fatbrit

But you have the choice...

Angry White Pyjamas

What work? I sign various papers that my legal representative has ok'd. Money turns up in my bank at some point in the future.

I suppose I could go and cut some bits of 2x4 or wield a hammer but why bother? Its far too hot for that kind of thing.

TouristTrap

No pain, no gain.

Yorkieabroad

Theres a good programme on TV called Property Ladder that follows first time "developers" buying houses to fix up and sell. We got into the UK version last year when we were back and it was pretty good - good tips, hints, advice etc. Theres also a US version thats along similar lines, but nowhere near as good. Interesting thing on the UK version was that a lot of the people were making money despite themselves...ie if they'd done nothing to the property, they'd still have made money because of the rising property market.....some of them actually reduced their profit by working on the houses!!!

BigDavyG

Aye - lots of them completely ignored the advice the experts were giving them but still made a substantial profit cos of the appreciation in property value despite their work.
Just shows you how easy the property game has been in the UK for the past 10/15 years.
Shame I'm only finding that out now.

BritGuyTN

Yes, Yes, Yes, slumlording here we come!

In certain markets in the US there is great income potential form buying property and renting it out.

A good credit score and 20% down makes life pretty easy for the budding slum lord

Yorkieabroad

Yeah and the ones that screwed up worst, came out best - remember one that decided he was going ot do all the work himself in 2 months....after knocking this house about for 8 months, finally admitted he couldn't do it. Called in the experts to fix it, and made a killing cos he had almost a years appreciation instead of just 2 months.......which comes onto someone elses question about DIY or getting in experts - the presenter of Property ladder UK is firmly in the "if you're not good at what needs doing get someone in who is, rather than try to muddle through yourself" camp....although in this particular case, she may have been wrong!

Giantaxe

Indeed, and a lot of people have chosen a financial path that leaves them with a high probability of foreclosure and/or bankruptcy down the road once these 100% Interest-only loans start amortizing. Works well whilst property prices were increasing at the rate they have been doing in the last few years, but as soon as house prices start to stagnate or decline (and it's starting to happen in some of the more "bubbly" areas) some serious shit is going to hit the fan.

Ozzidoc

It's a fab feeling, isnt it....really shows that the world's your oyster. ......now start aiming for the 5 or 10 mill mark!!

Re renting - have u tried Craigs list?

Patrick

Thanks for the suggestion but they are beach properties - thats why they are so expensive. I wrote a contract on another house, not at the beach, yesterday. It is freaking me out all this debt so I am thinking of flipping them.

Ozzidoc

I completely understand how u must be feeling - hence u being on the board at this ungodly hour on a sunday.

Have u considered focussing on the outgoings/repayments rather than the actual amount of debt? This can help - all u need to be able to do is service your mortgage/expenses.....and if these are tight, sometimes all it takes is a few tweaks. (For me, my sacrifice is shoes & clothes. Id rather be a millionaire on paper than be wearing high fashion.)

These are exciting times! It seems to me as though you have obviously reached the "millionaire" goal, and are now feeling apprehensive....not just about the figure, but also that u have achieved a major goal in your life.

(sending u smiles - costs money )

BritGuyTN

Interest-only loans for investment purposes are great in many cases, its not the banks fault if you don;t understand the terms and structure a plan around the payment terms.

forget amount amortization, just re-fi into another interest only.

My goal is to eventually own 15 investment duplexes and have them fully paid off

in my area this would give me a net income after property taxes/income taxes/hazard insurance/repairs/vacancies of about $150k per year which is when i would be very happy about terminating my corporate job


Good on you Patrick, I wish you the best of luck

Thydney

I remember shitting myself when I signed for my first mortgage of £46,754 at $1,000,000 I think I'd have passed out, good luck to you remember me in your Will

BigDavyG

How do all you property barons rent your homes out - yourselves or via an agent ???

Rushman

That was either a grade A listed Elizabethan Mansion somewhere up north of a grubby broom closet in London.