By: Sarah Mitschke | Category: Real Estate | Issue: October 2007
Alice Pridmore has over 30 years of real estate experience.
Alice Pridmore, a real estate broker with Keller Williams, has been selling homes and land in Missouri, Texas and Oklahoma for over 30 years. According to Alice, if people want to invest in real estate, buying a duplex could be a good way to get started. However, people wishing to purchase rental property should be prepared to do some homework before expecting to make money. Alice has plenty of advice from personal experience for those wishing to become landlords.
Alice began her real estate career in St. Charles, Missouri, where she quickly opened her own office. After the economy in Missouri went into a major slump, Alice and her husband moved to Texas, where the economy was quite the opposite. Not long after their move, the “oil bust” gave the Pridmores the role of assisting lenders in selling properties that were in poor condition or had been abandoned. The couple also worked as problem solvers for homeowners, helping them get out of homes that they could no longer afford. After becoming a widow, Alice made a final move to Claremore to be closer to family and continue her real estate career.
Alice’s husband once said to her, “Honey, when I’m gone, and you have some extra money, don’t keep it in a bank to collect a little interest. Make the money work for you.” Alice has done just that. From the profit she made on the sale of her Texas home, Alice was able to set aside a portion for investment. She decided to buy one rental duplex in Claremore, figuring that if one side was vacant, she would still have income from the other side to meet the payment.
Investors cannot make money if they only own one property unless it was inherited and fully paid for. Alice was aware of this. After several discussions, Alice convinced the duplex’s owner to carry a second lien of 10 percent on the property so she would not have to make a 20 percent down payment. “Well, this seemed easy,” says Alice. “So I bought a third building, having only 10 percent down on each one. Now, if one unit was vacant or needed work, the cash flow would take care of that. And it did!”
Purchasing a duplex can generate extra income if the owner lives on one side and rents out the other.
Most investors need to realize that landlords do not just own, but manage and maintain their property. “I made improvements to my buildings along the way and replaced carpeting and appliances,” Alice mentions. “I was able to keep them rented because they looked good.” Because her buildings were next door to each other, it was easy to make repairs and keep yards maintained.
People usually buy income property for either monthly cash flow or future appreciation. Alice chose to go the appreciation route. “From past experience, I knew that if I kept a property too long, I would have to pay capital gains taxes, and that could be costly,” Alice adds. She has sold one of her buildings this year, paid off her first and second liens and has made a profit. If all goes according to plan, Alice will sell another building next year.
Alice suggests that purchasing a duplex is one choice seniors may consider instead of living in a senior residency home. It is simple to finance a duplex when the owner, the senior in this case, occupies one side, while a tenant on the other side offsets the mortgage payment.
Alice offers advice and solutions regarding real estate. At no cost or obligation, she can meet clients in their homes to discuss their plans, offers suggestions and answer questions. Her personal experience in being a landlady is just one aspect of real estate to which her knowledge extends.
It takes a special kind of person to be in real estate. Agents and brokers play roles similar to that of a caregiver or a counselor who listens to the needs and goals of clients and then works to solve their problems. Alice is especially qualified to patiently assist seniors with their decisions.
Being part of Claremore is important to Alice as she is on the Main Street Architectural Committee, the Care More for Claremore Committee and the Historical Society. “So many things are happening in Claremore,” Alice says. “I’m so excited to be part of the action.” For more information and advice about buying or selling a home or income property, call Alice Pridmore at (918) 906-7474.