Salem Oregon Real Estate–  Two Best Investments

Salem Oregon real estate has always been a pretty good investment if you know what you are doing. They say more money has been made in real estate than any other occupation combined. That may have been true before Amazon came along.

The trick with real estate is to find a good buy that you can make some money at. Finding a deal is more important than having money as a great deal will attract money. The best deals will be those that the savvy investors are looking for.

Salem Oregon Real Estate has been very popular with buyers. We sit on a crossroads that allows us to travel west an hour and reach the coast. Go east about 2 hours and you are in central Oregon, popular with tons of people and finally, north or south on I-5 to many areas.

For many year’s apartments and different kinds of multi-family assets have sat atop the wish list of many investors as they supply one of the best cash flow and security investments. Food and shelter are the two most important needs for humans so I don’t see that going out of style anytime soon.

There are many different kinds of multi-family properties to choose from. If you are just beginning you will have a tendency to look for duplexes or fourplexes, the smaller ones. There may be a little money to be made here but not much. The trick is to get as many doors under one roof as possible.

Homes for sale in Oregon

Yes, we have Homes for sale in Oregon like any other city but if you are looking to invest money do it in something that will make 12-14% as opposed to 3 or 4%. Single family homes are not the way to go. Looking back at al

Most l the rental homes I have owned has allowed me to closely check the ROI on them.of the time my returns per year were lower than the cost of living (4%) making them just a tax write-off at best.

Yes, the home sold for more than when you bought them but there is cost of living involved

The primary goal of every real estate investor should be monthly cash flow. Assets are the investments that produce cash flow, not your personal home like many think.

 Apartments for Sale in Salem Oregon.

Apartments have always been one of the most popular investments when it comes to cash flow assets. Like anything else you can run them into the ground but if you choose your management company wisely and you keep a close eye managing the manager, you stand a chance of enjoying monthly income for many years.

Earlier I mentioned finding the deal was vitally important. Regardless if its Apartments in Oregon or any other state, shopping for a great deal takes a bunch of time and knowledge.

Most of the multi-family properties on the market are being sold as a 5-6 cap. This means if you paid cash for it ( I know you wouldn’t do that), the property would return 5 or 6%. I don’t know about you but that doesn’t get my ears flapping.

Apartments in Oregon

Finding Apartments in Oregon takes some leg work. The ones that are listed will have gotten some exposure. If they are on the market a while it indicates that they may not be all that good of a buy. The main goal is to get an accurate profit and loss statement and try to figure out what your Net Operation Income (NOI) is.

Most the time the seller is not all that accurate (or honest) divulging the income and expenses. As a general rule if you have a 25-100 door complex, expenses should be about 45-50% of gross income. Knowing what the percentage are can help you see if a seller is stretching things.

The mismanaged places will have the most opportunities as a general rule. Occupancy will be low and there will be the look of disrepair. Some of the best money- making deals will be the re-positioning of an apartment complex like this, if done right.

Land for Sale in Oregon

The land in Oregon that we have will run the gamut like any other state. Ocean front, big city commercial, nice acreage homesites and desert sage worth very little.

Most of the time land won’t earn any income unless you have a ground lease or something that allows you income. Farm land is a good representation of this.

In Oregon we have a bunch of forest land. Douglas Fir is the main tree harvested here with one of the top prices.

Land in Oregon

Land in Oregon with timber on it will have an additional value depending on how old it is. Normally Timber land will increase in value at 7.5% per year. The problem is finding property for sale at just the timber cost.

Currently the inventory of land in Oregon is low. Finding just the right place takes a bit of work but the beauty of  Oregon is worth it. Great home sites, farm land, commercial and Timber is what awaits you.

Land in Oregon would not be among the top two great real estate investments.

Salem Oregon Real Estate

– The Second Best Investment

Retirement Homes are very popular with investors.

Dynamics normally drive investment popularity. This is why apartments have been one of the favorite investments of smart investors.

Recently we have started the retirement of the baby boomer generation. 2 billion people will be retiring in the next 10 years. Not in recent history have we seen such a strong dynamic affecting the real estate market.

This will drive the sales of larger homes, self- storage popularity and most importantly retirement homes. Retirement Homes is the second-best real estate investment.

I am not suggesting you learn how to run a retirement complex but rather find or have built a complex on property and lease the facility to a very reputable operator. Own the real estate and lease it, stay out of operations.

Economies of Scale

You want to pay close attention to economies of scale and stay with 16 units as a minimum.

For years we have seen the facilities built like hospitals with a commercial look to them. The builders and developers just put elevators in them and go three stories high to get more rooms and intern more income.

Salem Oregon Real Estate

Popularity has shifted to a building that resembles a home more. With garden areas, outside living areas and central kitchen. Thies models normally contain about 16 rooms and have been found to be cost effective and very popular.

This single level model has a bigger foot print requiring a larger piece of property. Any additional land costs for this purpose would be passed on in lease price. I believe the attraction to this kind of living environment has grown tremendously and would yield a higher monthly rent.

2 billion people……. Right now, we are lacking in both single family homes and affordable housing in general. This dynamic will also drive jobs, as those related to the medical sector will increase the most of any in the next 10 years followed by construction.

Realtor Salem Oregon

Finding the deals is the labor-intensive part. Most properties will be listed but it is the properties not on the market currently that will have more opportunity. Thies require much more digging and research to find and the Moxy to know what to say and how to put a deal together when you do find one.

Finding a realtor in a town you want to work takes tons of time, and can be a crap shoot. For a buyer, Realtors are not going to be charging for there services as the seller pays RE costs. Buyers are smart to find someone that brings the knowledge to help them save money, compete, negotiate and create a great buying experience.

If a buyer is looking at homes, it benefits them that the realtor has knowledge of many things related to home construction and maintenance. Land buyers would want someone familiar with building, land use laws, surveying and possibly forestry.

The Realtor in Salem Oregon you choose will be very important to your success. Like a property manager, you need excellent people that bring knowledge for your team to compete and succeed.

Here is a great article on Apartment Repositioning

Let me help you find some great investments!