Is now a good time to buy available foreclousures?
Is now a good time to buy available foreclousures?
aha i cant believe i haven’t seen this yet first of all anytime is the right time to buy real estate! there is always a market that is growing with high profit potential, the hard part is finding those markets. personally what i do is trade on the forex and use profits as down payments on rental properties that i take loans on, this way i up my passive cashflow every single month, and after a couple years i’ll be able to retire with thousands of dollars flowing in every month without having to work
what i would suggest doing as a real estate strategy is to completely ignore foreclosures! most of the time foreclosures require cosmetic work which would mean bringing in a contractor which is expensive, a lot of people make money doing this but it is a flip strategy, buy a foreclosed house at 50K, send 25K on a contractor fixing it, then sell it for 150K, the whole process if you find a good contractor would take a few months with an easy 75K profit, the problem with that strategy is all the footwork involved, it is extremely time intensive and reliant on your ability to build relationships with contractors
so instead i would suggest buying houses with renters in them already and just renting them out, use a 20% down payment and finance the rest, the monthly income will pay off the loan with tons of extra leftover cashflow, all you have to do is find the right market and right now the best markets are in buffalo, new york, and Tennessee, the best part about rental properties is you dont have to be there to take care of it as you can hire a property manager to do everything
for instance in buffalo you can buy a 60K house for 12K down payment, after expenses (including taxes, management fees, insurance etc.) you’ll get on average 600-700 dollars a month of passive cashflow that means in about 2 years you will have made back your entire investment (the downpayment) and have free income coming in your coffers
As a tax shelter (for both forex trading and real estate) i form an LLC for each house i get, this also protects my other assests
here are some awesome websites to look at, basically these are investors who buy foreclosures and fix them, then flip them at a still lower than market value price to other investors, they find the renters, write the contracts, and manage the properties
Yes. Pay cash. Your credit will run out fast at the bank after your first two properties. Depending on the market there are plenty of foreclosures that are in great shape.
You will have to get creative with financing thereafter.
No offense sithjawa but there is a few things wrong with your strategy. First you are not bringing in 700 a month income after taxes and insurance. Unless you are gouging your renters and if thats the case once the contract or up you quick srearch on craigslist and they are off to a bigger place for less money. Now your stuck with no income comming in. You also forget the fact things break at your expense not the renters. I hope your putting money aside for when that happens since your not building a relationship with contractors a new roof can be costly. After that what about the people that dont pay. It take a minute to get the eviction to go through legaly. This whole time you have no income and tennents taring up your property. Now sure you can sue for damages but good luck getting them to actually pay. What are you going to do send it to collections for pennies on the dollar to hit there credit. Congrats you just took a loos and have to pay court costs. Courts dont care if you get paid but they are going to get paid thats for sure. Oh you think you can garnish there wages haha good luck on that. It can happen but again costs you money and a major hassle. Not saying renting properties is not profitable just I dont think you have the down side in mind. Especially seeing as how you say dont buy foreclosures because they will need work. Every house I have owned was a foreclosure and none required any real repairs. Besides a coat of paint here and there but if you dont know how to throw some paint around then you either better have alot of spendable cash or stay away from real estate. Also I would caution against out of state rental properties. Yes you can get a property manager to look after it and do the eviction process for you. But how do you know they are looking after you. Not gouging money here and there for repairs that never had to be done. Remember they are building relationships with contractors not you. How hard is it to write a receipt for work never done and the 2 of them spilt the money. After all you have never even seen the place. Just saying what can happen on the other side of what you stated. Its not as nice as you might think. I have a couple rentals if you would like to take them off my hands.
it would seem we are coming from two totally different real estate investing mind sets :3 i see problems with flipping, you see problems with renting (i think), but my affiliates and I have been investing this way for years and it works very well, we buy the rental houses from another group of investors who flip houses to us as well as provide the property management, that is their business, i know the buffalo and Tennessee markets very well and i can see that even the worst properties can easily give you a return of $600 a month, they are extremely low expense properties that have high rates of return, we buy the houses already with renters locked into contracts ranging between 1-5 years, and most of the time the renters renew their contracts, but if by chance they dont we have some good insurance policies: the properties are duplexes or triplexes meaning they have 2 or 3 renters, so if one leave we still have the other(s) to provide income; the market is good enough that we have never had a house unrented more then 2 months: even if all the renters were lost and we could not find new ones because the expenses are so low the paper loss would be miniscule.
And thank god for insurance for real estate investors who rent our properties, in the past few months we have had someone sue us for breaking their leg on a property and storms blow over trees that needed removing, the insurance pays for all of it even if the law suits were to go against us and the tree is a freebie
you should look at the second website i posted, cashflowwithequity.com, they are one of the groups we use, they have detailed expense and financing information in their list properties, i’ve never had a problem with them
wow! 10k for an house? that’s really really low.
here in europe, more specifically in Portugal housing is losing value and the renting business is going up as no one can afford to buy a new house because the loan’s are at 5-6% which gives you an high rent per month which usually ends up being more than you and your wife earn per month.
i’m saving to buy a small 3 bedroom house, which is about 200k, that’s why i’m studying Forex
btw, what is a floreclosure? what does that means?
and can you actually buy a decent house in a good neighbord for such a small amount?
A foreclosure is a bank repo. Someone that financed a house and could no longer afford it. So the banks Forecloses on the house but does not want the house sitting on there books. So they sell the house for cheap.
Typically if you dont have perfect credit it can be hard to finance a foreclosure unless you have a big down payment. However they can be great deals but you have to proceed with caution. There are people that walked away from there homes due to the fact the upkeep was going to be more than the house is worth. So just do your homework as with anything. I have a couple now that are now rentals and they can be great deals if you know what you are looking for going in.
On a side note I just tried to buy another house with forex money. Good luck to you. I almost did it and it was not because of money my credit was a tad to thin to get financing this time. I am working on it wont be long. In my opinion its a realistic and attainable goal. Thats what I set out to do and almost made it. Not far to go
I know that this thread is old, but real estate investments are the best option to invest your money in 2021 too!
I will agree with your opinion. It’s a low-risk investment nowadays. I am also planning to invest in a property. But the thing is that I think that the market is a little bit dead because of this COVID-19 pandemic situation. I found a great house from ► Our Real Estate Blog ✍ | What do YOU need to Know? - HABiKONS. The price is very accessible, but I think it’s not reasonable. A lot of friends are advising me to buy it. The zone is really nice, and I think that in the holiday season I could earn some good cash from rent. What do you think about this?
Has anyone got any recommended resources to learn about this in the UK by any chance?
I don’t think there is anything like the right time to invest in real estate. When you have the money and have found a property that suits your requirements well, you are good to go. Just make sure that you check all the ins and outs properly so that there is nothing that can bother you later.