Mystify Posted February 9 Report Share Posted February 9 Loooove the bread from that place, they also have really great salads...we had one across the street from my school, but there are really none around me now Quote Link to comment Share on other sites More sharing options...
ghhhhhost Posted February 9 Report Share Posted February 9 Originally posted by dgmodel anything more than two isnt worth it...IMO... theres no way btwn the 2 of us we could create the $200K+ needed for the first yr of operations...franchise fee is no problem...but then the $100K in liquid capital is also a bitch..unless we offer our cribs as collateral ahah Quote Link to comment Share on other sites More sharing options...
dgmodel Posted February 9 Report Share Posted February 9 at this point in time id have to say its a pipedream... who knows down the road... Quote Link to comment Share on other sites More sharing options...
ghhhhhost Posted February 9 Report Share Posted February 9 we could ask housediva4real for a loan..she's rich Quote Link to comment Share on other sites More sharing options...
bumpdaddy Posted February 9 Report Share Posted February 9 investing 200k in a franchise doesn't sound like such a great idea... 200k would be a good down payment on a multifamily income generating rental property... At the very least you're buying real aestate that will likely increase in value and will pay for itself. Do the math ... for argument's sake lets say you're buying a 6 family bldg for 650k... you'll finance 450k which will cost you about 2,800 - 3,200 a month... add in property tax, insurance and maintenence (lets say 1,500 a month) that makes your total expense somewher around 4,500 a month. if you rent each of the six apt for an average of 1,250 that gives you a rent roll of $7,500 with a gross profit of about 3,000 a month and increasing equity in the property. I don't know anyone who couldn't use an extra 3k a month for doing about 8 hours of work per month. Quote Link to comment Share on other sites More sharing options...
ghhhhhost Posted February 10 Report Share Posted February 10 no ur not intially throwin in 200K...thats just a projected amount that ur gona have to spend in the first year to keep the business running...considering ull be makin money from the business it aint that bad ...u lose in the first year of any business so its expected ...ur real estate plan is the shit..ownin real property is the way to go...too bad u need massive capital for that too..in order to make serious $$ Quote Link to comment Share on other sites More sharing options...
mssabina Posted February 10 Author Report Share Posted February 10 how did this go from sandwiches to financial mumbo jumbo??? get back to the topic dammit!! Quote Link to comment Share on other sites More sharing options...
funkyfreshdc Posted February 10 Report Share Posted February 10 Originally posted by ghhhhhost ur real estate plan is the shit..ownin real property is the way to go...too bad u need massive capital for that too..in order to make serious $$ not true....u just need good credit and enough for a down payment, rental income will cover the mortgage and then some Quote Link to comment Share on other sites More sharing options...
funkyfreshdc Posted February 10 Report Share Posted February 10 Originally posted by mssabina how did this go from sandwiches to financial mumbo jumbo??? get back to the topic dammit!! Quote Link to comment Share on other sites More sharing options...
bumpdaddy Posted February 10 Report Share Posted February 10 i'd get back to the topic but I never ate at quiznos..... Quote Link to comment Share on other sites More sharing options...
ghhhhhost Posted February 10 Report Share Posted February 10 Originally posted by funkyfreshdc not true....u just need good credit and enough for a down payment, rental income will cover the mortgage and then some to buy a 6 family building in NYC...u need a helluva down payment....650K buys a decent home in a nice neighborhood...buildings run like 800k to the millions...btw..Tuscan Chicken......mmmmmmmm Quote Link to comment Share on other sites More sharing options...
mssabina Posted February 10 Author Report Share Posted February 10 i tried the tuscan chicken today! it is fucking mmmm Quote Link to comment Share on other sites More sharing options...
ghhhhhost Posted February 10 Report Share Posted February 10 i told ya! Quote Link to comment Share on other sites More sharing options...
