Wednesday, January 13, 2010

Where Is The Best Place To Invest In Real Estate?

If you check with you will notice that Oklahoma City is called "Recession Proof" due to our stable employment record, growth and strong housing sales.

Of course, there is a difference between being an investor and being a trader.

If you are looking for a deal where you can buy it for $100,000 and flip it for $300,000 or more - you will not see that in Oklahoma City.

The bread and butter of the Oklahoma City economy are houses that range between $50,000 to $250,000. After you go past the quarter million dollar mark, you lose most of your buyers.

HOWEVER, the reason why Californian investors FLOCK to Oklahoma City is because they can cash flow the snot out of our properties.

For instance, I have a deal here in Oklahoma City that generates a 24% return on cash flow alone once the property is rented. That is not including equity or future appreciation - I am speaking of cash flow alone.

Purchase price is $25,000
Property is ready to rent for $500 dollars
Property appraises for $45,000 dollars
Appreciation rate is 5% annually.

$500 per month off of $25,000 investment is a 24% RETURN. That means in roughly 4 years - you will have your initial investment back 100% and any amount you receive over that is an infinite return.

Once again, not speaking of equity position or future appreciation. I am speaking of CASH FLOW ALONE.

Because when investing in real estate, you don't want to just look at appreciation alone. You want to look at:

1. Cash flow
2. Equity
3. AND future appreciation

We don't have dramatic appreciation rates like California and Florida did during the boom - but Oklahoma City is the place to be if you are looking to buy and hold.

It is also great for flipping houses, because you can buy for as low as 50 cents on the dollar here, and still sell high. A lot of Oklahomans don't know our economy is booming, because they listen to the doom and gloom about what's happening in California and Florida. So, they are giving these properties away for 50 cents on the dollar as well sell them for full retail value!

If you would like to partner with me, or if you need help building your portfolio in Oklahoma City please call or text me at 405-881-5958. I am a local investor, and I was born and raised in Oklahoma City. Save my cell number in your phone!

No comments:

Post a Comment