Better Know Where You Are Buying

Some real estate investment companies sell some very low priced homes that show some great returns. These property need some careful consideration before you jump in head first to buy them.



I have a potential client here from Australia, we picked him up on Friday to go some properties that we were recommending. He immediately showed a address of a property that was recommended to him(Tim is his name). We drove Tim over to the property that he had given us to see, he noticed a big drop in quality of the area. Yes he may get a great return (maybe), the problem would be the quality of tenant and the turn over of tenants in that area. Not to mention the constant rehab that will be needed to keep that property up to snuff.



That is always a bigger problem with having a these type of properties. The first and foremost is getting your cash flow consistently . The other would be maintenance of the property. That could eat up all your cash flow and be a big pain in the rear. When the market turns these types of properties tend do not sell very fast.



We had some more clients in and they were bragging how great a buy a friend of theirs got on Ebay. That is right Ebay! We drove them to the property and they too saw that it was a horrible area. In fact we had to leave a large person to guard our vehicle to even go get a peak of the property. I instructed them they would be better off to just write off the purchase.



When you are buying real estate keep in mind the area's you are buying in. There are great deals out there that get great cash returns. We have some that cost south of $40,000 rehabbed that will get a 18% return or better! We carefully pick our properties and understand what neighborhoods and schools will draw the best tenants.



Let me give you an example we have with a client. His property has been rented for 4 years and he has netted $620 per month over those 4 years. That's over $28,000 net profit. He only paid $40,000 for that property. We have many other examples but in the essence of time.



There has never been a better time to invest in real estate. Just make sure you understand what type of property you are buying and where it is.



Check out some of our properties at Rooftopvideo

Brett Young Valley Realty Rooftopinvestment.com