Where should I invest? Post 109

Coach Mitch’s REFLECTIONS

 

Where should you invest?

This is actually a very good question.

The determination of where to invest in real estate can be relatively complicated.

Consider some of the relevant issues that can influence your decision as to where you should invest: timing, price, severe weather, climate, employment issues, transportation, taxes, population makeup, primary schools, higher education, culture, shopping, local economic outlook, current affairs, future issues, politics, regional economic outlook, banking, crime, friends and relatives, etc. Other things to consider: landlord-tenant laws, rental rates, occupancy rates, homeowner vs. tenant ratios, redlining, harsh building code inspector attitudes, tenant leaning judges, licensure issues, new home construction rates, etc.

Who wuddathunk it?

What do some of these considerations have to do with the question of where we should invest? Well, it is rather simple. If you know where people are going to, then you can anticipate an up market. If you know where people are leaving from, then you can anticipate a down market. The interesting part is that you can make money in both markets. You must operate differently, but the money is the same.

• In an up market, it is harder to find a great transaction, but it is easier to sell and for a higher price.

• In a down market, it is much easier to find a great transaction and at very low pricing, but it is harder to sell. In either case, the profit margins are very significant.

What about tax delinquent properties?

When dealing with tax delinquent real estate, these issues are important but ancillary. Other issues are of secondary importance because a tax delinquent property investor knows that in any geographic area, and at any time, there are always people in trouble. Every tax delinquent property owner is concerned with only one thing, getting out of the tax delinquent situation.

If you are able to get a property at 10% – 50% of its current market value, then why would you be concerned about ancillary issues? Since you can sell the property at well below market value and still make a great profit, then why would you be concerned with secondary issues? That is the beauty about investing in tax delinquent real estate.

An Axiom

If you are dealing in the regular real estate market, then you must be concerned with any and all issues, because you are paying full price or near to it.

IF you are dealing in the tax delinquent real estate market, then you only need be mindful that the purchase price is low enough to eliminate concerns about any of the other issues.

Stated more simply

The lower the price, the less concerned you need be with any issue. The higher the price, the greater the concern you must have with every issue.

Q – So where should you invest?

A -Anywhere you can find someone (property) in trouble.

Q – The real question is: What should I invest in?

A – Invest in real estate where the owner is in trouble.

Q – How much should I pay?

A -Pay as little as your conscience requires and as much as your economics dictate. My standard is paying no more than 50% of FMV, fair market value.

Q – Why tax delinquent real estate?

A – I don’t know of any other real estate investing situation that can consistently make as much money with as little risk.

Q – Why Coach Mitch’s “Ridiculously Simple System…?”

A – I know of no other real estate investing system that can consistently put you in front of the most motivated of sellers who also have the ability to sell at such low prices.

See Coach Mitch’s “Ridiculously Simple System…” for details.
Warmly,