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Investor Strategies Investors we
work with have the full range of experience. Many are fulltime
investors; however the majority have other employment (aka JOB).
Investing is a long term strategic to create wealth for their
retirement years. How would you like to have Unlimited Resources to enable
you to make informed decisions? SURE!
What are they? Here are the resources we
offer, you chose what works for you.
- Because of the importance of having the
best options available to my clients. I have
spent an extreme amount of time researching
the financing options and here are the
resources that are available to you.
- 200 plus different lenders
- 10,000 plus different loan
programs
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- We have arranged to have these options
researched and presented to you at no cost
or obligation.
- We also provide the service of educating
about your FICO score and how to manage it.
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- Leverage
- Return on investment is
higher with 100% financing even
with paying higher interest
rates.
- Negative amortization loans
create higher positive cash flow
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- Appreciation
- Appreciation is what makes
everything work. Let it work for
you through a sound buy and hold
strategic.
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- Financing Options
- The right financing enhances
leverage and appreciation.
Financing can also make the
different between a good deal
and a poor deal.
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- Let the market dictate the time you
sale. Don’t be in a position where you have
to sale.
- So be prepare to be a landlord or accept
the current market pricing to flip the
property
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Knowledge comes through resources and the
proper application of knowledge is the power
We strongly believe this to be true and that
is why we focus our business on providing resources for our
clients to make informed decisions.
Investing Styles
Flip
Flipping property is very popular for many
investors. This simple means buying a property and then selling
in a short period of time. Usually the goal is to resale in 30
days or less.
The best time to execute this strategy is in a raising market
and finding properties being sold at 10% to 30% below market.
This is becoming increasing difficult to accomplish. Many Lenders
have established rules to prevent and/or limit investor ability to
execute flips.
I believe property flipping is becoming a thing of the past.
Lenders are and will become stricter with the flip rules. Many
investors have done very well and many are finding very
difficult in today market to be successful.
Buy and Hold
Buy and hold is simply holding a property for a
set time frame usually 3-5 years and then selling it when the
market allow you to make your required return on investment.
We feel this is the best way to invest. Everyone
knows real estate goes up over time.
Since no one can predict the top of a cycle.
That’s why holding a property purchased at the top of a cycle
can still be profitable.
Of course the goal is always to avoid mistakes and time the
market perfectly. However, that just does not always happen.
Investors are much more successful using this strategy.
Distressed
Distressed properties are those selling at a
discount to market or wholesale. Most if not all investors buy
or at least target to buy distressed properties in some form.
Positioning is important in
buying wholesale. I put a lot of focus positioning because of
that. Click here to read more about
position...
Buy Ugly
Buying ugly is an interesting concept. These are
extremely distress properties. Usually structural, drug house,
mold and asbestos issues to the point the building with have to
be demolished and no one wants to touch it. Well almost no one.
I actually have investors that purchase these types of
properties.
These properties are not for the average investor. You need
extensive background in construction and handling issues like
mold and asbestos. These properties can be brought for large
discounts to market. You will however have a large amount of
money into the property getting it into market condition and the
risks are not for the average investor.
Lease/Option
The is a common method for obtaining a tenant
that wants to own the home and is usually much more motivated to
take care of the property versus the average tenant.
The lease is a standard lease agreement.
The option is purchased by paying 1% to 10% for the right to
purchase the property at current market price at a set time in
the future. The option money is not refundable should the tenant
decide not to exercise or is unable to exercise the option.
Once the option has expired the tenant has lost their right to
purchase at the previously negotiated price. They have the
choice to re-negotiate another option and lease or they may be
asked to vacant the property.
The investor is then open to pursue other options. For example,
sell the property on the open market, re-lease/option to current
tenant or may chose to lease or lease/option to a different
tenant.
Pre-Leased
Many investors purchase a house then look for a
tenant.
Pre-lease is where we find a tenant first, then a house.
The pre-qualified tenant is usually a credit challenged
individual that wants to own the home at the end of the lease.
The lease term is usually two-year with an option to purchase at
the end of the lease. This allows them to get their credit
repaired, so they can qualify for a mortgage.
The investor allows the tenant to choose the property. The
payment is set by the purchase price of the house. The
advantages are as follows:
Investor
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Pre-qualified tenant
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Tenant with future ownership interest, more
motivated to take care of the property
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No initial vacancy factor between purchasing
the property and finding a qualified tenant
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Known investment return going into the deal
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Usually a high percentage of the tenants
never exercise the option. This allows for different options, for example re-leasing to the same tenant at an
increased rent or selling the home at current market.
Tenant
Specializing In:
Utah Investment Properties, Multi-Family
Properties, Utah Duplexes Triplexes, Utah Apartment Investments,
Utah Investment Property and more...
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