Not to argue with you Kyler,
However I really do not think there is anyone on this forum that has the depth and breathd of experince as I do. I have done well over 2,000 hard money loans in all of these markets KC included.
I know what 5k properties are and how maintenance intense they are Sec 8 good tenant or not.
If your buying a 5k house and putting 4k into it, thats purely a cosmetic at best rehab. You still have to deal with the plumbing, ( see Alex's post of were he was last saturday) old heating and aircondioning units) wiring and all the other mechanicals of the property.
I have no doubt these are great buys for you to personally manage, my point is most out of area investors would be better served with a property that is a little less management intense and risky given the tenant pool in that price range. And may some day be worth more than they are paying for it.
There is just no denying that a tenant that lives in sub 10k total cost housing be it an apartment or House is not the same tenant that lives in an area of 60 to 100k houses and generally is a market renter, have a good job etc etc. Section 8 renters are choosy as well as they know there are landlords that will bend over for the perception of guaranteed rent. And I agree 100% with your statement you have to choose wisely on the section 8 renters and qualify them like anyone else… YOu get a nasty one and they are calling HUD making complaints that your property is not up to code, code enforcement comes out and you end up picking up their mess.
Great to hear Angela (go girl power
) When I was 23 I was chasing boys a bit too much. Didnt save enough.Like others have said just be careful anyone new to investing in the USA. I know someone personally that got burnt badly in the USA from someone flogging their stuff via a website like this and spruking their wares … My friend unfortuantely didnt do the due dilligence just listened to someone who said they had the best deals of a lifetime.
I would consider myself an “experienced” investor now. I have 6 investment properties here in Australia (+ PPR). But like you I am looking at the USA as a total novice.
I am going over to San Antonio Texas in March and doing my own due dilligence whilst I am there. I am going with another group that I have made heaps of $$ with here in Australia but even though I have a really good relationship with them here in Australia however, I have realised the USA is a TOTALLY different market and I need to do my own research thoroughly. That’s why I am spending a couple of $$ now to invest in my education of the USA.
Stacey
PS. I think I have met you at a property seminar last year Nigel? Are you still using Brian in Texas.(this is who I am meeting whilst I am there – be interested in your thoughts) Tried to send a PM but cant send it because I think I am new on here.
staceymac wrote:PS. I think I have met you at a property seminar last year Nigel? Are you still using Brian in Texas.(this is who I am meeting whilst I am there – be interested in your thoughts) Tried to send a PM but cant send it because I think I am new on here.staceymac
Are you talking Brian Payton from ATW Investments ?? Would be wise of you to send me a PM if it is.
staceymac wrote:Great to hear Angela (go girl power ) When I was 23 I was chasing boys a bit too much. Didnt save enough. Like others have said just be careful anyone new to investing in the USA. To be 23 again and do it all over. Yes be very careful when dealing in USA.. I would also be very careful with teams in not just in the USA but Australia as well advertising USA properties.I know someone personally that got burnt badly in the USA from someone flogging their stuff via a website like this and spruking their wares … My friend unfortuantely didnt do the due dilligence just listened to someone who said they had the best deals of a lifetime. I would consider myself an "experienced" investor now. I have 6 investment properties here in Australia (+ PPR)Very sound advice like I have said and will continue to say spending a few dollars on education and taking a trip here to the USA .Also finding some one who has done business here in the USA from Australia is very important.
. But like you I am looking at the USA as a total novice. I am going over to San Antonio Texas in March and doing my own due dilligence whilst I am there. I am going with another group that I have made heaps of $$ with here in Australia but even though I have a really good relationship with them here in Australia however, I have realised the USA is a TOTALLY different market and I need to do my own research thoroughly. Stacey That's why I am spending a couple of $$ now to invest in my education of the USA. Last comment of you is worth it weight in gold.So very important to invest a few dollars now to learn instead of taking the word from any one.
