Does anyone have experience with the National Association of Women Real Estate Investors? http://www.nawrei.org
They seem to specialize in preconstruction deals. I’ve always heard that preconstruction is one of the riskiest things for beginners to pursue, and these deals have the “too good to be true” feel to them.
Would love some input/feedback from more seasoned investors.
Thanks!
Topaz
Topaz,
I wouldn’t touch pre-construction in this market with a 10 foot pole!
Mike
I had a builder call me two weeks ago and tell me that he could build me a bunch of houses for $220,000 that I could rent out. I told him that I just bought a 2 bed house in the same City with a brand new roof , brand new furnance, and carpet and appliances that were new in 2002. I told him I paid $28,000, and if he can match that then I’ll consider buying brand new properties for rentals. I know some people on this site buy new and rent, but personally I would find it difficult to buy and flip, or buy and rent out brand new properties.
Wow…$28,000? Care to share how you found a house for that price? Or is that fairly easy to do in some parts of the country?
Topaz
I also had the seller finance the entire deal over 5 years. So it will be free and clear in 5 years, and my closing costs were only $220. Basically a very motivated seller who had several veteran deadbeat tenants school her in how it is done. She let the last tenant live there for over 1 year without paying rent. Then the tenant before that lived there for almost a year without paying. Her solution was to just have it vacant. I added a shower to the bathroom, painted the inside, replaced one interior door, and shampod the floors. Now I have it rented with the heat, electric, water, garbage and sewer in the tenant’s name.
Find landlords that can’t handle tenants and you will find deals. Also properties that need minor repairs like paint, doors, minor plumbing, etc that are vacant are prime targets for great deals.