Buy and Hold, the way to profitable long term real estate investment.
Profitable real estate investing over the long term is all about the hunt for cash flow. These are situations where investors buy and hold, not rehab and resell. There are plenty of opportunities to find properties that produce monthly cash flow in every real estate market condition, up and down. Buyers need to keep their ears to the ground to find the best deals and grow in real estate investing. The best properties always have multiple buyers bidding for them, so the prudent buyer must pounce immediately when they see something that is good. It is important to remember to buy with your head, not your heart. Never pay over your pre-determined price, no matter what. Auctions are a great way to sell things because of the last minute frenzy that often happens, driving up the price. I refer to it as the “Ebay” effect, whereby the last 120 seconds of an auction drives the price up 20% or more. The same principle holds true with Real Estate Investing.
Foreclosure auction on the LA Courthouse Steps
Maintenance cost is also a great part of real estate investment. It is important to know what the replacement costs of everything will be. This is best done through experience so I recommend newer investors bring along an experienced investor or contractor when previewing investment properties. Many cities will have special departments dedicated to enforcing housing codes. These enforcements can be both a problem and an opportunity. The city of Los Angeles has LAHD, a housing department that can cause plenty of problems for owners of run down rental properties. Make sure to research any potential properties for any housing violations before opening escrow.
A profitable real estate deal requires many different things to come together at the right time. Building contacts helps investors grow stronger in real estate. Referring to experienced agents who are also investors themselves and know the process of buying and owning investment real estate is a must. Sky Minor Real Estate is an established business who has been brokering and owning profitable investment real estate since 2004. Sky Minor can be reached at 310-709-8283
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