Home Investors in Utah
When you think of an investor, it used to be regarding the Stock Market, but investors in Utah are now real estate investors. These investors come in all types: foreclosure, flips, buy and hold, second homes, rentals, tax liens, and more!
I have had the opportunity to learn about all of these, and have actually done most of them. You hear horrible stories about these and many tell you to stay away from them, but I am here to tell you that if you do it correctly, you can be successful.
You Don’t Need to Drain your IRA or Take Out a Heloc
I have attending many meetings and called on the “apprentice” signs to find out more. What I found is that most of these signs are related to a group of people who tell you to take out a home equity loan (HELOC) or drain your IRA to use it to invest in properties. You may even pay $20,000 for education so that you can become an investor.
Although I think that this community of people can help, it is not for everyone. In fact, I have worked with several people who invested in this program, never used it, and have not had a positive return on investment (ROI). Don’t get me wrong. There are some that are very successful, but it comes back to your drive.
Twenty years ago, I invested in a program to get a whole bunch of video tapes and never opened the package. In fact, it sits on a shelf and I continue to tell myself I will open it, and never do. Now, that was 20 years ago. Fast forward to today and I have learned so much and have been successful at investing.
Decide What Type of Investor you Want to Be?
As stated above, there are various types of investors and you need to decide what type you are interested in.
Have become a hot market for many. Investors access public records and find out which homes are in jeopardy of being taken by the bank. Many people use direct mail and online marketing to reach those people. As a result, these homeowners are being inundated with numerous post cards and calls from investors trying to buy their home.
Have become very popular in Utah. You need a trusting contractor, which can be hard in Salt Lake. You can hire out the whole job, subcontract, or do the work yourself. With that said, I highly recommend you pull permits from the city. However, if you do this, you will need licensed contractors. I have seen excellent flips, and shotty flips. It is hard for me to see what investors get away with, but they do! If you have permits and do a good job, clients will be able to see this and your home could sell quicker than others.
Although the Salt Lake market is a seller’s market, if you want to sell your home quickly and for top dollar, find a home with the following: 3 bedrooms on the main floor, not located on a busy street, some type of backyard, has a garage, and under $350k. These are all ideal, not necessary. I’ve seen all types of homes and price ranges.
You most likely will need to pay cash for these homes to be competitive. I have a list of hard money lenders and mortgage companies that can help you obtain a flip quickly. Just know that if you go through a lender you will need between 15-20% down for investment properties. Also, FHA requires you hold on to these homes for at least 90 days.
Buy and Hold/Rental
This is popular and I HIGHLY recommend you consider getting at least one! The rental income alone can offset your home mortgage. But more importantly, you are earning equity! Salt Lake, Utah, and Davis Counties are projected to skyrocket in home prices. In fact, the homes I purchased as flips three years ago have almost doubled in price since. I WISH I would have held on to them.
Rentals can be tough, so make sure you have a good attorney draw up a rental agreement that will protect you. I happen to be a licensed property manager and can assist you in setting up your rental with a property management company. This not only protects you, but also puts a buffer between you and the renter, which can protect you and your property!
Utah is a popular destination spot for all four seasons. AIRBNB and VRBO has become very popular in this state. There are many laws regarding renting out your property and they vary from city to city. Get to know your laws before you do this. However, it has proven very lucrative for many. n addition, when you come out here to visit, you can stay in your own home! I have helped clients locate homes for this purpose and they love it! They simply block out the time they will be here and not only save $1000s while they stay, but also earn $1000s and may not have to have the home occupied the entire year. This also helps with maintenance since the home is cleaned and maintained after every stay, unlike renters!
Utah is a deed state, so you purchase the home if it comes up for auction. A few years ago, when the state held its auctions, almost no one came, now they are popular. The positive I have seen attending these meetings is that Utah works hard to keep the home in the homeowner’s hands. They will work with that homeowner to get them caught up, so it is fairly rare for homes to come up, compared to other states. In addition, any land usually the homeowners around the land have first dibbs. However, when a parcel does come available, this can be a very lucrative opportunity for you. The important thing is that your do your homework and ask questions! I would highly recommend you contact a title company and discuss the parcel PRIOR to you purchasing the parcel since it may not be able to qualify for a title policy. Have your title company explain why. If you need good title companies, contact me for references.
I have made it my mission to help buyers find investment properties depending on the type of investing they want to do. If you want to become an investor in Salt Lake, contact me! I want to help you without you spending tens of thousands of dollars before you ever buy your first home!! Use that money as your down payment on a home!
With properties increasing on average about $30,000 per year, I highly recommend you add investment properties into your portfolio.