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Section 8 will depend on where you aree investing. I don’t touch Section 8 in Alaska or Georgia because the laws aren’t pro landlord enough. In NV? I can evict a tenant and rerent in Las Vegas 15 days… At a maximum cost of $200 and never even speak to the tenant as the constable will go and deal with it … Any eviction on their record and they lose their Section 8 voucher. In Alaska, you are going to spend 2 mnths in the court system and the tenant will in the interim be destroying your house… The cost is less than the tenant portion of the rent so you just let them sit out the lease! Remember that Section 8 tenants are mean tested so not all the rent is necessarily paid by the government…in fact not many are fully subsidized….. IF YOU WANT TO SEE WHAT SECTION 8 RENTS ARE in your area this is the best for comp rents… Go to http://www.gosection8.com and pretend to be a tenant renting in you ‘”zip”.,,,
Here is the thing with ANYWHERE…. If you buy walking distance from schools, shops and transport, you will have a tenant…..Prior.
HOW TO RENT A PROPERTY IN 2 WEEKS…ANYWHERE ON THE PLANET…. Quick BIG SECRET, HUSH,
Buy a property that is walking distance in one direction to a Super Walmar/Target or Trader Joes etc and in the other direction to a GREAT school…. Buy that property that is a nice single family house on a safe street just near there (check out the school rating,” google” drive the street.. What type of cars are there.. Do the yards look well kept? Right… BUY THERE…. Stick up a flyer on the front door, walk to the nearest public light post and put up a for rent right outside that Walmart and that school and it will rent. Period. Don’t be greedy, go for market ask or even slightly below and you will have a wonderful choice of tenant…
Walking distance to schools, shops and transport.. Ideally within 1/2 a mile and you will rent that property. Shoot, wow, commonsense… ALWAYS ask… Wuld I, if were of is socioeconomic demographic rent here
Get to know Trulia… Type in the address and see what rents are in the area, Redfin for what else is for sale… Zillow for how many have sold in the last 6 mons… Are you buying in a transition neighborhood?
EMAIL ANY REAL ESTATE AGENT IN THE US FOR A DAILY FREE LISTING AUTO EMAILED TO YOU OF AVAILABLE PROPERTIES IN THAT CITY….. It doesn’t matter if you know NOTHING about the city, just pick one of those properties… Any property that is for sale and type that address into Zillow, Trulia and Redfin.. Do remember that Zillow can be skewed as owners can change the numbers so ignore SOMEWHAT they sold for …. Just how many sold! Call e nearest property available for rent… Pretend to be a tenant and ask if they would accept $100 less than they are currently advertising and hey, guess what…. If they do… Maybe you DON’T want to buy there.
The information available to you FOR FREE in the States is incredible…. We don’t have it in Oz…think RP data on steroids…
In general, If rents are currently $1k in an area, project your revenue on $800 a month. Calculate in EVERYTHNG.. If Atlanta …Lawn mowing in summer, gutter clearing in autumn, taxes, insurance, closing costs, pressure washing if you have a vinyl siding, termites and pest control… You name it… THEN, if your numbers work out look at everything else you could be buying.
SIGN UP FOR LISTING BOOK IN ATLANTA … Gosh I love that… Historical sales (accurate), market comps you can click on, demographics, maps .. Love love love…..best free tool out there.
THis is commonsense…. Use it… And have a blast… Shopping in the most incredibly fun way…
Alex SC wrote:staceymac wrote:Great to hear Angela (go girl power ) When I was 23 I was chasing boys a bit too much. Didnt save enough. Like others have said just be careful anyone new to investing in the USA. To be 23 again and do it all over. Yes be very careful when dealing in USA.. I would also be very careful with teams in not just in the USA but Australia as well advertising USA properties.I know someone personally that got burnt badly in the USA from someone flogging their stuff via a website like this and spruking their wares … My friend unfortuantely didnt do the due dilligence just listened to someone who said they had the best deals of a lifetime. I would consider myself an "experienced" investor now. I have 6 investment properties here in Australia (+ PPR)Very sound advice like I have said and will continue to say spending a few dollars on education and taking a trip here to the USA .Also finding some one who has done business here in the USA from Australia is very important.
