Welcome to the Investor's Center
If you are thinking about introducing real estate into your portfolio or you're already an expert, the paragraphs below will ensure our definitions are consistent when you begin your search. There are three categories for home investment...
1. Buy and Hold: Buy a property with the idea of renting it out. In this situation, the investor's down payment should be enough to ensure a small cash on cash return (month to month...rent vs expenses) and a significant overall return on investment (when the property is sold). There are three types of target markets for this type of investment...long term renters, seasonal rernters and vacation renters. You would need to select your target market. The investment amount, risk and return vary with each type.
2. Buy and Flip: This investment requires quick movement on a home that is undervalued or needs work. The investor will try to put as little down as possible to buy the house and have little care regarding the type of loan he gets because the home is going to be resold in a couple months anyway. The investor WILL need cash to remodel the home once it closes escrow.
3. New Homes: This investment requires a small amount of money down...typically increments totalling 5% to 10%. Currently for many reasons, the completion time in the Phoenix area for new homes is 12 to 18 months. During that 12 to 18 months, the home that hasnt even broken ground yet is accumulating appreciation of 15% to 35% annually. However, the vast majority of builders have added clauses to the contract limiting or preventing investors from buying.
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