You can still find rural Real Estate deals for investment if you’re looking for the type of property that can be renovated inexpensively.
Smart investors have the advantage in today’s Real Estate market because they didn’t go broke in the last boom!
They were prudent; so they didn’t bite off more than they could chew.
For the purpose of helping small Real Estate investors to buy their first home in rural areas, I am sharing my best tips.
What I know for sure is that buying “one Real Estate deal” is better than not having one.
Therefore, it behooves you to make buying a house a top goal in 2018—no matter what your situation or circumstances.
Just in case your credit score is not high enough to qualify for a mortgage, there is hope.
The fact is, everyone you see living in a big, fine home did not start out in one because they had excellent credit.
It could very well be that their credit was less than perfect, which is why they chose a “starter house.”
Many rural homesteaders started with a small Real Estate deal—a turn of the century bungalow.
From there, they may have upgraded to a so-called better house.
A better house is a relative term because many people are still living comfortably in their starter house.
Case in point is Warren Buffet, who still lives in his bungalow that he purchased for approximately $32,000.
Today, he is a billionaire, but he still live in this humble home.
It appears to be a larger home now, so perhaps he added more spacious rooms.
The point is that it only takes one good Real Estate deal to provide a permanent, affordable home, and make you wealthy.
Buffett could have a string of luxury properties, as I’m certain he does as an iconic Real Estate investor.
Nevertheless, he built his wealth in part by remaining in one property—a starter house.
Another point to note is that Buffett’s home is not brick!
Yet, brick is the best material to build a house.
Supposedly, a brick house holds it value longer than a frame house.
Well, that marketing myth can be eliminated in light of Buffet’s home and my previous experience.
Nonetheless, a brick house does have many benefits—I live in one—it’s just that any house has perceived value.
“Perceived value is the worth that a product or service has in the mind of the consumer. For the most part, consumers are unaware of the true cost of production for the products they buy; instead, they simply have an internal feeling for how much certain products are worth to them.”
On the other hand, I have bought frame houses and profited from selling them.
You see, a house only has a certain perceived value if a buyer “thinks” it’s worth the asking price, and is willing to pay it.
For example, how much value do you see in this property description: Circa 1932 Era Bungalow, 3 BR, full bath, living room, dining room and kitchen. Laundry connections are off the back porch. Front porch with awnings. Deep lot with small creek in back.
How much do you think this house is worth?
Would you be willing to buy it as a Real Estate deal and/or family home?
Now, think about the people who are buying tiny houses, which seem like a joke to others.
Remember the so-called doll houses, I do!
But, the size of a house is no joke!
The reasons why people buy them is based on the same premise I explained above.
I know what I’m talking about; so all I need is your acceptance of buying Real Estate deals—no matter how small they are.
If a small, starter house is good enough for Warren Buffett; it should be good enough for you.
Here’s an example that you’re probably all too familiar with.
Let’s say every month you give your landlord $1200; and at the end of the year you have given him $14,400!
Now, ask yourself, “Why am I giving my money away?”
Well, that is exactly what you’re doing when you’re paying rent.
The rental property you’re living in may have been paid off long ago, but you just keep paying for it again, again, and again…
Rent never stops!
Indulge me to read one of my personal stories.
Once upon a time, I was renting a house in a fashionable neighborhood, and spending a lot of my hard earned income on expensive clothes, shoes, antiques…
One day, I went to my literally rich landlord’s humble ranch house to pay my rent—that was past due.
I was dressed to the nines because I had just left work.
My landlord answered the door and looked at me up and down…
His cold stare made me shiver inside because I couldn’t imagine what he was thinking.
But, as they say, “First impression is last impression,” and the broke kid was looking good!
During my explanation why the rent was late blah, blah… he said, “You could buy a house if you didn’t buy so many pretty dresses.”
He was right; so I didn’t feel insulted by the sting of truth!
In his eyes, and in truth, I was living a pretentious lifestyle—wearing silk lined suits and $100 shoes.
To him, I must have looked ridiculous because I was:
Thank God I had already learned to accept constructive criticism meant with good intention.
While he was getting my rent receipt, he asked his wife (who is now a very famous college professor) to show me around their home.
To my surprise, I was taken on an exclusive tour to learn who and what my landlord was—because he chose Real Estate deals.
I learned that he was a renowned collector of African American art that’s on exhibit at the University of Delaware.
Among other acclaim, he ran for President of the United States (long before Obama probably even though about it).
Long story short, we became good friends as he influenced me to build wealth through Real Estate.
Also, as a member of the Midtown Financial Group, he was a financial pillar.
So, he knew what he was talking about.
I also, learned that he owned many properties in my community and beyond.
Fortunately, I was privileged to visit one of his resort properties up for sale, to see first hand why Real Estate deals are better than renting.
Over the last twenty-five years, these valuable lessons have been the building blocks of my prosperity and success.
The building blocks of Real Estate deals are like Lego’s, which can be re-invented into different forms of successful projects.
In the final analysis, my path to financial freedom, a frugal finance blog… started when the best landlord I ever had, gave me a loving financial “dressing down.”
In the end, I bought his rental house that I was living in.
In hindsight, I can now see that his Real Estate lessons have created a beautiful life and history for me.
Read how I used his Real Estate lessons to achieve what he inspired me to do here.
Now that you’ve read my Real Estate story for thought, how much do you think the Circa 1932 Era Bungalow sells for?
I’ll give you a hint: There is a deep lot with a “small creek” in the back.
Guess what, this bungalow basically describes my 1500 s/f ranch house, which I purchased for $125,000.
The Circa 1932 Era Bungalow sells for $39.900!
Are you kidding me?!
No, I’m not joking.
I see these little Real Estate deals often in my Real Estate networks.
The point is though, these are pre-housing crash 2007 prices, and they’re NOT FORECLOSURES!
These are small homes that one-owners have loved and cared for many years.
Now, they’re ready to let them go, which could be your chance to kill a few birds with one stone:
These are not HUD Dollar Homes, but they have the same affordability.
More importantly, these hidden Real Estate gems may be less of a fixer upper.
In fact, the exterior may be a little ramshackle, but the interior may be livable.
That means you can move in immediately after closing and start making it home sweet home.
Moreover, when you start fixing it up, it starts accruing equity.
A home is what you make it whether it costs $1M or $40K.
If you are looking for a rural bargain home for your family and Real Estate deals in the rural Atlanta, Georgia area, contact Jess Barron at jbarron.lindseysrealtors.com/—Everything in Real Estate since 1948.
You are my valued readers, so please believe that I have your best interest in mind when recommending the best Real Estate firm in the Southern Atlanta region.