The Best Real Estate Investment Nobody Knows About! - Part 1 by Mark & Lloyd Walters Contents
Part 1 "Stumbling Onto a Deal"
The art of an open mind
1-1Part 2 "Maintenance Free Home Ownership"
New houses shouldn't break for a long time
2-1Part 3 "Attracting Renters to Your New Home"
Get ready, get set, holy cow!
3-1Part 4 "Upgrades Worth Considering"
Do you really need carpeting?
4-1Part 5 "New Housing Choices"
The numbers are telling you something
5-1Part 6 "Financing Savvy"
A little bit of know-how can save you thousand6-1s
Part 7 "Resale Houses"
It can still be new if it's not that old
7-1Part 8 "A New House for You To Live In" 8-1
A house so good you want to live in it yourself
Part 9 "Market Impact"
9-1
How the market dictates the strategy
Part 10 "Internet Sites That Will Help You" 10-1
Surfs Up!
i
Introduction
This book is one of a collection Cash Flow Institute offers in the category of
Real Estate. You may also enjoy "The Last Great Real Estate Secret" and "The Million
Dollar Foreclosure System" also available from Cash Flow Institute.
In this manual you will find out about some really terrific ways to acquire brand
new housing for rental properties at great prices. We will also cover the strategy of
investing in homes 1-5 years old. These are areas many investors never consider. This
is a great place to find investment properties especially if you know what to look for.
The system you will be learning is perfect for someone with limited time or limited
funds. If you don't have much spare time to look at properties every week in hopes of
eventually finding good rental houses, the new housing market is the answer. These are
homes that you can find at good prices and they're not going to need maintenance for
many years to come.
If you are new to land lording, this system is perfect for you. You will find that
loads of people will want to rent a newer house from you. Newer houses by far attracts
the best potential tenants. You will have a better opportunity to choose quality tenants
because of this.
This could be the answer as well if you don't have much money to put down on
a property. Loans nowadays require as little as 3% for a down payment! If you're
purchasing a house for $100,000, that's only $3,000. After closing costs you're still
only out of pocket around $6,000. In today's world, that's not very much money
considering you're purchasing a brand new house. You'll be leveraging your money
brilliantly while having the renter make your mortgage payments.
You will be very excited to discover some of the facts you are about to learn.
Many times, when we look at newer housing, it all seems so out of reach. It appears
too good and one must be rich to afford it. Not true! Sure, there are many new
subdivisions that are out of our price range. But, when you know how to look for the
right opportunities as you are about to learn, one doesn't have to spend a lot or come
out of pocket much to get into a nice new house at a great value.
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Believe me, like many people, I felt all the emotions concerning a new house
being out of reach. I enjoyed acquiring houses, but never seriously considered a brand
new house. It wasn't until one day when I was least expecting an opportunity, did one
indeed present itself. From there I allowed the moment to carry me into the direction of
new discoveries.
As you read the following pages, please allow your mind to be open and
receptive to the opportunities around you. We all live in different areas, yet many of
the same situations affect all of us when it comes to real estate. It's how we go about
acting in those situations that identify life-changing results. The information I am
presenting in this book has come from my own action. I have invested in these types of
homes and have been for many years. I have purchased new houses using the
techniques and knowledge you are going to discover. From there I have rented these
homes and created very profitable investments. As the years have passed these homes
seem to appreciate faster due to the desirability of newer housing and the locations I
have chosen. You will learn exactly what to do so you too can take advantage of these
opportunities.
iii
"Stumbling Onto a Deal"
The art of an open mind
1-
1
"DISCOVERING WEALTH
WHILE WALKING MY DOG"
So it's a Sunday morning and my dog "Jake" is letting me know that he is ready
for his walk. This is an everyday event mind you, so I was ready. Off we go, happily,
day dreaming as this is a routine that has become automatic.
Near where I live is a large park. Across the street from the park are
condominiums. On our way to the park we often stroll by the condos so he can sniff all
the bushes. As we were walking I noticed a doorhanger (advertising flyer) on some of
the doors. I didn't think too much about it at first but became curious when I saw a
picture of a house on one. I walked over and took one off a door. The advertising was
referring to a brand new single-family housing subdivision that was currently under
construction. Now, I'm usually not interested in buying brand new housing because of
all the potential deals to be had with resale houses. But guess what else this flyer said?
"Free food and movie tickets!" Hey, what more do I have to say except, "I'm there!"
"DRIVING POTENTIAL"
That afternoon I took a drive over to this subdivision. It happened to be on the
outskirts of town so it took me a little bit of time to get there. Once there I saw two
subdivisions that had more cars around the model homes than I'd ever seen before. The
prices were extremely reasonable. There were two reasons for this. One, like I
mentioned before, these houses were on the outskirts of town, but in the path of
growth. And two, they were appealing to the starter home buying public. The question
I had to answer was, "would these work as rental homes?"
