Ok, so I come at you with a little bit of disturbance with this Blog...Owning a myrtle beach real estate company that handles property management, I get phone calls all too often from "investors" who own myrtle beach real estate who are frustrated with the fact that their myrtle beach real estate investment in non-performing (they are loosing money). For some reason, they seem to think that changing property management companies is the answer. Ok, let me stop here...Most of the time it is, but for this discussions sake...stay with me, you'll see where I am going with this!
So after my question and answer session with these "investors," I typically come to the conclusion that they just DID NOT purchase the property correctly! What I mean by correctly is, they never had a plan, they bought at retail, and think that because a bank was lending to them at 95-100% LTV, that somehow the endstate was going to be that this myrtle beach real estate investment was going to perform (make them $$$) for them. In this case...it can...with more than 20% downpayment.
Here's what I am getting at! INVESTORS, there is a term called "Buying RIght." What we mean by this is 1) Have a plan that outlines what you are trying to accomplish and how you need to accomplish it 2) QUIT BUYING PROPERTIES RETAIL. RETAIL is buying properties listed on MLS for "The Market Value." Just because you get 5-8% off the asking price only means that you got the property just under what was marked up to cover commissions. When you are ready to purchase real estate, you must know your market area (like the back of your hand) and go find the distressed owners that HAVE TO sell. The HAVE TO sellers "have no other choice." They are at the point they have no other options and typically this is where you find the best deals. Quit having your REALTOR friend searching the MLS for deals...these aren't deals. You need to get "down and dirty" and find "THE DEALS" via street. Set out bird dogs, equip them with your buying criteria, and watch the deals start coming in. Negotiate real well and before you know it, you will have such mark down that the only thing the property CAN do is PERFORM!
Now you are an investor!
Happy Investing~
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