/biz/ - Business & Finance

I'd rather start and forget about those charts.

If I wanted to make money I wouldn't be on /biz/

Gee, that sounds like actually having to work for money.

>>2938666
>Get offer for 185k and sell it.
gl with that

>>2938666
Idk, but you should check out TeaToken.
teatoken.io

>>2938666

And you end up carrying all the risk.

What if the house has some serious issues like asbestos or water damage? What if the mexicans don't show up for work? What if every buyer would want to do interior renovations themselves? What if someone else has the same bright idea and suddenly you have competition? What if the markets crash again and interest rates shoot up and nobody wants to buy a house?

>>2938666
>contributing nothing to society
stopped reading there.

only a handful of people out of all kinds of backgrounds from the country backwaters of africa to the shitting streets of india really push us forward.
everyone else lives off the incentive of money in exchange for subsistence and hedonism.

Real estate is a nightmare unless you live in the US or Australia; and if you live in the US, there's so many ways to make money effortlessly you're shooting yourself in the foot by committing to something that requires so much capital and illiquidity.

>>2938666
kek so you do all that and make, what, like 15-25% Max on your money? Is this a fucking joke? lol

>>2938666
idk but that's a goddamn incredible building what's it called OP?

Lmao buy a house for >$200k where my Auckland boys @

>>2938666
>Get loan
>Buy some shitty house for say $160k +10k for work
>Get offer for 185k and sell it.
>Congrats you made 10k and it took you less than a month

Nah. I'd rather not use 160k of money that's not mine to generate minuscule gains. Like, this year I started with 22k in my brokerage account, I've made 34k in ~40 hours of "work". That's like 150% or something. Now, what i've done is risky as fuck. My point is, i do not think the level of risk taken on when buying property is worth the work, or the 5% ROI. Housing prices are nearing ATHs. Never buy at ATHs.

Even then, a shitty house in California is 500k minimum. Decent homes are pushing $1m, and those are just 2/3 bedroom ranches in decent areas.

>>2938837
Lol in the midwest you can get a mansion for like 350k. Also the example put forth is small time.

Once you get to 400-600k properties you could be making 40-50k on a flip.

>>2939023
I live in the midwest. $400k will get you a 3-4000 square foot 3 or 4 bedroom with a big yard, in a higher middle class neighborhood with it's own elementary school, 30-45 minutes from a city center.

Diffidently not a mansion.

Still, the level of risk that I identify knowing what I know makes a 10% ROI on 400k unattractive. I would have to be doing it in an upward trending market which is also not near ATHs. After a correction or large downturn, however, I would be down for this on a large scale.

>>2939023
maybe in the meth part of the midwest but not here in Chicagoland

>>2939102
Yeah, this. The west suburb of Cincinnati is super cheap, because it's super poor and dangerous. 400k could get you 5 separate 4 bedroom houses, 2 square meters of yard.

>>2939062
you just described a mcmansion
you aren't going to get an actual mansion in the midwest at all ever because there were never any built in this fucking shithole

>>2939182
there's mansions in places with good land
fuck there's like 3 of them on my lake

Yeah, ignoring all the fees in taxes. Too much effort when I can make 2-3x gain from home

>>2939182
They exist where I am, they're just not in clusters of neighborhoods. Off in random places you'll find huge modern houses that have to be pushing $1m.

>>2938666
Because crypto is more profitable you mouth-breathing faggot

>>2938666
>housing bubble pops

>>2938666
Cause all you fucking cunts bought up the property, creating artificial supply scarcity. Fuck you all to death. I hope your gay ass market crashes.

Lol, so many butthurt NEETs ITT.

>>2938666
Real estate is worthless

What you should be doing is buying up large quantities of shitty land on the far outskirts of metro areas and doing nothing with it

You want to pay to maintain a house? Moron

>>2938803
In other words as long as you're in a raging bull market you'll probably make money. Add a zero to OPs figures and welcome to Australia, enjoy your 1% yields and literally no disposable income left with any would be owner occupier to actually purchase your meme home regardless of how desperate they are to get your one, or any of the hundreds of thousands of new dwellings being being built to keep up with the so called demand. You can already enjoy your mortgage insurer going bust.

OP has guaranteed the only direction is up though, so don't sweat it, "investors" will be happy to buy up your bags at top dollar during the bloodbath, because property is special and goes by an entirely different set of rules to any other market.

If you do enjoy being BTFO, valued fiat and ass medicine, then by all means go ahead, the more fucking tears there are when this blows up the better, the lesson coming is a fucking long time overdue.