bumpdaddy Posted February 10 Report Share Posted February 10 Originally posted by ghhhhhost to buy a 6 family building in NYC...u need a helluva down payment....650K buys a decent home in a nice neighborhood...buildings run like 800k to the millions...btw..Tuscan Chicken......mmmmmmmm I wasnt talking about NYC as in manhatan. You can get a building in the outer boros for that kind of money and even much less... I picked up a 4 family in greenpoint not too long ago for 535k... put another 30k into seperate heat/hot water for each unit. I'm now reanting the 3 two bedroom apts for 1450 each and the small 1 bedroom on the first floor for 1,000....and all the tentant pay for their own utilities.... There are good deals out there. you just have to look and be ready to move when you find them . The hardest part is finding good tenants that pay rent on time. Quote Link to comment Share on other sites More sharing options...
dgmodel Posted February 10 Report Share Posted February 10 Originally posted by bumpdaddy investing 200k in a franchise doesn't sound like such a great idea... 200k would be a good down payment on a multifamily income generating rental property... At the very least you're buying real aestate that will likely increase in value and will pay for itself. Do the math ... for argument's sake lets say you're buying a 6 family bldg for 650k... you'll finance 450k which will cost you about 2,800 - 3,200 a month... add in property tax, insurance and maintenence (lets say 1,500 a month) that makes your total expense somewher around 4,500 a month. if you rent each of the six apt for an average of 1,250 that gives you a rent roll of $7,500 with a gross profit of about 3,000 a month and increasing equity in the property. I don't know anyone who couldn't use an extra 3k a month for doing about 8 hours of work per month. 36,000 dollar return on 650k??? in a year??? not to mention fees for brokers and banks and etc. between rent increases every year of 5%, cost of utilities going up, and the risk of tenants being able to pay in this economy leaves me leary... and inflation being at around 3% what does that leave you with??? i can do better than that in a shorter amount of time and be liquid... on average R.E. returns -6-8% yearly... factor in damage on the apartment after tenants leave, downtime between tenants, improvements, maintenance, etc... but we're comparing bananas to sneakers here... real estate was and has been the bomb investment for many years now... but with every tom dick and harry getting involved now it leaves me to believe that one of two things are going to happen 1. coupled with intrest rates rising near the end of the year, and joe sixpack is leveraged to the hilt with consumer debt, mortgage loans, and driving cars they cant afford theyre worse off then sitting in cash at 1.66%... and we'll see a repeat of the internet bubble just in r.e. 2. im dead wrong, re is still the bomb, and everyone will be living like fat cats from here till death... but im tired, im weary, and im drowsy... and this prolly doesnt make sense... i cant articulate my thought properly...Originally posted by bumpdaddy I wasnt talking about NYC as in manhatan. You can get a building in the outer boros for that kind of money and even much less... I picked up a 4 family in greenpoint not too long ago for 535k... put another 30k into seperate heat/hot water for each unit. I'm now reanting the 3 two bedroom apts for 1450 each and the small 1 bedroom on the first floor for 1,000....and all the tentant pay for their own utilities.... There are good deals out there. you just have to look and be ready to move when you find them . The hardest part is finding good tenants that pay rent on time. not being sarcastic i truly do wish you the best of luck and continued success going forward... its just that its not my cup of tea... dont put all your eggs in one basket, and keep in mind the late 80's... believe me i know a tremendous amount of ppl whove made money real estate and most likely will continue to do so... just now when average ppl or mainstreet as we call it, begin to get involved in these types of investments its time to bail out... thats why this is such a great sellers market because smart money is kicking it all out... IMO... Quote Link to comment Share on other sites More sharing options...
dgmodel Posted February 10 Report Share Posted February 10 Originally posted by ghhhhhost to buy a 6 family building in NYC...u need a helluva down payment....650K buys a decent home in a nice neighborhood...buildings run like 800k to the millions...btw..Tuscan Chicken......mmmmmmmm whats your definition of a decent home in a nice neighborhood??? Quote Link to comment Share on other sites More sharing options...
