This has been a wild summer - thank goodness that Albuquerque is coming in on the tail end of the investor frenzy, seeing Phoenix and Las Vegas as examples.
Here's what investors need to know.
The wild appreciation that you saw in those two cities which led to builders actually offering money to buyers to not close, and being able to sell for way over what the first phase pricing experienced WILL NOT HAPPEN HERE.
Rents are declining because there are too many investment properties being purchased in blocks of neighborhoods.
If you are going to purchase an investment property, buy one in an area where there are many owner occupied properties. Do not buy blocks of homes in one neighborhood. This is not a good thing. Investors have been blocked out of purchasing in new home communities - buy resale and buy a quality home. Do not expect to get a positive cash flow.
Do not try to say that you are "moving here with a mortgage company" or "coming to town with a new business", or "i'm being transferred here" if you are not. The builder will do a thorough check and if they find that you own numerous homes, you look and walk like an investor - they WILL cancel your contract. There are many ways to try and hide the fact that you are not an owner-occupant, but know that the builders are just as clever as you are about trying to disguise it.
You will not get favored treatment because you are an investor. In fact, you have to perform at a higher standard.
DO NOT ATTEND SEMINARS WHERE THE TRAINERS ARE TAKING YOUR MONEY!! You don't have to pay someone an up front fee to come here and help you buy property in Albuquerque! These people are taking advantage of YOU and our community.
Find a good agent that you trust, and put your faith in that agent to find you the best property in the best area. Find out if the agent believes in the quality of a neighborhood, and the future of the community. If the agent does, that's the one to trust.
Don't choose an agent who is willing to anything for little to nothing. You know that saying, if you want a job done well, find someone who is busy? That goes for a real estate agent.
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