Posted by RR Smith on January 22, 2000 at 13:01:48:
Go and find an area that you know will turn around (into a boomtown) in 3-4 years and buy there. Really you should buy at such a deep discount that the guy you sell it to (rehabber or end user) will have a good deal also. Some of the biggest money in REInvesting has been made by guessing correctly about the future of your town(or city). But why use guess work (other than the extra ordinary returns), go to where you know people will be pulled into the area by new (hopefully white collar) jobs. There won’t be enough properties to flip and “give away” you might have to get into rehabbing and marketing your own properties. EVERY TIME I made a killing in RE investing quite a few RE agents said it was “a bad time to buy!” You know what one of my leading indicators is now? Is the market so bad that the RE agents think it is “a bad time to buy!”
C. Sheets in sellers market in Montana??? - Posted by Jrogers
Posted by Jrogers on January 21, 2000 at 21:24:35:
My son and I have recently begun the course and are earnestly engaged in it. We are not newcomers to the Real estate investing game, but are new to the “No Money Down” concepts. We have 3 concerns which, perhaps if considered as a unit, may preclude the effectiveness of Sheets principles in our area. (1) We have a small market here from which to draw,compared with major cities (2) We have an active sellers’s market, and have for about 10 years; (3) We have some notable flaws on our credit record stemming from a career change about 3 years ago (though no repos, or bankruptcies).
There is a town about 45 minutes away which for various reasons is quite different in R.E. climate. The town is somewhat depressed, and has been for some time. The opportunities for creative deals might be more available there but on the other hand, I do not believe it is an active rental market. I have been cautioned about investing in this other area.
Any advice would be greatly appreciated – thank you!
Re: C. Sheets in sellers market in Montana??? - Posted by SandyFL
Posted by SandyFL on February 07, 2000 at 10:53:32:
I am originally from Montana - of which area do you speak? I know that some of my formerly favorite areas to visit - Kalispell and Whitefish - have boomed. (too much, if you ask me)
Keep in mind that I am not up to date on the local politics but I would look to see what area of growth are promising. Where are all the Hollywood stars buying their ranches? Livingston-Bozeman area? What new tourist attractions are going in?
On the other hand, where I grew up, NE Montana, boomed and busted during the Oil Crisis in late 1970’s. I wouldn’t want to buy any property there, I don’t think.
I live in central florida in an area that is hitting a peak in the sellers market. I have completed 2 deals this month that has netted me about 40,000. and have signed 2 more to be closed by the end of this month. All no money down and pulling cash out at closing.
The market is not what I particularly look for but the seller. No matter the market there will still be job transfers, divorces, and general don’t wanters that will make for creative solutions to peoples problems.
There is however a generally untapped market that can be a goldmine if used correctly and that is the inner city areas. Now I’m not talking about the war zones but the areas that are generally in the lower income range. Sometimes mere blocks away from the terror areas can be decent rental areas and resale areas especially with owner-financed properties (lease-options, agreement for deeds, etc) and the rents will not be much lower than the mid income properties thus creating more cash-flow.