This is a great investment if you’re looking to generate:
- passive income in form of monthly cash-flow
- without the responsibilities of the typical landlord
- knowing that not only your capital is preserved but that it will keep up with inflation
Is Real Estate Investing the same in all areas of the USA?
Not quite. During the Boom years of the early 2000 not all areas of the country experienced similar inflated values. When the Bubble burst each area has been impacted in a different way primarily by the local economy and also by the degree of initial artificial property inflation. Equipped with knowledge of macro economics my partner and I scout the areas that:
- have good economic forecasts
- have the potential of future capital appreciation
- generate high cash-flow on rentals
We know plenty about the Boom/Bust cycles, how they are created, and how to look for investments that will not or will be minimally impacted by these cycles. We assess each potential transaction and evaluate its degree of returns and risk. I believe that when you invest for long term (not speculation) you should not be investing in an area or a field that has a Boom in the making (unless you know when to get out). This knowledge is something that you will not get with other Real Estate consultants. All they do is sell you on the idea that you can generate huge cash flows but they won’t tell you anything about what could potentially go wrong with the local economy or the investment itself.
When looking at various investment opportunities do remember that “anything that appears too good to be true, most of the time it ends up being that way…too good to be true”! Pay attention on how the crowd is rushing to invest in one particular type of investment or one particular area and remember that those that triumphed were not the ones that were moving with the crowd. America is a big country with various cultures and economies that differ not only from state to state but also from city to city. My question for you investor is: Do you have knowledge of basic economics? Do you have hundreds of hours to spend on learning about the economy of each area? Most of the investors I know don’t. This is what I do on a daily basis and that’s why it makes sense to use my recommended strategies.
The Turn-Key Investments I offer
The typical investment I offer is a “turnkey wholesale real estate rental.” It is not a security offering, you get clear title to the property at closing. Most of the properties are single family dwellings or duplexes, in some cases 3-4 units. It is my belief that the residential properties are a better fit for many investors because: a) they generally are easier to sell; and b) many people prefer to rent homes instead of apartments.
There are three types of Turn-Key properties
All of them are picked to accomplish your passive investments goals. The difference is slight changes in prices and the time it takes to start earning your returns. The property that has already been rehabbed and is producing income will start producing returns immediately. This property includes a typically higher initial investment, but reduces any risks associated with pre-rehab investments.
Choice 1 The property has been rehabbed and it’s already leased out and under property management.
Choice 2 The property has yet to be rehabbed, leased out and placed under property management. In this situation you’ll sign a contract, put a Good Faith deposit, and all the work and leasing are completed prior to closing.
Choice 3 Closing occurs first. The property needs to be rehabbed, either cosmetically or more extensively, and will take a little longer to start producing income. These properties normally produce slightly higher returns because you can usually get it for a slightly lower overall price. You get a detailed repair estimates and time-lines for completion, along with all other services related to leasing, management, and turning the investment into a cash flowing property. If you are buying pre-rehab properties you need to be aware of the additional risks associated with these investments.
Other Real Estate
On occasions I come across some very unique deals, opportunities that may be great for you, if you’re in the market for other kinds of real estate. I usually consider those if they have a high rate of return. I usually post those separately so that you know not to confuse them with the turn key deal. So, when you’re looking at such a deal when posted keep in mind those unique opportunities don’t stay around for too long. Check with me to make sure it’s still available.
Contact me if you wish to consider investing in real estate anywhere in the U.S.