From one end of the United States to the other Real estate Jacksonville FL property values are falling. In some areas, like Arizona, Florida, Nevada, Michigan and California, they are in free fall.
Foreclosures are at an all time high, flooding the market with homes for sale. Many of these homes are currently worth less than what is owed on them. The only way these sellers can move their property is through a short sale.
A short sale means that the seller is asking the lender to accept less than what is owed on the property as payment in full. There are so many properties currently being submitted for short sales that lenders and service.
Those properties that have been foreclosed and repossessed by the lenders are being placed for sale in the form of REO (real estate owned) properties. The number of properties in this category is increasing at a rapid rate and swelling already large inventories of homes.
The result of all this is the strongest buyer's market we have ever seen in this country. The inventories of property for sale are at an all time high.
While this is dismal news for people that have to sell it is welcome news for those interested in purchasing homes. The opportunity to buy at very favorable price and terms has never been better. For a Real estate Jacksonville FL investor it is the opportunity of a lifetime.
These opportunities are not without risks. The greatest risk in the current market is your ability to exit your investment. There is no doubt that you should be able to source a real estate property at a good price but what are you going to do with it once you have it. It is possible to buy 15 properties a year at great prices and still end up broke and in bankruptcy.
This is all part of building a solid business plan up front. Each property that you purchase needs to be evaluated on its own merits. You need to plan an exit strategy before you buy. This exit strategy needs to be carefully planned out and implemented.
In a buyer's market this practice becomes a necessity.
There are numerous exit strategies available to a real estate investor. Some of these are buy and hold, rehabbing, flipping and wholesaling. All are viable options depending on the property and all have different associated risks and rewards.
The safest method is wholesaling. This is the practice of putting a property under contract and usually selling the contract for an assignment fee to an investor that will rehab, buy and hold or flip the property themselves. This low risk also results in low rewards. Margins in this type of investing are small and as a consequence if you wish to make good money you must do volume.
One of the results of the mortgage crisis is that with declining property values, equity in those properties has also declined. The lax financing requirements also allowed many people to refinance their homes and pull equity out. Because of these two situations it is often difficult to find good wholesale deals in many parts of the country.
Exit strategy number two is to rehab and sell the Real estate Jacksonville FL property. This is also becoming more difficult as access to new mortgages is becoming more difficult for homebuyers. Investors are discovering that it easy to purchase homes that require repairs but selling those homes is becoming very difficult. When purchasing a home that will require a rehab the investor must account for additional holding time in order to sell the property. This translates to a lower purchase price for the original seller.
Foreclosures are at an all time high, flooding the market with homes for sale. Many of these homes are currently worth less than what is owed on them. The only way these sellers can move their property is through a short sale.
A short sale means that the seller is asking the lender to accept less than what is owed on the property as payment in full. There are so many properties currently being submitted for short sales that lenders and service.
Those properties that have been foreclosed and repossessed by the lenders are being placed for sale in the form of REO (real estate owned) properties. The number of properties in this category is increasing at a rapid rate and swelling already large inventories of homes.
The result of all this is the strongest buyer's market we have ever seen in this country. The inventories of property for sale are at an all time high.
While this is dismal news for people that have to sell it is welcome news for those interested in purchasing homes. The opportunity to buy at very favorable price and terms has never been better. For a Real estate Jacksonville FL investor it is the opportunity of a lifetime.
These opportunities are not without risks. The greatest risk in the current market is your ability to exit your investment. There is no doubt that you should be able to source a real estate property at a good price but what are you going to do with it once you have it. It is possible to buy 15 properties a year at great prices and still end up broke and in bankruptcy.
This is all part of building a solid business plan up front. Each property that you purchase needs to be evaluated on its own merits. You need to plan an exit strategy before you buy. This exit strategy needs to be carefully planned out and implemented.
In a buyer's market this practice becomes a necessity.
There are numerous exit strategies available to a real estate investor. Some of these are buy and hold, rehabbing, flipping and wholesaling. All are viable options depending on the property and all have different associated risks and rewards.
The safest method is wholesaling. This is the practice of putting a property under contract and usually selling the contract for an assignment fee to an investor that will rehab, buy and hold or flip the property themselves. This low risk also results in low rewards. Margins in this type of investing are small and as a consequence if you wish to make good money you must do volume.
One of the results of the mortgage crisis is that with declining property values, equity in those properties has also declined. The lax financing requirements also allowed many people to refinance their homes and pull equity out. Because of these two situations it is often difficult to find good wholesale deals in many parts of the country.
Exit strategy number two is to rehab and sell the Real estate Jacksonville FL property. This is also becoming more difficult as access to new mortgages is becoming more difficult for homebuyers. Investors are discovering that it easy to purchase homes that require repairs but selling those homes is becoming very difficult. When purchasing a home that will require a rehab the investor must account for additional holding time in order to sell the property. This translates to a lower purchase price for the original seller.
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