Pyriel Real Estate Corner

[colonialmike]

P- Once again that sounds great. Also, I guess once you have a few of these, you could sell one to get back your initial investments (9K in this scenario) and have no $$ invested and you get all profit.

Here are a few questions...How long do you think it will take to buy the land, build the 4 BR/2 car garage, and have a tenant in place? You wrote "the plan is to pay everything up front", are you paying cash up front? Using a HELOC? If cash, do you calculate "lost interest earned" on that money (if it was in an interest earning fund/acct) in your final calculation of 170K? If HELOC, do you calculate interest paid in your 170K?

Sounds like a great deal, not many other places where you can invest 9K and make 13,200K/yr each year.

 

[pyriel]

P- Once again that sounds great. Also, I guess once you have a few of these, you could sell one to get back your initial investments (9K in this scenario) and have no $$ invested and you get all profit.

Here are a few questions...How long do you think it will take to buy the land, build the 4 BR/2 car garage, and have a tenant in place? You wrote "the plan is to pay everything up front", are you paying cash up front? Using a HELOC? If cash, do you calculate "lost interest earned" on that money (if it was in an interest earning fund/acct) in your final calculation of 170K? If HELOC, do you calculate interest paid in your 170K?

Sounds like a great deal, not many other places where you can invest 9K and make 13,200K/yr each year.

Hello Mike, the land we are looking at is a 3 parcel land selling for 50k, 50k, and 35k half acre each. We would be offering 35k each for all 3 lands with a 10% downpayment, amortized for 30 years and for each land to be paid in full every year. This is what we call creative financing and we are hoping that the landowner will take it. My RE agent that the owner also sold similar lots for the same price previously.

We feel that our contractor can build a house within 4 months so for planning purposes we will be expecting 6 months. As for the land, we are being picky and only looking at good lots closed to the base. We will use our personal money and will not be borrowing from any bank sor there is no interest fee involved except for the land transaction and we are looking for that to last for only 9 months.

BTW, we can actually do two houses at a time but we feel that we should test the water just in case it gets too hot;-)

Pyriel

 

[fabijo]

Pyriel -

I'm just posting to let you know that I am reading this thread with much interest. I don't have much input since I've never purchased a home before. It's just too expensive for a young family like mine to buy in New York. I'm trying to get a transfer to Philadelphia where we'll be able to afford a house.

Fab

 

[Gaetaone]

Pyriel,

Have the decided whether or not Guam gets the carrier? That would certainly be a boom. Hope to make it over there some day...

John

 

[pyriel]

Pyriel,

Have the decided whether or not Guam gets the carrier? That would certainly be a boom. Hope to make it over there some day...

John

;-( Guam = no, Hawaii=no

Possibly CA or WA

 

[Gilligan]

Hello Mike, the land we are looking at is a 3 parcel land selling for 50k, 50k, and 35k half acre each. We would be offering 35k each for all 3 lands with a 10% downpayment, amortized for 30 years and for each land to be paid in full every year. This is what we call creative financing and we are hoping that the landowner will take it. My RE agent that the owner also sold similar lots for the same price previously.

We feel that our contractor can build a house within 4 months so for planning purposes we will be expecting 6 months. As for the land, we are being picky and only looking at good lots closed to the base. We will use our personal money and will not be borrowing from any bank sor there is no interest fee involved except for the land transaction and we are looking for that to last for only 9 months.

BTW, we can actually do two houses at a time but we feel that we should test the water just in case it gets too hot;-)

Pyriel

Pyriel,
This sounds exciting, the next thing you know you will buy a hundred acres and put in a golf course subdivision. When are you going to buy/build a hotel in Hawaii so we can have an annual TspTalk.com members convention. At the rate you are going you will be a Billionaire!

 

[pyriel]

Nggiiii... I can buy me a pot of soil in Hawaii but I don't think any of us will fit there;-)

Sorry haven't been posting coz my travel itineraries are so hectic. I'm currently in Orlando (nice weather) and will be here till tomorrow. We looked at the land and I was LMAO because although they were in a nice location, they are in a depression LOL. I told my RE agent to pls not waste my time and ensure that he eyeball the property before showing it to me. I'm still online the 3bd 2 bt VA owned. I resubmitted my bid and i guess will find out if that goes through. If it does, I need to do an immediate renovation so that I can convert them into 5 bd 3 bt. I just need to punch a hole since there is a bd 1 bt (with kitchen) extension in the back of the house.
We'll see... Not in a hurry and will stick to my comfort zone...;-)

Goal is 3 houses for 2007. I get those then I am pretty much on tracked with my goal....

