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There are times in your life when you have to make decisions that others may question in order to change your future.
That is the case with investors who would 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 they cannot get a positive cash flow. So what can you do?
Look 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 50 percent appreciation in a year. They just steadily grow at a measly 3 to 5 percent, but guess what When the Bubble burst they also didn’t have 50% 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 7 steps to finding out your area properties to invest in.
1. Search for areas that have a strong rental market, 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.
2. Find out where other out of state investors are buying in. Google is one way that comes to mind. Craigslist.com is also a very good source. In fact I think it is one of the best sources to find great deals.
3. When you found the area, talk to people there about the markets overall appreciation. Find a market that is simply boring, one where no one really understood all of the hype about the real estate bubble because it wasn’t happening there.
4. When you find the area that other out of state buyers are buying in, 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!
5. 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.
6. 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 one constantly finding great deals and bringing buyers who need to borrow their money. Easy – just like a spy!
7. Talk to the wholesaler in your area. It’s less work and much easier than working with realtors. Be sure you check and ask around, make sure he or she is the big dog, so to speak, running the volume-based business. They mark the deals up just a few thousand and move them so they can keep buying more properties. Besides, the local wholesaler is the one who gets all the best deals anyway. The one who is going to have all the relationships with the realtors anyway and get the 1st call on the deals.
Overall the local wholesalers for the work they do – looking at hundreds of houses and making hundreds of offers to get their deals – are more than worth the measly mark up they make. Let them tell you who the best property mangers and contractors are, and they will help you get properties – quality properties – faster, so you can achieve your investing goals.
Then what? You ask. 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!
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