Special offer

Investing in real estate in an unfamiliar area? My advice: Do your homework!

Reblogger James Lyon
Real Estate Agent with LyonSF

This is great advice for anyone interested in investing in property no matter what part of the country you are in. Remember that the same principles of investing apply to every asset class all the time.

Thanks Richard Weisser for the well though out post and good advice!

Original content by Richard Weisser

Investing in real estate in an unfamiliar area? My advice: Do your homework!I get several calls a week from investors around the country that are attracted to our low house prices.

When you are getting about one percent interest on savings, the notion of 20-30% return on investment is pretty enticing.

Unfortunately, most of these callers are basing their interest solely on the price of the home and not any other factors. There are many reasons that a house is priced under $25K, and none of them are usually good.

And the occasional good house that slips in is gobbled up by an owner-occupant that lives in the area and is ready to move quickly.

Just because a house is priced at or below $20,000 does not necessarily mean it’s a good investment property. Our recommendations are usually foreclosure homes that are in relatively good shape in the $75-125K range that will produce good rental income and at least have a chance of future appreciation.

Before buying anything in an unfamiliar area, do your homework. Study trends and look at location, schools and amenities. The key is to purchase a home that people will want to live in and enjoy,

Because that is what determines the true intrinsic value of the house!

Follow Me on Twitter Follow Me on Facebook Lets get Linkedin My Outside Blog Watch my Videos on YouTube

All content, including text, original art, photographs and images, is the exclusive property of Coweta Fayette Real Estate, Inc., and may not be used without the expressed written permission of Coweta Fayette Real Estate Better Homes and Gardens Metro Brokers, Newnan Georgia. All information is believed to be accurate but is not warranted, Copyright 2003-2009. Richard Weisser REOS, E-Pro. licensed Auctioneer. 770-827-6225.
Learn more about Coweta County and Fayette County Georgia Real Estate, and to search the entire Georgia MLS for free with no registration required visit CowetaFayetteRealEstate.com! Photos of the Great Smoky Mountains National Park. North Georgia Photos.

 

North Georgia Photos

Posted by

Your Real Estate Source!

James Lyon Real Estate

James Lyon Real Estate

                               James Lyon Real Estate     James Lyon Real Estate     James Lyon Real Estate     James Lyon Real Estate

Kathy Judy
Tri-Cities Real Estate retired - Ontario, OR

Boy howdy is that the truth.  Caldwell Idaho is full of houses that were purchased during the boom by out of state investors who were going to double their money by throwing a little paint on.  These are now repos and are being bought again by investors but this time it's more local. . You have to know the area you have to know the neighborhoods and the clients.  Yes you are right the really good buys are bought by local people who know exactly what they are doing. 

Dec 10, 2011 07:25 AM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

My dad gave me great advice many years ago. He would say, put people around you that know more than you do. Yes, the homework is great advice, but I if I was going to acquire real estate in any market, I would do my homework to find the right Realtor. Great post.

Dec 10, 2011 09:27 AM
John Pusa
Glendale, CA

James - Thank you for sharing detailed quality information on investing in real estate in an unfamiliar area do your homework.

Dec 10, 2011 09:42 AM