. But like you I am looking at the USA as a total novice. I am going over to San Antonio Texas in March and doing my own due dilligence whilst I am there. I am going with another group that I have made heaps of $$ with here in Australia but even though I have a really good relationship with them here in Australia however, I have realised the USA is a TOTALLY different market and I need to do my own research thoroughly. Stacey That's why I am spending a couple of $$ now to invest in my education of the USA. Last comment of you is worth it weight in gold.So very important to invest a few dollars now to learn instead of taking the word from any one.
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By warning others how is this advertising. I dont see any sales or any information regarding sales. It was commenting on her post the last line and hence quoting her post…Saying she is smart by spending $$ money on education her self.
SCHOOLS… I sent this out and thought it might helP
From urban planning the first thing I learnt was to state the obvious….People want to live close to schools, shops and transport – ideally walking distance within 1/2 mile in urban centres. Blank walls are bad, open spaces are good etc – we know that, but we often don’t put it into words. The ideal way of learning who your tenant will be is what I love to do – spend time shopping at the local store, having a coffee, having a chat etc. If you can’t do that?
A fascinating way is the study of a the local schools demographics. Often people overlook this. What is the composition of my neighbourhood? We can get lots of information from listingbook and zipdata, city data for Atlanta (Vegas isn’t really big enough to demonstrate this as easily). However, zips can be ENORMOUS in the States… But *but but….. if you look to your local schools you can see not only the composition of your precise neighbourhood but also whether it is experiencing a transition.
HOW
Take a random sample of the 3 elementary schools closest to your property (the listing should ALWAYS state which schools your property “lies in”) and a random sample of the 3 highschools closest to your property. What can you tell? *If you have 90% of your high schools demonstrating a majority of one race and 90% of your elementary schools demonstrating a different race, you are probably buying in a transitional neighbourhood – that is a 10 year difference in school ages. *Ditto with the scores – if 90% of the highschool scores are above the national average but 90% of your elementary kids are way below, you might be starting to see some “issues” creep into the area – or a majority of kids with English as a 2nd language starting to come in etc. Of course you might not either but it is a great clue.To demonstrate and without any implication that these are good schools, areas or even vaguely in target areas, I pulled just 4 random elementary schools. Interpret as you will but it is a great tool that I have used over the years to learn trends..
Within zips you often have completely different neighborhoods. The point isn’t WHAT the breakdown is, it is simply to demonstrate the point – as I pull example properties, I will provide the high school and elementary school data for you.
In Atlanta you are shopping for 3+ bedrooms in general – you NEED to know that this probably involves children!
The link….
http://nces.ed.gov/globallocator/ind…=0&CS=D5D6C0F4
This is the link I use for schools…. I use NCES versus Georgia scores and I’m not a big fan of parent voted sites (too easy to skew).
I’m not sure I ever figured out how to attach to the thread. Will play with that in a second… however this takes you straight to one area that I find interesting and can demonstrate a little – if you look at Lawrenceville and this is a random zip in Lawrenceville -ie 30043….. take a look at the elementary schools in here (might want to ignore the youth detention centre!), then take a look at the High School.
And then if you aren’t bored senseless.. THE ZIP IN THE BELOW LINK (30024) SUWANEE BORDERS THE ZIP ABOVE TO THE NORTH (30043)
Suwanee
http://nces.ed.gov/globallocator/ind…14&CS=3F3C6657Look at Collins High school by comparison to Lambert Highschool….
NOW – LOOK AT THE ZIP TO THE SOUTH OF 30043 which is 30046….
http://nces.ed.gov/globallocator/ind…=0&CS=8E0745DF
… specifically the elementary school…..Margaret Winn…. quick now back to Suwanee…see?
Read into it what you will and play as you will…
Sorry to “pick” on Lawrenceville but it is an interesting area with some demonstrable differences….
Obviously scores HIGHER than national average would be preferred and often lower than national averages could be attributable to transitional factors such as higher English Second Language students entering etc
PS if you are scared of repair costs being too much… Try buying a house that doesn’t need any repairs! In Vegas there were only 110 SFR houses on the open market 3 weeks ago that met my main criteria…Namely younger than 1980 and 3br/2 BA minimum under 80k Back in October of 2011 there were 546. Those 110 will need work… Think 5k on average and purchase prices are increasing… In Vegas you WILL have to do Sheetrock repair, buy all new appliances and carpet the whole place, replace some broken windows, faucets will all need replacing so yes, 5k unfortunately but you have a brand new house almost for that etc. In Atlanta.. ?? There are literally over 500 available in one county..! Vegas population = 1.8 million, Atlanta almost 6 million… You do the maths. Find one that needs nothing do it, meets the schools shops and transport criteria and overbid on that by 5k if needs be!
