Experienced Investors What Seems To Be Most Profitable In An Average Market
Hey guys,
I chase preforeclosures in my area. I buy notes (mostly 2nds) when at all possible and try to work out something with the property owners.
It has been a lot of hard work and I can't help to wonder if there is more profit to be had and I am just mssing the boat.
I love talking to HOs and giving the advice. I love working deals and making money also. Since my area is not rapidly appreciating in values, I am always open to learning new ways to profit from deals.
Most of my deals have been the following:
1..Owner has first mortgage with equity and the property is going to sale. I pay them a small amount to walk and take over property and sell it quick.
2. Owner has 2nd mortgage. I buy it or get a short sale and take over property and sell it.
3. Owner has 2nd mortgage, I buy it at a discount and we work out a refi program where the owner cashes me out at a later date, I recieve payments in the meanitme.
Those are my three main ways of making money. I love buying mortgage notes, but it is hard to do and I think that my efforts might be better spent shorting notes instead of chasing assignments so much. I just love how easy the deals are when you OWN the 2nd..
Since my appreciation is only 2-4% a year, I dont buy and hold at all. I was wondering if any of you experienced guys might have any pointers for making money in average markets. I am open to other systems..
J
Sounds like heaven.
To increase your yield you might explore the area of rental units. Is there an area in your town where there is a small upgrade going on. Perhaps a Gentryfication. New little shops a coffee shop a bit of style a touch of excitement in the air. Then look for some units that might be truly modernized, loaded with good things of great appeal. Then buy the units and create the upgrade. Market like crazy to the young and stylish and away you go.
Perhaps in the area of change, you might be able to buy two or three store fronts and by hanging out in the area find some new type shop or entertainment business to lease and up the rents as the area gets super trendy.
Or combination of the above. What you have to do is recognize the change just as it starts, then buy into the area and as it goes up your properties go up.
Cheers Lucius 8-) 8-)