Here are some lessons learned the hard way that may help fellow investors: If you are doing a deal with someone else and will be in a Joint Venture/Partnership, who is that person? What is their exact experience and long term results? What is their experitise? What exactly will the roles in the JV/deal be and what happens if they do not do this? What will be expected of you? Check and double check the numbers, particularly reserve cash required and vacancy rates. In particular, with low income housing, you have very likely underestimated the reserve cash needed and the vacancy rates ...
» continue readingThere are many real estate opportunities out there given the collapse of the mortgage system and the American economy. With these opportunities however, comes a need to proceed with tempered optimism. Unfortunately, some of the opportunities were seen by get-rich-quick-schemers as a way of quickly producing massive profits from real estate. An example is the many 'no down payment' loans done for 'investing' early on before the banks and mortgage lenders started clamping down on this. Soon, investors found themselves with debts higher than the value of the properties as property values dropped due to the number of foreclosures. This caused ...
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