Ask anyone who’s thought about buying an investment property about their hesitations and you’ll hear a slew of questions. They’re not sure what type of property to purchase, wonder if they should flip property or rent it, and worry about the long term equity of the purchase. They talk about investing now and living off the future revenue tomorrow, but at the end of the day, they don’t feel confident about making a wise purchase.
Overall the process feels intimidating and they don’t know where to begin or how to plan for it. They want to make a wise investment for their future without risking their financial security. They dream about future rents paying for their early retirement, but it’s just outside of their comfort zone, so they end up putting it off a bit longer. Besides, do they really want the responsibility of dealing with the renters and the maintenance of a place?
Take Naomi and Theo for example. Naomi and Theo are a real couple who live in the Hill East neighborhood of Washington DC. During their first home purchase, they considered both single family row homes and row homes with a separate basement unit. Although a second unit was not a requirement, when we found a two unit home for sale, it was easy to see how the future rent of the basement unit could cover a large portion of the mortgage.
Both the upstairs unit and basement unit needed several repairs. So, we worked with the inspector and a few contractors to estimate those costs before negotiating the price for the property. Doing the work and repairing the property themselves meant they also earned sweat equity while improving the home they live in. And after completing the repairs on the basement unit they could charge an even higher rental rate.
Because the basement unit led to rent coming in to pay a portion of their mortgage, they were able to save quickly and in just a couple of years we started looking for a second investment property. We found a two unit building which also required a few repairs. So, once again, they were able to earn sweat equity and collect future rents to pay the mortgage.
“Arynne helped us buy our first house and worked with us in our search for an income property. She listens and understands what we are looking for, has a good eye and shares her honest thoughts (positive and negative) when viewing properties, and knows a lot about the neighborhoods and how they are changing. She helped us negotiate a great deal on our house (well below asking) and helped us decide to walk away from a bidding war on a potential investment property – I feel confident she is on our side, and not just looking to make the best deal.“ – Naomi and Theo S.
While Naomi and Theo’s results look remarkable at first glance, (and buying, repairing and managing several investment properties is an accomplishment to be proud of), these results aren’t mysterious. The strategies I taught Naomi and Theo can be applied to anyone who wants to start investing in real estate.
In fact, I’ve helped investors achieve amazing results including:
- Purchasing property for up to 9.09% less than asking price, even in a hot seller’s market.
- Winning against multiple offers even when my clients offer wasn’t the highest priced offer.
- Improving their investment purchase process confidence with step-by-step guidance.
- Determining the right investment based on both the client’s lifestyle and goals.
In the next couple of days, I’m going to show you the common mistakes people make during the purchase process and a new formula to make a the best investment for you. Soon you too will be able to move towards financial freedom — and I’ll show you how!
Get clear on your future investment goals right now by downloading this 5 minute clarity cheat sheet. Much of the stress, frustration and overwhelm that comes along with purchasing property can be lessened if you clarify your goals and motivation from the beginning.