If you are interested in real estate, chances are you will have the opportunity to invest in something that is out of state-too far for you to be able to give first-hand inspections. There are times in your life when you have to make decisions that others may question you on in order to change your future.
That is the case with many investors who want to build a rental portfolio or invest in real estate but their market is so crazy that a 2-1 shack is 200k or the taxes are so high that getting a positive cash flow is just not happening. So what do you do?
Search for properties in another area or even another state, which are affordable and give you positive cash flow. Yes, there are plenty of those areas that the news never talks about because they don’t have fifty percent appreciation in a year.
They just steadily grow at a measly three to five percent, but guess what…when the bubble bursts, they also didn’t have fifty percent depreciation in a year. In fact, they just hang out and many people just don’t even notice.
So what are the keys to finding a stable area that won’t blow up or down? Here are seven steps to finding out your area properties to invest in.
First, look for areas that have a strong rental market. Meaning an area where a good majority of houses are owned by investors who are renting property.
This will tell you that the taxes are low and the rent rates are high enough to attract investors who want cash flow. Next, find out the areas that other out of state investors are buying in.
Google is one way that comes to mind. Craigslist is also a very good source.
Next, once you find the area, talk to people there about the market’s overall appreciation. Find a market that is just boring, one where no one really ever understood all of the hype about the real estate bubble because it wasn’t happening there.
Once you find the area that other out of state buyers are buying in then the work begins. You are not there, so someone will have to do your legwork.
What is the best way to find the local deals? Find the local wholesaler!
Like a spy would find out intelligence. They go to the guy who is connected and who is the big dog dealer around and try to get them on your side.
That is what you do to find the best deals in the area. Next, find out who the hard moneylenders are in the area.
Guess whom they will be friends with? That’s right, the local wholesaler.
By finding the moneylenders you will find the best deal finder. They will be the ones constantly finding great deals and bringing buyers who need to borrow their money.
Contact the wholesaler in your area. It is much easier and less work than working with realtors.
Be sure to do some checking and asking around, make sure he or she is the big dog, so to speak. They run their business off of volume so they find the deals and mark them up just a few thousand and move them so they can keep buying more properties.
Besides, the local wholesaler is going to snatch all the best deals up anyway because they are going to have all the relationships with the realtors anyway and get first call on the deals. Overall, the local wholesaler, for the work they do, looking at hundreds of houses and making hundreds of offers to get their deals, is more than worth the measly mark up they make.
Let them tell you who the best property managers and contractors are, and they will help you get properties – quality properties – faster so you can achieve your investing goals. Get to work and do some deals, build your cash flow and take charge of your future.
Be bold and courageous, you won’t regret it! There is a reason that real estate remains one of the best investments in the financial world today-after all, if it weren’t a sure venture for those you are sensible and researched, it wouldn’t be so popular!
Jack R. Landry has worked in real estate since 1988 as an expert on home buying and construction. He has written hundreds of articles on real estate and recommends (http://www.alwaysaffordablehomes.com) for new construction.
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