Here is the thing… Many of these houses are move in ready..not all, but you are probably only needing 1 at a time or 2… Out of the thousands, it doesn’t take much to find that move in ready gem just for you! Add the ones that just need paint and carpet and you would never have to worry about spending more than ?? 5k in ABSOLUTE total on repairs… Quickest way of NOT being ripped off by a contractor…just food for thought…
Vegas is a ghost town
http://www.8newsnow.com/story/16902408/businesses-hopeful-for-profitable-2012
Yep, noticed…lol
Hotels can slash yield but over 85% occupancy year round? Who are my tenants? Takes the same number of staff whether you are getting $100 a night for a room or $18 a night – those staff are my tenants. If they can pass the background checks of a major casino???
Destination marketing 101 – have a brand a big one – so big that all you have to say is “What goes on in …….., stays in …….”.
Number one song in 2009 – “Waking up in Vegas” – number one movie – “The Hangover”… I like an industry supporting my tenants.
In October there were 564 properties avaialable in the whole of the Vegas market for rent that met my main criteria – under 80k, minimum 3br and 2 ba, younger than 1980
3 weeks ago there were 110.
Vegas population = 1.9 million, Atlanta 6 million give or take. In Atlanta adjust that younger than year to 1995 and in ONE COUNTY there are over 500 properties for sale. They aren’t being sucked up by home owners!
Walk into a city council meeting anywhere in the US – did you REALISE LOCAL government is responsible to pay for many essential services – fire, police, ambulance… scary. Watch council members struggle with local budgets and everyone fighting for their favourite cause and police chief arguing increased crime stats etc. SCARY.
In Vegas – heeeeelllllooooooooooo, alcohol, tobacco and gambling revenue. Stand on the “Strip” in Las Vegas and COUNT the police – the LAYERS of them – metro – on bikes and in cars, local, state… .ha, even visiting police on “exchanges”.
Strategic default is rife in Vegas but there hasn’t been a population decrease – what does that mean – people aren’t fleeing Vegas.. they are rotating.
Each to their own but I like concrete bunkers, no pests, no grass to mow, no gutters, I have had one theft of an a/c in the first week of someone occupying a property in my time there and I love NEVER paying taxes over $900 per annum until the market goes up and even then we have a tax cap for investors.
SO pro landlord.
“THAT’S what you get for waking up in Vegas”
Seriously though – pick anywhere, make it your own, do due diligence – I started in Vegas because I hate water, snow, termites, mold and variables I couldn’t control (like grass, heating oil, HOA’S etc)… I have under $700 per annum in general in maintenance. Period.
Not right, not wrong, just different. My different.
