I have alluded in previous episodes, but I wanted to explain very clearly why you should always take local and state politics (not so much national politics) when deciding where to build your real estate investing empire. What I share may seem like common knowledge, however, most investors learn about these obstacles AFTER investing a large amount of capital. Hopefully, you can steer clear of the mistakes I have made, and ensure you can make a smoother transition into real estate investing for rental property income. Remember, politics chance from city to city, from suburb to suburb. If you have a choice, ALWAYS try to choose the locality that not only offers good cash flow, but politically and regulation wise favors your type of investment business. Now, offense may be given, but just understand that I am writing completely through the viewpoint of landlord/tenant eyes, and as a real estate investor. Thus, I will explain how politics WILL affect how you run your business. FYI, I am an independent politically, but facts are facts.
9 Comments
Great video! How did you finance your properties?
Hi There, I financed my properties mostly through personal loans and auto refinance loans through the credit unions. I also demolished my 401k (I believe in my hard work and real estate more than mutual funds), tax refunds, and savings. When you’re buying properties at my prices, those get you partway there. However, if you have great credit, go ahead and see what you can get as far as rates on a mortgage/home equity line, etc..Im working my way up on the credit train.
Hi, thanks for your response. I wanted to know what you think about condos and townhouses for real estate investments because I’m finding plenty of them for under $30,000.00. Thanks in advance for your response.
They can be great value, but they may bring a couple of headaches single family dont: 1) HOA fees and rules. You have to abide by them. My next episode titled “HOA and Code Enforcement” gives a few things to caution about. Also, you have to get permission from some HOAs to allow your place to be a rental, you can’t assume its okay. However, if you get their okay in writing, you should be fine. Just remember: If you get a violation notice, just pay it, and dont try to fight it, it never pays.
Great advice lisa.You right about red the & blue states. That make sense..I never thought about that..Thx..
Very good video !!!!! I agree BEFORE U even think about searching for
properties FIRST select a red state and within that state select a “red
city”. In addition, stay away from locations that have a “Housing Court”,
“Environmental Court”, or any type of court that is “code enforcement”
centered. In my opinion the prime locations do not even have a rent court !
In the process of doing your property search seek out other landlords and
even normal home owners and form a local PAC…Political Action Committee.
Sooner or later U will need to be politically connected in the real estate
game and U will need those connections to protect your interest. Most of
the real estate gurus have never mentioned the red and blue state
consideration…this is why your video was so important. Many people who
are starting out never consider the red and blue state angle and for many
newbies their first deal might be their last deal, because they did not
know the political climate or landscape of the city they invested in.
Great great video! I kind of figured something like this was happening.
Your vid left me with tons of questions, but this time I’ll only ask one:
Would there be a “Local & State Politics” sequel; whereas you give legal
examples, compare & contrast different townships???
I think regulations are good
Simply because if you are a good landlord what about the bad ones!!
Do you want to have an investment in an area that no one is cutting their
grass and up keeping the end of the deal..
I know I don’t.