Posted by ron on March 18, 2006 at 13:25:25:
well I"ve read reports that Michigan is the worst appreciating market in the entire US
so I guess anything is better than that.
Want to know what areas are TOO Hott. - Posted by Downriver Brian
Posted by Downriver Brian on March 18, 2006 at 10:46:25:
What areas are so hot that they make it very hard for investors to invest there?
Reason I’m asking is because I’ve come across three out of state investors who LOVE the deals we do in Michigan because the average home price is $157k instead of $500k. Makes it a lot more affordable to do deals.
Whatever the best areas are, I’m going to run adds there to try to attract investors that want easy flips for big cash.
Re: Want to know what areas are TOO Hott. - Posted by David Krulac
Posted by David Krulac on March 18, 2006 at 11:38:01:
I have a house for sale now on a wooded .62 acres for $24,900. That price alone does not indicate whether the market is hot or not. A cheap price for a house does not tell you:
- Its a good deal
- The area is hot
- You will make any money
- Its affordable (you would need to know wages in the area as well as unemployment rates.)
- It would make a good investment
- Somebody will pay more than that for the property.
About the only thing that a cheap price tells you is the price iteself, nothing more, nothing less.
Re: Want to know what areas are TOO Hott. - Posted by Downriver Brian
Posted by Downriver Brian on March 19, 2006 at 07:09:37:
I’m talking about finding deals that appraise for $300k, are newer construction, need no work, and we can buy for $220 with more back to cover closing costs. That’s a deal.
As much as all the press would like to publish the “bad things” about Michigan, our state is the promised land for Real Estate Investors. Your only obstacle is getting the house sold once you have it, but that’s easy enought to do if you have even a half-descent marketing plan in place.
Most people don’t. That includes Realtors, FSBO’s, investors…everyone. If you think that the way to sell a house is to stick a sign in the yard, run an add in the paper highlighting your homes features, and/or list it on the MLS with an agent, and it’s going to sell…you’re wrong. You have to go the extra mile to make your house stand out from the rest. But then it’s cake.
I guess if you come from a hot market, i.e. San Fran, where the deal is snatched up before you even buy it…well maybe there would be a learning curve there. And where there is a lack of knowledge, there is fear. Where there is fear, there is a lack of action. So nobody buys houses when they are afraid do so. It all stems from a lack of knowledge…
In any case. Michigan ROCKS. I can find deals all day that don’t require me to put up $500k to buy (even if it was worth $680k fixed up). I would have a hard time investing in CA or Northern VA because I couldn’t get approved for that type of money.