7 steps for investing in real estate that is not in your market
July 29, 2008
Sometimes you have to buck the crowd and do things that others will think you are crazy for doing in order to change your future
That is the case with many investors who want to build a rental portfolio or invest in real estate but there market is so crazy that a 2/1 shack is 200k or the taxes are so high getting a positive cash flow is just not happening. So what do you do?
Sooner or later if you what to acheive cash flow and build your rental portfolio you will have to move to another market, or at least invest in another market with other peoples help.
There are plenty of areas that were not affecting by the real estate bubble bursting, at least not as bad.
Some states never really noticed the bubble in real estate because they never saw the temendous increases in values as some of the areas of the country where it was just redicoulos. One example of that is in Mississippi.
So how do you invest out of state without taking a bath? Here are 7 tips to finding out of state or out or your local market properties.
1. Try to find an area where most of the property ownership is by investors renting their properties. This shows you that the rent rates and other factors will allow for a positive cash flow.
2. Hunt for states or cities where their is a high percentage of investor own or absantee owners. This will show you that the reant rates are such that the areas market will provide great cash flow.
3. Once you find the area, talk to people their about the markets overall appreciation. Find a market that is just boring, one where no one really ever understood all of the hype about the real estate bubble because it wasn?t happening there.
4. Don’t waste time trying to find the deals and talk to realtors. Just find the local wholesaler and you will find the best deals.
5. Like James Bond or the guy off of burn notice the hot tv show out there do what they do when they need info. They go to the man with all the connections. That is what the local wholesaler is to the real estate market you are trying to get in to.
6. Find out who the hard money lenders are in the area. Guess who they will be friends with, that?s right the local wholesaler. By finding the money lenders you will find the best deal finder. They will be the one constantly finding great deals and bringing buyers who need to borrow their money. Easy—–just like a spy!
7. Contact the wholesaler in your area. It?s much easier and less work than working with realtors. Be sure to do some checking and asking around, make sure he or she is the big dog, so to speak. They run their business off of volume so they find the deals and mark them up just a few thousand and move them so they can keep buying more properties. Besides, the local wholesaler is going to snatch all the best deals up anyway because they are going to have all the relationships with the realtors anyway and get 1st call on the deals.
The work that the wholesaler does in order to find his deals is more than worth the few thousand dollars he or she will mark the property up.
Use the wholesalers, contacts. they will know everyone you will need.
Then what? You ask.
Get to work and do some deals, build your cash flow and take charge of your future.
Be Bold and Courageous, you won?t regret it!
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