As I mentioned in my last blog on Investing in Austin, I attended a class on investing which piqued my interest because I found a source for 100% financing on investment properties.  Combine that with other strategies and you could be looking at being able to buy investment properties with no downpayment and no money out of pocket for your closing costs.  Before I get too far down that path, let me back up a little...

Most people I talk with want to buy investment property but most I speak with have something that is holding them back.  Here are the common obstacles and answers to those obstacles:

• "I don't know what to look for" - I do, I am the expert, and that's why I am here to help you.  As your Realtor it is my job to monitor the market and find the properties that I believe will work for you and your investment goals.  I also consider it my job to educate you to the point that you feel comfortable and confident in the decisions you make.
• "I feel unsure/insecure about the future of real estate" - That's an easy question to understand right now with the news dominating the national headlines.  Know this though, real estate in Austin has appreciated at an average rate of over 6.5% annually over the past 30 years and the outlook for the Austin market appears to be strong well into the future.  The 50 year growth trend line for real estate in the United States is also 4.5%.  If your investment goals include building wealth, investing in real estate should be a part of your investment strategy.
• "My budget can't handle negative cash flow" - I certainly understand, that is why I will help you find a property that will minimize those risks and help you structure the deal so that you can have positive cash flow in your first year. 
• "I can't afford the downpayment" - Most people believe they need 20% down for an investment property.  That isn't the case in most instances.  As I've mentioned, I now have a source for lending that can obtain 100% financing which means no money out of pocket for your downpayment.
• "I don't have time to manage it" - There are plenty of capable management companies in town who will manage your property for a small fee.  Frankly, I think its a fantastic idea to let someone else manage it.
• "I have past credit issues" - The lending industry has loan products for almost any situation.  Don't let this fear hold you back from exploring your options.

The reasons people buy investment properties vary.  Some of the main reasons for buy investment properties are:

• Accumulate wealth
• Retirement Income
• Capital Preservation
• Capital Appreciation
• Rental Income
• Career Opportunity

What reasons are important to you?  That is a critical question to determine so that you can assess what the best type of property is for you and what the best strategy is for you.  Not every property works for every situation.  Each client's situation is unique and every property is different.

Questions? Call me, James Brinkman, West Elm Properties,  at 512.698.3525 or email to Brink@WestElmProperties.com