Exit Strategies for Real Estate Investments

Although I think now is not a good time for investors to reduce their inventory in the Atlanta housing market, (in fact just the opposite, you should buy more houses) some of them must do so. I have a few ideas of just how to do that without losing their equity.

The first is obviously to sell the property. To get the most for the property, you should sell it as quickly as possible. You can do that by making sure it is in very good condition, has a fresh coat of neutral paint, new or clean carpet and is priced right. You should also be sure that it has a clean yard and working appliances. If you want to go the extra mile, you should consider staging the house. When it's ready to sell, you should give me a call at 770-862-8002 and set up a listing appointment. I will use my Internet marketing plan to get your home maximum the exposure possible. My "Featured Homes" (click here for an example) listings on REALTOR.com are getting over 100 property views a day!

If the house is a "fixer-upper" and you don't have any cash to put into selling it at a retail price, I can help you with that, too. Because I am associated with a group of local investors, I can get you a cash offer, close in 7 days and you can walk away from your problem with at least some money in your pocket.

Another option for getting out of that property is to rent it. Being a landlord isn't for the faint of heart and you should know what you are doing when you begin to screen your tenants. When you have the right ones, it can be a win-win for everyone. You will have someone else paying for your mortgage and they will have a house to live in for a period of time.

Lease purchase options have become very popular now because of the fall-out from the sub prime mortgage problems. You get the benefits of a tenant who will take care of the property as if it were his own (because someday it probably will), a non-refundable option payment up front and also the sales price you need. Because they are not buying the property today, your sales price can be based on tomorrow's price, not today's. I have a lot of experience in the area and would be happy to help you.

If your payments have gone haywire, you can also call your lender to see about refinancing the property. Sometimes, the lenders are willing to work with you to help avoid going into foreclosure when you are having trouble making the payments. It will not hurt you to call and talk to them about a "rate and terms" refinance option.

If you are not sure what a good strategy would be that fits your situation... give me a call and I can help you think about what would work for you.

Michael Bradford 770-862-8002

Southern Prime Realty

Your Cherokee County Georgia Real estate Specialist

Buy Investment Property Now

Home prices nationwide are now at their lowest prices in over 25 years. Interest rates are low and expected to go down a little more. If you have ever thought about buying an investment property to add to your portfolio, I have several in mind right now that would generate a healthy monthly cash flow and increase in value over the years.

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If you would like to learn more about investing in real estate, I can teach you how to buy them (where you make the money), how to rent them out to reliable tenants and how to generate a monthly cash flow. I can also share tips with you about how to turn your property into a tax advantage. Give me a call today at 770-862-8002 and let's talk.

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Michael Bradford

Southern Prime Realty

Retirement with Real Estate

CNNMoney.com had an interesting article on Monday about buying real estate inside of your IRA. It made me think of all the reasons why baby-boomers need to consider (if they haven't already) why they should own real estate as they enter into retirement. Here are a few that I can think of:

1. Buying real estate now, at rock bottom prices, you will have the opportunity to see your money grow as your equity grows. The huge amount of people facing foreclosure will keep them out of the house-buying market for about 7 years. That will be 7 years of a booming rental market where you should have few problems finding qualified tenants to make your mortgage payments for you.

2. You can always sell it if you need cash. When you buy real estate low enough, you have the comfort of knowing that you can always sell it quickly if you need to.

3. Tax deductions! There are a lot of ways to deduct taxes from investment properties. Did you know that you can write off DEPRECIATION from a rental property that produces an income?

4. Snag that smaller place just incase. You may be living in that big house and the kids are leaving for college. You want to downsize but now just isn't the time for you to move out. Take advantage of todays low prices and lock in that dream cottage! Go ahead and buy it, enjoy the tax breaks and the positive cash flow from a renter while you wait. When the time is right and you're ready to move, you already have plenty of equity in the house. You can either enjoy that in the form of a home equity loan, keep it where it is or even use it to refinance so that your monthly payments are much, much lower.

