Here are the highlights of what we're telling our clients who are investors or potential investors. At http://www.SellHighBuyLow.net, you can find a more thorough explanation.
- Diversification is recommended by many financial experts. We recommend diversification in real estate as well. For example, owning one high priced property may not be as secure against market changes and vacancy factors as owning several properties.
- Choose a part of the country where they are experiencing a buyer's market (more homes for sale than there are buyer's currently willing to buy them).
- Choose a part of the country where you like to visit so you can possibly deduct one trip per year to visit your property, after consulting your tax advisor, of course.
- Make sure the agent you're working with in that area is a Cyberstar and has a local property management team to refer you to.
- Sell a property in a high priced market, and buy several properties in one or or more of the areas experiencing a buyer's market. For example, some of our clients buy several properties in the same area, and other clients buy several properties in different parts of the country.
Being an investor is not difficult if you buy in areas where prices are low and especially if they're currently experiencing a buyer's market there. I'm in the process of buying a condo in Cary, NC for $56,000 where my down payment and closing costs are $6100. The agent I bought it through can be reached through http://www.TeamForYourDreams.com.
For help choosing an investing market, email Laurie@SouthBayHomeTeam.com.