I'm in Atlanta and it has the largest inventory in the country. Some houses go unsold for months, so I was just wondering how these people who rehab and sell for profit make any money these days. Are there some other ways to make money in real estate in a slow market? thanks Real estate investing tips-
What鈥檚 the "secret"? Whether you鈥檙e in a bull or a bear market, you have to buy right.
A Recipe for Success in Any Market:
First, don鈥檛 get caught up in the hype. Learn how to find motivated sellers and buy at prices under market value. And make sure you have the right financing. Whether you鈥檙e using private money or bank financing, fixed rate is usually better than floating. Also - if you want to reduce risk and create passive income at the same time - only buy undervalued properties that cash flow.
Then, realize you don鈥檛 have to be locked into a bubble market. No matter where you live, there are markets around the country that are in cycles very different than yours. These are areas that offer great value and where jobs, population, and property prices are steadily rising鈥?yet the prices still make fundamental sense.
It鈥檚 precisely in this kind of market where I did the deals I just mentioned. These happen to be in the western U.S., but there are many great value markets. In the past year, I鈥檝e also done very well investing in cash-flow properties in value cities in the mid-Atlantic states鈥?and even in value areas of my own state, a few hours from where I live.
In fact, the very existence of the bubble markets is fueling the growth in many of the value markets, as hundreds of thousands of people flee crowded and expensive areas and move to calmer, greener - yet often very sophisticated - areas.
These are places where you can get two or three times the property you鈥檇 find in a bubble market for one-half or one-third the price. And you鈥檒l pay a lot less in taxes, insurance, and general cost of living at the same time.
It鈥檚 an undeniable trend that will persist for years as millions of boomers move into retirement age and as many young people who can now tele-commute head to more affordable pastures.
Look for Value, Growth, Economic Stability, and Quality of Life
Focus on areas that have good characteristics for value, growth, economic stability, and quality of life.
For value, look for communities where the median home sells at a low or reasonable price relative to (1) the median household income and (2) median rents for that type of house. For example, a community where the median home sells for 20 or 30 times cash flow won鈥檛 offer many cash-flow opportunities and is likely near the peak of its cycle and ready for a correction.
For growth, look for communities with above-average job and population growth. Immigration from other parts of the country is usually a strong plus when coupled with good value characteristics.
For stability, look for a diversified economy - not just a one-trick pony dependent on the oil industry or movie industry or automobiles. Towns driven by single industries are very vulnerable to downturns in that business.
For quality of life, look for lively "second cities," especially towns with universities. A university is not only a good economic anchor but also tends to lead to a wide offering of cultural activities. Also look for towns that have walkable downtowns鈥?with festivals, live shows, sidewalk restaurants, etc. The "new urbanism" tends to attract retiring boomers as well as young families looking for an affordable but interesting place to live.
Finally, look for cities that stack up well in all these areas. And then, if you want to turn very good profits into grand-slam profits, learn how to execute value plays in the best value-and-growth markets.
http://www.earlytorise.com/2007/08/28/ro... it is u jus have to know wut the ppl like and know wut ur doing Yeah.
Buy a repoed home. Live in it until its in good shape, and then sell it move on to the next one, as long as you are only trying to flip the home you live in you'll do fine. There are always good investment opportunities in any market. The trick is to find them. In real estate today, you have to locate properties that are well underpriced. Then what you invest to fix them up has to add more value than you put in. A well presented property that is priced low will always find a buyer.
Some investors look for properties that are about to go into foreclosure. If they go into foreclosure the owner will lose the property. If you offer the owner any amount of money, they will be ahead of the game. For example, a property has a fair value of $200,000 a mortgage of $120,000 and the owner can't make the payments because the interest rate on the mortgage has gone up. If the bank forecloses, they will lose their $80,000 of equity. If you offer to buy the property for $130,000 they will walk away with $10,000 cash. You now have a $200,000 property for an investment of $130,000.
There are other strategies. As with any other investment, if you work hard at it, you will do well. |
