Investment Properties

[Dee Nott]

I'm curious to see how people look at what an investment property means to them. When we invest in something we are positioning our money to work for us. You may think of an investment property as a rental situation and shy away from it because frankly it will suck up some of those dollars for as long as you own it. You have the upkeep of the property...if the heat goes out at 2 am on a Saturday who do you think those tenants are going to call? That's right....the investor who owns the property (unless you hire a property management company, and that is a whole other conversation) So, there is another bill and time spent that will decrease your return on investment. Do you have to set up a corporation to funnel all this through? Do you just wing it, buy now and figure it out as you go along?
If you have read Rich Dad Poor Dad by Robert Kiyosaki you understand the value of having Assets that give you a steady income stream each month. He suggests doing that by investing in properties that you purchase very low (at the court house steps for tax value) and sell for a profit using Seller Financing. The problem with that is you are going to be competing with about 100 other people for the same properties. (More time sucked up)
What if there was a way to do this very thing and not compete with those 100 other people for some of the most overlooked housing on the market right now. Properties that can be purchased low and sold to those who are in need of homes but for various reasons can not get financed using traditional methods. Using seller financing enables investors to sell for 30 -50 % profit and have a monthly cash flow to reinvest or redirect however they choose. If for some reason those buyers decided to stop making payments (I’m just saying) the property could be resold a quickly and without the stress of a mortgage hanging over your head.
I am working on this very project for some of my investors that will accomplish this very thing. I hope to have openings soon to add more investors as these opportunities present themselves. I will be sending out newsletters and updates to those who are interested in learning more. There are just too many details for a blog post! If you would like to get on that list send me an email and we will get you started on our next issue. [e-mail]

[BNI Guy]

This is good information, Dee. My sister-in-law is a first time landlord and it is going very well. Years ago she reluctantly took my advice to buy and selected a two-bedroom townhouse. Over time, she came to appreciate the equity. Two years ago she met Mr. Right. He also owns a townhome and six months ago they moved in together. Instead of selling she interviewed property managers, did some analysis of the market, and decided that with the right tenant she could charge a lower-than-market rate and still make a nice steady profit. My wife works with a young woman who had rented her prior apartment for six years. A townhouse was a step up, the price was affordable, and the deal was made. The tenant pays two months of mortgage with every month of rent. There were a few issues in the changeover, mostly with the local cable company as installation guidelines have changed, but for the most part things have gone seamlessly. Everyone has benefited from the arrangement.

[Dee Nott]

Love me some Win Win! Thanks Steve!