The jury is out about whether the housing market recovery (or lack thereof, depending on your perspective) will have any impact on this year's presidential election. According to a recent CNN Money article, the housing market is showing some significant gains in swing states such as Florida and Nevada, which could certainly play a role in electoral results.
So you want to learn a little more about cash flow real estate before you take the big plunge. It can be hard to know what to think about all of the information available online about real estate investing and rental properties for sale. What is reliable? What is too good to be true?
When we speak with real estate investors today who want to buy investment property in Memphis, they are almost always attracted to the concept of positive monthly cash flow and rarely look at other signature pluses of real estate such as appreciation, equity and almost never depreciation. The last one is one of those terms and concepts that comes across as so technical that many fail to realize exactly how crucial and beneficial it can be!
Memphis Invest has earned a reputation among our clients and even our peers as a company that truly understands how investors want to calculate REAL value. Too often, investors are fooled into thinking that the value of real estate is the price you pay for it. I cannot tell you how often investors contact us after having bought "great property" right here in Memphis from a company located in a state like California or Nevada and they are having trouble getting it renovated and occupied. Their idea of great is the cheap price they paid for it. The reality is a 900 square foot 4 room shack located in an area that very few want to visit, much less do renovation work and management.
Chandler Reports, the local real estate information aggregating company, released their monthly tally last week which included 1st quarter totals for all things related to real estate in Memphis and the surrounding areas. Memphis Invest is interested in many of the numbers including total sales, days on market, average sales price and number of transactions as each of these data points is very important to the over-all health of a market. But we are also extremely interested in the over-all sales numbers for the area and for the 8th quarter in a row, MemphisInvest.com was the leader in local company home sales.
Topics: Memphis cash flow, Discount investment property, Memphis foreclosures, Memphis Investment Property, Wholesale Properties in Memphis, Buy & Hold Strategy, Brett Clothier, investing in Memphis real estate, Marq Cobb, turn key real estate investing, Fannie Mae
Many of the recent articles you read on the housing market seem to convey almost polar opposite messages. Markets are up, other markets are down and no two pollsters, spinsters or prognosticators seem to agree on exactly what is happening. Real Estate Investors have to get past all the white noise of the national housing market and get down to the fundamentals of particular markets that provide quality, stable investment opportunities.
If you've heard Memphis Invest speak at various events around the country, you've heard us talk about the 'intagibles' that make Memphis investment properties unique when compared to other real estate investing cities. One of the unique characteristics that makes Memphis a great city for real estate investors is the location and, because of location, the industries that support the city. Here is another great example of the tremendous economic growth that is expected for the city and how that growth effects real estate investors.
As I was reading a report last week on the status of real estate investing in different markets around the United States, one number kept jumping out at me - the percentage of real estate investors paying cash was huge! In some markets around the country, real estate investors paying cash made up more than 75% of the transactions. Since real estate is a hyper-local industry, with each individual market able to vary wildly from the next, keeping an eye on the trends of investors before making assumptions is a huge task.