bumpdaddy Posted February 10 Report Share Posted February 10 Originally posted by dgmodel 36,000 dollar return on 650k??? in a year??? not to mention fees for brokers and banks and etc. between rent increases every year of 5%, cost of utilities going up, and the risk of tenants being able to pay in this economy leaves me leary... and inflation being at around 3% what does that leave you with??? i can do better than that in a shorter amount of time and be liquid... on average R.E. returns -6-8% yearly... factor in damage on the apartment after tenants leave, downtime between tenants, improvements, maintenance, etc... but we're comparing bananas to sneakers here... real estate was and has been the bomb investment for many years now... but with every tom dick and harry getting involved now it leaves me to believe that one of two things are going to happen 1. coupled with intrest rates rising near the end of the year, and joe sixpack is leveraged to the hilt with consumer debt, mortgage loans, and driving cars they cant afford theyre worse off then sitting in cash at 1.66%... and we'll see a repeat of the internet bubble just in r.e. 2. im dead wrong, re is still the bomb, and everyone will be living like fat cats from here till death... but im tired, im weary, and im drowsy... and this prolly doesnt make sense... i cant articulate my thought properly...not being sarcastic i truly do wish you the best of luck and continued success going forward... its just that its not my cup of tea... dont put all your eggs in one basket, and keep in mind the late 80's... believe me i know a tremendous amount of ppl whove made money real estate and most likely will continue to do so... just now when average ppl or mainstreet as we call it, begin to get involved in these types of investments its time to bail out... thats why this is such a great sellers market because smart money is kicking it all out... IMO... you're not looking at the "big picture" ... there is growing equity in the building itself...and the 36k is realized after the equity is payed for. You're real initial investment in the deal is only your down payment. for a 200k investment your return is 18% plus the equity that the rental properties are providing through mortgage payments Quote Link to comment Share on other sites More sharing options...
dgmodel Posted February 10 Report Share Posted February 10 i am looking at the big picture... intrest rates go down price goes up... intrest rates go up price goes down correct??? how much lower can rates get??? are we going to go to zero like japan if so we have a lot of bigger things to worry about then what we're going to invest in... in the late 80's i think it was, the entire archipelago of japan about the size of california was worth more than the entire united states... japan had a booming economy, a booming re environment and booming market.. in fact it was sooo good they came here and started buying up tremendous property, companies and investing here... remember??? and then through poor leadership and implosions in their economy, and markets coupled with poor control over rates they fell off... im not saying thats going to happen here... but as a business man YOU have got to believe me that there is risk in buying re right now... and if there wasnt any risk there wouldnt be any reasonable return...Originally posted by bumpdaddy You're real initial investment in the deal is only your down payment. for a 200k investment your return is 18% plus the equity that the rental properties are providing through mortgage payments same thing as buying stock on margin... you can margin up to 50% so hypothetically speaking you put in 200k you can margin up to 400k... and you lose a lot more than that way on the way down... i do not recommend buying on margin, i do not ever buy on margin and i never imply, recommend it to anyone who asks me for advice... Quote Link to comment Share on other sites More sharing options...
bumpdaddy Posted February 10 Report Share Posted February 10 Originally posted by dgmodel i am looking at the big picture... intrest rates go down price goes up... intrest rates go up price goes down correct??? how much lower can rates get??? are we going to go to zero like japan if so we have a lot of bigger things to worry about then what we're going to invest in... in the late 80's i think it was, the entire archipelago of japan about the size of california was worth more than the entire united states... japan had a booming economy, a booming re environment and booming market.. in fact it was sooo good they came here and started buying up tremendous property, companies and investing here... remember??? and then through poor leadership and implosions in their economy, and markets coupled with poor control over rates they fell off... im not saying thats going to happen here... but as a business man YOU have got to believe me that there is risk in buying re right now... and if there wasnt any risk there wouldnt be any reasonable return...same thing as buying stock on margin... you can margin up to 50% so hypothetically speaking you put in 200k you can margin up to 400k... and you lose a lot more than that way on the way down... i do not recommend buying on margin, i do not ever buy on margin and i never imply, recommend it to anyone who asks me for advice... Of course there is risk... You have to do research just like you would with any investment. As far as rental properties are concerned the market hasn't seen any negative impact.. in fact rental prices are higher than they've ever been and there is still a huge demand for affordable apartments anywhere near the city.Comparing real estate to stock is a little bit of a stretch. World events have a huge impact on volitile stocks. Real estate prices are effected by interest rates.. but when was the last time interest rates were changed more that half a point in one quarter? Another point: Has your landlord ever LOWERED your rent? Quote Link to comment Share on other sites More sharing options...
