12 Keys to Finding a Boom or Bust Town Part 2

Here is the second part to the 12 keys to finding boom or bust town.

These factors are active factors meaning that the individual has the control to change the outcome. The first 6 factors were passive (and can be seen if you scroll down)

1)Creating the Highest and Best use
a.Highest and Best Use indicates that a property is being used to its potential. As an investor, opportunity lies in finding properties that are not being maximized and changing their use.

b.For example, if you live near a university, you can maximize the property by renting out rooms

c.Or you could rent out a garage for an additional $50-300 per month.

d.By creating a change to use you will increase the profit potential to your property, not all investments will have a change, but a small portion will allow you the opportunity to take advantage.

2)Buy Wholesale, Sell retail
a.You purchase a multi family property or entire apartment building, and convert the property so that each suite has an individual title.

b.This is also known as condo conversions or condominiumization.

c.Now you can sell each individual unit to make a profit. Although this strategy is used by experienced investors with deep pockets, one should learn from others.

3) 10 Quality Marketing
a.By using proven marketing strategies, you can attract the type of buyer, seller or renter you want, while at the same time reducing the effort it takes for you to run your business.

b.It allows you to maximize your income, minimize your purchase price, and maximize your selling price.

c.This is true for rental properties a well as you can attain above average rent if marketed correctly.

4)Renovations and Sweat Equity
a.Doing renovations on a property can have a positive affect on its value.

b.Areas of transition are a great source of properties that need improvement, so look for well built and somewhat neglected properties in areas that are showing increasing pride in ownership.

c.The first step is to buy a property in a location poised to boom.

d.Make sure the property is structurally sound and just needs simple things like lumber, new flooring, drywall paint, cabinets etc.

e.You buy it, improve it to increase the value then sell it or rent it out.

f.Understand which upgrades give you payback and which are a waste of money.

g.Look for properties that need a touch up and renovations-non structural improvements that have an immediate impact and an appeal of the property.

h.If you have to fix something that a prospective buyer or renter can’t see, for instance, structural repairs, you will often not get your money back.

i.You will really start to make money when you focus on buying properties with great investment potential and let the others do the physical work.

5)Speculation- The secret trip that turns out not to be so secret

a.Although there is money to be made in speculation, it is not part of the ACRE system, because there are too many variables that are out of your control.