Have you ever thought to yourself, “I wish I had bought Microsoft a couple of years ago,  when it was so cheap?”, Well this may be one of those times in Real Estate.  Many investment  gurus say this is one of the best times in 30 years to begin assembling a rental real estate  portfolio. Even if prices drop more during the next 12 months - today’s interest rates may  not be around when prices finally flatten out. As attractive as market opportunities may be, there are lots of pitfalls for investors, and yesterday, Rich and Steve Tetzner from Homestar Mortgage  talked  with local investor Rick Cohn. Rick bought his first 4-unit in 1979 and he has been a full time real estate investor since 1985, so he is no  stranger to the type of market we’re in today.

Rick gets a little creative when seaching for new investments, he can spot an abandoned property from 8 blocks away, and is always on the look out for investment opportunities. He feels that the long term appreciation of Real Estate is the key to wealth, although  there is something to the fipping strategy, in this climate,  rick warned, you will  need to purchase a property at at least 70% below market , plus costs for renovations, for the numbers to work.

Rick also can get a little creative with financing, lenders are getting more stringent in their standards, so Rick often seeks out those properties that offer owner financing, and can also turn to private lenders. There is often a premium involved in private lending, but if you figure that into your costs, you can still make a profit.

Rick is also the president of the Rhode Island Real Estate Investor Group. A great place for investors to meet up, talk strategies, and make connections that can help them with their real estate investing. The real value to a club like this  is what takes place before and after the meeting - networking

This Week’s Real Estate Insight:
Investing  in Real Estate isn’t gambling. There will always be risks, but if you are informed about the possible pitfalls, the odds will be in your favor. Do your “due dilligence”,  and learn from your mistakes.
 

Listen to the entire show with Rich Epstein and Rick Cohn

 

 Real Estate Insight: 6/29/2008: Play Now | Play in Popup | Download

This week Steve Tetzner and I had Suzie Symonds, from  Susan Symonds Interior Design to give us her unique perspective on home staging.   Many people are under the misconception that staging a house  is expensive, but it is more about creativity than money. People don’t realize that when they sell their house “as is”  it can actually cost them money. Like a hundred little red flags, numerous small maintenance details and repair concerns will influence a buyer’s perception of condition. Often a coat of paint and a little elbow grease is all that is needed  to alleviate many of these concerns.

Suzie had so many good ideas, here are some of the highlights:

• Depersonalizing the space: remove family photos, take everything off the refrigerator, and strip the kids’ rooms of posters and trophies.
• Clear high-traffic areas of excess furnishings to maximize feelings of space and comfort.
• Highlight the key features in every room–such as fireplaces or French doors–by making sure they’re not obscured by plants or furnishings.
• If you can smell it, the Realtor can’t sell it-refrain from doing much cooking (baking sweets is a good idea, however) and put good-smelling soaps in all the bathrooms.
• Turn on all the lights, replace bulbs with the highest watttage possible, buyers like bright and cheeful.

This Week’s Real Estate Insight: Sellers shouldn’t look at staging in terms of how much it will cost but how much it could make.  Staging differentiates a house and creates the emotional response that translates into more money and a faster sale.

Listen to the Podcast:

Listen to the entire show with Sally, Steve and Suzie Symonds

 

 Real Estate Insight: 6/22/2008: Play Now | Play in Popup | Download