Creating multiple streams of income through the #1 wealth builder - Real Estate
Know the area thoroughly!
What's the demographics? Crime rates?
School ratings? Vacancy rates?
Rental Rates? Current Comparable Properties?
Who's your target market? What town laws and permits need to be followed for the work to be done or to rent the property? Are jobs moving into or out of your purchase area?
How are you going to deal with theft, vandalism or a liability claim?
Do you have adequite funding for the unexpected and are the assets properly protected
Of course buying Real Estate is always more profitable when purchasing during the rebound on or close to the bottom of the market. And everybody knows you have to buy low enough to accomodate for the rehab costs, expenses and profit upon sale. But even if you're familiar with figuring accurate costs involved in purchasing a property for resale, or buy and hold, so many investors fail to hit their profit targets or even lose money on what they thought was a sure winner. Many times this is due to several areas which are given way too little attention or none at all. Some of the biggest mistakes an investor in real estate can make is not to:
Have an exit strategy in place BEFORE they buy the property. Do you have multiple profitable plans in place in case your original goal for profit fails?
Have professional management in place BEFORE they buy to rent the property (unless you have the experience, time, desire and distance to the property to do it yourself).
Have the experience and knowledge to manage the managers and contractors.
Check out the property professionally. If this is overlooked, extra bills, delays, and problems can easily occur.
THE GOOD NEWS IS - Through experience and research, almost all problems which can arise out of a real estate purchase can easily be avoided if planed for! Properly handled, real estate is one of the most stable, profitable investments you can make and is the #1 wealth builder of millionaires!
C.R.Diamond Properties came about as a result of profits being made through a property held by one of the primary and founding members, Chris McCloy. Upon purchasing a new home in 2006 with his soon to be bride, Chris realized that he could rent out his previous home purchased in 2004, instead of selling it, and collect several hundred dollars more in rent per month then his payments. This made it a nice income stream, with very little work. In addition to this, he was paying down the mortgage principle by more then $5000 each year, which he figured would go toward his retirement savings. A third way to benefit, was with the real estate appreciating over time. While confident that the real estate appreciation would create additional long term wealth, everyone knows how the recession starting in 2006-2007 affected real estate prices. But knowing that whatever happened to real estate prices didn't affect the positive cash coming in each month, or the principle pay down of the mortgage each year, it wasn't major factor in his overall strategy to hold onto the property for the long term.
Knowing that eventually appreciation would return to the market as it always does, in addition to over $12,000 per year in cash benefits received from just one property, Chris decided to start looking into multiple projects, once he felt the market had bottomed, in 2011. Over the next two years, he had become versed with nearly every phase of rehabbing properties, dealing with tenants, permits and town requirements as well as building relationships with multiple contractors and real estate professionals. He had decided to spend extensive amounts of time over the last 12 months preparing to make this a full time commitment and then bring in other like minded individuals to participate in the process of building wealth through larger and more profitable joint ventures, commencing in 2015.
Though Chris has built a team of contractors to suit the needs of any one to three family rehab project on long island, after attending multiple seminars, real estate meetings and extensive research, has realized that there is even greater potential in other states, especially with apartment complexes. So, having to build a new team in other
areas of the country was and is very time consuming, but the eventual returns to all involved should more than justify the effort.
With the advent of larger projects, also comes larger investments. So with larger and more profitable projects on the horizon, additional investors and like minded individuals are pooling their funds to build wealth through real estate (although not through this website, this site is for informational purposes only). With opportunities in investing in buy and hold real estate, to shorter term fix and flips, many different types of returns help multiple investors meet short and long term goals of building a secure and financially sound future. All while minimizing risk and maximizing profit though LLC investment, insurance, management, research and experience.
Another area of working within the real estate parameters listed above, which brings a sense of achievement to Chris, is his desire to bring some extra amenities which aren't normally provided to tenants, but are appreciated by them. They can range from a self-cleaning oven, quiet running appliances, upgraded fixtures and cabinets, to having a security system installed at no extra cost. These ammenities are a minimal extra investment, yet their return is in providing a home which is much more pleasing for the tenant to live in. It also creates a better appreciation by the tenant for the landlord, knowing that they would have a hard time finding another rental which would provide them these extras, expecially at no additional cost. This results in greater tenant retention and reduces vacancy costs.
And finally,even though real estate prices are starting to rebound in the last year or two, prices and financing rates are near 10 year lows, making this an excellent opportunity to get into a solid, secure investment, at near bottom pricing. With the easy financing of homes of 10 years ago gone, it is expected that a growing number of renters will be entering the market for many years to come. Thus only increasing the demand for rental units, and the potential value of these properties.