Flip Tip Summary
Learn Mike Conlon’s 3 keys to being successful in real estate investing in this market. Mike, the “Main Street Millionaire”, has achieved great success in many classes of real estate. Check out this great FlipNerd.com Flip Tip!
Flip Tip Transcript:
Mike Hambright: Hey, it’s Mike Hambright with flipnerd.com. We have a quick VIP tip to share with you from Mike Conlon, The Main Street Millionaire, who’s going to give us a tip on the three keys in investing to real estate in this market.
Mike Conlon: I think it’s a really challenging investment environment right now, and I go back to three fundamentals that really last through all markets, but really key in this real estate market right now.
Number one is you make your money at the purchase. You really have to look for distressed properties that are trading anywhere from 10-20% below market value and really try to use all your resources to get those properties under contract and buy those properties.
Number two, you always buy cash flow. You never buy properties that have negative cash flow. Underwater properties, as they call them, with negative cash flow lead to really bad results. So only buy the cash flow, and then the upside from that cash flow.
And then, number three is the standard in real estate all the time, is location, location, location. We really look it as location, now, has to be near the bigger cities because affordable housing is all about employment. And employment has really become more and more so in the bigger cities. Avoid those one-company towns because you can have some really serious problems if one of those companies leaves.
Mike Hambright: Thank you for joining us for another FlipNerd VIP tip.
We’d like to thank our sponsors, RealtyMogul.com and National Real Estate Insurance Group.
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Mike: Please note the views and opinions expressed by the individuals in this program do not necessarily reflect those of FlipNerd.com or any of its partners, advertisers or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.