The number one rule in Real Estate

The number one rule in Real Estate

Real Estate Investor · lagrange, GA · Member since 2008 · 46 posts · 0 votes

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.

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  • Contractor · Charlotte, NC · Member since 2008 · 178 posts · 14 votes
    18y

    I don't want to target you, but whats the point of this thread? if your property isn't in the right location at the right time, then what?

  • Real Estate Investor · lagrange, GA · Member since 2008 · 46 posts · 0 votes
    18y

    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.

  • Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
    18y
    Originally posted by Carey Harris:
    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.


    I disagree. I want properties that make money! I don't care where they are.

    Mike

  • Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    18y

    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.

  • Investor · Middletown, NJ · Member since 2008 · 2k+ posts · 1k+ votes
    18y

    Exactly. My rental is just what Jon described.

  • Real Estate Coach · Oakton, VA · Member since 2008 · 695 posts · 43 votes
    18y

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

  • Investor · Bellefonte, PA · Member since 2008 · 1k+ posts · 88 votes
    18y

    Location location location is said by those who don't understand real estate. Donald Trump never buys the most optimum location, he buys ok locations then makes them the best location. If you can improve the current location so that is creates a draw in and of itself then you can have some wonderful success. Buy the ugly house and make it a hair nicer than any of the other houses on the street.

    The number one rule in REI is to always buy from distressed sellers at deep discounted prices. This of course only happens after you know the market you are purchasing in.

    -Michael

  • Residential Real Estate Agent · Long Beach, CA · Member since 2008 · 432 posts · 63 votes
    18y

    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.

  • Real Estate Investor · lagrange, GA · Member since 2008 · 46 posts · 0 votes
    18y

    i just posted this from a logical point of view, please don't get me wrong on where the property has to be, but i will speak for those who are looking to buy in those areas to raise their families, like jon said, i was just contemplating.

  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    18y
    Originally posted by Jason Hanson :
    Moitvation, motivation, motivation.......if the seller's aren't motivated it doesn't matter how good the numbers look.

    Only if you have to purchase sub to or lease option. If you have the cash or the partner with cash, you never pass up a great cash flow deal. That would be silly to throw away money!
  • Member since 2008 · 37 posts · 5 votes
    18y

    I would think in today's really slow market ......... price and location is paramount to buying and selling (flipping)
    There are days in my City (100K + pop ) when only 2 properties are sold.

    Scary slow

  • Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
    18y

    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

  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    18y

    Tim, for everyone's benefit, can you point out specifically what "tweaking" was done to their system to get quicker positive results?

  • Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
    18y

    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

  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    18y

    Nice response Tim. I thought the problem was deeper than that from your first post. This validates the fact that quality management is the #1 most important aspect in rental units. I too require that my tenant prospects receive prompt return calls and asap showings.

  • AL · Member since 2008 · 21 posts · 1 vote
    18y

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

  • Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
    18y

    Not a problem Will and you're absolutely right about quality management. The difference between quality management and poor management is usually 5 minutes more effort and just a little more sense of "urgency".

  • Jeff TumbarelloPro Member
    Real Estate Broker · Fort Myers, FL · Member since 2008 · 1k+ posts · 323 votes
    18y
    Originally posted by Carey Harris:
    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.


    I beg to differ, it should be numbers, numbers, numbers
  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    18y

    Jeff,
    I am sure every investor will have a different take on the original & your statement. Numbers are very, very important, but for example's sake, it would not make a difference to me how great the numbers are, if the area was a "war zone" or other area in which I would not want to invest.

  • Developer · Seattle, WA · Member since 2008 · 1 post · 0 votes
    18y
    Originally posted by Michael Rossi:
    Originally posted by Carey Harris:
    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.


    I disagree. I want properties that make money! I don't care where they are.

    Mike


    Are you currently looking for real estate investment?
  • OR · Member since 2008 · 1k+ posts · 845 votes
    18y

    I like location.

    Good properties appreciate faster when the market is going up. They drop value at a much slower rate when the market is going down.

    They are much easier to find good tenants for and they are certainly easier (and faster) to sell for a higher market price and less reduction in the asking price.

    There is more to value than just price.

  • Real Estate Investor · North Carolina · Member since 2008 · 1k+ posts · 483 votes
    18y

    For me, the number one rule in Real Estate is to...

    Enjoy yourself!

    I've quit several careers in the past that stopped being fun.

    If you enjoy what you're doing, well, you love to work doing the work you love. And that's one helluva competitive advantage.

  • Contractor · Bronx, NY · Member since 2008 · 22 posts · 1 vote
    18y

    I'm currently investing in an area that is not so great, but as long as you see potential in the property, you'll make a good profit on it.
    Whats a bad area to one person seems to be a descent area to another.

  • Member since 2008 · 55 posts · 0 votes
    18y

    numbers depends on location, accessibility just like what the other poster said, everything that was given here are all important it just depends on what you are really after too.. Tim you got a nice point.

  • Rental Property Investor · Twin Cities, MN · Member since 2008 · 94 posts · 10 votes
    18y

    The number one rule in real estate investing is...

    It depends.

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