Investors and Fippers
This isn’t your first rodeo, but times they are changing. Markets go up and down, lending practices vary, and sellers can be fickle. Now is a great time to invest with interest rates low and home prices down. However, it’s not always easy getting funding.
Investing
We cannot preach this enough, if you are not paying cash, the first place to start is a lender. Let them know what you are trying to do to make sure that you can get the ROI that you need. Mortgage rates for owner occupants are typically lower than those for investors. If you use a 1031 Exchange, you could save some up front taxes.
Why are you investing in real estate? We have some great reasons, but we want to make sure that you get what you want out of the deal.
What do you expect out of your real estate purchase? Are you looking for a certain return each month, or would you like to make money when you sell? Define that number now so that you do not waste your time looking at properties that will not work for you.
What kind of property would you like? A single family residence can be easier to manage but a duplex or a fourplex can be less of a risk.
Who is going to manage your investment? You can save money by managing the property on your own, but you have to be willing to take phone calls at all hours and have a list of reliable handymen. In Austin, you can expect to pay about 10% per month for management fees.
Flipping
Some of the same rules apply when flipping a property. See those questions above.
Do you have experience in construction or contracting? Do you have reliable sub contractors to get the job done for a good price in a timely manner.
It’s our opinion that you make your money off of the purchase of a property. Find a house with great bones and revive it!
We are here to help you make a sound investment. Call us today at 512-699-0786!
