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Housing Inventory Is Exploding In This One Market Segment

by blogger1
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on Thursday, 08 February 2024
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Still searching for more house deals to wholesale?


Opportunity and housing inventory seems to be growing fast among this one segment of the market. It’s only likely to grow even more this year.


If you are looking to do more deals, and to find motivated sellers willing to accept low offers, check this out…


Landlords Are Going Broke

More and more landlords, big and small, appear to be going broke. All the way from mom and pop landlords with one to a handful of properties, up to big banks with lots of pending REOs and their own underperforming real estate assets. As well as builders who are looking to exit before the market really changes on them.


Why Are They Going Broke?

There are many reasons that landlords are falling into financial distress right now. Ranging from poor acquisitions of properties with big and expensive issues, to the last couple years of the economy.


On the property level this can include deferred maintenance, tenant performance, inflation in holding and operating costs, poor property management and contractors, new regulations and malicious lawsuit trends, and more.


On a personal level this can include diminished retirement account balances and financial power, unemployment, inflation in personal living costs, and credit lines getting cut off.


Finding The House Deals

Some of these properties are being listed through agents. Though many owners are still on the fence, or haven’t listed yet. Especially as they don’t want the expense of Realtor commission.


So, how do you find them? Indicators to look for include; delinquent taxes, google searches related to financial distress, leads from property management companies, mortgage lates, mechanics liens, out of area owners, evictions records, building permits being pulled, code violations, local housing authority contacts and who has failed their inspections.


Make Lots Of Offers

Time to close and stopping the financial bleed are probably most important when it comes to selecting purchase offers. They might not get their whole investment out, but that’s better than losing more, or lawsuits from failing to keep up their properties.

 

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Real Estate Investing: Just Saying No to REOs

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on Tuesday, 07 August 2012
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Is it time to “Just say no to REOs” and find a better source of distressed properties?

RIP for REOs?

In any other industry manipulating inventory and fixing prices would result in major public outcry, high profile investigations and massive lawsuits. There is no question that banks and mortgage holders are doing this with all of the shadow inventory being held back and the bidding wars which are ensuing.

These institutions have already been found guilty of incredible amounts of foreclosure fraud and in many cases foreclosure auction rigging too and have essentially gotten away without being penalized. SO why wouldn’t they do it with REOs?

Of course if the numbers still work for real estate investing and profit can be made then there is no reason not to buy these homes except for snubbing these lenders. However, this does not mean investors should go as far as over paying or buying on speculation alone.

Some REOs may still be good deals, other not so much. Either way it is still obvious that real estate investors ought to be fishing for deals in new directions.

2 Easy Solutions for Finding Deals with Less Competition

1. Look to New Areas

If your local market is way too hot like Sacramento or Miami or Phoenix then way not look a little further afield for real estate investing deals?

Perhaps even 100 miles away there are great destinations ripe for the picking. One example of this is Bonita Springs in Southwest Florida, a little over 100 miles from Miami, just south of the sizzling Cape Coral market and bordering one of the wealthiest cities in the world, Naples to the south. The area is financial stable, has great potential for growth, yet often floats under the radar and there are off market homes and some which have been sitting on the market. Investors will find single family homes here from $70,000 to just over $100k a few blocks from the ocean and $10 million mansions. Other similar markets could be Mobile, AL and pockets of CA.

2. Streamlining Mass Direct Marketing

There are still a huge number of motivated sellers out there but so far it has been extremely challenging for solo investors and small real estate investing companies to reach them due to time constraints. However, by using auto dialers and bulk SMS investors can slash labor and connect with live leads all day long, while covering a much larger share of the market.

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Housing Inventory Drops 22%: Where to Find Deals Now

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on Tuesday, 15 May 2012
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According to the National Association of Realtors housing inventory fell 22% nationwide in March. New stats show this number diving even further in April with many areas sitting on just a 3 month supply of homes.

This is driving down the number of days on market for homes being flipped by real estate investors but it is also making it incredibly difficult for many to find deals locally. So where are all the bargains now?

Recent research has shown that simply picking up the phone and cold calling can still be incredibly profitable for real estate investors. In fact one study puts the value of cold calling at just under $400 an hour for real estate professionals marketing for homes for sale.

Still not many investors love cold calling anymore and if you have a $400 an hour attorney you are going to need to make more than that. Social media is an obvious choice for those who prefer hiding behind their screens though increased competition means those getting started late have a lot of catching up to do. New tips released directly from Facebook suggest being more direct in your pitches, including strong calls to action and using more video and photos.

Some investors have turned to new software to run reconnaissance on smaller regional and local banks to find out what REOs and non-performing loans they are holding and are jumping ahead of the line to get them before they hit the MLS.

Starting your own real estate investors group or even hosting a regular local networking party for mingling with potential sellers can work but just make sure you enlist sponsors to offset your expenses or you bar tabs could grow bigger than your paychecks.

Creating more of an event feel and using more gimmicks to bring in more visitors to open houses you are currently running can also draw in more nosy neighbors, potential sellers and can generate many leads and referrals. Though again, just make sure the bottom line stays in the black.
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