Answers for New Investors

Posted Jan 13, 2009 @ 12:24 pm, Viewed by 268 Visitors, Read 268 Times.

I have found that there are many people looking to take advantage of the current real estate market and add to their other portfolio of investments, but simply have no idea where to start. Often times new investors have similar questions when they decide to invest in real estate and here I am going to answer a few of those questions.

1. The First Question: Where do I want to invest and why?

This answer is one that may be different for every investor. Some investors feel more comfortable investing in their own backyard even if the profit margins are thinner, break even, or often times negative. I have come to the conclusion that Memphis, TN is potentially the most profitable city for investors. When I first had the real estate itch, I searched several websites and forums featuring "deals" with break even and negative cash flow. I couldn't understand why anyone would select this option as opposed to any of the traditional forms of investing providing minimal return on investment. My eyes continued to fall on headlines featuring the city I live in, Memphis, TN and the advantages of investing here.

Why is Memphis an advantageous place to invest? The average house values are much lower than the rest of the country and rent for relatively the same prices, which converts into higher positive cash flow. Another interesting fact I stumbled across was that between 30% and 40% of the residents in Memphis are perennial renters with either little desire to own their own house or lack of assets that would allow them to qualify for loans.
2. The Second Question: Where do I start?
I always recommend finding a local Real Estate Investment Group to join. These groups are often filled with brilliant minds willing to share their successes and failures with you to alleviate some of your growing pains as you develop into an investor. Another source is the various forums that are available on the internet. These forums can often provide a new investor with a general outline of where to where to start and some guidelines to use.
Unfortunately, there are certain growing pains that many first time investors experience regardless of the preparation. At The Uptown Group, we have created an unparalleled turnkey system designed to cater to the specific needs of of first time investors, seasoned investors, and out of state investors alike. The services that we offer include, but are not limited to: Property Management, Acquisitions, Financing Assistance, Hard Money, Consulting, and all of our renovations are done through contractors that work strictly with us. This means that we find your investment property, get you financed, complete all necessary renovations for you, and get tenants into the house for you. Because we have all of these services available to our investors, they are allowed to work with one company instead of several vendors which can often be more expensive.
If you are interested in the opportunity to invest with a full team of support, or have any questions about my blog feel free to email me at investmentmemphis@yahoo.com for more information.
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rcoomer

rcoomer After investing on my own for a few years, I got into the wholesaling business where I can bring the opportunities of the Memphis market to the rest of the country. Read More

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