Today I had the priveledge to interview someone who I am going to refer to for right now as the “6K Man”.  I am going to call him that because the only education that he offers real estate investors is a 6K coahcing program.

That is about to change…I have talked him into doing an interview with me which I recorded today.  We will have a website up in a short while offering this class along side some other goodies for less than 1% of what most folks pay to have access to the 6K Man!!!

While we were doing the interview, we spoke for a few minutes on a topic that I found very interesting and I would like to share with you today…where to invest!

The 6K Man has an interesting philosphy when choosing what area in your coty or town to invest.  He says to hone in on a 5-8 mile area.  And wihtin that area you should have a hodgepodge of properties and demographics.

The logic: if you are investing in an area dominted by two bedroom condos that all sell for 100K, when  you buy a 2 bedroom condo you will only be able to sell it for 100K.

Conversely, if you buy the same condo in an area with 2 bedroom condos which sell for anywhere between 75K and 150K, you have just created more potential equity.

When you are running comps, you now have comps which could value your proeprty higher than if eveyrthing is the same.

The basic philosophy is to invest in areas where you have homes which vary in price and condition.  Where you have homes that are for rent and that sell on a regular basis.  When driving around you see folks who range from lower income to higher income, short and tall, black and white, blue collar and white collar…you get the point!

When you invest in an area which is a hodgepodge, all of a sudden you increase the likelihood of being able to buy at a discount and sell at a premium…two factors which will increase your profit margins and put more cold hard cash in your pocket at the end of the day!

Cheers,

~ Ross Treakle