What kind of real estate investing?

NEEDLE IN THE HAYSTACK?

As mentioned on the link “Why Invest in Real Estate?, there are four primary benefits to owning real estate. However, as a real estate investor, we don’t experience the benefits of owning real estate until… we start buying some real estate. I know this sounds pretty simple, obvious, but yet to many real estate investors, this simple fact eludes them.

Believe me, there are countless people out there who are “needle-in-a-haystack” types of buyers. They are looking for that one unbelievable, once in a lifetime deal on a property. They always want that property at $40,000 below market value. As a result, they make multiple offers on multiple properties. The end result: no properties purchased, a mountain of frustration, and of course, no benefits gained.

Don’t get me wrong. I am not proposing that we overpay for any property. Our team’s job is to help you get the best possible price on each property. And especially in this market, there are a number of outstanding buying opportunities. However, if the comparable sales "say" a home is worth $130,000, that house will sell for somewhere around $130,000. Homeowners are not ignorant. They know the market, or at the very least their agent will let them know what comps warrant their home to be valued at. In addition, this market has reduced inventory levels, so as investors, we are often competing against multiple offers.

What am I proposing? I am proposing that as investors, we learn the benefits of actually owning the property, of gaining the benefits of cash flow, depreciation, appreciation, and principal pay down. I am proposing that we not focus all of our energies on “needle in the haystack” types of deals. If a property is worth $130,000, let’s focus on securing that property for the best price, and then analyzing the best financing options. The key as we know though, is to get in the game!

FIX AND FLIP?

This is an area of real estate that has a huge potential. We have a seminar each month on this. Go to our seminars page on this site to see more information on it. In addition, if you have particular interest in fixing and flipping, send us an email. There are a number of great opportunities in the Twin Cities for real estate investors looking to fix and flip.