Array Management Group

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Why urban real estate makes perfect investment sense. The biggest advantage of urban real estate versus other niche areas is the ability to liquidate quickly. If the property is in a good area, is well kept and has excellent cash flow, investors will always be attracted to it.  Besides having a lump sum up front, there’s nothing investors love more than an asset with heavy cash flow. In my urban properties, I typically cash flow $400- $500 a month NET after expenses.  All this from an initial investment of under $30,000.  With that kind of cash flow it is easy for me to find an able and willing buyer to sell to if I need some immediate funds. In a soft market, your survival depends on your ability to lower risk and liquidate on the fly.

Urban properties allow investors to increase potential cash flow by buying in bulk. It is not uncommon in some areas of the country to purchase 5-10 cash flow properties for $100,000 total. Imaging buying 10 properties at one time and they are all ready to start earning a return on your investment. No rehab needed, just find a manager and start collecting. Urban properties allow you to reduce your risk by acquiring more assets with less money. If one property sits vacant, the others are still earning cash flow and keeping the business profitable.

Remember: If you have any questions related to Detroit Real estate, email me at info@arraymg.com and I will answer some of them on future blog post.

“Spend eighty percent of your time focusing on the opportunities of tomorrow rather than the problems of yesterday.” -Brian Tracy

Ok, so you have an investment property that would be perfect for your ideal customer. How do you go about selling it quickly when there are an abundance of bank owned, foreclosures, and short sales on the market?

To achieve synthesis in your sales department, begin by committing the following 6 steps to memory, then set procedures, and polish each skill until you are a master of each.

Step 1. Create a Marketing Plan

Hopefully by this time you have taken interior and exterior photos, as well as recorded a short video (if you have the equipment). So what’s next? Create a marketing plan that highlights the property.

Step 2. Qualify the Buyer

Qualifying the buyer means weeding through your leads and finding buyers who are able and willing to buy now. The best way to qualify a buyer is by asking questions.

Step 3. Create Desire

The potential buyer thinks your property might be right for them, but they are not 100% convinced. Now is the time to increase this desire. Your buyers will be a lot more motivated if their current situation becomes unacceptable. If your prospects are comfortable with their situation they will not make any changes.

Step 4. Overcoming Objections

One of the most common reasons that you lose a sale is because of an inability to overcome objections. Even the best salesperson faces objections but top salesmen know that the better you qualify prospects, the fewer obstacles you will encounter on your road to making a sale.

Step 5. Close

When a buyer is ready to buy, proceed to the closing preparations. The closing process should be swift and controlled by you.

Step 6. Follow Up

Your job is not done once the sale is closed. You have worked hard to get the buyer to the closing table, now it would be a shame to have to repeat the previous 5 steps every time you try to sell a property.

This article is a reprint of an article I published on EzineArtciles. To view original article Go Here.

Be sure to leave comments and let me know what you think.

Buying real estate in low income neighborhoods can be beneficial to investors as they can provide high yields for a low initial investment amount.  So lets say you’ve found a property in a low income neighborhood and as a result of due diligence you realize the property is in excellent condition and will bring positive cash flow. Now the question is: Should I buy it?

Before you do, consider these tips and determine whether or not they apply to your potential investment property.

This article is not about how to find deals in today’s market. Anyone with a pulse can find an undervalued property in this current real estate environment. This section outlines guidelines and potential warning signs when purchasing real estate in low income areas.

1. Invest in areas that are in close proximity to schools, shopping centers, and highways.

2.  As a general rule, don’t purchase property with a fire damaged home as a neighbor. Fire damaged homes are  usually slow to sell in this economy due to the large inventory of foreclosures and bank owned properties on the market.  Because cities are strapped for cash, these properties probably won’t be torn down anytime soon.

 3. Too many vacant properties on a block are also a red flag. In this market its hard to avoid vacancies even if the best neighborhoods but try to stay away from situations where vacancies equal occupied homes on a single block.

4. WATCH OUT FOR TRAP HOUSES – A “trap” house is a slang term for a house that has illegal activities. These types of properties can be identified by high traffic volumes in and out of the properties. Trust your gut when looking out for these types of properties. If the area you invest in has lower traffic and a nice mixture of home owners verses renters, you shouldn’t have a problem with trap houses. People who do illegal activities generally don’t target areas where neighbors have pride of ownership.