I am noticing here in Raleigh, the banks are finally starting to throw in the towel. For landlords with the $$ I strongly believe great times lie ahead.
Today I just bought a 3 unit for 68K. Bank owned and they took a BIG bath on this one!! From my research a 3 unit in this area hasn’t sold for a price like that since the early 90s, maybe even the 80s. The crazy thing is, I got it before it hit the MLS, I thought for sure they would have waited at least a week before accepting such an offer.
I’ve been gearing up for the past 3 years for these times. Good luck and go get em’!!!
Another investor from the REIA bought a 3 bedroom house last week at an auction for $9K. He was the only bidder. That is in the best rental market that we’ve had for many years.
Evidently, here in South NJ things really aren’t as bad as “common wisdom” makes them out to be. I’m a true self financed cash buyer and have been looking since selling my last property in 11/2007 for a good deal without luck. I’ve put in 8 different all cash, no contingencies, offers on different properties (pre-forclosure, REOs, estates, and simply distressed) with no luck, and none of them sold yet either. Do I low-ball… you bet I do. However, based on market conditions, competition, estimated repairs, and estimated cash flow I offer what I think is the highest price I can pay and still make better money, considering the risks, than letting it sit in the bank. Kind of discouraging, but the money can sit till the right deal comes along.
What happened here: as prices went up strongly, investors moved further out from town and also bought less desirable properties. The properties were much cheaper than the desirable properties close in, but the investors paid way too much for them, even so.
As soon as the market slowed down, and price have come down a bit, no one wants to buy further out from town, when they can now afford better properties closer in (and the gas prices don’t help).
What I have seen get really marked down are the bad investments, the properties too far away, located in traditionally cheaper areas, or properties with undesirable features.
They aren’t marked down enough to be good flips, and they aren’t of the quality that I buy and hold.
The home buyers are back in the market here, and they grab up any desirable property that is bargained priced, way before it gets cheap enough for me to buy it.
I’ve got my eye on one that has to be all cash. He’s nice and low, but I am letting him sit on the market for awhile to soften up before I lowball him. If some one else buys it, oh well. I’ll find something else.
Tatertot - how long are you going to wait? I guess, a better question would be - in your experience how long a property needs to sit on the market before it gets to a price that you like?