This is my first economic bust that I’m living through.
We all hear about BUYING when no one else wants to buy or BUYING when there’s “blood running through the streets.”
But I haven’t seen this yet. Everyone I know wants to buy real estate right now. Everyone’s looking for deals. We hear on the news how REOs in Florida and Cali are being sold within a few hours.
So what’s going on! How am I supposed to get rich in this downturn if there’s still plenty of activity out there. Where are the real BARGAINS to be found?
The only GREAT deals I’ve seen are those people who are doing their own short sales and are extremely good at having the banks discount their properties. But, this can take months for just one property and is VERY involved.
I’d like to buy an investment property already with some equity that I can use to buy another property. But, it doesn’t seem like its the time “yet”.
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Is anyone on this forum finding GREAT deals? Cash-flow deals, equity deals, ETC. Who’s really benefiting form this downturn right NOW?
I just got a house under contract for $56K, ARV is about $110K, and it needs approx. $6K in updates. I’m gonna do some work myself to keep cash out of pocket down. Seller is financing on 5 month land contract with only $1000 down payment and no payments for the first 3 months of contract. I was pretty happy with that!
From the name, I’m assuming you’re from NJ. I work the southern part of the state and REAL bargains here are few and far between, not much better than while the market was booming. In fact, I found better deals when the market was booming. All the REOs I’ve chased went to higher bidders after months on the market. I’ve watched a couple get rehabbed and they’re still on the market a year later. I don’t know how the expect to make money at the prices they’re paying.
The best deals are still where they’ve always been, direct deals with desperate owners.
Trying to buy dirt cheap properties of the MLS is a huge waste of time and resources. You can do it…But the margins suck and you’re competing with EVERYONE because EVERYONE knows it’s for sale.’
NJ’s experiences are spot on.
Try buying your properties from the OWNERS before the realtors get them. I run small classified ads in the towns I want to buy homes in. Let’s say the median price in that town is $150,000…My ad would say…
WANTED…3 bed house for $85,000…ANY CONDITION…Cash Buyer…Your money is a phone call away. 555-5555
Plan on letting this ad ROT in these papers…You won’t ton’s of calls, but the ones you do get will be WORTH IT!!!
The reason this ad works is the PRICE…You’d think that would hurt it…But what actualy happens is people see the $$$$ NUMBER…If that $$$ number, or one near it…works for them…THEY CALL!!!
Hey I work in North NJ and we are finding a lot of great deals up here. Yes there are a lot of short sales but we have been working with many REO’s as well. Don’t give up there are great deals out there.
My experience here has been just the opposite. I tried the newspaper thing for a while, lost a lot of money on ad fees. The last 5 properties i’ve bought have been REO’s with vandalism and/or in a bad neighborhood. You have to watch the MLS like a hawk for price changes after they have sat for a long time. Never had any luck with lowball offers on the bank owns.
John,
That makes two of us,I guess.It’s competitive,but not a waste of time.I’m still waiting on a shortsale offer I made 3weeks ago,atleast with listings I know the next day.
My main strategy right now (and has been working for me) is to find owner-financed deals (because you generally need less $ out of pocket), have the owner agree to a 3-6 month land contract which gives me time to rehab and find tenants/buyers. then I refi out into a commercial loan with my LLC and hold it. so far very little money out of pocket, I’ve had to do a bunch of work myself since I’m financing my own rehabs essentially, but at least its getting me into houses right now…