I am an investor. I’ve seen the world that way for a very long time. Investing in yourself, in other people, and in performing assets – and in that order – and you’ll be reaping long term bennies. I’m a real estate agent that loves helping others with Anchorage investment property.
Yet – you need to make a wise investment to reach your goals – to succeed – or to quote my man Ed Mylett – to “Max out!” (check out his podcasts). In relationships – that means choosing a good partner.
In real estate – that means buying right. Evaluating real estate – you need to have an understanding of price, condition, and location. Investing in rental property is accessible for basically any person – in that every person can understand the need for housing. Yet – moving into rental buildings – there is a bit more to learn to be a successful investor.
I toured a four-plex here in Anchorage with a potential buyer. Other parts of the country call them quads – but we know that means a 4-wheeler up here. You say tomato – I say snow-machine. I digress.
We went to look at it in person – because on paper – the property was a performer. It cash-flowed. It was going to bring in enough income for this gentleman to use his VA benefits and do a 0% down payment purchase. Great opportunity he has.
The property is in a part of downtown that is in between Fairview and Fire Island Bakery. Fairview is really rough – Fire Island represents one of the more desirable areas for Anchorage Investment Property. I couldn’t tell through GoogleMaps if this particular area – in the middle of these zones – was going to be fair or rough.
When we got there a few things stood out. The street was rough: a car with a smashed in windshield in the parking area, a woman trying to break into another property across the street. The property had been a studs out remodel about three years prior. Entering the building – you could see fresh paint and newer doors – and smell a heavy marijuana vibe. Entering one of the units for touring – you could see a nicely remodeled home – laminate floors – updated kitchen – money and effort were invested here. But the tenant, while a kind man, had two pit bull puppies that were chewing the property into a rough condition.
I asked the other real estate agent why the owner was selling it after only owning it 2-3 years. Typically you want to own your rental properties at least 5 years – if not 7-9. This agent told us that the seller was too nice of a guy – and he couldn’t handle working with the tenants. He had sold off some of his business to invest in real estate – in the hopes of providing a long term investment and income for his family – but here he was losing a lot of money just two years later. This is not right!
I really feel for the seller. Real estate can be an amazing investment, but you have to buy right! Your agent should be a member on your team – to help you avoid the pitfalls of buying a property – that doesn’t make sense along the lines of price, location, and condition. In this case – the price and condition probably made a lot of sense – but the location led to a tenant clientele that wasn’t as likely to take appropriate care of the property. My guess is that his real estate agent could have advised him towards a property that would have been attractive on a price and location perspective – and been appropriate for his management goals and capabilities.
The rewards of Anchorage investment property are real. But unlike day-trading stocks – you need to have a horizon usually measured by years, not days – to enter, earn, and exit an investment property. Make sure you’ve got someone who has done what you are wanting to do – to help guide you along the way. Just like you don’t ask someone who is financially responsible to help you manage money – you want to ask someone who has experience and success in your chosen field to help you achieve your success! So, click here to fill out the contact information and let’s get going!