emma171 wrote:http://www.8newsnow.com/story/16902408/businesses-hopeful-for-profitable-2012 Yep, noticed…lol Hotels can slash yield but over 85% occupancy year round? Who are my tenants? Takes the same number of staff whether you are getting $100 a night for a room or $18 a night – those staff are my tenants. If they can pass the background checks of a major casino??? Destination marketing 101 – have a brand a big one – so big that all you have to say is "What goes on in …….., stays in …….". Number one song in 2009 – "Waking up in Vegas" – number one movie – "The Hangover"… I like an industry supporting my tenants. In October there were 564 properties avaialable in the whole of the Vegas market for rent that met my main criteria – under 80k, minimum 3br and 2 ba, younger than 1980 3 weeks ago there were 110. Vegas population = 1.9 million, Atlanta 6 million give or take. In Atlanta adjust that younger than year to 1995 and in ONE COUNTY there are over 500 properties for sale. They aren't being sucked up by home owners! Walk into a city council meeting anywhere in the US – did you REALISE LOCAL government is responsible to pay for many essential services – fire, police, ambulance… scary. Watch council members struggle with local budgets and everyone fighting for their favourite cause and police chief arguing increased crime stats etc. SCARY. In Vegas – heeeeelllllooooooooooo, alcohol, tobacco and gambling revenue. Stand on the "Strip" in Las Vegas and COUNT the police – the LAYERS of them – metro – on bikes and in cars, local, state… .ha, even visiting police on "exchanges". Strategic default is rife in Vegas but there hasn't been a population decrease – what does that mean – people aren't fleeing Vegas.. they are rotating. Each to their own but I like concrete bunkers, no pests, no grass to mow, no gutters, I have had one theft of an a/c in the first week of someone occupying a property in my time there and I love NEVER paying taxes over $900 per annum until the market goes up and even then we have a tax cap for investors. SO pro landlord. "THAT'S what you get for waking up in Vegas" Seriously though – pick anywhere, make it your own, do due diligence – I started in Vegas because I hate water, snow, termites, mold and variables I couldn't control (like grass, heating oil, HOA'S etc)… I have under $700 per annum in general in maintenance. Period. Not right, not wrong, just different. My different.Emma actually spoke to your brother PM some good and Bad we both strong opinionated people to say the least . I will say after reading each of your post very sound advice. Some of the best I have read on here.
As for choosing a markets years ago I would go to Florida and buy a few deals for my self and small group of cash lenders. Just to get out of the cold for a few weeks.
And it is 19 degrees here today in Charlotte horrible cold.
Alex
[email protected]Lol, my brother definitely has strong opinions.. But he cares deeply on them!
Thanks for compliment.
Hey, I am in Atlanta today and windchill factor brings me almost to your level. I SWORE I wouldnt ever be anywhere cold again… In Alaska I would go 3 weeks where the temperature didn’t rise above -40… And I lived there 10 years… I have done my time in cold….
Just no snow… I think I mentioned it before,, I still cry if I see oil prices rise. I hate that I run the risk of frozen pipes here (INSULATE, INSULATE).. sigh..
That being said, never in this lifetime or the next do I believe we will have this opportunity again. I am way beyond it now but the thrill of owning a place outright? A house, that gives you over 12-14% nett return when you come from Oz where Jan Somers taught us all negative gearing????? AND the chance of cap growth?? I’ll take it! I live of passive income and travel when/where I want thanks to the advice my brother gave me many years ago.. Buy anything… Just research it but get in..l this is the time mini empires are built. A few clients have newborns.. WHAT a present is that.. Lol, your first Vegas pad… Who is the popular college kid in 20 years time?
Thus Atlanta and brrr and typing this in a restaurant surrounded by lovers … Just got a free drink for being the lonesome one!
LOVE IT… Ha
HAPPY VALENTINES DAY!
emma have your brother look at my post about the FBI arresting one of the all time US spruikers… Its coming for those that have been stealing from foriegners
Emma just pointed me in this direction.
Jay – That is really good news re the FBI. My guy in LA has very close connections in the property industry and has also pointed a few things out to people. Basically it is NOT right for the honest guys to be outsold by non qualified fast buck merchants and it is NOT right for people to be ripped off by sales tactics deliberately designed to circumvent 200 years worth of property law protections on at least two continents.
AlexSC – I haven’t read your PM yet, but whilst I am opinionated I also use a sense of humour that often doesn’t come across in print very well. I have no hard feelings against anyone here and never set out to offend. I do have a habit of offending people in the US very easily, it isn’t intended and do try not to do it – I just fail a lot. Fortunately I haven’t yet upset a South Central Homie:)
Staceymac – I will send you a PM. I would very much like to have a contact of mine talk to your friend who got ripped off. We have helped someone solve their major problem caused by a spruiker (jay & emma know rough details) and a very good result was had because a lot of ‘good’ agents saw the rip off for exactly what it was. We expect there will be some publicity on this but another person willing to speak up would be very welcome. Most are embarrassed but they have no reason to be. This particular type of operation (for everyones sake) needs to be stamped on very hard.
lawsjs wrote:AlexSC – I haven't read your PM yet, but whilst I am opinionated I also use a sense of humour that often doesn't come across in print very well. I have no hard feelings against anyone here and never set out to offend. I do have a habit of offending people in the US very easily, it isn't intended and do try not to do it – I just fail a lot. Fortunately I haven't yet upset a South Central Homie:)Yes you read them because hou have as you commented back to me and I decided not to respond.Maybe speaking with Jay you will get a better understanding of who I am. Our messages were back in Jan and I decided to just stop replying. Until the other day.
