When I first started as a real estate investor, I thought I should buy as many properties as I possible can. A property allows you to make money with out any limit, but there are only two methods that are commonly used.
Method 1) Buy and flip: Find a TLC / Handyman Special / or a Total Rehab property then buy It very low and sell it higher including cost of repair and labor. And in this market if you search hard enough you can buy a short sale with little or no work needed. Method
2) Buy and hold: When you purchase a property hold it to generate income and appreciate in value over time. Real estate demand continues to grow as population continues to grow and people are willing to pay for place to live.
The two common problems investor doesn’t invest into Real estate.
Problem 1) Tenant problems is the biggest reason investor quit in real estate before reaping the benefit of investment appreciation. There are many avenues you can take to tackle this problem, hire a management company many big investor that buy 15 or more units use a management company. Want more for your buck; hire a small management company that is flexible with their fees: most small company is just starting off and wants more business. Another avenue is to hire a realtor to rent the property and to help in (problem with tenants, in the eviction, get advice , knowledge about the area, rental of apartment, or just maintaining a property) for very low cost but with much more benefit. Problem
2) Over spending on budget: When flipping houses many investor don’t know what to look for or even have budget in place. Understand that a investment needs to keep cost low but sell it quickly. My experience as an investor on flipping property was a eye opening experience and hit on my net profit. So hire a realtor that has good track record working with BUYER’S they know what a buyer looks at when buying a property. And don’t go over broad with high end product where houses in your market is selling with low end product example (crown molding, cherry hardwood floor, etcc) When flipping a property focus on, Kitchens – Bath room: now every property should have 2 bathrooms, and don’t forget to keep good layout of the property.
Hire a local realtor with 2 or more year of experience in the market, for investors this is best time to buy don’t miss this boat again. Start small with Buy and hold. Good Luck.
The third quarter residential closing continued to drop for Westchester and Putnam counties below are the status for the 3rd quarter compaired to last year 3rd quarter 2007.
Westchester County
Single -Dropped - 21%
Condo- Dropped-26%
Co-op - Dropped - 23%
2-4 Family-dropped- 37%
Putnam County
Single Family - Dropped - 11 %
Condo & Co-op - Dropped-40%
We also see an increase in inventory from last year 3 quarter in 2007 - This year inventory higher than last year:
Westchester County:
Single - Increase- 112 (2.8%)
Condo - Increase-21 (2.2%)
Co-op - Increase- 158 (11.9%)
Multi Family - Increase- 16(2.0)
In Putnam County we see decrease in inventory for single family homes:
Putnam:
Single - decrease- 65(6.2%)
Condo & co-op - increase- 16(13.8%)
Being skilled in what you're doing in your market will lead to success. Many have seen their market stabilizes or hit rock bottom. We are now seeing some light to recovery. Realtor has to work on generating leads, keep the lead and convert them to sales. Providing quality service to clients is crucial to close a deal in this market. Agent should provided great service, great presentation, and great communication skills.
Realtor should know what their strong skills are and what their weak skills are. Then get the training and mentorship to develop the skills that need to be developed. Agents should focus on the goals and marketing strategies in the coming next years.
Knowing your goals will lead to a success in 2009 sale. Broke down monthly, yearly listing and sale .
Find the friendly. Doing Business with Friends , when all things being equal. No Pain Their .
Find the common ground. Building the common ground when speaking to a prospect that "clicks", something that sparks the conversation and takes it deeper. Common ground build initial comfort - maybe even trust. No pain there.
Find the engagement. How meaningful can you make your questions so that you get to the heart of the prospect's important issues? No pain there.
Find the need. In conversation and two-way dialogue precipitated by your questions, uncover the real needs. Find the symptoms and address the needs. Needs are not painful; they're challenges that you can convert to sales. No pain there.
Find the desire. By exposing desire you at once understand (beyond need) how important your product or service is to the prospect. No pain there.
Find the opportunity. Common ground, engagement, need, and desire will expose the one element necessary for you to make sales: OPPORTUNITY. Your job is to discover how to take advantage of it. No pain there.
Find the difference. The difference between you and your competition that the customer perceives. There may be some pain here - if the prospect thinks the competition is better than you. OUCH!
More Millionaires have made their fortunes in real estate than in any other business. IRS, said 71 % of all Americans Declaring $1 million or more in income tax returns during past 50 years.
Investing in real estate is solid financial security or it can create generational wealth that would help immediate family. Investor who includes real estate in their portfolio will help increase your diversification and allow you to participate in an asset class that complements the stocks and bond markets.
Is This the Right Time to buy real estate?
Timing the market is impossible, so I never try to do it. Buying outstanding value is the most important factor in your future success as a real estate entrepreneur, no matter what advice is being offered by the so-called real estate gurus on late-night infomercials. Nevertheless, great fortunes in real estate or any other industry are often made during times of economic distress-in particular, when market corrections, like the current one, dramatically undervalue assets.
Down (Market) Cycle
When the market makes a dramatic correction and valuable real estate assets can be purchased at substantial discounts, be prepared to go shopping for the best deals you can find. real estate market finally does recover (which historically is inevitable-and it seems as though the down cycles are shorter each time), your portfolio will profit from the smart, patient investment decisions you made when everyone else was in panic mode.
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Building Wealth Together! -- Serving Yonkers, Westchester NY . Your local Real Estate Economist---Call me Today(914)438-8840 ---Specializing in Investment and Residential Properties
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