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Posted about 15 years ago

Answers for New Investors

I have found that there are many people looking to take advantage of the current real estate market and add to their other portfolio of investments, but simply have no idea where to start. Often times new investors have similar questions when they decide to invest in real estate and here I am going to answer a few of those questions.

1. The First Question: Where do I want to invest and why?

This answer is one that may be different for every investor. Some investors feel more comfortable investing in their own backyard even if the profit margins are thinner, break even, or often times negative. I have come to the conclusion that Memphis, TN is potentially the most profitable city for investors. When I first had the real estate itch, I searched several websites and forums featuring "deals" with break even and negative cash flow. I couldn't understand why anyone would select this option as opposed to any of the traditional forms of investing providing minimal return on investment. My eyes continued to fall on headlines featuring the city I live in, Memphis, TN and the advantages of investing here.

Why is Memphis an advantageous place to invest? The average house values are much lower than the rest of the country and rent for relatively the same prices, which converts into higher positive cash flow. Another interesting fact I stumbled across was that between 30% and 40% of the residents in Memphis are perennial renters with either little desire to own their own house or lack of assets that would allow them to qualify for loans.

2. The Second Question: Where do I start?

I always recommend finding a local Real Estate Investment Group to join. These groups are often filled with brilliant minds willing to share their successes and failures with you to alleviate some of your growing pains as you develop into an investor. Another source is the various forums that are available on the internet. These forums can often provide a new investor with a general outline of where to where to start and some guidelines to use.

Unfortunately, there are certain growing pains that many first time investors experience regardless of the preparation. At The Uptown Group, we have created an unparalleled turnkey system designed to cater to the specific needs of of first time investors, seasoned investors, and out of state investors alike. The services that we offer include, but are not limited to: Property Management, Acquisitions, Financing Assistance, Hard Money, Consulting, and all of our renovations are done through contractors that work strictly with us. This means that we find your investment property, get you financed, complete all necessary renovations for you, and get tenants into the house for you. Because we have all of these services available to our investors, they are allowed to work with one company instead of several vendors which can often be more expensive.

If you are interested in the opportunity to invest with a full team of support or would like to be added to my buyers list to receive an un update when new properties are available email me at [email protected]. Comments and questions for future installments are appreciated!

 

Comments (2)

  1. Joshua, I'd be glad to cite a few of the sources I used while researching Memphis, TN. http://realestate.aol.com/Memphis-TN-real-estate Midway down on this website in the middle is a drop down section that shows 39% of Memphis residents are renters and there is a 10% vacancy average in Memphis. http://www.nmhc.org/Content/ServeContent.cfm?ContentItemID=1152 About one-third of the way down on this page it states that 47% of the Memphis population are renters. This survey was taken on July 1, 2007 and for safety in the numbers I chose to use 30%-40% instead of the 47% stated. When I wrote my blog, I was using information that I have gathered from my reading over the last few months. If you would like I'm sure I can backtrack and find a few more sources. Also, I have found that the second site has many excellent facts that all investors can use if they are considering investing in a city that they do not live in. Thanks for the feedback! -Bobby


  2. Robert - Can you cite the source of the data you point to where you mention that 30% - 40% of the residents in Memphis are renters?