Investment Property For Sale
Looking for a solid investment property? Well, you've come to the right place. Here you will find some of the best investment properties in all the country. That might be a bold statement, but I'll explain why I can make that claim in just a minute.
I've been investing in real estate now for almost a decade and during that time I've NEVER heard anyone say, "it's a bad time to be investing in real estate." It's only bad if you don't know what you're doing. Right now there are some amazing deals across the U.S. because of what happened recently with the housing market... And yes, now is the perfect time to be buying investment property because houses are so cheap.
Here's a sample investment property with numbers -
It's hard to find investments like this that can give you these kinds of returns without the risk like the stock market. That's what makes this so exciting. Now, if you're looking for newer homes, built within the last 5 - 10 years, this is not the place to look for those. We find properties in areas that give us the best returns. So most of these homes were built in the 30's so they are older, which is why you'll see a lot of brick, siding and big yards.
All of these investment properties have extremely high cash flow. These homes are total turnkey meaning you buy the property and collect the rent checks each month. You basically don't have to lift a finger and you can expect cash on cash returns of 12% - 15% annually. Now obviously, I can't guarantee that, but that's what our current investors are seeing. We are able to get these kinds of returns only because of where these properties are located and the relationships we have with the banks. Most of the investment property we have are located in the Midwest or in the Southeast parts of the United States.
Cheap Houses For Sale
If you're wondering whether or not it's a good idea to invest out-of-state or in your back yard, it's really up to you. Most of the investors we work with are "out of state" or "out of country". You just have to decide if that's for you or not. For most, it's usually not a big deal as long as there is a good property manager in place. And trust me, they are worth every penny when you find the right one to manage your properties. We work with some the top local property managers in the city where the investment property is located. You always want to have someone watch over and take care of your property since you're not there to watch over it. You can typically expect a property management company to charge anywhere from 8% - 10% of total rents.
One of the biggest concerns we get and is a legitimate concern is the location of the property. Trust me, I know what a war zone is. I've driven certain neighborhoods in some of these areas during the day and lets just say I had my doors locked and I wasn't about to stop for anything or anyone. I can't imagine what it's like at night! There are certain places you simply DON'T want to invest in, it doesn't matter how great the deal. These so called "War Zones" are places you stay out of, PERIOD! Even when you're just buying an investment property.
We stay out of places like this. No matter how good the deal. And oh man there are some screaming deals in these areas. We had one landlord deed us his property that was in one of these areas just because he didn't want it anymore. Really? A free house? You get what you pay for. We just flipped it for $2000 and let a local guy deal with it. What ever you do, don't EVER buy an investment property in these neighborhoods. And don't take anyones word that it's in a good part of town. Always, always do your due diligence before you dump your hard earned cash into one of these.
So how do you research to verify it's in a good area and not about to be condemned or stripped of all the copper? The easiest and best way is to call up a local real estate agent in the area. With the internet, it's so easy to find people. You'll want one that's been around for awhile because war-zones change. What was a war-zone 20 years ago, may not be today and vise-versa. Call them up, give them the address, ask them about the neighborhood or zip code, what it's like and if they'd feel comfortable buying an investment property in that area. That's the easiest, quickest and safest way to do your homework. LinkedIn is a fantastic way to find a real estate agent in the area. You'll probably find several dozen, so get more than one opinion.
Investment Property Expenses
If you're new to owning investment properties, you'll have some basic expenses. You'll have your property taxes, insurance, then your management and maintenance fee that we talked about, and then it's always a good idea to have a maintenance budget and don't forget to account for vacancy. And if you ever need the money for an African Safari or retire on an island somewhere, you can always sell your investment property because it's an asset. About 1/3 of the total rent goes toward expenses or at least possible expenses, everything else is profit.
And yes, you can use your IRA or 401k to invest in real estate. There is a specific way to do it, but yes, the goal with any retirement account is to have enough money in it to sustain a comfortable lifestyle after you stop working. With everything that has happened lately, many saw their 401k's cut in half. And some even worse than that. Many had to start working again. So a lot of people are now using their IRA's and 401k's to invest in real estate.
You can see now why investing in rentals is a great way to go if you are looking to build longterm wealth and grow your retirement. People will always need a place to live. Buying properties this low, is a sure hedge against inflation. As price of materials go up and wages go up, you simply can't build a home this cheap anymore which increases the value of your rental properties. As prices go up, these returns won't be as good as you see here, but they will still be solid. That's why NOW is a good time to buy investment property.
'Don't Wait to Buy Real Estate, Buy Real Estate and Wait' - T. Harv Eker
There are properties just like these all over the nation. We've built the relationships and spent the time fixing these up so you don't have to. They are completely turn-key. Most of these investment properties have rental contracts up to a year and some even longer. We do get properties that are SEC 8 as well. It just all depends on the inventory at the time.