OK I have a few short sales in my pipeline but it seems nothing is happening. No buyers, banks really don’t care and most homeowners I meet who need my help are so upside down it’s frightening!
Is there anyone out there who is in a similar market and is still thriving?
Other then short sales, how can we profit from this RE downturn?
Oh the market is getting flooded with rentals, REO’s, abandondment houses, foreclosures that sit for months( the last two I lost sat for 8 months before bank blinked), Lease to owns, etc…
I hate to see all this and think there is nothing I can do :banghead
I’m in a depressed market, and am doing well wholesaling REOs.
Find some buyers and see what type of discounts they are looking for, and then go make some offers on REOs- trust me, the banks are giving some nice discounts right now.
This is an outstanding market to make money in. The banks are hurting right now- use it to your advantage!
tvaldez - hi. I am also in Phoenix and I am trying to close my first deal. I am looking for houses that can cash flow according to the formulas:
50% of rents for operating expenses; the remaining 50% should cover the mortgage and leave $100.00 as positive cash flow. I know these are hard to find, but I will buy if I can find one that fits this criteria.
Based on the above criteria - if a house is in an area that I can rent it for $800.00 I am looking to buy it for around $40k. Houses that I can rent for $1k I am looking to buy for a little over $50k. These are my parameters right now. I have just started to look. I recognize that I will need to buy distressed properties to be able to reach them.
Shortsales are still effective. Especially in this market. Phoenix shouldn’t make a difference. You may need to come up with a better negotiating and/or marketing strategy. (Not sure how your doing it now)
Negotiating (Of coure for the banks) and marketing of course for the buyers.
Lease options, Sub 2 investing, and Owner Financing is also effective.
Of course rental income properties are up as well.
REO’s are definitely up! Take advantage of any of these strategies and you should have no problem making money.
-Lamar
P.s: Marketing is probably your most effective tool that drives any business. In this day and age, you should have and offline presence and an online presence, in my opinion. Hope that helps!
If buyers in your market are the rarity then get great buyers instead of great properties, and sell your buyers like you would sell your properties, i have done this very profitably in my market.