Can’t find the deals in your state, Try investing in another one.
I have met many investors that have told me that they want to build a rental portfolio but they can’t in there market because of the houses being to expensive compared to rents or the taxes on the properties are so High that they will not cash flow.
Some investors in the Califonia area were unable to find properties that could cash flow because of the extreme price appreciation that went on there. They thought that buying rental properties was out of the question.
This is the way it is in many states and areas across the country. My advice to them is don’t let that stop you. Not all states and areas in this country were affected by the real estate bubble bursting.
There are some states that never even understood all the hype about the real estate bubble because they were not reaping all the benefits of 100% appreciation. In return when everthing went to crap they did not get smashed either.
Here is a plan if you still want to build a rental portfolio.
Hunt for states that were not affected by the real estate bubble on the upside. They will not have been hit as hard when everything went down. They are the states and areas that just saw moderate appreciation when everything was going strong.
When you are succesful on your hunt for those states. Find the big dawg wholesaler in the area and let them guide you through the process of investing in that area. They will know all the right people you need in order to buy your houses, rehab them and manage the property for you. Make sure to find the one that is doing a bunch of business each month because there profits will be on volume and not on one deal. You will save time and money working with them.
as you find the wholesaler ask him who he knows that will lend money in the area, and who he knows to rehab the house and also the property managers in the area and take advantage of there experience in the market to expedite the time and effort that you have to make in order to find the right deals.
Once you meet them and check them out— make sure they are honest. Then proceed to find the deal you want and start building your portfolio. It is not hard to do and it works.
I have known many investors who told me they could not find the deals that would work in there area so they went to another state or another market. They did not listen to all the naysayers who told them they were stupid and they did not let anyone stand int there way. After a few years of doing this they were sitting pretty and they where the ones laughing all the way to the bank.
The key is finding someone you trust. Buying good properties with good cashflow and staying aggressive. Once you decide to get out of your comfort zone and stop accepting excuses for not investing you will have the potential to change your future.
To qoute a famous company, Just do it. You will not be the first and definitly not be the last investor to figure out that if you want to be succesful and are willing to take some calculated risk you may find yourself looking up in a few years and realizing that they have changed their financial destiny.
The deals are out there just be willing to go find them, even if you have to go to another state. If you are willing and get off your rear and take some risk you will be in position to change your future. Good Luck!
Tags: Finance