Markets that are no good in slow markets.

General Real Estate Investing
1

Just trying to find out what is the best strategies in a slow/declining market (such as CA). I think we can eliminate; L/O, PURCHASE OPTIONS, SUBJECT 2, Assigning contracts. Anybody agree on that? So, what’s left???

2

<<So, what’s left???>>

Move to a “red” state where there’s some semblance of sanity…

Or, in the immortal words of Don & Mike (Radio Gods), “Move closer to the food, sir”…!

Keith

3

LOL Keith…

Here in FL, we are having some luck with the Lease to own programs, at least making the phones ring… but, it a tougher client to approve… we are combining the with seller held seconds to get property moving (and write loans)

Also, we are doing some “fire your LL programs” to shake up other purchase/loan activity.

4

Move to a “red” state where there’s some semblance of sanity…
Aren’t you supposed to have no teeth and marry your cousin to be eligible to live in red states?

Jerry! Jerry! Jerry!

5

Nope…just sane and have a measurable level of commonsense.

Keith

6

Are we talking about acquisition or exit?

I’m up here in Boston (I LOVE blue-it’s my favorite color) and there are plenty of deals being made using the strategies you just mentioned.

What made you think otherwise? Just curious.

7

I am in S.California and the market is on a decline.

8

I hear ya Saninv, I hear ya.

It’s on the decline up here in Boston too, but that’s the retail market.

Still plenty of opportunity for investors though.

Good luck and don’t get discouraged. :slight_smile:

9

Thanks :wink:

10

WAIT STOP THE PRESS!!!

You are telling me that you are in a declining market and don’t know what to do?

acquisition

What are the keys to Real Estate Buy when others are selling and sell when others are buying…BS

Look at the market around you there are still people out there that want to buy the PROBLEM is you are not looking for the correct people.

Let me show you how I structure my deals to work in the decline

EXAMPLE
Appraised Value $300,000.00
MINUS REALTOR $18,000.00
MINUS HOLDING $15,000.00
MINUS REPAIRS $20,000.00

SO MR and MRS Homeowner you will be lucky to walk away at $247,000.00 IF I could sell your house for $255,000.00 would we have a deal?

Now I get people that want to think about this. FINE because I get more YES answers then anything.

Now here is a FACT go to www.scotsmanguide.com and enter search lenders enter a 530 score and see how many lenders will still lend 90% of the appraised value. 35 Loan programs in Colorado from 13 lenders… WHAT???

So I sell them the house for $300,000.00 and carry 10% at 13.99% interest. Bringing me to 270,000.00 Now I told Mr. Homeowner that I would get him $255,000.00 for his house right? RIGHT

minus closing costs $8k MAX Bringing me to $262,000.00 minus his $255,000.00 that leaves 7k to WHO??? Plus a 30k NOTE at 13.99% to who?

AND… AND… For $12.00 per note per month I have a ESCROW company that will service the note. Hmmmmmm!!!

Decline in the market? People want out? Power of Attorney? And a TRUST? 180 Day Balloon?

SOMEBODY STOP ME!!