Experienced Investor Needs Ideas - Posted by Mitchell
Posted by Mitchell on March 02, 2002 at 15:24:54:
In 1987 I utilized the “expired listing” technique successfully to invest in real estate. I wish to do it again.
The market in 1987 was red hot. We had the second hottest market in the nation. There were consistently 6,000 properties on the market and 40% or 2,400 expired every two weeks, usually to relist. There were plenty of sellers and after cold calling 750 expireds I found a homerun.
Today the market is very hot also. However, the inventory is much smaller and the number of expireds is 60 every two weeks, not 2400. Properties sell quickly and at full price. REO officers are selling the few forclosures at full value because of the low inventory. Other usually motivated situations like divorces are also selling at full value. Real estate investor friends are having a hard time finding fixers and the only areas that have value are the slums. I have been there and done that and it is not for me. HUD homes are selling at full value and tax auctions are attracting big crowds.
The newspapers have about a dozen investors who are advertising consistently and bandit signs are around the area. My cash is tight right now so my own advertising is not able to be done nor can I put out monies for rehabs. That is why I want to do the “expireds” , where I can option or purchase sub2, but it seems that the timing is against me.
Any ideas out there?