This is a great topic of discussion, probably one of the best articles to have been written so far. So please pay attention to what I have to say here. Many people believe that images on Loopnet or some other real estate site are good enough to make a million dollar decision on a property. If you don’t see the product in real life and even walk the property, you will get burned – I promise. The thing is, you can’t even rely on someone else that is in that location to make the decision for you. Always make sure you know 150% of the information you need to know in the areas you invest in. So say you are interested in a certain property: what are the tenants saying? Are there any repairs that you need to keep in mind as expenses? These are all things that a broker won’t tell you, even if it’s your father.

So you need to be able to determine whether the property is worth as much as its listed under, or even if it’s a good deal. The first thing you need to look at when thinking of properties is: do you love the deal? Because if you love the deal, then price doesn’t matter. If the deal is a good deal, you don’t mind overpaying for it. But you can’t know this beforehand. You need to be able to know your market. Is that part of the city ghetto communities? Will you have to deal with the tenant that got shot because he couldn’t pay for the latest shot of heroin he got?

Continue reading “Invest In Your City – Not Something Unfamiliar” →

Hi everyone!

Today I will show you how you can a discount in a real estate deal as much as 75%. I am talking about any deal: not the one your cousin is setting up for you, or a good friend is looking to make more lucrative for you.

I can go right now, and assuming I have 25% of the value of any deal (I don’t care if it’s worth a few million or even hundreds of million) I can buy myself that deal. What is the 25% of course? The down payment!

Oh…so Anthony is talking about loans again? Yes!

See, people are afraid of loans: they are scared they won’t be able to pay back and even keep up with the interest, but what they don’t often understand is that you don’t risk much (aside of that 25% down payment.) And in most cases if you are smart in your investing, you can minimize your risk to ensure a successful real estate deal and process. But most people are even scared to walk out their front door, so what I’m saying may sound a bit strange to you all.

But say you are looking at a $5 million dollar deal (say it is multifamily – less risk.) The amount of money that can buy you that deal is $1,250,000. Now of course many of you don’t even have $200,000 to invest in real estate. But you can use that 25% rate to smaller size. The point is that you can pretty much get to any deal, with a down payment that will convince a bank to give you a loan. And guess what: if you don’t have the cash amount for the 25%,  you can go and raise it from investors. The thing is you have so many options, and that is what I love about real estate. Many people would love to invest in your venture to get a passive income of 6% on the borrowed amount. And basically everyone makes money.

Continue reading “Buy A Real Estate Deal For Only 25% Of Value (easy)” →

The same question I could ask you (and probably would get the same answer) is: are Mathematics difficult? Does 1+1=2 appear to be difficult?

Well…if you are just jumping into it and have no idea about it, you could probably lose your shirt. But you probably thought in first grade that one plus one did four. It’s all part of the learning process. What I see, is people that are too focused on things in their every day lives that frankly, don’t make any sense or at least don’t help you improve your financial situation and state of success. People generally look at real estate, as the “passive income” solution. Everyone imagines themselves lying around in the Bahamas, and cash rolling in. But in reality, unless you are a Hollywood actor on set, that couldn’t be further from the truth.

That is because real estate, is a full time job of its own. Whoever gets into it, to just work a few hours a day, will get themselves crushed…I promise!

Real estate isn’t something that can be taught necessarily. How come people didn’t predict the 2008 disaster? Theoretically when you master something, you won’t fall for such a disastrous situation. The thing about real estate, is that it’s an always learning process. You never can know it all, and that is because it is so unpredictable. Who would be smart enough to think that the range of years between 2008-2010 would be the best for investing? People that invested back then (like our President) made a small fortune. Basically, the general rule of thumb in real estate, is that you will make money when you sell, and someone believes that in buying the piece of property you have, he can make more off it. I mean if you are selling because the piece of property has no potential, then you won’t find a buyer. So always, there is someone that is right, and someone that is wrong. But on top of that, you have variables (a bunch of them) such as luck, emotion and personal reason. For instance, if someone inherits a property he doesn’t like, or needs to pay such high taxes on, that would rather get rid of it, then he isn’t wrong in selling it, and the buyer isn’t wrong either. It’s just that motives are completely different, and both happen to be right. The seller wants to sell to afford tax payments, and the buyer is getting a bargain.

Continue reading “Is Real Estate Hard? (Honestly)” →