With the realities associated with the bursting real estate bubble, tightening credit markets, stringent lending practices, unpredictable future value of property and, the fact we are in a recession, seems to paint a dim outlook for people who would like to buy residential real estate for a home or investment. Well, the truth is, if you have cash and basic understanding of how the market works, now may be a great time to swing some of the best deals you will find in a long time and, here's why:
1. Banks are not property managers--There is a ton of foreclosures on the market, which banks want to sell, and will do so cheap, even auctioning off homes at prices that are hard to beat. I mean, if you understand that banks and lenders do not like to manage a portfolio of repossessed properties, then you understand there are opportunities to buy property cheap from them, often with a great loan packages from the bank itself. How do you find these properties? Contact banks in your local or target markets and ask for the repo list, which is how you start your investigation.
2. Motivated sellers-with the conditions and competition in the market right now, home sellers will sell property cheap to avoid foreclosure. These sellers, known as "don't wanters," will go a long way to accommodate a buyer who is qualified to remove the burden from their shoulders, often at prices far below market value. One of the keys to buyers finding excellent deals through agents; is learning how to write purchase offers that motivate both the agents and sellers who are desperate to do a deal. These desperate sellers are often willing to help buyers with creative financing including; significantly dropping the price of the property, carrying back a second mortgage, selling on land contract and, depending on your credit limits, using credit cards to do deals, etc. The key to finding these sellers and reeling in the deals is your understanding that agents MUST deliver ANY purchase offer to a seller. Again, the key is in knowing how to write power offers that compel people to sell cheap.
There are opportunities out there for you if you are in a position to purchase a property, but you want to make sure you have the right knowledge under your belt before doing a deal that may cause you legal and financial pain. However, for those of you who are thinking about getting into the market, the next year or two will be prime time to get educated and get moving!
All the best!
Jim Hart
Copyright (c) 2008, James Hart, All Rights Reserved