If you would like to discuss real estate investment strategies, whether you are just getting started or about to retire, give me a call today. As an investor myself, I can help you find the deals! 770-862-8002

Michael Bradford
Southern Prime Realty

Landlording 101

So I have convinced you that today is a great time to buy real estate. Prices are low, interest rates are low and people will always need a place to live. All are great reasons for investing in real estate. But still you wait....why?

I have asked myself and others "What is the biggest deterrent for the average person when it comes to owning rental properties?" Most people tell me the thought of clogged toilets and midnight calls from the sheriff's office or annoyed neighbors about one of their houses tops the list. I am not saying that those kind of things don't happen (once a neighbor called about someone standing naked in the front door of one of my houses!) but they can be managed very easily with a little for-thought and planning.

I call it "front end loading" because I work really hard at the beginning so I can take it easy the rest of the time. I make a plan and stick to it. I have a great lease, great application and a unbiased person to review the applications and pick the best one according to the application. The times that I have gotten in trouble is when I felt sorry for someone and wanted to help them or wanted to get someone in the property quick and did not pay attention to my own plan.

I have made it my "company policy" to accept only good credit scores and people with good references. I do my benevolent activities outside of my rental business using the resources generated by that business to help others. I don't like to rent to relatives or friends and if one of them needs a place to stay, they are welcome at my home and I won't even charge them rent while they get back on their feet.

REALTOR.com® has a great piece about "Sanity-Saving Rules for New Landlords". These are very good tips and anyone thinking about becoming a landlord should read them. I can also recommend a couple of good, easy to read books about the subject.

Give me a call today and let's get you started on your very own inflation proof, excellent cash flow for retirement, great tax benifits and easy to start and run landlord business.

Michael Bradford
770-862-8002

Know when to hold 'em?

Here is a great article from Real Estate Insights on REALTOR.org about pain that some investors are "feeling". I'm not sure exactly why (other than my age:) but it made me think of the Kenny Rodgers song "Know When To Hold 'Em". The article make a great analogy about investing in the real estate market versus the stock market. This is a must read for anyone who is currently renting! Lawrence Yun, Vice president of NAR Research, has some excellent statistics to counter the argument that people who own and invest in real estate are feeling "pain" now because of the current market.

Mr Yun reports that someone who invested $10,000 as a down payment on a typically priced house in the US that appreciated at 5% per year would have a return of $110,000 after 10 years. Compare that with a $10,000 investment in the stock market at 10% that would yield a return of only $23,600. This could also explain the next statistic. "A typical homeowner had $184,400 in net worth versus only $4,000 for a typical renter." Wow, what a huge difference!

NAR reports that "only the recent buyers (flippers) who bought last year in few specific markets would have encountered a loss" which of course is what the main stream media is reporting on. If you want to buy houses and "flip" them for a quick profit, be careful. It can still be done in today's market but you must do your homework and know what you are getting into.

Investing in foreclosures is also a tricky business and needs to be approached with caution. If you have the nerves for this kind of investing, give me a call. I can offer you some tips that I have picked up along the way.

But if you want to invest for a great return over time, now is the time to enter the world of home ownership. Interest rates are low and inventory is plentiful. Don't let the sensationalism of the media scare you away from increasing your net worth today.

Call me today and I will help you meet your goals.

Michael Bradford
770-862-8002

So you want to be an investor?

It always seems to happen. When I meet someone new or I am getting to know an acquaintance, the subject of what we do for a living usually comes up. When they hear I am a real estate agent, these days they act apologetic and say things like "I sorry, it must be tough for you now" or "what do you think the market is going to?" My answer to both questions is the same. "The market has changed but I am very excited about the opportunities available."

This seems to take people by surprise a little because I am very optimistic about the future of real estate. Part of the reason is because I not only sell real estate, I am an investor, too. I also work with other investors and this is a great time to invest in real estate.

