52 Week Aggressive Savings Plan

Are You Investment property Ready?

Question: I am venting. We are looking to purchase a home that needs some work, but it’s amazing how many homes are past the “needs work” and into the “disgusting” category. Bad odors, torn carpeting and walls with holes…the list goes on. We can’t find anything. Any suggestions?

Answer: Let’s review this…. You are looking for a good deal, but you don’t want a home with odors, or a home that needs some work? I don’t think the distressed property market is for you. If you want a good deal on a home, you are going to have to find something that needs a lot of work. A home with odors, torn carpeting and holes in the walls and more. If the home doesn’t need work, the homeowner can sell it at fair market value which is usually always higher than what they would get in an investors market.

Finding a super deal in real estate is not easy. The overwhelming majority of homes sold would be categorized in the “fair deal” category. Fair, because Realtors price the homes correctly and appraisers ensure the buyer is not overpaying for a home in an effort to protect the lender. Fair would also mean that both the buyer and seller are satisfied with the sale terms.

If you are looking for a deal, then you need to look at homes that need work, do the math, and hope that you can make a profit by selling it for more than what you paid for it plus expenses to fix it up and sell. There is tough competition in the investor market. Everyone wants to make money selling homes.

Sometimes you can get a deal if you are a cash buyer and find a seller who does not want to deal with a buyers financing and wants a quick close.

Discuss your ideas with a Real estate Broker to see if this is really something you want and can do.