Realty411 Magazine Featuring OCG Properties - Part Two | Página 24

Blue Chip Real Estate Strategy, pg. 22
ida, which were impacted very
little by the housing boom and
bust. Many of these cities have
a good economic future, afford-
able tax rates, net population
growth, and high enough rents
to achieve positive cash flow at
the median home price.
price point. When you have a
lot of normal sales, valuation
tends to be (somewhat) stabi-
lized.

Exit Strategy
Having an exit strategy is an es-
sential part of your real estate
plan. Some investors plan on
never selling and while that
can make sense to receive all
the benefits of real estate, lives
change. If you think back five
years ago and how different
things in your life were at the
time, you might agree that hav-
ing an exit strategy is impor-
tant.
With these blue-chip invest-
ment homes, you’ll find mul-
In Summary
With distressed properties mak-
ing up a large percentage of
total sales, then it only makes
sense to focus on buying blue-
chip homes at a discount today.
In doing so, one can realize
equity through quality reno-
vation, placing a tenant and
holding. These homes should
provide you relative peace of
Having an exit strategy
is an essential part of
your real estate plan.
mind when compared to lower
price points due to the lower
socio-economic risk discussed
earlier.
These types of rentals are a
good fit for people looking to
diversify out of equities and
accumulate a few properties.
While they may offer stronger
fundamentals than most prop-
erties they obviously aren’t
bullet-proof. These are compa-
rable to owning GE stock (GE
registered no U.S. profit last
year). While you can depend
upon these homes most of the
time, the downside risk is usu-
ally minor price depression
during an economic recession.
Lastly, in many markets this
type of product and strategy
simply wasn’t an option when
prices were higher. I doubt that
very far into the future this
opportunity will be as widely
available again in as many mar-
kets as it is today.

-
Ryan Hinricher is co-founder
of Investor Nation, visit online:
www.InvestorNation.com
tiple exit strategies. Median-
priced homes have the widest
available buyer pool. Think
about that for a minute: Lower-
end homes typically are resold
to investors. So imagine buying
a home on the lower-end at 60
cents on the dollar and thinking
you have a lot of equity. In fact
if your future end buyer is an
investor, do you think they’ll
pay 100 cents on the dollar?
Time on the market is also
another factor. At the median-
home price, time on the market
is usually shorter than any other
price point. So in planning your
long-term strategy it seems to
make sense to invest in homes
that could be sold quickly, fi-
nanced easily, and sold at or
near market value?
Where to Find
There are many markets you
can find these types of proper-
ties in today. Without going
into much detail in this article,
there are plenty of cities which
lie in states outside of Califor-
nia, Nevada, Arizona and Flor-
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