dgmodel Posted February 10 Report Share Posted February 10 very good points... no landlord never lowered my rent... but i live in one of the wealthiest neighborhoods in queens... and i do not see it coming down any time soon... however it will one day... nothing goes straight up... and if it does it comes straight down... (thats called a steeple pattern on a chart and thats an immiedate short to me...) http://images.google.com/images?hl=en&lr=&ie=UTF-8&oe=UTF-8&q=real+estate+chartpull up any chart on any state's real estate and itll look a lot like this: (minus the dip after 2000 sorry the axis are cut off but 2000 area is right at the top of the rise)djia over the last 20 years... http://www.siliconinvestor.com/stocktalk/subject.gsp?subjectid=51347 Quote Link to comment Share on other sites More sharing options...
ghhhhhost Posted February 10 Report Share Posted February 10 Originally posted by dgmodel whats your definition of a decent home in a nice neighborhood??? malba..forest hills gardens...park slope ...etc etc... Quote Link to comment Share on other sites More sharing options...
dgmodel Posted February 10 Report Share Posted February 10 lol those are a lil above decent no??? Quote Link to comment Share on other sites More sharing options...
bumpdaddy Posted February 10 Report Share Posted February 10 Originally posted by dgmodel very good points... no landlord never lowered my rent... but i live in one of the wealthiest neighborhoods in queens... and i do not see it coming down any time soon... however it will one day... nothing goes straight up... and if it does it comes straight down... (thats called a steeple pattern on a chart and thats an immiedate short to me...) http://images.google.com/images?hl=en&lr=&ie=UTF-8&oe=UTF-8&q=real+estate+chartpull up any chart on any state's real estate and itll look a lot like this: (minus the dip after 2000 sorry the axis are cut off but 2000 area is right at the top of the rise)djia over the last 20 years... http://www.siliconinvestor.com/stocktalk/subject.gsp?subjectid=51347 It's all about being in the right place at the right time... My old man sold a house in brooklyn heights when i was a kid for 35k because he felt the neighborhood was changing... well... it changed.. and changed again... the same house was sold 3 years ago for 1.7 million... I still say that real estate is the best long term investment.. Can you make quick money playing the market ? ... of course you can.... but those stocks are few and far between in this economy... its like I say ... you have to make the right move at the right time.. Quote Link to comment Share on other sites More sharing options...
dgmodel Posted February 10 Report Share Posted February 10 pricing and timing are the main factors of investing in real estate and in the market... and i agree with you it has been a great long term investment... however times they are a changing... all this time its been going up straight up... but eventually it will come down... but one thing i have to give you is that supply and demand is definately in your favor when buying real estate... think about it... theyre not making any more land, and ppl are always going to need a place to live right??? so it may never come down drastically but it will come off its highs, and correct... whatever this isnt econoplanet and you have your beliefs and i do mine... thats the beauty of markets to begin with, two different ideas and two different ppl acting on them.. .some see value some see things as over valued... and thats what investing is all about right??? Quote Link to comment Share on other sites More sharing options...
bumpdaddy Posted February 10 Report Share Posted February 10 I usualy just consult with my magic 8 ball Quote Link to comment Share on other sites More sharing options...
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