Buying Investment Properties

I often get to speak with would-be real estate investors, and find that although many see the opportunities to make significant profits by buying investment real estate, many are not aware of all of the risks involved and even more just don't know where to start.

I have personally had the opportunity to purchase a handful of investment properties of the past 13 years, however I chose to not hold any properties for the long haul. As you look to become a real estate investor, this is a decision that you will make; whether you are looking to buy and sell for a profit (the best way to make large profits in the short term), or buy and hold to create a portfolio of investment properties (a great retirement strategy).

If you have not considered getting into the investment real estate market, here are a few good reasons to do so now:

1. The interest rates are on the decline. A thirty year fixed mortgage is now back down to 6.25%.


2. Retirement. I see so many individuals who are strapped for money in their 50's, 60's, 70's, and 80's. I am not exaggerating. Many of them are embarrassed when they contact me and have to reveal where they are, and many times they are coming to me to take money from their sole asset; their home. The horrific statistic is that over 90% of Americans do not have the money to retire; owning investment real estate can change this.

I am not a "certified" financial planner, but I am sure any financial planner would agree that real estate is an excellent complement to your investment / retirement portfolio. The market has ups and downs, but over the long haul you usually will not go wrong buying real estate.


3. Market Conditions. It is now a BUYERS MARKET once again with properties staying on the market much longer, and THOUSANDS of properties on the market currently. If you tried to buy an investment property over the past few years (and were not an insider), you probably had a hard time finding a great deal, but now, you will find sellers willing to negotiate more than ever. On average, sellers are now paying at least 2% of the buyers closing costs, and this can save you thousands of dollars on your investment property acquisition.


Here are some pointers for getting into the investment market.

1. LEARN HOW TO BE A REAL ESTATE INVESTOR. I don't recommend high priced courses, but I do recommend getting an education. I found a great real estate investment book called "Fixer Upper Fortunes", which is an A to Z guide with a one year money back guarantee. It is sold as an electronic book which can be purchased and downloaded from the web (you receive it immediately after paying online as opposed to waiting for shipping). The book currently sells for $197, but you can buy it from this link for only $97 for a limited time. Click here for more info:

2. ESTABLISH A TEAM OF PROFESSIONALS TO HELP YOU. You will need access to new financing for your properties (and I would be glad to help), access to real estate agents to help find properties that have been on the market for a while with declining prices and to write contracts to purchase your properties (I can also help with my nationwide referral network), and contractors to estimate and help with repairs and renovations when necessary. Other folks that can be very helpful to have on your team are title searchers to find the true status of pre-foreclosure properties, home inspectors (not all contractors qualify to find problems and may only do repairs), referral sources, and an accountant (to help you keep your profits and pay minimal taxes).


If you are interested, here is some information regarding my first (and very successful) real estate investment:

My first investment deal (in 1993) was a no money down deal and I was able to sell it for more than twice what I paid for it. I am not one prone to hype, so I will disclose that I was an insider on this because I worked for the developer who was selling the property, but I still had to find an investor who was willing to put up all of the money. I actually found one, then got a better deal by using his rate to get a better rate with the second investor. I was able to borrow enough to buy the land, pay the closing costs, pay the development costs, AND have some spare cash. The investor got a 36% return in 6 months, and I walked away with a pretty nice check as well. I wanted to share that so you know it can be done. I know the market conditions are not the same as 1993, but I have more than investor client that makes in excess of $100,000 per year exclusively as a real estate investor.

Feel free to call me to discuss any scenario with you whether it is mortgage or real estate related. I also have some insider contacts with real estate developers nationwide and can put you in touch with some great deals.

I look forward to hearing for you. I am here to help you accomplish your real estate investment goals in any way that I can.

Anthony