Ivestment Buying Strategies

Today is a great day to take advantage of opportunity. Then again, so is every day.

If you are buying an rental property for monthly income, then make sure it has a decent cap rate after expenses. Getting a 6% cap rate,(return) on your money is typically a good rate of return on real estate, for the long term.


If you are buying real estate for long term appreciation, then it's a little different. The rate of return on this type of property is sometimes not as high as 6%, and you might even find yourself shelling out some cash every month. One of my investors is okay with this strategy, as long as the rate of return is higher than what the banks are giving you and the property is premium.
This strategy works well when you actually plan on living in the house for at least 5 - 7 years, if not longer.


Also, after further review, forget about the short sales and go after foreclosures. They are usually priced below anything else in the market and the response time is much quicker. The only caveat being that, sometimes these deals don't close on time. With so many foreclosures to deal with, the banks can't process them fast enough. My last foreclosure closed a week late, and I was nervous, but the deal finally went through. I was nervous, because foreclosures come with contract addendum's that favor the bank. It's nerve racking to not exactly know what going on and you think the bank is going to back out.


Another caveat to foreclosure buying; the room for negotiation is small. Usually at best you're looking at 5% off the list price, especially if it is newly listed. the longer it sits, however, the more negotiating power you have, but with foreclosures coming and going off the market faster then ever before, you don't find them just sitting around anymore. When you see something you like, and the numbers make sense, then be prepared to strike while the iron is hot!


That's it for "Today in real Estate" Thank you for reading my blog.

Please remember, I'm a real estate broker, my wife is a real estate attorney, and together we own a title company. "We Work Together To Serve You Better"

Be sure to check us out on the web at the websites listed below to find out more about us

http://www.a1realtygroup.net/

http://www.a1titleandescrow.com/

http://www.lglassmanlaw.com/