The world of real estate investing offers you many choices and sometimes it can be overwhelming. Just realize that everyone has a certain preference when it comes to investments, but I’m going to show you some lower cost and lower risk ways to get into real-estate investing:
1,000-1,500SQFT single family brick rancher
Purchase smaller units in large, well-known developments near the city
Stay close to jobs and employment
Don’t buy properties that have major upgrades
Brick ranchers are one of the few house designs that have withstood the test of time and very rarely fall into and out of style. Due to there age they also tend to be located near city centers.
Buy, hire a property manager, and sit back for some serious passive income
Purchase a property that needs work and do some light renovation
2. Small-Multi Family (Duplex, Triplex, Quadplex)
Duplexes are one of the most stable, low-risk, and highest performing real-estate assets you can own.
Purchase and rent out both sides
Live in one unit and rent out the other side (often times called “House Hacking”)
As you live in one unit, slowly renovate and increase rents
The best thing about multi-family is you will almost always have income coming in. If one person moves out, you have the income coming if the other person stops paying.
3. The Live-In Flip
The live in flip is simple. Buy a dilapidated house in a nice neighborhood with a government subsidized loan, renovate it as you live in it, and sell (or rent it out) a few years down the line.
Key point is that you need to find a GREAT deal (Old real-estate saying: “the money is made when you buy”)
Drive around neighborhoods, find them in the tax record, and call them
Send out mailers
Prospect absentee owners
Hang some we buy houses signs out
A “true” house flip is completely different from a buy and hold:
If you plan on flippingright after, you need to make the home most appealing to a retail buyer.ADDgranite counters, subway tile, free standing sink in the master bathroom, etc.
If you plan onbuying and hold,DON’T ADDnice counters and amenities because you will be paying for nice things that tenants will likely ruin over years of abuse.
4. College Investment Property
College investment properties are the favorites of many investors:
They typically have high returns
Colleges still have a positive outlook and demand will likely continue
Bad thing is that college kids can be destructive and the turnover is high
Above all else, look in areas within WALKING DISTANCE to the university and near bars. College students will pay EXORBITANT prices to have those to features and will pay HUGE rents for houses that are in terrible shape.
5. Hospital Investment Properties
The health care profession is one of the most high-paying and stable sectors imaginable. Nothing is more satisfying then knowing your tenant is a nurse or in a related field.
Many times areas near hospitals have sprawling residential neighborhoods near them because developers had the same idea as you do
The tenant quality is going to be unmatched and demand continuous
Areas near hospitals are often up-and-coming and great opportunties for flips
Bonus Section FINANCING:
6. Seller Finance
These aren’t more so investment properties but a great way for a beginner investor to obtain a property when you don’t have great credit.
Obtain a list of all people in your area that own their properties with no mortgage (Sometimes called a “high equity owner”)
High equity owners tend to be older people, inherited property owners, out-of-state owners
Find a homeowner that will give you a mortgage for the house without a bank
Instead of sending a check to a bank, you will send a check to the previous owner of the house
Many times you will be required to pay over market value, but if the property cash-flows and has a decent rate it makes sense.
7. Investor/Portfolio loans
There are many unique real estate investing loans that you can obtain if you have things like poor credit and/or 1099 income.
Portfolio loans can be obtained and they allow you to finance properties based off of the potential income and financials of a property
The Turn Key Group is an assertive group of Realtors in Grand Junction Colorado. We utilize cutting edge tools and home selling techniques that make us stand out from the rest. We are Real Estate experts and we are ready to guide you through the home buying process. We are committed to fast, professional and courteous service that will help you understand and feel at ease throughout the home buying process. If you are looking for that dream home, you can count on us to help you find it and negotiate an excellent price for you.Tell us what you are looking for and we will search high and low to make your dream a reality! We will work relentlessly for you while keeping honesty and integrity at the forefront. Our trained and certified loan originators specialize in financing homes in the Western Colorado real estate market. We are prepared to find the right loan program with competitive rat es and low down payments for you.
If you currently own property and are thinking of placing it on the market, let us do the work for you! We can provide you with information about preparing your home for sale so you'll get the most money in your pocket. We have tools in place that will make your property stand out and we will price your property right in order to get it sold FAST!
Our dedication and professional service are unparalleled. In today's market, you need a quality professional working for you. We focus on your time and your investment. Contact us now. 970-244-9217
"Bought a Single Family home in 2015 for approximately $250K in Fruita, CO.
When I first approached Cindy about finding a house to buy she really listened to what was important to me. Cindy took a genuine interest in what I had to say and how I felt about the kind of home I was looking forward to calling home. She wasted no time setting me on the right track in find that home. She even led me to a finance officer that made getting a loan a no hassle experience. When looking at the homes that I was considering she made sure she was prepared for any questions I might have about the house. She even went out of her way to find out if there was anything negative things about the house I was thinking about buying. I thought this was an admirable quality because it was my interest at the forefront not hers. Needs to say we did find the home that I am very excited to call home. I want everyone to know that Cindy Guzman cares and works very hard in getting the results that her clients are looking for. She made herself always available to me when I had questions. When it came time to look at the houses that I was interested in she made time to accommodate my schedule. I would highly recommend Cindy Guzman is the one you want to find that place that you would be proud to call home!! "