A little knowledge goes a long way.Through my years in the real estate industry, I have learned that there are some tips that can save you money and protect your investment. I have also collected a list of tips for preparing your home for buyers. Please check below for my suggestions! Enjoy the blog... Thanks, Michael Thomas Sponsor |
- The classic Glass half empty…We all know the question… is the glass half empty or half full? And if you are one of those half empties… consider the following.
The stock market is volatile at best right now. There does not seem to be any real trends in investing… brokers are just trying to stop the bleeding. Good advice is a dime a dozen, and worth less than that! This makes it tough to invest your hard earned money into such a tumultuous mess.
Real Estate is taking a beating. Nightly news blames everyone who still has a heartbeat for the problems with the sub-prime loans made in 2004-2005. I could write a book on the reasons why, but that’s for another day! You own a home, perhaps more than one. Or you are thinking about owning a home. After all it’s the American Dream!
So, glass half empty, this is a horrible time to be in real estate? Wrong… it is the BEST TIME TO BE IN REAL ESTATE!
The Fed has left the rates alone, and in a few weeks they will announce the new rates. It is expected they will not raise them, perhaps even lower them a touch. Cost of money is the game… see more of that from my co-sponsor Todd Eccles at Infinite Mortgage.
This means that you can buy more for less. How much less depends on you and what your needs are.
Here’s one recent example: Clients contact me looking for an investment property in Chico. Solid college town with the 40th HIGHEST HOUSING COSTS in the NATION. I did some searching, digging and called in a few favors, and this is what we found –
Tri-plex just three blocks from campus. Solid, completely leased, 10-12 bedrooms currently at $254/bedroom average. The going rate for rent is $325/bedroom! Bought the property for $121 per square foot. Everything else around this place is going for $200 per square foot. Seller had a problem, bought two years ago and his rate is killing him.
The moral of this story is – the glass is half full, and this client just filled it with money! He has a POSITIVE CASH FLOW NET of over $500 per month right now, and in 8 months when he raises the rents to par, he will be seeing cash flow of over $1,400 per month NET! 100% occupancy is a given… location is KEY!
There has never been a better time to leverage your dollars buying power in real estate! You buy $10,000.00 worth of stocks or bonds or gold… and your asset is worth only what you invested, assuming it does not go down! But take that same $10,000.00 and buy a $50,000.00 piece of property and now you have leveraged FIVE TIMES THE MONEY VALUE AS AN ASSET! Even a small move gets amplified quickly!
The next few months will see the most incredible deals for buyers… this market is a buyer’s paradise! If you want to explore the possibilities, let me know. Investors of ANY size are my specialty. Custom homes, second homes, ranches, horse property, rental income and development land! The glass is half full… let me fill yours with money!
