I am going to look at several properties with a client today, they are in very nice areas and the homes will have equity when we buy one. To many times companies push properties to buy as income properties all over the United States that have little to almost no chance to build equity in investors portfolio.
I have seen many companies that sale that their investors or club members buy a lot of homes, but do they make money on the vast majority of them?
Buying income or flip real estate requires extreme work and locating the right property in a grand location. A lot of the time location is forgotten and that is were the quality of a property goes downhill. Looking for income real estate also requires knowing the areas and why they are good or bad buys.
Locations with a lot of homes for sale is a must for a larger investment club to exist and make money from their members. The overhead and cost for a company to pay for their employees and rent has to be added on each home their members buy. They add most if not all their profits on construction costs. I have seen as much as $4000 per home! That is a lot of money to add on any type of income property and really cuts into your profit. I know I have worked with a few of them, but no longer will.
That is why I became a Realtor and can offer the same services for much less! I now have the property management set up in two states and I am a licensed Realtor in both states. They only way I make my money is through commissions. The extra added cost for homes by these large clubs are gone.
You will also get a more detailed and better plan for your real estate. I do not go were their are many homes for sale, because those are usually never the best properties. I drive into the hard to find areas to get the best real estate deals.
I go to areas that need both income and flip real estate! They also are areas that will probably get my clients a great equity position and be a consistent cash flow producer.
We have all the tools in house you need to buy any type of investment property and know you got the best deal for it. Call Brett to purchase the best real estate for the lowest price and cut out the middle man.