Comments on: From School Teacher to Full Time Real Estate Investor, an Interview with Ronnie Adams

By: Blogger Interviews

Blogger Interviews — Fri, 05 Mar 2010 11:18:53 +0000

[...] Real Estate From School Teacher to Full Time Real Estate Investor – an Interview with Ronnie Adams [...]

By: Ronnie Adams

Ronnie Adams — Sat, 27 Feb 2010 16:01:17 +0000

Hey Financial Samurai- I stopped by your site and it was very informative. Keep up the good work. In reference to the cap rate of the market, let me first state that commercial real estate is not my expertise. That being said, I believe it varies according to what part of the country you’re in. As far as a percentage, the market has dropped on average 30% across the board. Some places were hit even harder. You really have to be careful now because, for residential property, there really are no formulas that can determine what you should make as a profit margin on a property. The value of a property now is really what someone else is willing to pay for it. An appraisal means nothing if you can’t get a loan or sell it for that amount. As far as for this year, I don’t see values going up. Personally I think they could continue to go down. Not at the rate we have seen, but still dropping. Since properties aren’t selling at a rate that can sustain strong comparable prices, the property values are dictated by what someone else is willing to pay for it.

As to your question on the rental market, I believe the rental rates will continue to be strong. There are many more renters in the market now because of the high foreclosure rate. Generally, I will contact my realtor and request comparable rental rates for the area where the property is located. I may raise or lower my asking rate according to how my property compares to the surrounding comparables. Until people start buying owner-occupant homes again, the rental market will be the lucrative business to be in. A little long, but I hoped that answered your questions.

By: The Simple Machine

The Simple Machine — Fri, 26 Feb 2010 23:11:55 +0000

@ Investing Newbie – there are many ways to invest out there! One firm I am familar with is http://www.vsmrealty.ca

If you are finance savvy then I suggest you study their business model. Perhaps you are replicate it on a smaller scale! They do not put down any money themselves. Instead they pool investor money to invest in real estate. Generally they negotiate 50%+ of profits! Not sure how it works anywhere else, but in Canada their investment strategy is based on RSPs!
The Simple Machine´s last blog ..Estimate your next raise.

By: Financial Samurai

Financial Samurai — Fri, 26 Feb 2010 19:50:46 +0000

Hi Ronnie – Can you talk to us about cap rates, and how you think of them? Where do you think the right cap rate is, and where do you see cap rates going this year?

What other comparative benchmarks do you use wrt to the rental yield etc.

thnx.
Financial Samurai´s last blog ..The Curse Of Making Too Much Money And Not Pursuing Your Dreams

By: Ronnie Adams

Ronnie Adams — Fri, 26 Feb 2010 18:30:19 +0000

I live in New Jersey, and all of my properties are in this state. I have friends that I’ve helped buy property in Pennsylvania and Delaware as well. Although market conditions may vary from state to state, the basic information and strategies we discuss on the site should still be valid.
Ronnie Adams´s last blog ..Note To New Subscribers

By: Ronnie Adams

Ronnie Adams — Fri, 26 Feb 2010 18:26:10 +0000

You make an excellent point, and it’s one I talk about often. There’s nothing wrong with owning only one or two properties. Any amount that can supplement your income, or remove a monthly bill from your plate is well worth it.
Ronnie Adams´s last blog ..Note To New Subscribers

By: Ronnie Adams

Ronnie Adams — Fri, 26 Feb 2010 18:23:41 +0000

Thanks for the kind words Jeremy! That fear of losing money is VERY real. Fortunately, it’s just like most things. If you do your homework, plan accordingly and mitigate as much risk as you can, you’ll have a great chance of succeeding.
Ronnie Adams´s last blog ..Note To New Subscribers

By: Little House

Little House — Fri, 26 Feb 2010 18:16:50 +0000

I’m kind of curious as to which state he started purchasing properties in. As a resident of California, rental properties are quite expensive. Right now is the best time, as the market has tumbled, but it still freaks me out a bit. Thanks for this interview, it is helpful reading a story about a teacher turned successful real estate investor – it gives hope to others.
Little House´s last blog ..How to Find the Best Place

By: Investing Newbie

Investing Newbie — Fri, 26 Feb 2010 15:08:48 +0000

Thanks for doing this interview Ryan. I’m actually interested in investing in Real Estate, but I’m pretty worried about taking that first plunge. However, I’ve heard of so many people my age buying properties and earning rental income from that. I won’t try to delay it too long! I don’t think I want to become a RE Guru, just own one or two rental properties!
Investing Newbie´s last blog ..Money Moves

By: Jeremy Johnson

Jeremy Johnson — Fri, 26 Feb 2010 14:08:38 +0000

I found their site to be very well done – with the videos, podcasts, and information. The fear of losing money definitely seems to be a road block for most people. Out of curiosity, how did you find their website – just looking around search engines, or through a friend?
Jeremy Johnson´s last blog ..Introducing The First Wizard, Lisa Irby