The number one rule in Real Estate 44 posts by 31 users

Posted: 08/05/2008 at 12:56PM

Location, Location, Location! If you have property in the right location, at the right time, you can't help but make money. Simplistic but true.

Posted: 08/06/2008 at 12:42PM

investers and especially the buyers want properties in good safe places, like close to schools, parks, sports areas ect... places with low crime rates in up kept areas.

Posted: 08/06/2008 at 04:15PM

I have to agree with Mike. The most profitable areas don't always meet those "nice areas" criteria. I wouldn't buy a rental in an area where I was afraid to go, but it doesn't have to be an area where I would live.

Posted: 08/07/2008 at 07:53AM

Moitvation, motivation, motivation.......if the seller's aren't motivated it doesn't matter how good the numbers look.

Posted: 08/07/2008 at 06:32PM

I agree the best location is not always the best cashflow BUT if you can get a great deal in a good location it's hard not to make money.
And, Donald Trump has plenty of properties in locations that were already great before he bought or developed--he has a golf course in Palos Verdes; oceanfront condos in Baja; a casino on the Vegas strip; a hotel on 5th Avenue, condos with Lake Michigan views in downtown Chicago, etc.

Posted: 08/09/2008 at 07:04PM

In the end, what makes an investment property "work" is YOU. If you are not a good investor or a good steward of your property, it does not matter how good the numbers on paper are, it will not work. An person who buys very well and doesn't make money is not an investor - they're simply a buyer.

Case in point - I have two friends who had purchased two houses on a block and had been passively working on tenanting the property for 6 months with no success. To motivate them (and because it was a good deal), I bought a house on the same block, 3 houses down, and had a signed lease 3 days after closing. This was about 40 days ago and they now have both of their houses tenanted and cashflowing very well. The location was fine, their price point was excellent, they just needed a little tweaking to their system.

Tim

Posted: 08/11/2008 at 09:09PM

I told them to change their system to maximum 4 business hour delays in returning tenant inquiry calls and showings within 24 hours at a maximum. Frankly, I drop projects in process to show units and get application fees in hand. Once the application fee is acquired, I can slow things back down and get back to what I was doing. I've found that once the application fee is paid, over 90% of the tenants go forward with signing a 1 year lease.

Worked for this case.

Tim

Posted: 08/11/2008 at 11:59PM

location says it all no matter how furnished the property is. it must be accessible to your necessities such as schools, hospitals and others