Pyriel;-)

 

[colonialmike]

Pyriel

Thanks for the update, but what is LMAO? Let me know if you get to Maryland/DC/VA

Colonialmike

 

[pyriel]

Pyriel

Thanks for the update, but what is LMAO? Let me know if you get to Maryland/DC/VA

Colonialmike

Heheheh Laughing My A%% Off.... hehehhe
I was supposed to go to DC but its too cold, I opted to come here instead... hehehhehe

 

[pyriel]

Hello all! I'm currently in the Philippines vacationing with the family. We've missed our flight yesterday so we have no choice but to fly out tonight and spend our new year in a plane. Just to give everyone an update, i should be closing with purchasig two houses in January. I hope this will be a good start for me. I'll be writing the detail of these deals later when i get back to Guam. Hope everyone is doing fine and havig a merry new year....
Pyriel

 

[pyriel]

Hello all! I'm currently in the Philippines vacationing with the family. We've missed our flight yesterday so we have no choice but to fly out tonight and spend our new year in a plane. Just to give everyone an update, i should be closing with purchasing two houses in January. I hope this will be a good start for me. I'll be writing the detail of these deals later when i get back to Guam. Hope everyone is doing fine and havig a merry new year....
Pyriel

 

[fabijo]

Congrats on the possible purchases! It would be great if you kept up the updates even when you are a billionaire.

 

[pyriel]

Hello, just an update... I'm closing on a house on Monday (didn't happen this week). I have a tenant waiting so the lending company (they own the property) is giving me the key today so we can start renovating. We only have 5 days to renovate and tenants will move in on the 11th. Terms are as follows: 11.5% for 30 yr amortized with no closing cost, 5% down on 120k purchase with no prepayment penalty. Renovation will probably reach 5k.
Now why the heck would I get a property and pay 11.5%. This is temporary. My money are tied up somewhere and will not be available till next month. I plan on bringing this property to another lending institution and get a 6.5% interest, 20 or 30% down 30yr amortized. The bottom line here is that I secured a good property with a waiting tenant so I am not losing out at all. I will use my credit card check to pay for the closing. I will pay for it next month when the cavalry money arrive...

Risky, this is very risky for those who are not familiarized with RE. For me? Not at all. I like it because its a control risk. Unlike the market which I really don't know what i'm doing. More to follow...

P

 

[James48843]

That's definately Risky business P:

Hope it works out for you.

 

[Gilligan]

If real estate is so risky, why do bankers loan money for real estate investments but refuse to loan money to be invested in mutual funds like the TSP?

 

[SkyPilot]

If real estate is so risky, why do bankers loan money for real estate investments but refuse to loan money to be invested in mutual funds like the TSP?

Touche!

 

[Show-me]

If real estate is so risky, why do bankers loan money for real estate investments but refuse to loan money to be invested in mutual funds like the TSP?

Exactly! Nothing like a nice piece of tangible assets!

 

[GGal]

Exactly! Nothing like a nice piece of tangible assets!

I thought they shot and killed you the other day in Fayetteville, GA. Musta been another wild pig.

GA

 

[Show-me]

I thought they shot and killed you the other day in Fayetteville, GA. Musta been another wild pig.

GA

O.K., you have the advantage. Care to explain??????????????????????

 

[GGal]

O.K., you have the advantage. Care to explain??????????????????????

FAYETTEVILLE, Ga. - A giant wild hog boasted to be bigger than the near-mythical “Hogzilla” caught in southern Georgia a few years ago has been killed in a suburban Atlanta neighborhood.

The hog hung snout down from a tree Friday in William Coursey’s front yard, not far from where the avid hunter said he shot the beast. He said he hauled it to a truck weight station, which recorded the hairy hog at 1,100 pounds.

MO, I was just cracking a little joke at your extremely chaeuvenistic (sic) (pig-like) remark.......all in fun!

GA