Posted by Mark-NC on December 01, 2000 at 06:48:03:
HT,
Why don’t you run a simple test ad first to see if there is a market? This will save you time, money and aggravation knowing what your market is before you put any contracts on any properties.
A simple ad like; Handyman special, will sell cheap for cash, 555-5555.
When they call, tell them that particular property is sold allready but you have others that will be available soon. Ask them what they are looking for, prequalify the caller by getting thier information, build a buyers list from the calls and see if you can match these buyers up with any of the properties that are out there.
In determining a scout area to do some flip deals, I wanted to know, can an area be deemed unattractive (unprofitable) due to the number of vacant homes (walkaways, HUD, VA)?
I know vacant homes are a rehabbers dream, but if there are several in a 5-10 mile radius, will interest still remain?
I was scouting an area that has a combination of older brick homes (75-115K), newer homes (115K+), and the vacant homes, probably 1-2 on every other street.
The neighborhood is composed of lower to mid-middle class residents. By some the area is questionable, but to others the area is just fine and has it good and bad like any other city.
The homes carry the equity needed for a good flip, but is it worth trying to get several under option? I wouldn’t want to waste time if the buyers are going to bite.
I believe for those into handyman specials, that a wealth of money could be made with rehab and L/O, I just prefer to assign the deals at this point rather than do rehab work.
Real estate ALWAYS has it’s price. If people are actually fleeing this city or area and NO ONE is coming in to replace them, then the RE still has a value. It would be VERY LOW and you’d need to resell it dirt cheap, so you’d need to buy even lower. You have to know your market and what is happening. Vacanies in and of themselves aren’t a problem. You just have to buy them RIGHT!