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InvestorPete asked:
I have access to working capital to fund a purchase of the mid price range family home category needing only cosmetic or minor repairs that I would mostly do myself before getting it back to market in say 180 days. Am I up against stiff competition from professional rehabbers wanting to buy foreclosures in Chicago?
I have access to working capital to fund a purchase of the mid price range family home category needing only cosmetic or minor repairs that I would mostly do myself before getting it back to market in say 180 days. Am I up against stiff competition from professional rehabbers wanting to buy foreclosures in Chicago?
Tags: Mid Price, Minor Repairs, Rehab, Stiff Competition
December 31st, 2007 |
Tags: Mid Price, Minor Repairs, Rehab, Stiff Competition
January 1st, 2008 at 4:29 pm
there is a ton of comp! this mainly due to the tv shows
January 3rd, 2008 at 8:47 am
Your competition is not limited to professional rehabbers. There are also a lot of people who look at such foreclosures for their use as a personal residence.
Know your market values and do not overpay. Perform the due diligence to insure that title to anything upon which you bid will be ‘clean’ when you purchase. The naive and underinformed have been known to lose money on such ventures. 180 days is WAY too long to hold such a property for resale. Too many potential changes in the market over six months, plus you’re going to kill your profit structure with taxes, insurance, and interest payments from such a lengthy holding period.
January 5th, 2008 at 4:13 pm
There will be plenty in most larger metro areas. The rehabbers we see in Arizona are investors looking for a quick turnaround, they have teams of contractors that renovate quickly so that the flip can be made within 30 to 60 days. These investors are continously purchasing.suitable property to keep their contract crews in work. However they will bid very low so you will always get a chance to bid a little higher, say + $5000, ensuring you are still paying a low price for a winning bid.
Getting started means cash and these profs have their working capital requiring a high t/o rate. They also have budgets that allow for unseen errors, previously unidentified structural problems, problems arising with labour etc.
There are a few good books around with advice on buying at true wholesale prices, rehabbing and selling, reading up well worth adding to the other hard work you are going to have to do to ensure you don’t end up paying the equivalent of retail or more at the end of the project.