>>2939062
kek something like that would go for millions in commiefornia. One of my homes with a shitty 1 story with 2 bath/2bed that cost 1.5 million

745ssqm

>>2938784
>Someone who actually knows

>>2938784
There's risk in everything.

What if crypto gets banned?

I like holding real estate for 10 years and selling for 8x the value

>>2940116
It can't be "banned" for real, you can just use Tor

If every government in the world tried to ban it, it would just suppress the price for a while. It wouldn't change the fact that it is a foregone conclusion that cryptocurrencies will be the primary current at some arbitrary point in the future. Governments trying to ban them would simply elongate the adoption curve.

>>2938666
>get loan for 100K+

>all in on crypto

>!?!?!?

>>2938666

im assuming this is bait, but i also can't stand that the majority of responses are p shit.

yes ppl are right that there is interest rate risk and whatever, but some kind of baseline risk exists in most assets that can generate roi. that's what you're being paid for.

the reason your calcs make it seem too easy to be true is because you're not factoring in liquidity premium. these days you need a shitton of capital to get a loan (plus extensive account history and income verification). that's a huge pain.

and even if you do all ur own agent bs stuff, you're paying ~4% of the sale price in closing costs, title insurance, and escrow. also loan origination fees. then take off taxes from profit from flipping the house and subtract some x amount of expected loss (mortgage + baked in property tax + upfront water/gas) while dealing with prospective buyers/contracts falling through, and you're not super likely to make money quickly.

if you do make money quickly it's probably because it's in a shitty area being quickly gentrified/improved (which makes your prospective buyer pool shittier cuz they're too poor to reliably get loans) or it's an overheating market (where risk of downside is significant).

if you buy in a rich neighborhood where all your customers are capable of buying and closing, the demand is far lower because you're only going to get a handful of people who want to drop 800k+ for a home. which similarly lengthens duration until u can offload.

u can still make money but it's not super easy like you delineate in ur post. it's worth trying for experience in alternative investments/long term hold/diversification, but not a get rich quick strategy by any means. unless u wanna ramp up return by multiplying risk but any idiot can do that.

the best way to imagine (prime rental) real estate is as a bond that yields higher than risk free rate but that is a lot more costly to buy/sell. and has different correlation vs macro economy.

>>2938666
>guarenteed to hold value no matter what

>>2938666
It's another episode of rich guy doesn't understand why banks wont lend everyone $160k to start a business.

>>2940397
>>the best way to imagine (prime rental) real estate is as a bond that yields higher than risk free rate but that is a lot more costly to buy/sell. and has different correlation vs macro economy.
You might as well just buy a REIT instead of doing all that work.

>>2938784
>inspect it first
>don't pay them, hire new Mexicans
>build it and they will come
>If you paid under intrinsic value, it doesn't matter, one guy can't crash the market
>random walk theory dismisses your concerns, also you could just rent the house out

Single family homes are a great investment right now. When the market is at 25X earnings, bonds are hardpressed to yield 2-3%, and the market is flooded with institutional cash, invest in what large institutions don't have the tools to touch.

Distressed single family homes in good areas are great bargains right now. You can charge massive rent or resell at huge profits. It's literally free money. Even if you baghold you're unlikely to overpay. Just avoid large city apartments, multiunits, etc.. That stuff is oversaturated from real estate firms chasing income yield.

>>2938666
>Buy materials and pay mexicans around 10k
And then pay an additional 50k because they will screw up everything and you must pray they won't blow up the entire fucking neighbourhood

>>2938666
>Its so simple a 12 yr old can do it if given the money.

bought a house for 360,000. doesn't qualify for fha loan. listed for sale with a broker friend. best offer was 460,000 cash. broker friend tells me he'll get 500,000 if i put 10,000 into it. tells me exactly where to spend the money. the house sells for 505,000. not a bad return. if i'd tried to do it myself i would've spent more than i had to and in the wrong places. your hypothetical 12 year old would have done a lot worse.

>>2940876
this is exactly what my hs friend has been doing for the past decade in miami and texas

>>2938820
Might get you a garage in Mangere?

>>2940876
I'd rather trust an illegal mexican than a American. They at least have a reason not to fuck me over.

>>2938751

this

/biz/ is about convincing others to make bad financial moves not make money

>>2938784
god i hate poor people.

>>2938666
Started buying houses in my teens. Honestly wouldnt recommend it, theres just too many other ways to make money that are faster, less risky, less work.

and how exactly did you get the money to start buying property smartass