Tuesday, February 23, 2010

Risk it all in flipping?


What I mean by that title is what price point and rehab can you afford? Most private money is 18% and that can add up if you don't sell you property within 60 days. If you pay cash still look at the time frame and the money that could've been made in that time fram if you passed on the purchase.

You want to remember that when you get your home sold it may not be sold. I just had a buyer back out of a contract because there son was no longer going to live with them. They simply decided to not buy the home. The escrow was opened for over 30 days. The inspections, appraisals, and loan had all been approved. The closing date was in 2 weeks. no red flags anywhere.

When doing a flip their is no accounting formula that you can use that meets every aspect of your situation. So I invented one. First test your stress level and make sure the property is not to rich for your blood. Second make sure that the spread is wide enough to make money with. Third make sure and know all the cost associated in buying, selling, and rehabbing it. Get a time frame for when the work on the rehsb will be completed.

If all those test say go then that will help you in your decision making. Also make sure not to be emotional on a buy. Their will always be another deal.

So have fun in investing and know your three test questions.


--
Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://www.rooftopprofitmax.com/

Tuesday, February 16, 2010

Buying homes at Ridiculous prices smart?


I recently flew up to Cleveland Ohio to look at some new areas. Tim my realtor in Cleveland had been looking at some new areas for me and my investors to purchase in. There were two areas we looked at. West Cleveland and the East side of Cleveland (not east Cleveland).

The west Cleveland area homes had some great looking neighborhoods. The homes purchase with the fix up needed would be between $25,000-$30,000. The rents were $800+ a month and the homes were worth around $65,000. These homes are gems and are easy to rent. I really appreciated the size of the homes in this area. This area had my generous support and we sold 3 immediately. Check out the area in this Video

The East side of Cleveland prices were considerably less. These homes would run you between $15,000-$18,000. The rents range $550-$650 a month and the homes are worth around $40,000. The neighborhoods are not as nice as the west Cleveland homes but they do cost less. The neighborhoods are pretty nice and the homes are roomy and light fix up. We have a property management that really knows that area and that is important to have with these type of homes. Check out the area in this video

I think these type of homes create a great cash flow that will grow in the future. Cleveland has a great inventory to choose from. On top of the great selection we also have all the tools set up for our success. Construction, Property Manager, Realtors, and other maintenance people. We gage all areas for rents and values. Having 70 properties on our resume there (450 overall) gives us great insight on property values and rents. So Ridiculous prices can mean riches for you as long as your part of a Rooftopprofitmax team.

--
Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://www.rooftopprofitmax.com/

Saturday, February 6, 2010

Does the real estate market suck?


A lot of news media are reporting that the real estate market is in the dump. Is it?
Looking at homes that were purchased between 2004-2006 your equity went the wrong way. Everyone thought that the prices wouldn't keep going through the roof like those years. No one ever thought the prices would slam dunk down like they did. In some areas these homes went down 70%. That's huge!

Looking at 2009-present prices have still went down but not by much. In some areas they've actually went up. The key to buying in today's market is buying homes in great areas, high rents, great equity for the lowest prices. Finding these areas is hard to find but they are out there.

The areas I personally invest in is Lansing Michigan, Euclid Ohio, Shaker Heights Ohio, Maple Heights Ohio, South Euclid Ohio, Cleveland Heights Ohio to name a few. These areas offer me and my investors great returns now and mega equity today and in the future. The rents or land contracts are high and the homes are cheap.

I think buying today will help you create wealth in the future. I've personally did it in the mid 80's in the Phoenix, Arizona area. I purchased condos for $15,000 in Mesa Arizona. These homes created great wealth in late 90's. I made a great rental income up to that point with my same formula. Great areas and high rents at cheap prices.

So remember that buying today will make you a great income and create wealth today and in the future!

--
Brett young
Valley Realty
Owner/ CEO Roof Top Investment
Real Estate Investment
http://www.rooftopprofitmax.com/