OfflineWhat NOT to do when investing
When deciding on an income property investment, the mistake many new real estate investors make is to let pride of ownership influence their decision to make the investment.
Because a property might be located in a low-income (not a high-end) area beginner investors regularly ignore the profit the property can produce and walk away from the opportunity.
The problem is that too many new investors look for investment properties with the same mind-set that they would look for in a house to raise their own family.
They seek properties they would feel comfortable to live in, located in a neighborhood that they regard safe enough for their kids to roam and play, and loaded with tenants that they wouldn't mind having over for dinner. But as lofty as those aspirations are, the realities of real estate investing and your notion about investment property is as equally flawed.
Consider this.
• Though you might want a rental property you would be willing to live in the truth is that you will probably never live there.
• Though it is located in an area that you might feel uneasy about turning your kids loose, the truth is that your kids will undoubtedly never go there unless you take them there.
• As for the tenants, be thankful they are willing to occupy and pay you rent for your units and never make it more personal than that.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
I found myself thinking this I need to focus more than before on the profit rather than the outlook
One's dream is another's reality
Probably all up and coming areas were not so great areas at one time , but
the potential for these areas could prove quite profitable - so (as the
phrase goes), seize the opportunity!
I agree Coach. Some of the best deals are those that you would think are the worst. I have wholesaled bunches of houses $7K and below. The person/s who purchased these have rented them out and have made more than half of their money back in a years time. After that it will be producing pure profit. Like they say "there is money in the hood" and that is the truth!
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
I hear you loud and clear. I picked up a house in an area I would probably not live in for $30K, I probably need to put about $10K into it. I can rent it as a HUD rental for $950, my mortgage will be less than 1/2 of that!! Do I hear cash flow????
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
That is a good thing about these old cheap houses is the positive cash flow.
I have one right now for $6780. It needs mostly cosmetics and the windows and plumbing replaced. ARV is about $36K to $41K.
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
That is what I am doing Chris, most investors are a fraid to go in the area I am buying in. While they are looking at location,I am looking at cashflow.
In the end I know I will have great cashflow coming in as apose to buying in better areas where the cashflow is less attractive. I am working with sec 8 which pays more than I would get from a regular renter, and not all sec 8 people are bad. A lot are just people that want a chance to get on their feet as well as handycapped people also. You can get good and bad renters from either side, sec 8 people who trash your home are at more risk than someone who is a regular renter because if they get too many complaints against them they will loose their voucher and be forced back into a shelter.
JMO
Richie.