Investing in Portland real estate is all about gaining as much knowledge and experience as you possibly can!
Investing in Portland Real EstateToday
By: David Yuri
Watch out! The real estate market is thriving with opportunities. All you need is courage, conviction and patience. Be afraid when others are greedy, and greedy when others are afraid. The internet has destroyed the status quo when it comes to investing and real estate is no exception. A plethora of real estate investments offers are available today and indeed, some sound too good to be true. If you take your time and do the necessary due diligence, you have a chance to hit at a home run and make real money.
Zero Down Investments?
Let’s take the example of zero down real estate investments and see what your options are. First, figure out what zero down really means. Most companies try to lure you in with the promise of no down payment; in essence, it isn’t really zero down and you have to read between the lines. Zero down real estate investments require down payment but the money does not necessarily have to be yours.
To understand how zero down works, you need to understand why it’s available. In various markets around the country, developers over extended themselves and a number of inexperienced players entered the real estate investment markets. That inexperience also led them to enter into three year recourse mortgages with balloon payments on their project purchases.
In 2004 and 2005, three years seemed like an eternity away and most developers assumed they’d be long sold out come 2007. Unfortunately, the real estate market corrected and now many of these developers are scrambling to sell enough units to meet their debt obligations.
These developers are willing to put in the down payment for the buyer in order to move their inventory – hence the zero down investment.
Buyers must understand that this type of real estate investment is not suitable if you are interested in buying the property as a primary residence. Zero down investments are suitable for those who want to use other people’s money to build a real estate investment portfolio, for those that are dedicated and committed enough to make a fortune.
It is not hard to learn how zero down can help you; the internet is filled with information on the subject. The problem comes when you have to question yourself if you are prepared to deal with all that managing real estate investments entails. Fortunately, here too companies are recognizing that most buyers don’t have the time or the inclination to manage property. These companies are now offering zero down, along with assured or “guaranteed” rent over two or three years and are essentially creating a no hassle real estate investment opportunity.
As for closing costs and title fees, good news! Developers take care of them as well as taxes, maintenance fees for the first two or three years via a master lease agreement.
The internet can help you find opportunities in zero down real estate investing, including important details about developer leasebacks and the rights you have as a buyer. For example, you can choose a master lease for a period of 2 years, with the rent paid at 8% of the purchase price or you can choose an extended master lease for a period of three years.
There are many more things to be covered about zero down investments, including HOA, property taxes and property management. You will also need to learn about home warranty and financing options.
Syndicate Buyers Clubs
If you’re a more conservative investor, you may want to consider investing in real estate with the help of syndicate buyers clubs.
It is well known that bulk condo investments purchasers are offered significant discounts relative to individual buyers. Fortunately, a few companies that traditionally worked with high net worth clients have now opened the doors to individual investors over the past few years.
The internet again provide excellent availability of information on the terms with which these clubs work. You will realize the importance of receiving a guaranteed equity discount and other investment incentives that are usually offered to bulk buyers. If nothing else, you will be aware of the various discounts that are offered bulk investors.
Bulk real estate investment buyers also receive other favorable terms, such as guaranteed 15% discounts, guaranteed downturn protection, dollar for dollar price protection, guaranteed last to close clauses, carrying costs paid by developer if required to close and so forth. Research these opportunities so you can determine if investing with syndicate real estate investors is the best opportunity for you.
As far as bulk condo deals, the best locations that are available for investing in real estate are currently in the southeast, Utah, Las Vegas, Tennessee with projects offering modern properties in an environment full of luxury and style. The properties are situated close to beaches or amenities and represent first class locations.
Most are in areas where the demand for rental properties is increasing constantly. Another such place where you can benefit from investing in real estate is the Gulf Coast of Alabama. The population has almost doubled in the last couple of years and so have the number of people interested in renting a property or coming down for the winter.
We have always believed that a contrarian approach to investing is best, and safety of principal is paramount. Remember, real estate investing is all about gaining as much knowledge and experience as you possibly can! Visit us online and let us help you determine the best opportunity for your needs. www.reinalliance.com
