As many of you know. I’m a big proponent of investing in real estate. I own quite a few single family homes as rentals, as well as an 8 unit apartment building. Rental properties aren’t for the faint of heart, but done right will provide a nice income plus lots of future benefits. There are many self professed gurus who will tell you they have the magic program to make a fortune in investment real estate. I’ll be right upfront and say there is no magic formula. It’s a lot of work to learn the market, there is some trial and error involved, but in the long run it will pay off.
Foreclosures are a big deal right now. Let me tell you that buying a foreclosure is a long process, many banks aren’t realistic about pricing until some time has elapsed. I’ve had times where I’ve sent the same offer in every 3 weeks for months until someone else pays more, or the bank sells it to me.
The real trick to buying investment property is knowing what you are getting, what the after repaired value is, the real cost of repairs (they are ALWAYS more than you think), and your exit strategy. Exit strategy is what you do with the property, ie rent it, sell it for a short term profit, sell it with a long term profit.
I’ll be addressing Louisville investment properties more specifically in my blog postings in the investment property category.
