Yes, it is a buyers market, there are some deals to be had right now but you need to be aware of what’s out there and what is a good deal. Many folks are going to the court house and bidding on foreclosures while others are driving neighborhoods, looking for “For Sale by Owner” signs and knocking on doors. It all comes down to knowledge of value.

Condos

An area I warned people to stay away from several years ago, I am now encouraging people to buy and hold for a good cash flow return. Condo’s are now affordable and will cash-flow in areas where there are; colleges, technology centers and large institutional medical facilities. Keep in mind, the apartment vacancy ratios in the area, and the monthly costs for management before investing into a condo. There are other questions that need to be asked before you think about buying a condo and I encourage you to contact us for the questions you should be asking.

Foreclosures

Many of the sales happening right now is foreclosures and the buyer needs to be aware of which property is the best deal; do you buy it on the steps of the court house, do you wait till the lender has possession of the property. In most cases, I encourage the buyer to wait till the lender has title to the property. Unless a buyer is savvy enough to do their own title search or can afford to pay a title search company to evaluate the title of each property prior to bid on, it is often better to wait for the entire process to be completed. Discounts can often be had after the lender has possession of the property and foreclosed out second mortgages, liens and judgments. If you want to know more about purchasing a foreclosure and some of the inspections that need to be done prior to purchase, please contact us.

Short Sales

A short sale is; the lenders option to accept the sale of a mortgaged property for less than the value of the current mortgage.

Just like foreclosures, “Short Sales” is a large part of the real estate market and buyers and sellers often have questions on what the outcome will be. If you want to go into a short sale purchase, be patient. I have witnessed some purchases take as long as eight months with the lender asking for documentation from the seller and buyers alike.

There are many questions for buyers and sellers and I would ask you to contact us and we can walk you through the process, whether you are a buyer or a seller.

Flipping

The profits from flipping is still there but not at the returns from several years ago. The new rules from FHA and HUD with short term ownership and restrictions with current real estate contracts requiring permitting and work being completed by licensed contractors cut into profit margins quickly. We are experienced investors and can advise you on expected real estate returns, whether you use it for rental property or flipping. Please contact us and let us share our experience with investment property.