Monday, 14 January 2013

Where Do Michigan Real Estate Investors Find Great Buys on Property?


KEY When buying real estate, make sure to investigate similar real estate properties in the area to ensure that the price being charged is in line with the neighborhood or property type. If the property is overpriced in relation to the neighborhood, it gives you some negotiating power with the seller.

The answer in one word is: UGLY. You need to have a motivated seller (DON'T WANTER) and property that is ugly. Great buys in real estate are in rough condition. I can count the nice properties on one hand that I got great buys in over the years. I am talking about thousands of properties. So if you have not guessed it yet, if you get in this business you are going to need to be in the rehabilitation of property business. What do I mean by ugly:

a. Weeds two feet high in the yard

b. Gutters hanging down from the house

c. Holes in the roof are good

d. Maintenance neglected

e. Out dated kitchens, shag carpet, unpainted walls for 10-20 years

Some of examples of a great buy:

KEY When considering buying real estate for profit or to live in a great thing to do is to visit the location during different times of the day and night. This way you will be able to witness activities in the neighborhood.http://michiganlease.blogspot.com

a. "Keep cool indoor pool". I bought a house in Pontiac once such that when you walked in the front door, the paint was pealing from the walls. The house was full of moisture. When you got to the top of stairs to basement, you ran into crystal clear water. The water was to the top step. Someone had stopped up the floor drains and broken a water pipe. Water was running out of the basement windows. I had no competition on buying this house. We called the water department and had the water turned off at the street. We had the house dried out and got a great buy. The point is that there was little competition to buy this home. They could not see past the water coming out of basement windows. This was a foreclosed property and the bank was a motivated seller.

KEY When buying real estate you should do some research about the neighborhoods you like before looking at any houses. Talk with your agent about what houses have recently sold for and use that to set some limits that you will not go over.

b. "A little smell" I purchased a house where the owner had a dump truck load of sand poured into the basement. The sand was for a permanent litter box for her 25 cats. I had to take my clothes off in the garage when I got home. Again, I had no competition on the buy. The rehab on this house was labor intense.

KEY When buying real estate, always keep in mind that many of the things you find unattractive about a particular property are actually cosmetic in nature. In this way, you will be able to prevent yourself from disregarding a potentially great house due to perceived flaws that could be easily and inexpensively remedied.

c. "Moving walls" In this house, you opened the door and roaches fall on you or better said, "the walls move". Again, the competition fell away- this required an exterminator and all was well.

d. Also look for backed up sewers, fleas, houses full of trash, as things to look for when looking for a great buys.

KEY When buying real estate, always make sure to check other similar houses in the area and see the competitive prices. If a house is especially expensive compared to similar houses in similar neighborhoods in the same community, use that information to negotiate a lower price, or take your business elsewhere.

This business requires hard work but the rewards can be great. The majority of properties that people donate to charities meet the above conditions. There are great buys in real estate but it requires investors with a talent to restore the homes to a classic condition. Restoring homes, and putting them back in great shape, is for me, part of a process of fulfilling the American dream for homeowners and is what I love most about this business. The investors who look and see fully restored homes instead of the above are ones that get the great buys on homes they otherwise couldn't afford. If you are new investor, I recommend you focus on the lighter rehabs, paint and carpet changes for example. Some of the examples above were light rehabs they just had obstacles that others could not see past.

Ralph Marcus Maupin, Jr. (Mark Maupin), Speaker, Professor, Co-founder National Real Estate Network LLC (REIA), Get Free Real Estate Forms, Terms, Articles and Real Estate Club Locations at: http://MegaEveningEvent.com


Other Property investing resources:

http://propertyforbeginners.blogspot.com/

Property for Beginners

 

http://michiganinvestorsmagazine.blogspot.com/

Michigan investors Magazine

 

http://officialmichiganinvestors.blogspot.com/

Official Michigan investors

 

http://michiganinvestment.blogspot.com/

Michigan Investment

 

http://waynepropertyinvestors.blogspot.com/

Wayne Property Investors

 

http://michiganrealestateinvesting.blogspot.com/

 

Michigan real estate investing





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