Thursday, February 05, 2009

Real Estate Investing - Buy the Worst House?

Real Estate Investing - Buy the Worst House in the Best Neighborhood
By Bill Carey

How can you compete with Investors who are on the look out for the great deals? A way to get a deal for yourself is to limit your search to areas and neighborhoods that you know or can learn quickly. With foreclosures and bank REO's in every neighborhood you should fine tune your search habits.

Check with your local Chamber of Commerce and Board of Realtors each has publications of current sale trends in your city, town or region. Look for the median price range of homes sold and the neighborhoods with the most active number of sales. This is an easy test of what is considered the best areas for most of the buying public.

The real work starts with you researching each neighborhood and the surrounding areas. Your local Realtor Association may have an online access to the basic information of current listings. Or you can work with a realtor and get the all the information. City and County websites have links to property and tax records which is a good place to confirm sold prices if you are not working with a Realtor.

Having identified your best 2, 3, or 4 neighborhoodslocate every property on the market, every vacant property and every property in foreclosure. You want to compare the current listings to the median price range and what was the highest sold price and the lowest sold price.

Start with the lowest priced property. Remember the buying formula and apply it to this property. (formula: Listing sale price = ARV less 3%, Your Buy Price is ARV less 20%+ profit, less 2 - 3 months carrying costs, less repair & upgrade costs, less your purchase costs & closing costs) What will it take to make it the best or close to the best in the neighborhood? Your realtor can help you work on the fianl sale price with a CMA.

Make your offers with knowledge not guess work. You can apply this to any area with any price range just stay around the median for for area. It works for Buy and Hold and for rehabbers and is a way to get your wholesale business moving with good deals to your rehab buyers.

And now I would like to invite you to claim your FREE access to 2 recent articles "9 Tips For You to Make Real Money in College Rental Properties" and "9 Steps to Save Big Dollars For Your Student With In-State Tuition" at https://www.collegetowneproperties.com/Free_Helpful_Articles.html

Bill "The College Rental Investment Guy" is a leading expert on College Rental Investment Properties and Off-Campus Housing.

Article Source: http://EzineArticles.com/?expert=Bill_Carey http://EzineArticles.com/?Real-Estate-Investing---Buy-the-Worst-House-in-the-Best-Neighborhood&id=1952773

Real Estate Investing

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1 Comments:

Blogger LeD'z said...

that's a nice tips, Donovan...i think i should try this...
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12:25 AM  

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