|
|
|
How To Profit From A Niche Real Estate Market
here are many real estate markets at bargain basement
investors who have been prices. I have purchased homes
successful following a for as little as $10,000 cash,
proven business plan that starts and marketed them myself in small
with the purchase of a targeted communities in Texas at a good
property, followed by whatever profit in a relatively short
up-dating, renovation, or rehab amount of time. After a personal
is necessary, in order to quickly inspection of the property and
market and re-sell the property some research into the housing
at a nice profit. Experienced market of the community, a title
investors sell tickets to search is the only other due
seminars across the country, diligence needed.
inviting others to share in the
wealth and potential in various Rather than performing any rehab,
real estate strategies. These or as little as possible to make
people are not my audience, it livable, the house is
although I wish them continued immediately marketed “as is,”
success. My proposition is one with owner financing. A “For Sale
that is often overlooked, in a By Owner” sign, some flyers
particular market that offers a posted around town, and an ad in
mutually beneficial upside and the local paper usually provide
potential, if the investor has plenty of potential purchasers.
the patience to accept a longer Most of the homes I have marketed
time period for return on the were solid bargains in the 29-40k
initial investment, and some range, and most buyers, even
desire to participate in those with less than perfect
community building. credit scores, were able to
acquire at least the 10% minimum
Real estate can still be down payment requirement, as well
purchased in rural and depressed as required insurance. After a
credit check, the buyer and reducing the chance of
seller execute a Deed of Trust foreclosure. Finally, after a
Mortgage and insurance binder, payment history is established,
and the property is exchanged. It sometimes in as little as three
really is that simple. months, the mortgage is marketed
and sold, and the investor’s cash
After closing, the investor and profit are returned in a
retains the down payment, a relatively short period of time,
vendor’s lien on the property, with minimal time spent on
and a 10, 12 or 15- year mortgage unneeded major improvements to
at 14.25% interest. After this, the property.
one of two things will happen.
Either the buyer will pay his Perhaps most real estate
mortgage faithfully, which, over investors aren’t aware of the
time, will transform the mortgage size and potential of this
paper into a valuable financial market, or of the families whose
instrument, or, in the worst lives are changed when they find
case, the buyer defaults, and the their own version of the American
property is foreclosed and Dream with the purchase of their
resold. first home. In my experience,
this market has been,
Generally, the investor can unfortunately, passed over and
expect at 25% rate of default, undervalued, and although I may
but with careful buying, and never completely need (or want)
setting the term so that the to understand and maintain the
monthly payment is comparable to business side of this plan, I am
area rentals, it is easy to find proud to attest to the positive
a qualified buyer who is willing difference that homeowners make
to commit to the purchase with a in small communities where
significant down payment, modestly priced homes are rarely
offered, or traditional financing real niche in real estate for me.
is unavailable or denied to Both sides win.
potential buyers. This is the
About the Author:
Nancy Drew recommends Eric Bramlett's Austin Real Estate Guide, his Tulsa Real Estate company’s website, & his San Antonio Real Estate Guide.
Read more articles by: Nancy Drew
Article Source: www.iSnare.com |
|