I don't get offended but i just move on.
All good no worries, you sister has some really good post. As you told me about her in our PM conversations.
Well late and time for bed.
Alex
Alex
emma171 wrote:Lol, my brother definitely has strong opinions.. But he cares deeply on them! So do I consider myself very passionate for life in general but good to hold strong to your beliefsThanks for compliment. No worries good to read stuff from others that makes sense.I made some good contacts and alot of new friends here. Speaking about real estate and what ever else we feel like talking about.
Hey, I am in Atlanta today and windchill factor brings me almost to your level. I SWORE I wouldnt ever be anywhere cold again… In Alaska I would go 3 weeks where the temperature didn't rise above -40… And I lived there 10 years… I have done my time in cold…. Just no snow… I think I mentioned it before,, I still cry if I see oil prices rise. I hate that I run the risk of frozen pipes here (INSULATE, INSULATE thats why I don't and wont invest above the freeze line .Any place that has cold winters with a few months of it not for me sigh.. Charlotte is 38minute flight from atlanta 3 hr drive weather is basically the same.Honestly this is the first time this winter .That is has been super cold. Growing up in NY used to the snow and cold.This is been a rather warm winter so far for us. So guess can't complain to much
That being said, never in this lifetime or the next do I believe we will have this opportunity again. I am way beyond it now but the thrill of owning a place outright? A house, that gives you over 12-14% nett return when you come from Oz where Jan Somers taught us all negative gearing????? AND the chance of cap growth?? I'll take it! I live of passive income and travel when/where I want thanks to the advice my brother gave me many years ago.. Buy anything… Just research it but get in..l this is the time mini empires are built. A few clients have newborns.. WHAT a present is that.. Lol, your first Vegas pad… Who is the popular college kid in 20 years time? Thus Atlanta and brrr and typing this in a restaurant surrounded by lovers … Just got a free drink for being the lonesome one! LOVE IT.. This whole last part so true bottom line this is a opportunity for folks in the USA and International markets today that we might not see again.. Ha HAPPY VALENTINES DAY!
And same to you.
What brought you to Atlanta from Vegas, both good markets.We are nearly out o Atlanta a few houses left then staying put in Charlotte. Will say I have enjoyed many a trips to Vegas .Some where in those trips actually made it out to look at some houses. I try not to miss UFC fights in Vegas.I might have to steal the last part of your tag line ( Please note that any information contained within should be deemed as opinion only and not specific legal, tax or financial advice. All comments are general in nature unless otherwise specified.).Seems that when I put my email, I am advertising .
talk soon
Alex
can't put your email anymore?
A guy called Demetrius Mathis actually …. if you think Atlanta is drying up… dear heavens…there are 10 times the properties here than there ever were in Vegas…..Vegas is gone…in fact, Vegas was never like Atlanta – it has been “tight” since the day I walked into it by comparison to here…… there are still the rare ones pop up that I will nab but that is one in 3 weeks…luckily everyone is willing to wait for the right one rather than just “any” but still.
This is what I sent to my ENTIRE list of people that day… I think you will get the point… he has persisted to contact me – interestingly his website reads “people trust him so much and his amazing team that over 80% of his clients buy site unseen and are from oversees”… I am apparently not focusing on the right thing….. oh and he is willing to cut me in without marking up his property any more (so I really hope this doesn’t get deleted for spruiking)
As I am quoting him directly I will also state that should anyone be interested in pursuing an amazing deal like this, I will happily pass on his details… but quick, rush because there is a HUGE demand or something….
Dear All
I have received contact from a company selling properties in another state. I will repeat verbatim my response to him…. I will not elaborate. I will STRONGLY recommend that if you are looking elsewhere that you INSIST upon knowing what the company paid for the property and justify in your own head any mark-ups.QUOTE
DemetriusFantastic – thanks for the below..