These houses ranged between 1,000 to 2,000 square feet. The prices ranged
from $60,000 - $100,000. Depending on where you currently live, this may sound low
or high. But, the bottom line is how do the numbers work? More on that later.
The housing development for which I had flyers was very interesting. I walked
into the main lobby of the model home sales office and picked up their literature on the
models describing floor plans, styles and prices. These homes were modestly priced
and built with economy in mind. They had conservative amenities. Low-end lighting,
faucets, tubs, showers and fixtures in general. All the models had composition roofing,
which is about the cheapest style you'll see. The homes offered a lot of house for the
money. Who can complain about that? It was a deal as far as new housing goes.
"WHAT IN THE WORLD?"
One thing that totally turned me off about the development was something that
I've never seen offered in new, single family housing before. The one-story houses
came stock with a one-car garage. To have a two-car garage one would have to pay
extra. Now, extras are what new housing is all about. They're called "options" and
believe me, there are plenty of them. But, I've never seen a two-car garage as an
option. It wasn't much more to have the extra car option, but that wasn't the problem.
The problem was some people in the development who had already purchased houses
chose not to pay the little extra money. People can do what they want and that's fine
with me. But, I don't want to live in a neighborhood where people are affecting my
resale value! A row of brand new homes where many had single car garages made the
whole area look cheap.
The homes with one-car garages looked so strange. I couldn't believe it. Why
would someone shortchange himself like that? They were looking at the present and
not out to the future when they want to sell this oddity. So, although I loved the prices,
I was out of there. Not before getting some free food and movie tickets though! How
could I resist?
As I mentioned before, I noticed another housing development near by with just
as many cars parked outside the models. Since I'd come this far, I had to stop in. The
first thing I noticed was the dramatic difference in appearance of these homes.
1-3
They were very attractive. All the homes had two car garages, which is normal,
but still nice to see considering my recent encounter. Also, every one of these homes
had a tile roof. Compared to composition roofs, these homes looked more expensive,
but they weren't! They didn't have quite as much square footage, but they were priced
between $68,000 - $88,900. A little less than the first development. Still, the sizes were
comparable, but the exteriors were far more attractive. I was intrigued and amazed at
all the activity. I'd really stumbled onto something.
"OPPORTUNITY WAS ABOUT TO KNOCK!"
I drove up and walked into the very busy sales office, grabbed some literature on
the models and started looking. I was surprised to see that in this development they had
a house with just two bedrooms. From the outside, you couldn't tell. By that I mean the
square footage was around 1,000 square feet. That's small, but the exterior didn't
project that image at all. So in this case, having a traditional house with at least three
bedrooms and at least two bathrooms, in the same neighborhood as smaller two
bedroom homes was not a negative. They just appeared a bit smaller yet still
maintained an attractive look. Once again, this statement is being made with the
thought of future rental and resale value in mind.
You don't want to have a house in an area with negatively non-traditional
houses around yours. In other words, people favor the familiar and they fear the
unfamiliar. If you see houses that seem strange looking in a neighborhood, that's not a
good thing.
People want to have a house in an area that is esthetically pleasing. An area that
makes them feel good. There's no formula for determining if a neighborhood has these
negative kinds of houses and what they must consist of. Just look around and if you see
homes that make you scratch your head or even gasp, that's the formula.
This subdivision was priced as low as any to be found in the area and looked as
good as some found in neighborhoods priced $25,000 ~ $50,000 more. That's a good
combination.
1-4
I'm not interested in two bedroom homes. As far as potential rental properties
are concerned, one needs to have at least 3 bedrooms, 2 bathrooms and no less than
1,200 square feet. You can decide to buy a house with more bedrooms and bathrooms,
but generally speaking, you should not buy one with less. If you have a property that
falls below this average, you generally will be forced to charge less for rent. Plus, that
property is less desirable to potential tenants meaning it could stay vacant longer. My
sights were set on what they had available with 3 bedrooms 2 bathrooms.
They did have a nice house available with 3 bedrooms and 2 bathrooms that was
1,239 square feet. The price was $78,900. Now I was beginning to get a little
interested. More on the house choices a little later. These choices will excite you. You
may find many of the same choices where you live. Either way, you will learn about
the tools that will enable you to decipher which houses are good deals!
Let's ask this question: What are some of the advantages of purchasing new
houses for rentals? There are some really powerful advantages! These advantages can
also be found on property 1-5 years old as well. So far we have stressed brand new
housing. For practical purposes new housing and all it's benefits can be homes that are
up to 5 years old. Neighborhoods still have the new feel within this time frame. The
development as a whole stills feels new and sparkly when you drive though it. That's
what you're looking for and so are your future tenants and buyers!
1-
5
"Maintenance Free Home Ownership"
New houses shouldn't break for a long time This document and accompanying materials are designed to provide authoritative information in regard to the subject matter covered in it. It is for illustration purposes only and presented with the understanding that the author and publisher are not engaged in rendering legal, accounting or other professional opinions. If legal advice or other expert assistance is required, the services of a competent professional should be sought. |
