Real Estate Investing: America Rents
Posted by Dr.Phil Speer
Real estate investing will always possess profit potential because America rents. As long as most people need housing that they cannot purchase, opportunities will abound for the real estate investor...
Most people in America rent a personal dwelling! Just think how many families rent a house or an apartment, a duplex or a condo. Yet, nobody prefers renting. Who wouldn't want their own home, if they had the choice. Even if, say, someone moves into town on a temporary basis, wouldn't they prefer buying a house, gaining appreciation even for the short term, and selling for a profit in 6 months or a year? Maybe there are exceptions, but I can't imagine anyone really preferring to rent when they could own. After all, most rental houses are not even preferable. The condition of a rental house usually declines after being occupied by family after family. Rental houses usually are neglected and abused. They become less desirable. A rental house is NOT THE BEST HOUSE IN TOWN simply because it IS a rental house! And sometimes a rental house becomes a real dump. Families move in, families move out, and the landlord CANNOT and IS NOT ABLE to maintain a rental house in TOP CONDITION! The main reason a rental house is impossible to keep pristine is because renters don't treat a rental house like their own. Yes, there are exceptions, but most rental houses are not up to snuff. I know, because I use to own $10 million worth of rental houses. I had some very nice properties, but there was always something that needed repair. Things go wrong that need fixing, and perfect maintenance is impossible. Rental houses are less desirable because they can never be brought up to first class and maintained that way. If I had been the owner AND occupant of that rental house, I would have tried to fix it up and keep it in top condition. When you fix up houses to sell, "Renting America" becomes your marketplace. (1) You can never exhaust the demand. Everyone prefers their own house. It's still the "American Dream." (2) It's easy to create an immaculate house for re-sale that outshines most rental houses. (3) Selling renovated houses to the tenant in the marketplace rather than to the house-hunting market is much easier. Renters are readily convinced that paying monthly rent is a financial downer. Sorting out the credit-worthy renter with an offer to own becomes a win-win proposition. An untapped niche market in real estate investing is fixing up houses that can be purchased by America's renters. Phil Speer, Ph.D., started his real estate investing career 25 years ago. Without the availability of credit and using only a $10 bill, he purchased $1 million in properties in his first year, and had accumulated $10 million in properties by his fourth year. http://www.CashinHouses.com/ He was featured in a Wall St.Journal editorial as most successful investor in the Nothing Down Real Estate Movement, and was honored with a Caribbean cruise as top investor of the year. In his hometown of Nashville, Tennessee, he has been a businessman and Human Resources Consultant for 30 years. He is an author, speaker and seminar director. To learn how to profit in real estate investing, even without cash or credit, read his report at http://www.Real--Estate--Book.com/nomoneydown/flipping.html/ Subscription is free to his Fix-up Ezine. He and other contributing authors provide free articles and resources on real estate investing at his online "Academy of Advanced Real Estate Investing Techniques" at http://www.AAREIT.com/
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