You’re a people person. When working in property investments, you will have to deal with people from all walks of life – contractors, agents, brokers, and lawyers. Being a people person means you’re comfortable with all types of personalities. You’re able to keep an even keel through intense meetings and negotiations.
A quick look at the math will demonstrate that purchasing for cash flow works. Let’s start with the purchase price. You decide to purchase a property for,000,000. You deposit 0,000 as your down payment and earn a 10% cash on cash return on your investment. This investment will pay you ,000 in the first year and as the rent increases, so will your cash on cash return. Plus, while you’re holding the property, your 0,000 loan is amortizing or being reduced by your rental income. This means that you’re recovering your down payment while you pay down the debt.
You can find bargains in hotels, single family homes, duplexes, multi-family residential units, commercial property, and vacation or resort properties. One of more of these may appeal to you more than the others.
Here’s my answer: There are plenty of places to find good deals. You can find jewels right in your own back yard or hometown. I’ve been investing in California and you might know what that market has been like. The prices have been very high and there is lots of regulation.
Motivated sellers are what you want to find. Someone with a need to sell not just a desire. We’re not talking about someone who is desperate to take advantage of here but a flexible seller who is willing to listen and negotiate with you. look for the sale signs or newspaper ads with things like “owner take back” or ” low down”, so you know these people are willing to do some creative financing with you. Also “no qualifying” means the financing is assumable and you won’t have to qualify for the existing mortgage. “Owner take back” means the owner will take back a part of the down payment as an extra mortgage instead of cash. FHA mortgages may be assumable, and the cost is only a small fee with no additional points added.
Then one day, I had the idea that I should probably invite the Burger king guy, too. He was also in Atlanta, and he covered the same territories–the same seven states. Burger king accepted the invitation, and their organization came down for the special purpose of giving their side of the story, knowing full well that the McDonald’s guy was doing the class, too. So, I had McDonald’s guy come on Tuesday, while Burger King came on Wednesday.
Before you decide to look for real estate investment property, I would like to ask you a question: “Where do you want to live?” The best place to start looking is in the area you live or want to live.
If you buy for cash flow and you focus on the fundamentals, the exit will take care of itself, your deal will be financeable, and you’ll get your original investment back more quickly-something everyone’s concerned about these days.