Doing deals with distressed homeowners who are nearing foreclosure is more about getting inside that person’s mind. You need to understand what they are going through before you can work successfully with them…
Credit counselor Gail Cunningham has an excellent article on the shame of foreclosure and how it really affects the distressed homeowner emotionally.
Real estate investors doing short sales, bird dogs and rehabbers who are working with preforeclosures, repo homes, and loss mitigation can get some real insight on what distressed owners are thinking and how they think. This is vital if you want to do deals with them. As top marketers such as Dan Kennedy will tell you- you must get into the mind of the prospect.
Here’s how to invest in real estate out of town. If you’re going to be a successful real estate investor you must deal with a competent realtor and property management company. Here’s how…
Here is real estate Rule #2.
Get the right team together and develop clout and you can invest anywhere in the country.
Adiel Gorel of ICG Investments talks about how it works for him. He’s in San Francisco and deals with a lot of Silicon Valley people who need to invest in real estate but don’t want to invest in that area. And we all know why.
I think Gorel has hit on something major when he talks about teaming up. Several real estate investors can band together to get the best services with a competent Realtor that you trust and a property management company that will do business right by you.
It’s a whole lot easier if you have more clout. That concept will work beautifully in your neck of the woods also. That’s another reason why we recommend that you get into a local real estate investing club as soon as possible.
Rehabbers are still making money off of good deals, even in “bad times”. See how Speer did it as he explains his deal in this vid…
Nashville real estate investor Dr. Phil Speer has turned a Sylvan Park rehab around making $85,000 in the deal.
There are several important things to note here. I know the vid is over a year old, but rehabbers are still doing these deals, and will continue to do these types of rehabs even in "bad real estate markets". Why? Because a good rehab is based on sound business. Speer takes you through in the vid and points out important details on how he did the house and why certain things are important such as the kitchen and an additional bathroom. But that’s not the main thrust here.
What’s important is that Speer paid close attention to real estate investing Rule #1. Buy the worst house in the best neighborhood.
I can testify that Sylvan Park was an excellent place to invest because about half of our properties are located there, near Speer’s rehab, in fact.
It’s excellent because of- LOCATION. That’s because it’s near Vanderbilt University, one of the best schools in the country, which brings in lots of new buyers and tenants. Vanderbilt is one of the biggest employers in the state and is close to a lot of the action going into downtown.
And it passes the Starbuck’s test, which means you probably need to move on now to greener pastures because the area is getting too good. Once the coffee houses start to appear, the neighborhood is getting sophisticated enough to bring in high prices for selling-not buying.
One of the toughest things to do in this real estate market is talk to homeowners who need to sell their home, but want to get as much money as they can in the sale. Often times these homeowners want to sell their home for as much money as they could have gotten two years ago when the market had peaked. Unfortunately this is impossible in the current housing market we are facing.
Before I give my ten-cent’s worth of advice on selling your home in this market, let me begin by saying “I don’t recommend selling in this market unless it is a must.” This is the most honest and best advice I can give you. Unfortunately, some people are forced to sell and there is nothing to do other than sell. If this is your situation, keep reading.
As simple as this tip sounds, it is the hardest pill to swallow. The best thing to do when selling your home in a down market is pricing it competitively! Pricing, pricing, pricing! Of all the Homes for Sale in Pasadena, your home needs to stick out and be priced better than everyone else’s. What happens if you don’t price well is that you sit on the market for a long time and the prices of homes continues to drop. Eventually you are caught chasing the market and trying to get the price you didn’t want in the first place.
As a licensed Realtor in Pasadena California I study the trends that make the housing market go up and down. When foreclosures are on the rise they make the market contract. Banks put Houses for Sale below market value and they often times sell. These cheap homes are bringing down the average market prices on homes across the city. Sure you can price your home and what you think it is worth, but even if someone writes an offer they will have a hard time getting a loan for a house that is sold for more than it is actually worth.
We are seeing similar instances with Commercial Real Estate. So, if you are looking to sell either residential or commercial real estate, make sure you price below the market! Get it sold before you sit on it too long!