Does this make any sense ?

Question

In my area, housing prices are stagnate ( including multi famlys, sfhs, duplexes etc.. ) They have not decreased to any significant amount at all.

At current prices there isn't any pos. cash flowing properties.

The value of real estate in my are has not decreased.

With more foreclosures coming on the market one would think that the rental market would increase BUT THIS ISN'T THE CASE AT ALL.

The economy is in the dumps. No great amount of new jobs created.

I don't get it ? What would you do if you where me ?

Andrea Hewitt · Answer

I recently heard a podcast describing how to do it, and I was thinking of looking into it in more detail this week.
Basically when the seller of a property loans the buyer money to purchase the property, as is often done to help the buyer with the down payment or closing costs. Those loans are registered with the county. Since these loans are a smaller amount, $10-$50,000 they are more easily affordable than the first mortgages that the banks sell. 
To purcahse these loans you basically need to contact the name registered on the loan and offer to buy the loan from them. It is best to purchase it for less than the current amount due. 
The pod cast suggested writing to several people becasue not all of  them will want to sell, but chances are that someone out there would rather have the money now than waiti to collect it over the next 5 or more years.
Once they agree to sell, the lawyers get involved and then you own that mortgage and the debt is now paid to you with interest.

I am sure that there is a way to purcahse the loans from banks also, but I am not sure how unless you just call them up and ask.

N/A N/A · Answer

Hi Hewitt,

How do you purchase paper mortgages ?

Thanks

Andrea Hewitt · Answer

I think that there are lots of options for what you can do. 
Look for investments that are out of your area, in other states across the country. Try looking at commercial properties and not just residential. Instead of buying the actual properties, look into buying the paper mortgages. 
I am pretty new to real estate investing myself, but I am quickly learning that    there are multiple ways to invest in real estate regardless of the current market where you live.

Ryan Webber · Answer

There is always money to be made.  That is unless your town is becoming a ghost town.  I've seen that before, but its usually in 1 factory towns where the one main job source leaves.  This is pretty rare in larger towns.  Even with no increases in jobs people are still moving around, and people still need to sell.  As long as you have a basic supportive economy in your town, there is always money to be made.  It may require creativity, and it may require diligence, but it is there for those that will search it out and take it.

Deals come from motivated sellers not new jobs.  Focus on finding motivated sellers that are willing to sell the house at a drastic discount and as long as people are still buying houses in your town then you will be okay.

Danny Kay · Answer

I would be streched to say "the economy is in the dumps" people forget we are coming off all time highs, over all i think we are still uptrending. The DOW Jones is setting all time high records almost daily, PUlte and Beazer have both said they think the housing makret has grabbed bottom. And i personally think we will bounce and see and revist our short term uptrending again soon. There are too many doom and gloomers out there. If you truly cannot find a profitable piece of property, then maybe its time to move on to a differnt type of investment, or a different area. So to answer you, "what would i do if i was in your shoes?" : I would keep watching and looking for a potential buy, i mean what other option do you think you have. You think the economy is in the dumps, so sit back and wait for prices to crash :)

N/A N/A · Answer

That line says it all.  If you are in an area with a poor economy, you will probably want to move.  If there's no job or income growth, there's probably not a lot of money to be made.