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Cash Flow Time

It’s amazing to me to see how shocked people are about the major housing slump much of our country is experiencing right now. Martin Crutsinger, an AP Economics Writer, says “Sales of new homes surged in April by the biggest amount in 14 years, but the median price of a new home dropped by the largest amount on record…a record 11.1% decline from the previous month.” “The big price decline indicated that builders are slashing prices in an effort to move a huge overhang of unsold homes.”

Whether new or old homes, sellers are desperate. Supply is up and people are scared. So what does that tell you about investing strategies? Do you want to be a seller in a market where sellers are desperate and at best, having a hard time moving inventory?

This isn’t a great market to be out rehabbing and flipping homes in. Investors are changing their tune all across the nation. It’s time for cash flow, and that’s what they’re buying.

Tell us about the deals you’re finding. We’re looking at the possibility of expanding into another city this summer, and we want to know which ones make the best sense.

So, what are you buying and where?

Posted by Derek Guyer on 05/24/2007 01:38 PM

Comments (1)

cash flow, real estate, investing

1 Comments on Cash Flow Time

MAY

2007

Hi Derek,

We have cash flow & appreciation investment properties available in several markets AND we have the property management component to make it all work. Right now, with 20% down and another 5% in closing costs and rent-up expenses our clients are cash flow positive anywhere from $1 to $200 a month. The appreciation forecast, long term is in the 7-10% range. You can check out our website for available properties at www.northpointgroup.com . If you don't see something you like, we have a process for you to order what you do want and our team will find it.

We have a special offering in KC, MO. A duplex community called Genesis Trails. Same deal as above, 20% but the cash flow is closer to $300 / month. On site property management. Appreciate forecast more modest, in the 5% range, but it will be steady and long term.

We also have a realtor partner program where we pay a perpetual referral fee to any licensed realtor that refers us a client. By perpetual we mean that everytime your referral completes a transaction with us we pay you a fee. The fee is usually about $1,800 per transaction, but some properties have incentives to make them move that pay the realtor partner $5,000.

Send me an e-mail at doug@northpointgroup.com and I'll send you more info.

Cheers!

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