5 Reasons to Love the Slow Market!
1. Huge profits while demand and prices are low!
The lack of competition in the market right now allows investors to negotiate great terms, get lower prices, and find more deals.
2. The right properties WILL Sell!
There has never been a larger demand for entry-level housing. By finding the Highest and Best Use of a property, investors can create large amounts of affordable housing.
When we maximize the potential of a property, the future value of the property skyrockets. The secret is to acquire a property at the low “current value”, and THEN expose the Highest and Best Use or higher “future value”. Doing this creates affordable Entry-Level housing by adding density in areas with that potential.
3. Rents are rising, Rising, RISING!
Smart investors will own cash-flowing rentals in the near future. Jjust as property prices soared over past 5 years, RENTS will be increasing over the next few years!
The national market is creating a LOT of renters. With low purchase prices, and rising rents, cash flow has never been better.
4. Sellers are very flexible right now
Right now, sellers have more urgent needs, and are more willing to agree to things like Seller Financing, longer closings, and other negotiated terms.
Remember, Seller Financing is often even better for the seller than it is for the buyer. Don’t forget to educate sellers you work with on this point!
5. Know how to see the “vision” of foreclosures
The vast majority of foreclosed properties are single family residences with bad financing. For most of these properties the only options are traditional foreclosure techniques. These are not the type of properties we are looking for.
However, there is another large segment (15-20%) that have upsides most investors don’t see. When a foreclosed property has an unexposed Highest and Best Use, THAT is the kind of foreclosure we want! An example is a single home on half acre of land. Another is a home on a lot actually zoned for a much higher density. Foreclosures can be a great way to find deals with this kind of potential.











Tony Orlando on 23 Feb 2009 at 11:00 am #
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Susan Kishner on 23 Feb 2009 at 11:13 am #
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