Okay. I am about to send this verbatim out to my email list. I just want to make sure I get this absolutely accurate:
A house that was bought at auction for 24k on July 5 can be bought through you for $57k… Except that we have to rush because they move so quickly…. Probably this example property has been sold already…..although it has sat since July.
This is a property that you are asking $20,000 more for than any recent sale within a half mile.
I will pose it to my clients and let them decide. As they all use zillow, trulia, redfin and other such websites, if they do choose to pay you literally more than the house cost in commission (27k in repairs/commission for a house that cost 24k) and to pay 20,000 DOLLARS more than EVERY recent sale within 1/2 mile then that is up to them – I am more than happy for them to have choice in this market and will simply outline the services you offer.
With enormous thanks….
UNQUOTENormally I “rip” these to shreds but the only thing I couldn’t fault was the yield – which was a first…… “where next” is the question most of my clients and I discuss weekly! As I always say, you just never know “where” next…
To clarify the supply question. I don't buy bulk -…I find great available properties that meet a persons needs and I therefore don't have to worry so much about a market "drying" up. The foreclosure market will dry up, the investments will not – as Jay, SC and the rest of us who have been here more years than we could count know…
Best dealls?? Those that fall out of escrow (ie the sale doesn't go through to completion)…my guess? At least 30% of all sales "fall out of escrow"…. In Atlanta, probably more…. if they fall out faster than the Agent has had the time to take it off the market they don't relist it – they just leave the old listing up so you don't get an MLS update….
MLS – for those who don't know is the Multiple Listing Service and every property has a unique identifying number and any new or changed status on a property and they are posted immediately to the MLS… so these are the "live" properties on the market (not those that were bought at auction and if a bank or asset manager thinks the property will do better on the open market, they will place a crazy high price at the trustee sale on the proeprty…. look to the Trustee reports and barely a 1/4 of properties are actually bought at auction – another topic but suffice to say the MLS captures them when a real estate agent is passed the file by the asset manager).- MLS numbers move sequentially – in the FMLS (one of two MLS systems used in Atlanta) we are currently looking at the newest properties being an MLS number of 432XXXX – so if you see an "updated" listing on your morning list of "new properties or changed status" that is 4297386 – you know that this property is a few months old… this has dropped out of escrow or didn't sell, the agent is probably sick to death of the blasted case and if you pounce, you can often low ball these….
BUT DON'T LOOK AT TODAYS LISTINGS….. if you use Listingbook, go to about page 13 of the over 400 pages of currently showing "active" properties and look at about the 429xxxx or even the 427xxxx the ones that slipped through the cracks… there are THOUSANDS of them – call around THOSE properties in the area you want, find the move in ready one and buy that!
Put it this way, overworked agents from the listing side start to look a little bad to their asset managers if they haven't shifted a property in this market in 90 days… they could lose the file if it happens too much. Where would that leave them? On the buyers side.. .eeeeek, that's a tough life! So, do them a favour, lowball and go from there!
Yes, the "todays" listings are a feeding frenzy…. ignore.. .I can guarantee you every single property that comes out "fresh" today has 43000 people bidding on them… oh, except that 30% of them will be back on the market within 3 weeks … who is bidding on them then? Not the bulk buyers.. they are too busy on today's feeding frenzy and overbidding to secure the property!
Modus Operandi? Bid, bid bid, secure the property, desperately hope you have a buyer lined up while it is in due diligence and if not, back out then citing any random reason….
THAT is the time to buy…. ditto on the Fannie Maes and Freddie Mac properties – they have a 15 – 30 day owner occupier time frame – set an alarm for the day it pops out of owner occupier – the bulk buyers don't have the patience for that.
Just "tricks" of the trade. As far as I am concerned, when I see 8 properties in a day that are move in ready, have a/c's in tact and I haven't had to drive more than 5 miles in any direction to find them, the market is WIDE open… doesn't mean they make my list but they are there.
) When I was 23 I was chasing boys a bit too much. Didnt save enough.
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