What's your primary investment strategy??

General Real Estate Investing
1

I am just curious what method folks on this board are primarily using to “invest” in real estate? If “Other”, please specify. I want to make sure I’m not missing something!

2

Could you elaborate on " Straight market-value purchase" ? I am not sure what you mean by this choice. My strategy is to purchase distressed properties at below market value, repair and hold for rental or sell for profit. That choice does not seem to fit any of your choices except possibly “other”.

Wilson

3

Sorry if it’s confusing. I guess by “straight market-value purchase” I mean it is not distressed, which if it was distressed that would fall under rehab. Straight-market purchase to me means any home sold through the MLS that does not require any work, you just buy it as if you were going to move right in. Hope that helps.

4

Not all distressed real estate require rehab. If the owner is distressed (lost job, divorce, job transfer, etc.) the property may be in excellent shape. There are lots of reasons that you can buy property for less than full retail.

Wilson

5

That’s a good point, I never thought of it that way. But how do I know if the owner is distressed? I mean who’s going to tell me this?? Maybe on a foreclosure type of property I can understand, but I am not in that market right now.

6

No one is going to say “Hey, I’m a distressed seller”. Some times you can tell it from the newspaper adds they place (need to sell quick, handyman special), but usually you will need to talk to them to find out what is going on with them. If a property has been on the market for 6 months and they had to move out of town because of a job, they might be open to a discounted price just to get out from under the mortgage. Maybe they have had a divorce and can’t afford the payments anymore. Maybe they have been a landlord and are tired of having to fix toilets and wrecked houses. Maybe they have been an out of state landlord, but can’t afford a management company to take care of the property for them. The point is, talk to the seller and find out why they are selling. A lot of time, they will tell you why they want out and out quick.

Wilson

7

What a great topic!