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The Future of Investing In San Antonio
When it comes to the future of investing in San Antonio real estate the motives vary depending on each investor and their experience. Investors of real estate normally have a strategy in place before buying a property. They advance only on deals already matching a set of rules that meet their goals. Unlike buying a home for your family which is based on emotions and family needs. An investor strictly is looking at the numbers surrounding the deal. The properties chosen by investors are the ones that fit with their predetermined agenda and will net them a profit.
Three of the most popular strategies investors use include:
- Flipping properties for resale
- Buying multi-unit complexes i.e. duplex, triplex or four-plex to rent out
- Purchasing single family houses for rent-to-own income
The future of investing relies on Investors who purchase a property with the intent of fixing up and reselling for a profit. A nickname in the Real Estate industry for those type of investors are called “flippers”. I am sure most people have seen one or two of the popular reality shows on HGTV and DIY channels depicting their process.
While some of what is filmed is very accurate, the actual stories in real life are less dramatic. Flippers tend to buy properties needing TLC repairs at under value to profit from the resale right away so they can move on to the next project.
When you talk about the future of investing there things you look for when buying a property such as:
Investors know how much they are going to pay for any property upfront
Investors know what area of town they want to invest
Investors know how much money they intend to use for needed repairs
As a licensed Texas Realtor, my job when working with investors is to find properties and help them answer these questions. Showing only houses that meet their criteria to include property location, budget and investor’s experience with real estate. This allows me to explain the future of investing, so I can guide them in the right direction. I am not an attorney, but like said I will point you in the right direction. The possibilities are endless when it comes to the future of investing in San Antonio real estate. From the novice to the professional real estate investor, there are deals to go around for everyone!
A first-time real estate investor – Looking to flip a property for the first time, will be better off buying an outdated and/or foreclosure home on discount. The reason being these homes often only need beautifying and updating plus a little deferred maintenance repairs in order to flip for a profit.
Seasoned real estate investor – Looking to made a HUGE return may feel comfortable dealing with foundation, electrical and plumping issues. In this case, for order to receive a BIG PROFIT the investor should look at abandoned and distressed properties.
The future of investing continues by knowing, how to ask the right questions to investors. When I guide you, I will save you time and money. Finding out the investor’s intentions and their level of expertise and experience is where my value really shines. Besides negotiating a good price and good terms; matching the right property with the level of experience per the investor is where I am the most helpful. Why people ask; its because I understand the future of investing.
As a bonus, I also am the voice of reason and help investors match bids with contractors to obtain the ultimate full picture of what they are buying.
Here is an example of what I mean.
An investor wanting to buy a house in downtown San Antonio with a property budget of $200k and a repair budget of $25K. I can find a property based on the rate of return discussed with the investor then easily find a property to match the criteria.
Once I have the properties of interest I would give the investor the estimated cost as a guide for them to think about investing in the property. As in this example, the investor has a $25k remodeling budget I would give the breakdown as follows:
A / C & Heat Repair
Total Repair Cost!
* Leaving $5k for interior design on updating the floors, painting, light fixtures, bathroom tiles*
The extra $3k is for unknown expenses. All the BOLD items total the $25k remodeling budget.
This evaluation is only one of the ways I help investor buy the right properties. I have other assessment tools which I use in conjunction with reports to ensure my investor clients receive as much information as possible when buying properties. This information is important for investors looking to invest in San Antonio real estate.
Hit the GET IN TOUCH button to let me know how I may help you, and let me (Ray McCurty) be your San Antonio Area Realtor on all your investing real estate needs in San Antonio, TX.