The purchase of a home is for most people the largest investment they will make in their lifetime! Your home is both an investment and a place to live. For the past decade I have worked with a lot of investors and the same principals that make my investors rich, apply to any real estate purchase. Here are some real estate buying tips I learned from the investors I've worked with!
First off, it is all about the numbers! Make sure the numbers work up front, define and estimate if there is money to be made and upside in the resale due to market, trends, or added value… Basically, if the numbers don't add up from the beginning then don't make the deal. Hoping that the market improves isn't a tactical game plan, you need to back up your predictions with cold hard facts and proven economic growth patterns. This is where you need the help of a trusted real estate advisor that understands the local market.
Secondly, make your money work for you! We have a very unique situation in the Coachella Valley, I can actually help Second Home Buyers pay for their Vacation Homes with a part time rental strategy. We can come up with a rental formula that helps them to defer the purchase cost of a second home and still allow them the time in the sunshine that they are looking for… Shop around for your loan, for the best interest rate and package. Parents don’t let your kids keep renting, don't make your landlord rich! You can gift family and friends as low as a 3% down payment if they have been employed for three months or more. Find out how much they qualify for, and make the best decision for your financial future.
There are so many creative ways to help afford your first home. The largest obstacle is usually the down payment. However, loan programs, gift programs (That's you, Boomer!) and seller assisted financing, are all methods to help with the downpayment and bring down closing costs for the purchase. In many cases with a good income we can get you into your own home for same cost as your first and last months rent. Real Estate is your best hedge against inflation so make your money work for you!
Third, don't be afraid to put in some elbow grease! I have a rehab team and I can walk clients though a minor rehab that will create instant value in their home, maximizing sale price from the start! Because of my work with investors and as an REO Specialist for Bank Of America. I know how to make offers and find the deals for my clients. Because of my work with investors I have presented literally thousands of offers, I have the experience to close deals properly while still making sure my clients are getting the best bargain possible.
And last but not at all least… Location, Location, Location! This is why you need a local real estate expert, Ive been in the valley for 20 years and I know the ins and outs of every community and the pros and cons of every city… I work across the entire Coachella Valley for my clients from Indio to Palm Springs. Last month I sold a house in Desert Hot Springs for $200,000 and a Luxury Home at ShadowLake Estates for $3 Million. I have worked with investors since the beginning of my career, and applying what I learned from my clients as well as my own experience, I can help you make the largest purchase of your lifetime a little less scary.
PS: Speaking of Location, I am feeling very optimistic about the Palm Springs area and the Coachella Valley's future! We have seen an unprecedented amount of growth in the past few years. In fact, according to the stats, the desert as a whole will double in population size by the year 2035. If you don't know the desert has a population of around 400,000, that means we will be jumping to over 800,000 people in a little more than a decade. Now this growth isn't exactly symmetrical. The east end of the valley will see the biggest boom, due to the inexpensive land, sparse property developments, and the more lax regulation. While the west end has seen a spike in home value and a general lack of new inventory.
But that means that now is the time to buy across the valley, and depending on where you live and how much your home's value has gone up, it might be time to sell as well!
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