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Bank Owned Homes Breed Mold and Money - 2010-07-18 |
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BANK OWNED HOMES BREED MOLD AND MONEY
I recently visited a meeting of the non-profit Georgia Real Estate Investors Association and was pleased to see several hundred folks from all walks of life with one thing in common: each is convinced that there is money to be made in today's depressing real estate market, and they intend to participate.
These are not primarily real estate professionals, although there are plenty of those in the group. More so than most, agents and brokers see the bargains on a daily basis and either help their buyers purchase them or buy for their own account.
No, the majority of these investors are folks with a regular job, folks who work 9 to 5 during the day, then manage their real estate at night and on weekends. There are doctors and lawyers, plumbers and painters. And the good news is this:
There is plenty of opportunity to go around.
Fueled by a flood of foreclosure auctions that feature mostly upside-down loans, lenders take back far more houses than they sell these days. These bank-owned homes are a serious problem for lenders, who are not equipped to manage, renovate or sell them. So, in many cases, they sit empty for months while the property deteriorates.
Often, thieves know the house is empty and steal copper plumbing and air conditioning components just for the salvage value. This makes the house almost unsellable on the retail market. But it makes them all the more attractive to the savvy investor with money to spend.
Relatively new homes in nice starter neighborhoods can be had for as little as $40,000. After a total renovation costing perhaps $25,000, the house feels and looks new, and can be rented to a renter-purchaser who hopes to own the home by building good credit.
The investor refinances based on the new appraised value, maybe around
$100,000, and collects rent with a positive cash flow every month. In a year or two, the renter may buy the house, finalizing a profitable transaction for the investor and helping to stabilize the neighborhood through renovation.
This is just one strategy employed by today's investors, and active buyers tell me there's plenty to go around. The group meets monthly to listen and learn, with veteran investors sharing freely of their experience.
Their philosophy is summed up in the book "The Millionaire Real Estate Investor" by Gary Keller, founder of Keller Williams Realty. His subtitle is "Anyone can do it, but not everyone will." Members of this group see opportunity in the Atlanta market today.
They believe the economy will recover, and that Atlanta has a bright future. They believe there will be increased demand for housing, and they want to help meet that demand as it occurs. Time will tell.
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Upcoming Events
John Adams Presents
REAL ESTATE ACADEMY
with John Adams
Saturday, May 19th
This ONE DAY INTENSIVE is designed to bring the REALTOR or INVESTOR to the next level in today's GUERILLA INVESTOR techniques, from finding & evaluating BANK OWNED HOMES to FINANCING & REHAB techniques. Includes using ROTH IRA and RETIREMENT FUNDS to invest in Real Estate, Income Tax and Property Tax Reduction strategies, Landlording methods for maximum cash flow, Exit & Retirement planning, and Pre-emptive Disruptive Appraisal Methods. In addition, a bonus session on GOOGLE TOOLS for Investors has been added to this class to allow you take full advantage of the power of the Internet to your profit system.
For more details and to REGISTER, Click HERE
The Foreclosure Tour of Homes
Saturday, May 26th
Starting at 9:30am, a small group of investors and buyers will have the experience of a lifetime. First, we have an in-class learning session where we learn about today's market.
You will see abandoned dumps and finished products, and everything in between.
And Snap will be there to answer all your questions and explain the rehab and rental strategies.
For more details and to REGISTER, Click HERE
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