A post I wrote about last week (READ IT HERE)talks about how rents are on the increase in Atlanta. Supply of affordable rental housing is low and people will always need a place to live. It is a great time to buy because prices are flat and there is an abundance of houses available. There are still great loan programs available for people with fair to good credit and even FHA programs for first time buyers are starting to get traction again. If fact, I closed an FHA sale on Thursday to a single mom who bought her first home, a 3 bedroom, 2 bath, updated ranch on almost an acre of land in Woodstock. She only neeeded to bring $6,000 to the closing table and was able to walking away with a payment of about $1,000 per month, which included taxes and insurance.

My attention last week was towards renters who may be ready to buy a house and to get them thinking about what it takes to be a home owner. Today, I want to explore the world of investing. When I tell people that I am also an investor, most say something like "I have always wanted to do that but...."

With all of the reality TV shows about "Flipping" properties, I always wonder why more people don't explore what it takes to be an investor. Realtor.com recently had an article about the best markets to be a "flipper" and you can read it here.

I think know why more people don't invest in real estate. The answer, it is harder than it looks! It takes a lot of homework, due diligence and sometimes nerves of steel. At some point, you have to quit analyzing deals and "fish or cut bait" as the saying goes.

If you are wanting to put your money somewhere and let it grow without actively being involved, real estate is probably not the best place for you. But if the idea of being able to borrow money to pay for your investment appeals to you (try going to the bank and asking for a loan to buy stocks or bonds) and you want to either invest for monthly cash flow or long term equity buildup, real estate may be a perfect vehicle for you to use to accomplish that goal.

It's a great time to be a buyer, either as an owner/occupant or investor. I am confident that I can find a property that will meet your needs either way. Call me today and let's spend a few minutes talking about real estate, it is one of my favorite things to do!

Michael Bradford
Southern Prime Realty
770-862-8002

Investors: Now's The Time To Buy!

According to a recent article in the Atlanta Journal and Constitution, saavy investors are taking advantage of the ability to buy low in today's slow market.

When interest rates were at all-time lows and mortgage companies were offering creative packages to get people into houses, many people got loans that offered the first 1-2 years as interest only loans. The idea was that people could go ahead and get into a house with low payments, and after a year or two, the payments would increase. Boy, did they increase!

I received calls from many owners who had payments double! These owners, despite their best efforts, were not able to keep up with the payments and they lost their homes. As a matter of fact, Georgia is leading the nation right now in forclosures.

The deals - they are really everywhere. But what would you do with an investment property?

You rent it out. There will be a big market for rentals in the next 3 years because so many people who lost their homes will be renting while they rebuild their credit. And you will have a nice property that they would love to live in.

I can show you a very specific formula that will help you know what kind of cash flow you can expect from your rental property. I can find a perfect property for you to buy as an investment and I can share with you my very best tips on attracting and keeping a perfect tenant. Give me a call today and let me show you how to get someone to pay your mortgage for you while your property increases in value. 770.862.8002

Michael Bradford
Southern Prime Realty

Real Estate Investing 101

Since we've been on the topic of real estate investing, I wanted to make a point to help clear up any confusion that people have about when a good time to invest in real estate might be. The best time to invest in real estate is ALL OF THE TIME - but especially when the market is slow.

Allow me to explain: When markets are sluggish and the prices are in a holding pattern or downward trend, people begin to worry that it's a bad time to buy and they don't. This is a costly mistake. The best time to buy any investment is when prices are low. (Stock Market Rule #1: "Buy low, sell high" - Also applies to real estate). You can get some amazing deals right now! It is a buyers market... especially in Atlanta. Ands there is a glut of houses listed so you have many more choices and sellers are more open to negotiate on things like price, terms, repairs and even help with financing.

Why wait another minute? NOW is the time to get that investment property you've always wanted. I can help you find a cash flow stream, show you how to get a tenant in and let them pay your mortgage for you while the value of the house, along with your net worth, grows every day. Give me a call and let's talk about your real estate investing strategies.