Tips to Find That Perfect Vacation Home

Since my last blog was a bit of a downer, speaking of evictions and all, I decided to liven things up a bit by writing about the obvious, but often forgotten, benefit of real estate investing: enjoying the land!

Several years ago, I decided to purchase a vacation home for me and my family. Most so-called real estate pros advised me not to. They felt it was a waste of my hard-earned equity. I was told to invest in apartment buildings instead.

Although I knew I wanted to continue to buy apartment buildings and increase my holdings in that area, frankly, I was sick and tired of smoggy Los Angeles. So, I began to do research to try and find a little weekend get-away. Along the way, I learned valuable lessons, perhaps these tips can also help you in your quest for real estate wealth.

1. Do Your Research. At the time when I was looking for a vacation home, my budget for the entire retreat was a mere $32,000 -- not much at all. Some people would have told me that I was wasting my time because I would never be able to find something in my price range (Hey, wait, they did tell me that!). Well, don't EVER listen to anyone who tries to pop your bubble. I researched areas up to three hours away from Los Angeles and found a beautiful location that was undervalued and gorgeous to look at.

2. Make Offers (Even if Your Agent Thinks Your Crazy!) - Once I located the area I wanted and could perhaps afford, I began to look for a few properties. Then, I made some low-ball offers. My agent didn't honestly think any of them would get accepted as they had turned down even higher-priced offers before. In fact, I actually had to insist she present our low-ballers. Well, guess what, one did get accepted. I will never forget when our agent called me on the phone and exclaimed: "I can't believe they accepted your offer!"

3. Don't Give Up the Dream - I don't want to make it sound easy. The reality is, the quest for a good property is a difficult and sometimes painful process, but one that can benefit you and your family not only financially but in many other rewarding ways. It took me from start to finish about 6 months of INTENSE research to find my dream vacation home. (I mean looking every day on the MLS and visiting the area over and over again). And, actually, the property I first wanted got taken out from right under us by another buyer who offered more money. But as they say everything happens for a reason. The first rejection enabled me to get an even better property!

4. Be Bold, but Cautious - To finance my country retreat, I took out a HELOC (home equity line of credit) on my home. Some people may think that is unwise. For me, what is unwise is taking out a HELOC and spending the cash on everything BUT real estate. Leveraging is the key to success in this business. It make me quiver when I find out that people use up their home equity on silly things like a new car or a grand vacation. From now on, the rule should be ONLY use a HELOC to grow your real estate wealth. Real estate should produce more real estate!

5. Go Ahead, Get Dirty! - Because I had such a limited budget, I had no choice but to buy a fixer upper. Most of the properties I acquired early on were total disaster zones! But again, that contributed to my success. Buying homes that need some TLC can be very lucrative, but you can't be a wimp. If you don't have the money to hire pros, you have to make the commitment and do it yourself. Pick up that paintbrush, cut those pieces of tile, strip and stain that hardwood floor. Sometimes a new coat of paint and a little Mr. Clean can turn your little dump into a grand retreat -- and give you a great profit, too.

I hope some of these suggestions help you in your quest towards real estate riches. I too am also trying to reach the real estate goals that I have set out for myself, so we're all in the struggle together. Only this weekend I'll be struggling from my 2.5 acre lake-view ranch!

To Your Prosperity,
Linda
www.CashFlowCows.com

Do you have a real estate topic that you would like me to tackle?
E-mail me your questions, suggestions or critiques: pliagas@msn.com

Posted are photographs featuring views from my retreat in Lake Isabella, California.