Out of curiosity?
The last time things were slow I bought land. It was cheap and I sold it for a 200% profit (after costs and commision etc, etc…) a few years later.
So? with things slowing down hard in a lot of areas where are you looking to make money?
Not real easy from my current location, but I did call a realtor about a few Lots I saw adevertised. trying to set something up to look at when I come home in July for two weeks.
Replies
I dont know where you are located but that 200% is a pretty good increase. Around here, land has never appreciatted that quickly, even in boom times
I started building spec houses about 4 or 5 years ago (and therefore doing less remodeling) I have not started one this year due to the soft market and am doing more remodeling again......starting to miss the new construction work!
Most of the spec builders here have dropped out (really only one left) So I'm thinking that when the market absorbs a bit more inventory there is going to be SOME market here again, and with few others in the game I want to ready when that time comes.
Fortunately, I have some money to work with from my last spec and have just made a deal to acquire three ajoining lots in a small sub. These were origonally listed between 29000 and 36000, but were overpriced even a few years ago. They probably should have been around 25000 ea. I am paying 15000 ea.
So, I'll be looking forward to building time when it comes
I'm in P.A.
I was lucky to catch the upswing of people moving from NY and NJ.
Of course, the house my wife wouldn't even look at when it was $145K cost me over$ 300K, so I'm still at net loss.
The money's in the buy. Gotta catch it when the discount is right. usually right before the bank takes over or repo's the owners wife's Escalade.
Is that $15,000?
Here, a lot is $140,000 and up and the city water/sewer hookup is $15,000. Makes it hard to play...
yes, 15,000.
But also realize that specs here sell in the nieborhood of 100.00 SF including land
robert,
Well you know how Tampa is as I believe you used to live here so now I am just looking forward to a new job!
I really want to buy a house or two or land but nothing has really gotten cheaper here. Sure, the overpriced $300k home that was being listed at $450 is now back to $300k but thats not a deal. Its just finally gotten down to the real value.
I am sitting on 3 vacant acres I bought for a pretty good price two years ago, demoed the house and ready to buildselletc. But right now, not getting any takers.
Mike
Mike,
When things went bad there in the 80's, My father owned a whole block of lots in a development in Land O lakes.
He got hit bad.
Thankfully, one of the job supers for Pulte had a father who was a builder and was in a position to ride out the storm out. He bought them and it was a good thing.
Back then we framed for Pulte and Suarez. One house after another. Some of those little Pulte ranches like Quail Hollow or Fox Run we knocked out in a 7 hour day.
I loved living in Tampa, but an 18y/o cruising Mission Bell Plaza for teenage girls to impress with his new Firebird isn't the same as a guy trying to support a family.
I just struggle to see a way of life there. Dad has a contractors license and had great refrences but struggled to break into the remodeling/renovation market.
I don't envy you
Robert,
Hey, you were a Mission Bell cruiser too huh? We have something in commom besides hanging out here.
Yeah, its not a great area to make much money right now
Mike
Leto high School Class of '84.
Lived in Northdale across from the elementry school.
Many a night spend at mission Bell, or out on Gandy Bldv. Or, on amitious nights the parking lot by the pier at Clearwater beach
Brandon High School class of 86. We used to ride out into your are to hit on your girls becuase all of our chewed too much tobacco. :)
Happen to know either one of the Jordan Brothers? Mark or Tim?
I'm looking at the building niches that are more insulated from general market forces. In every town someone is working on well paying projects. Even during the great depression some new houses were being built.
For me it's high quality remodeling or vacation homes.
Beer was created so carpenters wouldn't rule the world.
I'm looking forward to buying more real estate. Its killing me that i'm not as liquid as I need to be right now.
So for the near future i'll be contracting, paying down some debt (so I can make more debt buying more RE), and trying like Hell to get into some more property.
I figure its better to die broke having tried, then wondering what might have been.
I wouldn't be too giddy about buying right now. I just heard that they are shedding lots in subs for as little as 10k. Those are the same lots that were 70k three years ago. The banks are also in the spec building business right now. The only way they can sell those lots are to build on them. Our MI accountant thinks he can now build houses for $50 a square foot. We think he can get it down to 60 but everyone is giving their services away and lumber is down....I'm on the sidelines here. It just feels like MI did three years ago but there is so much bad national news that buyers are scared. They don't want to pay 600k for a house that will end up at 400k. My realtor has told me that they get more calls asking if a house is for rent in any neighborhood now. Bob's next test date: 12/10/07
I wouldnt worry about me buying too much right now. I'm going to see a banker in about 45min. I told him on the phone no one will touch me, he of course thinks he has the secret weapon.
We'll see.
I think I my give residential a rest anyhow. I'm anxious to give commercial a try.
I am negotiating a land deal right now. Bought another lot in the slump eight years ago that was worth 30-40K for eleven grand. Sellers needed the cash
Welcome to the
Taunton University of Knowledge FHB Campus at Breaktime.
where ...
Excellence is its own reward!
I view well bought land as the best investment you can make right now.
It's all about where the bottom is and where the next top will be!
It's also a solid asset that you can walk on, touch, feel, know it is there!On of my clients has made his fortune in RE. Started out when he was in college buying, renting and flipping thru course of each school year.
He ended up VP of RE at Morgan Stanley.During the '87 stock market thing, he was sitting contented while his buddies down the hall in the stock funds were on the verge of jumping out windows. He said it made him feel good to know he could always go out and touch or put his feet down on what he owned instead of having a piece of paper.He ended up with his own investment company and investment fund. They mostly own commercial buildings around the world now.
Welcome to the Taunton University of Knowledge FHB Campus at Breaktime. where ... Excellence is its own reward!
Land's been far better for me than everything else put together.
Don't see much bargain opportunity here though. Second property over's selling lots briskly, starting $450k, average is $706k. No resale possible for 5 yrs.
Those aren't numbers I understand.PAHS works. Bury it.