April 2018

When I speak to new investors looking to buy and hold real estate, one of the first questions they ask is what type of properties they should buy first. While purchasing a property that provides income potential is a wise investment, purchasing a multifamily is even better. If you buy a condo or single family and lose your tenant, you have zero cash flow. With a multi family you can carry it easier if you lose a tenant because you have multiple tenants paying rent. It is also harder to qualify for an investment property one you own multiple properties, so make the first one count by purchasing a 3 or 4 family with as little as 3% down. After your first purchase you will typically need 20% down for any additional investment purchases.

While most folks have a negative perspective on short sales, there is actually a bright side for sellers and buyers. As a short sale seller it allows you to take control of a bad situation, get some cash into your pockets (relocation assistance), and gets your credit on the road to recovery. While foreclosures put a 5-7 year scar on your credit, many of my short sellers are buying homes within 2 years. On the investment side, they create a great opportunity to negotiate directly with the bank without competition and before the property is auctioned off at a foreclosure auction where you have to compete with a ton of investors. http://BTRealtyGroup.com.

When it comes to flipping houses, real estate investors need to understand the to keys to pulling permits. The first item you must understand is whether or not you need a long form or short form permit. This makes a big difference and can significantly increase your time frame if it is a long form. The second key is asking your contractor if they have experience pulling permits in the Town or City you are working in. It’s not a deal breaker but this can streamline the process if they are familiar with the local inspectors.