Presentation:

• Location, location, location
• Geographic Scale
  • Market (Metropolitan Area – CBSA)
    • Economy/Jobs/Cost of Living
    • Natural Environment/Climate
    • Culture/Lifestyle
  • Neighborhood
    • Schools (once upon a time)
    • Crime
    • Housing stock
    • Convenience to work/school/entertainment
    • Proximity to parks, green space
  • Parcel
    • Lot size and orientation
    • Traffic
    • Cul-de-sac
    • View
    • Neighbors
• Strategies – ways to make money
  • Buy something broken
    • Cosmetic fixer
    • Major repairs
    • Problem should scare away amateurs
  • Buy at a discount … by paying cash
    • Pay cash
      • Cash offers are expected to be lower than conventional financing
      • Implicit discount to avoid bank financing headaches (e.g., inspection, appraisal, approval)
    • 3 “D” opportunities
      • Default – owner is facing foreclosure or bank-owned
      • Death – death in the family forces family to sell
      • Divorce – joint assets must be liquidated
  • Fix and flip
    • quick profits/cash
    • higher tax rates
  • Buy and hold rental
    • more headaches
    • long term income
    • lots of tax deductions
  • 2-year hold
    • hybrid approach
    • avoid short-term gains tax
    • relatively quick roi
  • Seller financing
    • defer capital gains taxes
    • earn interest income
    • set price
  • Business with Real Estate
    • motivated sellers
    • buy together, sell separately
    • valuation is tricky – proceed with caution