Hey I was wondering if anyone could give me some insight on the different ways to purchase/acquire property. Thanks
Why don't you give some more information for everyone? What are you hoping to buy the property for?
The end can make a big difference on the means you use to get there.
If you fill us in on what you are wanting a little bit more, maybe someone can help.
I am interested too.....flipping sounds good....no money down.....on the market off the market quickly.....I dont know if I would be any good at renting....I want to get a foreclosure, little or no down, and flip quickly....
There are pros and cons to everything but I personally have only flipped acouple of properties. I would rather rent the properties out and make money each month than just to try and flip it.
Besides, if I get tired of being a landlord I can sell the property and reep the benefits then.
Iknow this is kind of short but please feel free to contact me and I can try and help you out.
Greenfieldent :D ....How do you decide that you want to rent...How do you know how much to charge...How do you choose a house to rent...so many questions...sigh :cry:
I decided that I wanted to rent a property inorder to continue to have a positive cash flow every month. Again, you do have to do your homework in regards to how much you can charge for rent but I have my rents a little higher than normal which usually gives me a better tenant that can afford the place.
I know this is a short response but I need more information from you and how much time you have to do some research.
Please feel free to contact me at [email protected]
Purchasing properties without competition
You say that you have your rents "higher than normal". I understand wanting a better quality renter, but how can you charge a premium? Are there certain amenities that you include in your units?
I have a 6 unit that I just got a week ago and I am discussing with my partner how to get the rents up a bit. Thanks.
I try to distinguish myself from the other people by repairing things immediately and having a repair person to look at appliances the next day. I do offer some amenties in certain places like including heat and hot water.
If you clean up the rental place by painting and clean the carpets I would recommend to ask for higher than normal rents. The worst that can happen is if you think you are too high in price then just go down alittle bit.
I have had great success in getting higher than normal rents but I also take pride and care of my rental units. In return, my tenants have better jobs to afford the unit and I think a better quality of person (meaning not have to evict them).
I hope this helps you.
Purchasing without competition - real estate investing
I guess my F.E.A.R. in this case is that I will be losing potential tenants to other landlords and my unit will stay vacant for longer. I guess that this also depends on the type of rental units that you specialize in. The nicer the area, the easier it is to get higher rents for more amenities.
I usually classify rental properties as follows:
A - highest end properties - very low or negative cash flow, low hassle factor
B - decent rental property - minor cash flow, minor hassle factor
C - lower end rental property - bigger cash flow, bigger hassle factor
D - war zone rental property - HUGE cash flow, HUGE hassle factor
Marc, what would you classify as your niche?
I guess the main thing you should ask yourself is do you want to acquire properties, or do you want to make immediate money.
If you want to make money, then you should get a real estate license, move to miami and get into the condo market.
If you want to acquire properties, then you should learn what a good deal is, find out what you realistically can acquire, then search every possible avenue to find these properties.
One of the first concepts I learned in REI is that there are many apparent opportunities out there, every deal seems good, the job of the RE investor is to weed throught these apparent opportunities and to find the ACTUAL opportunities.
What can you really do?
How much liquid cash do you have?
What is your credit like?(!)
When you figure this out, you can decide whether investing is for you and whether you should go into flipping 1 family houses, or buying 500 unit garden apartment complexes.
Just a few more benefits of charging higher rent for above quality apartments and landlord services, besides the better tenants that you will land initially: less turnover, which will save you the cost of having to advertise each time, as well as better word of mouth about your apartment when it does become vacant, which will eventually lead to shorter vacancy times and other good tenants. Of course, it will always be more difficult to find that initial renter at a premium cost, so you must weigh all these factors. Hope I didn't ramble too much!
Excellent way of putting it. I would say my rental properties are B decent rental property with big to moderate cash flow with minor hassles.
There are always the exceptions with tenants, some good and some bad that you have to stay on top of.
How to purchase real estate without competition
I have an above average multi unit in a "C" area and when I bought it the previous owner told me "you will never keep anyone here longer than a year and you will have to drop by often or else they will tear your place up." My experience hasn't been like that though.
I do have to go there more often than I would for a "B" property.
I do have good cash flow
I do NOT have problems getting my tenants to renew their lease. I think this is because I have maintained the property well and (more importantly) my tenants have stable financial situations. Section 8 is a great program if you can find tenants that won't fight with each other.
One other idea I would throw at people looking through this thread. If you are buying multi-family units then you might want to rent to a handyman. I just signed a contract with a local handyman that says he will do all of the maintenance in my "C" building and I will reduce his rent. So now I have a win-win where all I have to do is collect cash and write checks.