Where To Invest

Good Evening Friends,

Do you ever feel that Mondays get away from you? I spent the entire day on the computer and feel like I didn't get anything done. I did get a flip video today, so I should be able to post video soon. When Bill and I look at houses, we are going to put the videos up so that you can see what we are looking at.

We are currently buying in Iowa, Florida, Texas, and Colorado. We have people in place in all locations to help us when we need it. We like Iowa, because the property values are stable. They don't go way up and they never go way down. If you are looking for stable rental properties, invest in the Midwest. In Iowa, the values go up, maybe 5% a year. Over a 20 or 30 year span, it's huge.

I find that people are always looking for the "get rich quick" areas. Those same areas are at the bottom of the investing pit right now. Did you know that Miami, Florida has 5 years of inventory? 5 years!! That means that if every house listed today sold one per day, it would take 5 years for all of them to sell. If you remember, a few years ago, Miami was one of the hottest pre-construction areas around. Vegas is down, Phoenix is down. The Midwest is stable.

I don't know about you, but Bill and I buy for long-term so we look for areas where the values continue to climb a little bit each year. We have houses we paid $30,000 for that rent for $600 a month. It's crazy! We love it...

We also take advantage of the government programs like Section 8. It's my personal favorite...

The program is funded by the government requiring its approval of the rental property. The renter must also qualify to belong in this program. Many of these renters already receive some type of government aid. This program has guidelines for both the tenant and the landlord to follow in order to implement Section 8 into the rentals. Keep in mind that government programs are constantly changing and you must find out what qualifies your property for any of these programs.

This is guaranteed income from the government each month because that's who is paying the rent. The government pays all or a portion of the renter's payment each month directly to you and in some cases pays all of the rent.

You can find out if these programs are available in your area by contacting your county or city housing authority. They will mail you brochures outlining how this program works as well as their guidelines.

Personally, I love Section 8. Most of my tenants are on the Section 8 program. The key to being a successful Section 8 landlord is to screen tenants. I show up unannounced and ask to see the property. I also do one other thing: I call the landlords they had TWO places ago. They may be horrible tenants and the current landlords want them out. These landlords will tell you how great the tenants are and how they hate to see them leave. If you call the landlords before the current place, they will tell you the truth. The tenants are out of their property and as fellow landlords, they don’t want to see your place trashed.

Each tenant on the Section 8 program is assigned to a counselor. These counselors know the entire rental history of the tenants. The bad thing is that they are not allowed to give out derogatory information. I met with a counselor once for a heart-to-heart to determine what I can and can’t ask. Although the counselors can’t say the tenants trashed the last house, they can answer questions about the tenants rental history.

In this crashing market, now is the best time ever to buy and hold. I know some of you can't afford to buy because of credit issues. If that is the case, consider taking properties "subject to." the current homeowner deeds the house to you and you become the new owner. Before you consider a "subject to:, make sure it is legal in your area. I'll talk more about it later. It is how I accumulate most of my rentals.

Ok...I'm off to sleep. I'll talk with you tomorrow.

Have a Blessed Day,

Dwan
www.theieu.com