SOUTHERN REO LISTINGS

More Great Listings! 

1135 Grace Drive, Lawrenceville, GA 

4 Bedrooms, 2.5 Baths, Spacious Kitchen and Breakfast Area, Family Room with Fireplace and Separate Living Room/Dining Room.

  $109,900  See A Virtual Tour Here

 

 

 
3451 Carriage Chase Road, Atlanta, GA 

3 Bedrooms, 2.5 Baths, Open Floorplan, 2 Story Family Room with Fireplace, Loft, Large Master Suite with Walk In Closet and Garden Tub. 

$39,000 See A Virtual Tour Here





Southern REO has over 600 REO properties for sale.  Call or write me for more information.

Are you looking for US investment properties? Are you looking for a discounted short sale or bank owned property or just have a question?  John Breaux can be reached at johnb@southernreo.com or  +1 678-230-9613.

Exit Strategies

That's what it's all about, isn't it?  I mean, you get into real estate not because of your love of brick and mortar but for the rewards - the benefit of ownership during and after the term of ownership.

Investing in real estate presents a multitude of opportunities where you can put your money. You can invest in single-family homes, single condos, duplexes or 4-plexes, office buildings, retail shopping centers or even storage facilities which are also doing well nowadays. If you are new to this time and money-tested trade, you must understand that there are a number of strategies that you can use to bring in profits. Most real estate experts call it exit strategies, and examples are buying low and wholesaling for fast cash, buy-and-hold for cash flow and capital appreciation and to buy-fix-and-sell for bigger profits.  But you have to start out right.  Let's cover some of the basics.

Buy at the right price

Getting a bargain now will help you to weather the fluctuations in property value over time so you can profit when you eventually sell it.  Homework is necessary. You need to develop an understanding of what constitutes a bargain price in the area(s) in which you wish to invest.  As an investor, you'll need to be able to act quickly once your target is in sight and knowing the market and having the right contacts - whether an agent or directly with the banks will certainly help. Get to know the market and the people within the market.

You also need to study rental prices of comparable units in the area, getting a feel for supply and demand trends. The local classifieds are a great place to start and a few hours of research should give you a good basis for determining what you can charge. Just make sure to factor in for utilities (electric, gas, oil, water, sewer, cable, etc.) if they’re included.

Depending on your personal goals, there may not be enough of a spread between what you will pay out monthly in mortgage, taxes, and utilities and what you can charge. Figure out what your spread needs to be, and analyze every house you consider against this amount.  Of course, a bigger spread is preferable, as it means more profit. If you’ve got a few good options to consider, that spread can aid in your decision-making.


(My next posting will cover how to check out and be sure you're in the right area of town so please come back soon.)


Are you looking for US investment properties? Are you looking for a discounted short sale or bank owned property or just have a question?  John Breaux can be reached at johnb@southernreo.com or  +1 504-208-4331.

Becoming a Landlord

For those who are calling it quits from the traditional 8-to-5 world, either through retirement or downsizing, it might be worth considering a new career - that of landlord.

While being a handy-man might not fit into your traditional image of retirement, it could be a strategy that can kill several birds with one stone, especially for those who buy a small multi-family building, live in it and manage it at the same time.

$100k Duplex - 11% net cash on cash return

Owning and living in a multi-family house (a duplex or 4-plex, for example) can provide relatively predictable cash flow, the potential for price appreciation over the long term and, of course, a place for you to live. It could hold particular appeal for retirees against the uncertainty of the stock markets and the almost paltry interest rates on savings accounts.

Of course, unlike a stock, which you can just buy and pray that it does well during the market cycles, real estate is a bit more stable investment. But maintenance and business decisions will be on your shoulders.  That said, you should look at buying any investment property with the same eye toward price and expected returns as any long-term investment.

From a price perspective, this may be the best time to get into the landlord business. Low real-estate prices and the lowest interest rates in years make the cost side of the equation more favorable. Financing for smaller owner-occupied buildings is very much like a home loan; lenders will require documentation of rental income.  But that shouldn't be a problem.  The rental business has taken off over just the last year.  Rents have been on the increase across much of the country, even in places like Florida where home prices have continued to decline.  Families losing their homes to the bank (an unfortunate situation, to say the least) still need a place to live so landlords can pretty much look at long-term tenants for several years.

Also, there may be some tax benefits from being an owner/occupant because you can use part of the building as a business. This allows for deductions for things like depreciation and expenses that can be taken against rental income.

It should be mentioned that, as with any investment, there's no guarantee that when it comes time to sell you won't lose money.  While it's a long term thing, you should always keep track of the market.  This will help you decide when it's the best time to sell.  

Are you looking for US investment properties? Are you looking for a discounted short sale or bank owned property?  John Breaux can be reached at johnb@southernreo.com or  +1 504-208-4331.