2nd Step!
Well from the feedback I received from my last post I decided to list the second step with dealing in REOs. Many people buy REO packages thinking that if they buy them for 10% of the value and sell them for 80% of the value that they will be rich beyond their wildest dreams. The only problem is they ended up as REOs in the first place by people who wanted to do the same thing. Nobody will be able to sale these properties at this rate unless they are in a great area, and if the properties are clean.
What we have found was the best way to make it a good deal for investors and home buyers across the nation is to sell it way under market price. At 40% cost people can get into a property that is conservatively valued at $100,000, so they can buy a home for $40,000, and have a monthly mortgage at around $400 a month. Well when you get hundreds of properties sold my friends, these monthly mortgages start piling up. And we have found that home owners stand at the door ready to buy these houses because they see the good deal, and most people aren't stupid enough to fall for the 80% talk.
The only problem that we found with this is that you have to have a national company to take care of the advertising, clean up , and mortgages on all the properties. Thats where our company comes in, we can take care of everything for real estate investors and get them money flowing in monthly!
Comments (2)
Yes, I am, and yes it does leave some on the table, but you have to look at the long run. Some of these properties are in bad places, if you want them to sale fast you have to price it at a competitve price. But to put it into a bigger picture, you can say that you bought say a rental property at $350,000, and then you sold it for $1,050,000. Its basically the same thing only your doing it with separate houses.
Michael Schmutz, almost 15 years ago
Are you saying buy for 10% of value and sell for 40% of value? Seems like thay is leaving a lot on the table unless true market value is a lot less than the original "100%" Also buying at 10% seems rare and hard to repeat/scale--are you doing it?
Jon Klaus, almost 15 years ago