Buy and Hold Real Estate - PA Deals LLC

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Visit http://realestateseminar2011.com
Or call us today at 717-901-7763

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Buy and Hold Real Estate - PA Deals LLC

  1. 1. Buy and Hold Real EstateIt may be time to take a good hard look at the Real estate market anddecide on our own. With all the negativity surrounding the market over thelast few years let’s take a look at what really matters.Most investors are looking at property values as the only criteria as when tobuy and what to buy. This is a major factor in deciding when to enter themarket but a closer look shows that it should not be the only criteria. Tryingto guess the bottom of real estate values could leave you with out the bestdeal.With mortgage rate at a 35 year lowthis can work to our advantage. Mostexperts think that we have seen worstin real estate values. What should beexpected is some ticks down but thatthe sharp declines and drastic hits forthe most part are behind us. Now lets take a look at how values and rate affect usWhen thinking about building a rental portfolio the number 1 thing to keep inmind is "CASH FLOW". Popular opinion is the cheaper the better.Consider this, not the cheaper the property rather the cheaper the payment.This is where the terms of the loan come into play. In many situations theterms are going to create a better deal. Follow the example below;A rental house that cost $100,000$100,000 @ 5% = $537. A 5% decrease in property values with a 1 percentincrease in interest rates proves to be a bad deal.$95,000 @ 6% = $570. A 6% or $33 difference in payments.Zack WiestPaDEals.com717-901-7763 Ext. 300
  2. 2. There would have to be a decrease in property value of greater than 10.5%for the payments to be the same.So the questions remain: Is it time to buy? Are we at the true bottom (rates& values)? If I wait for property values drop will I miss the bottom of theinterest rates?With values at an over corrected state, rates at a 35 year low and inventorystarting to decline now may be the best time to buy. The Investing Cubeoffers the best real estate investment properties anywhere in the US.Register to attend one of our upcoming Intro Tour webinars and see justhow great our company is!!!PaDeals.comZack WiestPaDEals.com717-901-7763 Ext. 300

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