Compass Mortgage - Investor Strategies

New Hampshire Investment Property Strategies

Fix up and Flip: Buy houses, condominiums; multifamilies, etc., that have deferred maintenance at distress sale prices. The idea is to add more value than the cost of the improvements and sell for a profit.

Rental / Income property: Buy real estate for rental purposes and receive an income stream from renters (cash-flow). You may also realize:

Tax benefits
Property appreciation
More equity as the mortgage gets paid down each month

TIP: Consider keeping your present home as a rental property when you buy a new one. This strategy is especially common for folks who move up from a condominium or starter home to a larger home. This may work well for you if you don't need the proceeds from the sale of your present home to purchase a new one. It’s a nice way to get started in real estate investment because already know so much about the property and you have a good Owner Occupied Mortgage on it.

Unimproved land: Unless you’re a builder or developer, investing in unimproved land may require a level of patience few investors can stand. Raw land does not have liquidity and financing will be more difficult to secure requiring at least 20% down. Carrying costs and property taxes will dig into your profits quickly. Developing property will generally require engineering expertise, political savvy and financial staying power. It’s not for everybody but it may suit you and after all, “they ain’t making it any more”.

Timeshares: If you had to pick a rotten apple out of the barrel of real estate investments, it would almost always be timeshares. You get a fixed vacation cost each year, and you can trade weeks and locations with other timeshare owners in the same company. It sounds good but it’s not an investment if you use it to go away on vacation. Don't count selling it for a profit. You’ll be lucky if you can sell it at all. You may not be able to donate it to a charity because of the maintenance fees. Most telling of all, in many bankruptcy cases, timeshares are often assigned $0 value as an asset. It’s not a bad thing to own a timeshare, just don’t kid yourself about it being a real estate investment.

Reality Check: If you believe what it says, late night TV is full of happy real estate investors who solved all of their life’s problems buying what ever real estate they could get their hands on. In reality, being a successful real estate investor requires:

Careful introspective consideration
Financial commitment
A well thought out investment strategy
A willingness to take on some risk

Being an investor is not always easy: that’s why it’s not for everybody and that is also why it can be so profitable. I’ve been a real estate investor for more than 17 years and have originated more than 1/2 billion dollars in New Hampshire real estate loans.

If you have questions about buying investment property or just want to talk about what might work for you, call Charley Farley at (603) 471-9300 or e-mail charley.farley@weloannh.com.

Compass Mortgage Inc. - 172 Route 101 - Bedford, NH 03110-5416
Office Phone: (603) 471-9300 Fax: (603) 472-8811 Toll Free Phone: (877) 211-5300

Homebuying Made Easy®

Licensed by the New Hampshire Banking Department.
Equal Housing Lender | Member, New Hampshire Association of Realtors® | Member, Mortgage Bankers and Brokers Association of New Hampshire | Member, National Association of Mortgage Brokers (NAMB) | Federal Housing Commissioner Approved Lending Institution (HUD) | Agent, US Department of Veterans Affairs Home Loan Guaranty Services

"Homebuying Made Easy" and "NH First-Time Homebuyers Club" are registered trademarks of