Quote:
Originally Posted by milt
Maybe you're working a little too close. People I know are buying behind cost of build by a factor of half and the land is free. Problem is, if they were worth selling, they'd be sold.
So renting is the model. To get a good return at rental rates, you can't really afford to be working on borrowed money.
You'd be better off taking a commission for setting up these deals. And, you can make a little off the repairs. Plus you could become a property management company. The tax advantages go to the client which is a good sales tool rather than trying to hold title to all of the properties yourself.
Over time, you could pick off a few for yourself. I'm sure you will attract investors as you go about expanding the inventory if you do a good job for your clients.
That's how it works in CA these days.
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This is excellent advise RE investing has never been a Grandma type of play,it lacks liquidly to cash her out. Reits have the cash on hand, the little guys don't.
Smart RE investors like 7% + returns. Look for middle age investors with high discretionary incomes.
MD (Docs) investment groups are a good start they like higher returns than 7%
It's tough out there right now, don't ask how I know.