Last week, John Paulson the multi-billionaire hedge fund operator who bet against sub-prime mortgages and made billions addressed a standing room only crowd at New York’s University Club recently. He thinks the run up in bonds is over and told the crowd “…this is the best time in 50 years to buy homes…your debt and interest payments get locked in at record lows, while the price of your home will rise.” “If you don’t own a home buy one…if you own one home, buy another one, and if you own two homes buy a third and lend your relatives the money to buy a home.”
Now I’m not a billionaire, but I couldn’t agree more Mr. Paulson. There’s two ways to take advantage of this market and opportunity,but you need to ask yourself what type of investor are you: Active or Passive?
1: Active- This is your classic do it yourself-er. You will need to spend the money and time to learn the process, people involved, pitfalls and profit centers. You can make more money if you do it yourself, but there is more time and risk.
2. Passive- Bottom line, you hire someone to do it for you. They know how to find discounted real estate in good rental areas, they have the people to renovate the property on time and on budget, they qualify and screen tenants that will take care of your property, they manage the property and visit the property every month to insure that your investment is being taken care of and finally can you receive a 9-11% cash on cash return on your investment each year. This is called Turn-Key investments.
At Roddy Investments (www.Roddy.com), we can help both types of investors. The question you need to answer is, what type of investor are you?
Give us a call and lets discuss how to implement your strategy!
George Roddy, Jr
CEO of Roddy Investments