Some great points being mentioned here. I would like to include financing in this discussion as well. I know that in the South, places like LV, prices have significantly dropped and it might be possible to find sub $100K houses, however up here in the Northeast that is still tough. So having some solid financing is critical.
Financing – Community Banks
I am working on establishing a relationship with a local, community bank. I have opened a checking account, met with a few loan officers – basically introduced myself. I am going to be using them for financing because:
1. They know the local area
2. Their balance sheets are still better than the big boys like Bank of America and Citizens and
3. I can go back to them for additional financing.
Strategy: Buy and Hold
Much respect to Dash, but I have limited time after work, so I can’t be working on flipping properties. I am looking for cash flow, gaining some RE experience. As I mentioned earlier, I am targeting the older mill cities in New England, and looking for 2-4 unit houses in solid blue collar neighborhoods preferably with tenants in place. I might pay a few dollars to do some maintenance work and maybe something cosmetic like a paint job, or landscaping but definitely not renovations.
If the first deal goes well, I’d like to buy a few more similar type properties in the local area. This will help me by:
1. Consolidating the investments, since I have to make that 1-2 hour drive, I might as well see all the properties.
2. Build a local area team. Besides the property manager, I’ll need a local lawyer, RE agent as well as good handyman.
I am looking at this like formal business, so I am working on getting my financial documentation together, checking my credit report for errors, and discussing financing options.
Financing – Community Banks
I am working on establishing a relationship with a local, community bank. I have opened a checking account, met with a few loan officers – basically introduced myself. I am going to be using them for financing because:
1. They know the local area
2. Their balance sheets are still better than the big boys like Bank of America and Citizens and
3. I can go back to them for additional financing.
Strategy: Buy and Hold
Much respect to Dash, but I have limited time after work, so I can’t be working on flipping properties. I am looking for cash flow, gaining some RE experience. As I mentioned earlier, I am targeting the older mill cities in New England, and looking for 2-4 unit houses in solid blue collar neighborhoods preferably with tenants in place. I might pay a few dollars to do some maintenance work and maybe something cosmetic like a paint job, or landscaping but definitely not renovations.
If the first deal goes well, I’d like to buy a few more similar type properties in the local area. This will help me by:
1. Consolidating the investments, since I have to make that 1-2 hour drive, I might as well see all the properties.
2. Build a local area team. Besides the property manager, I’ll need a local lawyer, RE agent as well as good handyman.
I am looking at this like formal business, so I am working on getting my financial documentation together, checking my credit report for errors, and discussing financing options.