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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Go where the best deals are. Posted by Ward-CA- on January 20, 2002 at 1:54 PM In Reply to: how to deal in my neighborhood? posted by nelson on January 18, 2002 at 8:32 PM : My neighborhood is a fast growing suburb of a major metropolitan area. Thousands of vynil siding starter homes are being built that range from 100k to 185k. People get in for no money down and so the mortgages are right at the true value of the property. Yet often people can take out seconds on their homes, because of false appraisals and loose practices. Most foreclosures and HUDs are in this area. The reason is that these homes decline in value because people would rather by a new cookie cutter home than a used one so it takes a while to sell these homes, even at a loss. : When the homes reach hud stage or auction stage the margins are pretty thin. Should I be approaching people (homeowners, banks)earlier in the cycle for better returns,or is this the wrong kind of neighborhood to focus in given my goal of a profit of 10 percent of the sales price of the home? : Thanks, : Nelson =•=•=•=•=•=•=•=•=•=•= Nelson, I’ll bet your “major metropolitan area” has a foreclosoure notice service you can subscribe to that covers an area with a 20 mile radius or more. If that’s true then I’d just look in better appreciating neighborhoods for my deals. And you might develop a purchasing formula that’s based on a net return on your cash investment in a deal rather than based on the property’s sale price. Go to your local library and check out some investment real estate books that show you how to figure a “capitalization rate”. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : My neighborhood is a fast growing suburb of a major metropolitan area. Thousands of vynil siding starter homes are being built that range from 100k to 185k. People get in for no money down and so the mortgages are right at the true value of the property. Yet often people can take out seconds on their homes, because of false appraisals and loose practices. Most foreclosures and HUDs are in this area. The reason is that these homes decline in value because people would rather by a new cookie cutter home than a used one so it takes a while to sell these homes, even at a loss. : : When the homes reach hud stage or auction stage the margins are pretty thin. Should I be approaching people (homeowners, banks)earlier in the cycle for better returns,or is this the wrong kind of neighborhood to focus in given my goal of a profit of 10 percent of the sales price of the home? : : Thanks, : : Nelson : =•=•=•=•=•=•=•=•=•=•= : Nelson, I’ll bet your “major metropolitan area” has a foreclosoure notice service you can subscribe to that covers an area with a 20 mile radius or more. If that’s true then I’d just look in better appreciating neighborhoods for my deals. : And you might develop a purchasing formula that’s based on a net return on your cash investment in a deal rather than based on the property’s sale price. Go to your local library and check out some investment real estate books that show you how to figure a “capitalization rate”. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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