As current market trends are shifting towards a slow recovery in the housing sector this means that prices are surely going to increase. We have been telling real estate investors for years now that this is the best time to be buying Memphis rental property and that statement has always been true but I say it now more strongly than ever. As more wholesalers continue to buy up the available stock you need to make sure your buying smart. Buying smart does not mean rush out there and buy the cheapest property you can. I have had many investors come to me recently who had purchased within the last 12 – 18 months and want to know why the home is not performing like the person who sold it to them said it would. After talking with these investors ( mostly foreign ) I discovered they were led to believe things that will surely never happen, things like a foreign investor being able to refinance out of their private loan into US bank loan under their LLC. This will surely never happen and I hate to be the bearer of bad news, or should I say the bearer of truth and reality. The advice I would suggest to anyone looking to purchase rental property anywhere would be this:
- Get references from past clients. Know you will most always get referrals from happy clients.
- Ask them if they own any investment homes in the city you are buying from them in. If they dont I would wonder why?
- Do some back ground research on the person you are dealing with. Last thing you want to find out is that they have gone bankrupt or have been in trouble with the law.
- Does the person you are buying from live in that city.
- What system do they have in place to help you out long after the sale has been completed.
As I have said for the last 5yrs, The time to buy is now. Do your own due diligence, make smart educated decisions an start building your portfolio now.