theres profit to be made in any neighborhood, the investing terms need to be altered to succeed. even warzones have deals lurking inside them. your right in assuming that these houses are harder to sale to the general public but if yuo look closely, the huoses beside it have sold and are inhabited by occupants. if a warzone house is bought at a GREAT price and doesnt ned 100K in repairs to bring it up to a 50K selling price, then it can be resold for profit if you know what your doing. these properties require a different approach, but they are indeed sellable, although may take more time to turn them around. buy a decent property cheap enough and you can cash out on the end, even in warzone. im a firm beleiver in kaiser’s way of thinking, a house is a house is a house. deals lurk everywhere.
id personally buy a rotted apple laying beside the road if i have 4 people standing around looking for a rotted apple just like it. buy it for 1 cent and sell it for 5 cents, looks like a deal to me, I’M IN!!!
I have noticed that many people looking for sellers claim to want any house, any location any condition. It seems to me you could get stuck with junk property that is hard to sell. Is this just hype to peak interest or are there people having success with low value properties in bad neighborhoods?
You have some good explanations about price and saleability of single houses and quick flips.
There is another angle on this that is never mentioned. Here it is:
In a boom, everything is a good location.
When the boom is over, nothing is a good location.
I have seen this myself. When there is a real estate boom investors rush to buy properties for $750,000 that they turned up their noses at when they were $250,000 properties a few years ago.
And when the boom is over, nobody will buy even in the best areas, even at a 25% to 40% discount on the boom price.
When a real estate boom hits, notice how certain areas of your city suddenly become fashionable, that were previously considered “the wrong side of the tracks”.
They are usually next door to fashionable areas.
So if there is a fashionable area, and you can buy the same house for half the money a block or 2 away because it doesn’t have a “name” neighborhood, just buy a few, rent them out and wait for the next boom to make you rich.
Re: are property locations important? - Posted by Kristine-CA
Posted by Kristine-CA on July 07, 2002 at 24:42:21:
Rusty: I work with junkers in a small town with some bad neighborhoods. And I have an ad just like the one you described. Junk property isn’t hard to sell if you buy it right. If I’ve learned one thing in the last six months, I’ve learned that there is a property and a price for everyone. Junkers are just thing for rehabbers or owner/occupants with cash and lots of enthusiasm. Unfortunately, they are also right for some landlords with very low standards, so I try to stay away from them. And they stay away from me, because once they figure out that I am investor, they know there is no deal for them with me.
It’s totally a numbers game for me. I get dozens of calls a week. I make dozens of offers on listed properties and vacant properties and other distressed properties. And maybe I get two deals under contract. But it’s working for me. It’s been, so far, a great way to teach myself the business.
The goal is to work with better properties, closer to home. But I am happy that these properties exist. They are a great learning tool and…the price is right.
Posted by Michael_NJ on July 06, 2002 at 20:49:48:
By even letting every one know this increases your chances on obtaining property even greater. It’s not just any property (REMEMBER THAT) it 's what suits you and your budget and as well on how you could solve the sellers problem. You have to do your homework in an area that’s why, experinced one’s stress to “know your market area” so that when your well educated for that are able to make profitable dicissions for your self but remember it’s a number’s game for every 25 to 50 calls you make you’ll probably close one deal. Just remeber don’t fall in love with the property (EMOTIONS< NO NO NO NO NO!!) BENJEMIN’S YES YES YES!!
just my .02 cents here
Michael_NJ “sky is the limit”