Sanford wrote: »
    Message to the trills of the IC: May Legion Of Trill be your enemies downfall
  • LordZukoLordZuko Black Illuminati AsgardPosts: 1,965 ✭✭✭✭✭
    @Sion what real estate opportunities have you taken advantage of? Do you invest more in houses or in apartment complexes?

    tumblr_inline_oiifvz7hQg1rzssji_500.gif



  • SionSion Moderator, Legion of Trill, AHH Content Producer, AHH Editor Posts: 44,700 Regulator
    LordZuko wrote: »
    @Sion what real estate opportunities have you taken advantage of? Do you invest more in houses or in apartment complexes?

    I currently own 1 investment property. It's more of a house (duplex) than an apartment complex. Earlier in the year I must have came across 6 or 7 opportunities in the far eastern part of Canada but we didn't pull the trigger on them because we felt they weren't great investments or required a lot of money to bring them to good condition to rent out. After the stock markets took a dive earlier we chose instead to invest heavily over the summer up to now. We will likely acquire more properties if the right opportunity comes to us.
    IC Moderator and AHH Editor

    http://community.allhiphop.com/categories/site-help

    ^^^ If you need anything go here

    jono wrote: »
    This is the folly of the internet. Its become a bastion of misinformation, rumors, conspiracies and propaganda. A place where a person with no face or name can make accusations at any time with no verification or credentials and brainwash a small segment of people.
    T. Sanford wrote: »
    Message to the trills of the IC: May Legion Of Trill be your enemies downfall
    _Jayjonotraestar
  • Thereal_baThereal_ba Posts: 1,892 ✭✭✭✭✭
    If I purchase a small apartment complex can I claim an amortization rate on the building and if so under what circumstances?
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