Investing In Real Estate
The Phoenix-Metro area offers many opportunities to invest in real estate. Residential property investments, whether buy-n-holds or fix-n-flips, takes patience, wise decision making and consideration of many factors throughout the process. It is very important to know the market, neighborhoods and calculate the negatives and positives of flipping or long term holds. It pays and protects to have an experienced consultant by your side to make sure you stay on track. Having flipped hundreds of homes in the Phoenix area, I have an in-depth knowledge of the quick-turn real estate process, costs, financing stipulations for your end user and where you spend your money. I care about your success as I know mine is based on yours. Below are my recommendations to becoming a real estate investor:
Flipping:
Financial – Recommend having a minimum of $60-70k liquid funds (not borrowed from credit cards) to begin. Investor should be financially sound, free of consumer debt and have plenty in reserves. Flipping is highly speculative so don’t risk your nest egg or try to “flip” your way out of debt or provide a household income from it. Flipping under the wrong conditions will cause you anxiety and will result in bad decision making based on emotions rather than fundamentals. Done correctly, I see flipping as having one of the highest returns attainable today.
Procedure – whether you are a passive investor or a hands on investor, I will walk you through the steps:
- Locating a property
- Qualifying a property
- Budgeting including: Acquisition costs, Rehab costs, holding costs and selling costs
- Planning for Your Profit Margin
Long Term Holding:
Financial – Cash works best but I understand not everyone will wait to invest until they have the 100% Down Payment Plan. Speak with a lender who is experienced in investment real estate lending as there are several ways to accomplish the acquisition of the highest discounted properties. Being a landlord myself of several rentals properties, I strongly recommend getting educated on the pro’s and con’s of being a landlord, even if you plan to use a property manager. Reserve are imperative as holding real estate has it’s expenses and surprises.
A large portion of my business is working with investors as I naturally have a passion for this area of real estate. Over many years, trusted referral contractors have been compiled and qualified and have served my clients very well. Whether it’s the excitement and quick reward of a “flip” or the calculating, long term planning benefits of a “buy-n-hold”, the Phoenix-Metro area is a hotbed of activity for the real estate investor