Savvy investors have been snatching up deals for the past 10 months to buy, fix and sell for profit.  Contrary to popular belief we are in the best flip market in the past 15 years.  There are a few critical factors that have contributed this opportunity. I will list them below:

1. New construction is almost non-existent. Banks are unwilling to lend money to builders who build on speculation. Over the past few years banks have been taking back incomplete projects and disposing of this property at pennies on the dollar. (This is much worse to the bank than a typical foreclosure.)

Why this is an advantage for my investors: Our toughest competition has been eliminated. Builders always have an upper hand on foreclosure investors, they can build almost anything anywhere. If a buyer needs an extra bedroom they can build it, we are limited and as a result lose many end-buyers to these competitors.                                                                       No Builders = Less Competition           

2. Short Sales are a huge percentage of the market. Look through the MLS today and you will see many units listed as a “short sale”. These units are a large percentage of total homes listed. Realtors are severely limited on what they can show. A short sale can take anywhere from a month to a year for approval.  Agents and buyers are unwilling to enter into these unpredictable contracts.

Why this is an advantage for my investors: Our competition is difficult to purchase for the everyday home buyer. If someone has a lease and needs to move on a particular day or a company relocates an employee they will shy away from this type of  property.  Buyers look for predictability and our home sales are just that, very predictable.                                      Short Sales = Unpredictable Purchase 

3. Current homes listed are in sub-par condition.  Home sellers who have their homes listed are not spending money on making improvements. They feel why pour money into a property they are already losing money on.  As a result, many homes listed today need paint, carpet, and updating.

 Why this is an advantage for my investors:  All of our homes listed are totally remodeled. We make our units look like new construction. When buyers look at other MLS units many need those improvements, our unit is ready to move-in and priced at or below our competitors.                                                                                                                                                      Property Needing Repairs = Sub-Par Competition

4. Bankers lending to qualified investors. The days of goof-balls getting loans are long gone. You need three things to invest today. 1. Good Credit 2. Good Income 3. Good Tax Returns

Why this is an advantage for my investors: If you are reading this you most likely are a client of mine and my clients have all three requirements and then some!                                             Goof- Balls Gone = Good Selection of Loans and Property.

This entry was posted on Saturday, January 9th, 2010 at 10:59 pm and is filed under Foreclosure News . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.