hi, i am 18 years old and want to become a real estate tycoon, how do i start.

and how did people like trump start his business

lol funny thread pakboy

if you build an storage house in a booming city for maybe 10 mio you can gain 2.5 mio in one year by selling it. If you ae building apartments in one of the booming ex-eastern block capitals you will gain 20% of your invested capital. People like Trump got rich because they made big "inventions". The man who has started to build big supermarkets must be unbelievable rich. If you want to get rich you can buy stocks from companys that own big motorways and tunnels in europe. In the next 10 years the traffic will grow on the A2 (european motorway from Lisboa to moscow) about 100%. It's logical that the tolls will also raise. Ypu nust have to invest in developing countries like the middle an eastern european states China and maybe in some years India.

The profit from rental properties comes not from the rent, but from the equity earned while you own the property. Most real estate moguls started off with small rental properties, working their way up as the equity from their investments accumulated and grew.

1) Save up enough money for a down payment of a rental property in a market with increasing real estate prices. The property should have two or more units; that way, if a unit is vacant, you'll still probably have some revenuefrom other tenants.

2) Rent out the units at a rate that allows you to pay your mortgage, if not make a bit of profit. Perform minor improvements that are inexpensive but make the property more appealing for prospective renters (and future buyers); neutral paint, new kitchen appliances, new kitchen cabinets and countertops, refinished floors, new carpets, and so on. $5,000 should do it if the property was well maintained in the past.

3) Wait five years. In the meantime, save the rental profit for maintenance expenses, and to help pay the mortgage ifa unit goes vacant.

4) Sell the property. You'll get back your down payment plus the difference between your purchase price and the sale price, minus the real estate agent's commission. This is called equity.

5) Use the returns to invest somewhere else; another property wth more units, two properties, whatever.


Some numbers:

Decent two-unit rental property in a midwestern US city - $150,000.
5% down - $7500
Closing costs - about $3,000
Mortgage payment (at about 6% interest) - about $1150 (includes PMI and taxes, more or less)

Rent each unit for $700 a month. Save the profit from the rent for paying the mortgage when there is only one tenant, repairs, maintenance, and so on.

Five years later:

Property is now worth $210,000. Sell!
Realtor commission is ~$13,000 - you get $197,000.
Pay off mortgage ($135,000 or so). You end up with $62,000.

You invested $12,500 (down payment and improvements), leveraged the bank's money, and five years later left with $62,000 - a return of about 500%.

Your mileage may vary, depending on the market.


I'm an idiot. I bought a house for myself instead of investing in rental property. :D


In a booming market, with enough money for a down payment and to pay the mortgage while the house you bought sits empty, you can also "fix and flip." That's a lesson for another day, though.

Another way to rake it in would be to do what I did...

Buy a shitty house, fix it up (mostly yourself) to the point where it is now one of the nicer houses in the nieghborhood, live in it for 2-3 years, and then sell it for a tidy profit. Not only do you make money because of market appreciation, but also because you saved on work that needed done, and also because you got a roof over your head the whole time.

In my case...

I bought the place for $87.5k in Jan 2002.... I spent about $12k fixing it up to move in, and then another $3k on maintainence and upgrades since... The Tax Collector now appraises the house at $153k, and I should be able to sell it later this year for around $160k.

(I am especially lucky, because my mortgage was less than $40k from the start, so I now have something like $120k in equity to work with)

Regarding investing in foreign countries, in order to do that, you have to already be rich in order to have the money to invest in the first place, don't you?

As the saying goes, to turn $100 into $110 is hard work. But to turn $100 million into $110 million is inevitable.

How much money is required to start invest in foreign countries? If someone has only one or two thosuand dollars to invest, he probably is not going to invest in a foreign country, am I right? You need minimum 50 grand to make it more profitable than just investing elsewhere. Am I wrong?

Regarding investing in real estate, I am a bit surprised by the comment that most of your profits don't come from the rent. So if someone owns a large building with 100 aparments, and each of those 100 tenants pays him $1000 a month, doesn't he earn a HUGE profit from the rent? Even after you deduct repair bills and account for the fact that some apartment may be vacant, you are still left with an enormous profit, yes no?

If you're from the United States, the government provides endless programs for first time home buyers. I have know people who have bought for less than $5000 and the morgage interest is tax deductable.

This thread's title sounds like a good one for a next Trump book.

Regarding investing in foreign countries, in order to do that, you have to already be rich in order to have the money to invest in the first place, don't you?

As the saying goes, to turn $100 into $110 is hard work. But to turn $100 million into $110 million is inevitable.

How much money is required to start invest in foreign countries? If someone has only one or two thosuand dollars to invest, he probably is not going to invest in a foreign country, am I right? You need minimum 50 grand to make it more profitable than just investing elsewhere. Am I wrong?

Regarding investing in real estate, I am a bit surprised by the comment that most of your profits don't come from the rent. So if someone owns a large building with 100 aparments, and each of those 100 tenants pays him $1000 a month, doesn't he earn a HUGE profit from the rent? Even after you deduct repair bills and account for the fact that some apartment may be vacant, you are still left with an enormous profit, yes no?

