If you are a cash buyer in today’s real estate market, then you probably are already aware that you are in demand. After all, in a market where credit is scarce, buyers with ready money who do not need funding are prime targets for many different types of real estate investing strategies – and there are many people who will be happy to help you spend your money. As a result of this massive and intense focus, many cash buyers are actually missing out on hugely advantageous real estate opportunities because they are simply overwhelmed. With information and offers flying in from every direction, it can be hard to distinguish between the “wheat” and the “chaff” in today’s real estate investing arena. Here are three things to look for if you are looking to invest using cash in today’s real estate market:
1. Advisors With “Real World” Experience
During the “boom” years, many real estate “gurus” came on the scene and began teaching anyone and everyone real estate investing. That is just fine, but many of these gurus had only done a few deals – or none at all – in a market that worked for just about anyone. Work with these guys today and you could end up with your money plunked firmly down in a dead-end strategy that no longer works. Make sure that your investment planners have real-world experience in today’s market and can show you tangible indications that their real estate investing is working right now.
2. An Investing Strategy Showing Monthly Yields
Although real estate still will appreciate – particularly relative to today’s low values – savvy investors are looking for properties that generate reliable, monthly yields. This is why the rental market is such a promising place to invest right now. If you are a cash buyer, you can have your “pick of the litter” when it comes to investing in properties. Make sure you are investing in properties that will generate income for you now on a regular, monthly basis in addition to generating a profit for you in the future when the property is sold.
3. Professional Management of Your Funds
As a cash investor, you likely will be looking to make your real estate investments in markets that have prime real estate for your needs. In most cases, these markets will not be in your back yard. As a result, you need to invest with a company that is prepared, capable and proven able to handle your funds and your investments for you even if they are not in your geographic region. Look for advisors who do not demand direct control of your funds. You should be willing to place your funds in escrow with legitimate attorneys or closing agents, but only at the point that you’ve identified and contracted for purchase of specific investment properties. Don’t let anybody get their hands on your cash before that time.
By “vetting” all opportunities based on these three primary requirements, you will be able to begin to identify real estate opportunities with true potential in today’s market. Remember, as a cash investor, you are in an optimal position to make the most of your money and get prime “bang” for your bucks in today’s market. Make sure that your real estate investing strategy optimizes every dollar to the fullest.
Great advise, as a cash investor myself these are three point that I always keep in mind. They provide the safety nest, high yield returns with a prime upside potential. Never the less , is always good to keep a price target in my, stay educated and focus. There is lots of opportunities out there in todays market, is always good to keep a price target in mind that reflects a 3-6 months 2-3% depreciation on the purchase price. I like to stay around 65 to 75cents of the lowest comparable within the last 6months.
Good information! All those site’s with information on cash buyers should have this information.