Up side is that foreclosure opportunites are on the rise but…
Things are beginging to go sideways in the LA market very fast. Even if I close a deal with say “40% equity, as compared to comps” by the time i go to sell say three months-market has droped by 15% (ie 15% of total price) my 40% equity is gone.
The only way to really protect against the current market price errosion is to initialy get a huge discount ie 60/70% equity but those deals are not born buy a market where HO are still believing in the last six months of sales figures…?
Aaron, this is a great market =, great deals Buy, Buy Buy, dont sell yet use leases, then as the market turns (when ever that happens) sell, sell sell.
So, instead of looking to “flip” the forclosure hold on to it as a rental until the market starts to go up again. This sounds wise assuming that I (you) would only do (rental) cash flow positive deals.
Remember, this is a great market, we will only pay up to 65% of property value, this insures pos cash flow, enough time for the change in the market. to then sell sell sell Thanks