It's not that easy< to make a lot of money just with rentals. We own sone appartment buildings in germany. You have to invest an enormous mass of money to buy the buildings but you get only a little bit back after some time. Often appartments are vacant or the tenents dont want to pay. Then you get really big problems and you loose a lot of money.
Appartment buildings are good if you want to be sure that you dont loose money. After a long time you will earn money but not much. If you want to make a lot of money you have to spekulate like Cybrbia has said.

Any reason you chose to buy apartments in a foreign country instead of here (I'm assuming you're American) and are there any benefits/downsides to buying foreign?

I wouldn't think that tenants refusing to pay shuold be a problem... Can't you just put it into the rent agreement or whatever it's called that if they don't pay for two months in a row they are evicted?

I got my cousin this for Christmas

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I got my cousin this for Christmas

http://altura.speedera.net/ccimg.catalogcity.com/200000/205400/205495/Products/6195825.jpg


were in london can i get it from

Any reason you chose to buy apartments in a foreign country instead of here (I'm assuming you're American) and are there any benefits/downsides to buying foreign?

I wouldn't think that tenants refusing to pay shuold be a problem... Can't you just put it into the rent agreement or whatever it's called that if they don't pay for two months in a row they are evicted?

Sorry. I'm from europe. I dont think it would be good for me to invest in america. If i would invest in a booming nation i would earn the rent and the value of my houses would increase. So i could earn twice. The american market doesn't grow as much like the chinese. And second: In most countries it is prohibitet to boot out people after two months. Thats just law. You can't put something into the rent agrrement that alows you to boot them out.

The profit from rental properties comes not from the rent, but from the equity earned while you own the property. Most real estate moguls started off with small rental properties, working their way up as the equity from their investments accumulated and grew.

1) Save up enough money for a down payment of a rental property in a market with increasing real estate prices. The property should have two or more units; that way, if a unit is vacant, you'll still probably have some revenuefrom other tenants.

2) Rent out the units at a rate that allows you to pay your mortgage, if not make a bit of profit. Perform minor improvements that are inexpensive but make the property more appealing for prospective renters (and future buyers); neutral paint, new kitchen appliances, new kitchen cabinets and countertops, refinished floors, new carpets, and so on. $5,000 should do it if the property was well maintained in the past.

3) Wait five years. In the meantime, save the rental profit for maintenance expenses, and to help pay the mortgage ifa unit goes vacant.

4) Sell the property. You'll get back your down payment plus the difference between your purchase price and the sale price, minus the real estate agent's commission. This is called equity.

5) Use the returns to invest somewhere else; another property wth more units, two properties, whatever.


Some numbers:

Decent two-unit rental property in a midwestern US city - $150,000.
5% down - $7500
Closing costs - about $3,000
Mortgage payment (at about 6% interest) - about $1150 (includes PMI and taxes, more or less)

Rent each unit for $700 a month. Save the profit from the rent for paying the mortgage when there is only one tenant, repairs, maintenance, and so on.

Five years later:

Property is now worth $210,000. Sell!
Realtor commission is ~$13,000 - you get $197,000.
Pay off mortgage ($135,000 or so). You end up with $62,000.

You invested $12,500 (down payment and improvements), leveraged the bank's money, and five years later left with $62,000 - a return of about 500%.

Your mileage may vary, depending on the market.


I'm an idiot. I bought a house for myself instead of investing in rental property. :D


In a booming market, with enough money for a down payment and to pay the mortgage while the house you bought sits empty, you can also "fix and flip." That's a lesson for another day, though.

Sound advice. That's what I'm trying to do now.

i think the best way to become rich is to sell your pants pakboy???????

seriously speaking, i think you should have a personal realtionship with donald trump.

Firstly, get an education. The best thing is to get a good grasp on the economics of the real estate industry - supply/demand theories, market capitalization, discount cash flow analysis, etc. I would recommend getting a degree in business or economics. If you want to further yourself and provide more educational clout, there are many graduate schools in the US and UK that specialize in real estate development.

Secondly, just like most other career fields, you'll learn the most from actual work experience and from others in the business. This is where you’ll learn the tricks of the trade and establish the connections with the players; the investors, the bankers/brokers, the dealers. Its often comes down to who you know, not what you know.

Developers are risk takers. Besides those who are born into money, most developers make their money off of others. This is how Trump made his fortune. Once you gain some credibility (get your name out there), you take an idea, do your due diligence (get your facts and numbers in line), find a group of investors and ‘sell’ your idea. The trick is building enough confidence in your investors that they are confident and satisfied with the projected return on investment.

It is also a political game. The land development industry is very well connected with the politicians (the governors, premiers, mayors, councilors, etc). Why, these are the people that will ‘pull the right strings’ to help you get your approvals.

Hopefully this helps, although it is condensed, it should provide you with some insights about the land development industry.

Getting a degree in finance is the safest route.

People with degrees in economics and people with degrees in business both have a very high rate of unemployment in their fields.

People with degrees in economics and people with degrees in business both have a very high rate of unemployment in their fields.
/\ and that proves what? Nothing. In fact, most of the clients I've worked with have degrees (BA or Masters) in Business or Economics.

Buying or selling, do it through my website.