So you want to invest in real estate?
And you probably want to know what types of deals are going to potentially bring the best rewards?
Take into perspective that right now many major cities are seeing low inventory and increasing sales and rental prices.
This gives us a clue as to what the market is looking for.
Here is a quick 30,000-foot view based on real estate market news.
New Home Builds (Spec homes)
Single-family homebuilding by real estate investors, also known as “Spec Homes” is probably pretty safe in many cities. Here in the Phoenix area, we are seeing very low inventory on the local MLS and prices are increasing at a steady rate.
There are still quite a few vacant lots peppered throughout the city and surrounding areas, just waiting for a savvy investor to come along, snap them up and start building.
If you haven’t ever built a home in the Phoenix area, it is pretty easy to get a building permit, you can hire whomever you want to help you build it as we are a right to work state, and for the most part, Phoenix is flat so you don’t have expensive dirt work to get the lot ready to build on.
Fix & Flips.
Always a favorite among real estate investors and very popular on countless reality TV shows. The trick here is to find a distressed home and fix it up leaving a little room to make a profit.
A cool technique if you ever find yourself with a finished fix and flip you can’t make an immediate profit on, is to buy your fix and flip using a private money loan as a bridge loan, a couple of good hard money lenders in Phoenix like the LM2 Investment Group can fund in 24 hours, so you can grab the deal quickly, fix up the home, rent it out and then refinance into a low-interest permanent loan until the home’s value increases and you can cash out with a decent profit.
Buying up Rental Homes.
Right now Phoenix is seeing a low inventory of available rental homes, so if you are looking to build a portfolio of rental homes, take a good look at Phoenix and the surrounding areas.
We can recommend a really good real estate agent who will stay on the lookout for good deals on single-family homes you can buy and rent out.
Also, it is advised to use a property management company so you are not getting woken up at 3 am with a leaky toilet.
Well, there you have it.
Phoenix is back to being a good market for real estate investors again.
And if you need fast cash to close that deal, ping Mike & Mike at LM2 right now!
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