The Minneapolis-based Real Estate Investors Association, a club for people interested in real estate investments, isn’t discouraged by the state of the housing market.Its members, who meet to ask questions and share advice, has grown from five to 100 over the last two years, despite the housing slowdown in some corners of the business."This is what buying low is all about," says Jason Cramer, a member who has turned his hobby into a career. He recently opened a business that buys and sells distressed properties.Here’s some advice from club members for potential investors:
- Buy in a familiar neighborhood, near where you live, work or go to college.
- Research the area thoroughly, identifying potential properties and other business opportunities.
- Observe trends, costs, vacancies, and potential appreciation.
- Assess your own skills. If you have to hire out maintenance, costs will hit the bottom line.
- Start small. A single-family home or a duplex is a good beginning.
- Plan to hold it for at least three years.
- Avoid foreclosed properties. They are complicated to buy and they aren’t a guaranteed deal.
- Be pre-approved for financing. Most investment property loans require at least 10 percent down.
- Remember, dealing with people is key, so hold onto your sense of humor.
Source: Star-Tribune, Lynn Underwood (10/20/07)
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