Residential investment properties can be great “bullet-proof” investments if you do your research.   Focusing on real estate comps in your targeted areas will tell you which areas are good investment locations.  Addtionally, below are three fundamental steps to follow before making a plunge in the property market.

1. Find a mentor and network with other investors

Finding someone that has “been there and done that” so to speak will save you lots of time on your journey.   Meeting other investors and experts in the area can help inform your decisions and take the guesswork out of buying a residential investment property.  Joining my coaching programs is an excellent way to manage this!

2. Make sure your finances are strong

This doesn’t necessarily mean that you have all of the cash required in the bank. You should just make sure that equity in your existing assets such as your home can be leveraged to purchase a suitable property and you have enough cash flow to cover repair costs.

You have to have a stronger financial base with buying an investment rental property than you do a property that you want to live in because defaults on investment properties are generally higher.  Therefore, the interest rates you are paying are often reflect this and you need a higher down payment.  Your silver lining here is that more attractive lower interest rate.

3. Choose your investment property carefully

With owner occupied properties, you make money when you sell. With rental investment properties, you are making your money when you purchase.

So you need to choose your area quite carefully. Many first-time investors are afraid to get out of their comfort zone and, instead, purchase a property in an area near their home. This may not be the best choice from a pragmatic investment perspective.

A smart buyer considers the demographics first and does their research with InvestorCompsOnline and often chooses properties outside of their district to get the highest possible return.

Hey Guys you’re coming- right?

Just wanted to make sure you got my invitation that I sent you to come to the 3 day wealth intensive, the Investor Summit 2010, that’s coming up in Atlanta on Sept 17th-19th, 2010.

This is a closed door, invitation only event where some of the most successful investors in the country, including myself, are flying in to share their secrets to what’s working in today’s market.

This is an event you can’t afford to miss if you’re looking for the best strategies for creating fast cash and long-term wealth NOW…

Because I’ve been invited to speak, I was given a few FREE tickets for a handful of my students.

So, I’ve got two complimentary VIP tickets worth $997 reserved for you… but unless you grab them now, I’ll need to give them to someone else.

This event is strictly for people serious about making more money now…. If that’s you, I’ll see you there!

Mark Jackson

PS. I really believe that now is the best time EVER to position yourself to get rich during this recession… Don’t sit on the sidelines and watch this opportunity pass you by… register now!

It’s time to make a decision for your future!

Opportunity time Guys!!(Knock-Knock)

Are you looking for better ways to make fast cash and create long-term wealth during this market?

If so, I want to give you two tickets, worth $997 each, to come as my guest at NO CHARGE to the Investor Summit 2010 hosted in Atlanta on Sept 17-19th, 2010.

No joke… register here for free

At this event, some of the most successful Real Estate Investment Investors and Wealth Trainers from across the country are coming together for a closed door, invitation only weekend where we’ll be talking about one thing…

… what’s really working now, and to teach you how, even if you’re  starting from scratch, you can create a fortune over the next couple years investing in real estate with none of your own money or credit!

I would love to meet you in person and share some of my most profitable strategies with you!  I was given a handful of tickets for a few of my friends and students to come as my VIP GUEST for absolutely FREE!!!!

I don’t’ have enough for everyone though so GRAB YOUR TICKET right now…

You don’t want to miss this meeting of the minds,  it will be an event unlike any other!!

See you there!

Mark Jackson (MJ)

Hey ALL,

I couldn’t pass up the chance to let you know about this AMAZING house giveaway.

You can enter to win 1 of 3 houses — absolutely free and clear. These are clean houses in good areas… not junkers. And even the taxes and insurance are paid up for one full year.

Click here to get all the details!

Anyone can win, and after you register you’ll find out how to stack the odds in your favor.

Just think of the money you can make flipping or renting a house you didn’t pay for. There are no strings attached, just houses for nothing.

And you’ll get instant access to some groundbreaking training on practically “stealing” houses straight from banks in bulk.

Jump on this now because this contest ends soon.

I wish you all the best,
Mark Jackson (MJ)

In yesterdays post I talked about two of the basic terms you should know when dealing in REOs.  Of course real estate comps are extremely important also but that one really defines itself.  Today I am going to wrap up with three more terms that I feel are good to know for a basic REO foundation.

Vetting

Otherwise known as the critical examination or assessment part of the bulk REO buying process.   Quite necessary in order for the bank to assess not only the POF of the person who intends to buy the real estate, but also the actual willingness of the person to proceed with the transaction.

What is an LOI?

Also known as the ‘letter of intent,’ this is the letter which the bank will entertain once you have undergone the vetting of the POF.  The LOI will indicate what your exact bulk REO investment request entails, such as what type of property you are looking for, the price range that you desire, as well as the location that you will entertain.

What is a NCND?

The acronym stands for ‘non-circumvent, non-disclosure agreement’ and is a document signed by all the parties involved to secure the transaction.  Here, the basic premise is that all parties involved in the transaction will not interfere with the proceedings of the REO investment.

Knowing these five basic terms will again, set a strong foundation for any investor looking to venture out into the bulk REO arena.