If you study my investment strategy, you’ll learn rather quickly that I insist on having TOTAL CONTROL over my investments. This particularly applies to the financing when I purchase properties. Most older rundown fixer type houses should not require new bank financing. Always try to get sellers to finance the sale or most of it! Seller financing is flexible and cheaper. If you buy affordable priced properties (medium to medium low range), most people can afford to rent or buy from you. Conversely, if you buy high-ticket properties, you will limit the number of people who can do business with you.
How fast you need cash flow help’s defines the vehicle, single family houses or multiplex units. Select a plan that makes the best use of your time and resources (money). For example, in my case I needed to quickly develop monthly cash flow without paying a ton of cash for my properties (which I didn’t have). Only certain types of properties will provide cash flow, so that’s where I directed my energies. Also, another one of my goals was to quit my regular W-2 salary job. That set up tight restrictions on my time limits because I had to have money to live on within a couple of years from the time I started buying properties.
It’s my feeling that all investment portfolios should be DIVERSIFIED! You need some properties that provide good cash flow and some that just occupy the lot waiting or appreciation or higher and better usage. By setting goals, schedules, time limits and minimum cash return requirements, you’ll quickly determine which kind of properties you need-and how many of them it will take to get you where you’re going.
If you’re on the fence concerning this issue, it will pay you to read my latest book for investors getting started: “THE REAL ESTATE FISHERMAN” it is a must read for every Mom and Pop investor. CLICK FOR BOOK DETAILS