I am a first time RE investor. I want to buy a house that is in a stable to good neighborhood in Indianapolis. I want the home to have some issue (ugly to the bone, foundation problem) something that is fixable but not catastophic. I want a deal 20-30% below market value. With alot of work on my part and some money, I hope to get 15% out of the real estate transaction. Any advice or success stories about transactions of this type? I am interested in your experience.
Thank you.
2006-07-12 16:04:41 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
I just read Real Estate Flipping - Grow Rich Buying and Selling Property by Mark B. Weiss and have some other books on the way.... trying to learn myself too before returning back home to the States. Good luck and read, read, read
2006-07-12 16:16:02 · answer #1 · answered by robertonduty 5 · 0⤊ 0⤋
I ve been out of real estate since the bubble burst around 2009. Finding a deal 25% market value now may be tough...but I would suggest if this is your first deal, to work with an attorney so they can help you with making sure all your ducks are in a row. Better to go that route and spend a bit of money than to get it wrong, get upside down and have to dig out of a hole. These guys are well known in real estate dealings in Indy...check them out.
2015-08-26 18:23:28 · answer #2 · answered by ? 3 · 1⤊ 0⤋
This site has good information about investing in Real Estate in your area...including on line chat room, Legal Resources, News & much more.
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2006-07-12 19:31:04 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Cash offers are your best effort. Get out and look at a lot of places. Get some one to appraise any home you are interested in. Ask Realtors and tell them what you want- but not why. I recently bought an 'in need of repair' home for 55,000. I have put 10,000 into it, doing most work myself including some landscaping. It was appraised at 80,000. I put it on the market and It sold within two months. I owned it for seven months. Some repairs can be very costly so watch yourself when estimating the repair and value ratio's.
2006-07-12 16:31:06 · answer #4 · answered by bond_adambond 3 · 1⤊ 0⤋
I just came from Indianapolis where I ran a cashflow club.
You might want to look at this software to help with flipping: http://www.rentmanager.com/productcart/pc/viewPrd.asp?idcategory=4&idproduct=37
You might want to check with Indy Property Investors http://www.indyprop.com/ or the Local Real Estate Investment club (REI)
-Angela
http://www.ratraceclub.com
2006-07-14 04:24:35 · answer #5 · answered by Biancoa 4 · 0⤊ 0⤋
Always buy repos off the court yard steps. You can show up for one and watch even if your not bidding just to see how it all works. That's what we've done. Also, remember if your not going to live in the house and it's just a flip then you have to pay capital gains tax which is very high.
2006-07-12 16:09:56 · answer #6 · answered by abbasgirlie 3 · 0⤊ 0⤋
Keep in mind...........
Times and markets are changing!
In California with average homes selling well over $500,000, a 20% decline is $100,000! In any market 'timing is everything'! So, could you afford a loss of 25% of your investment all because of poor timing???
This last up cycle was 10 years in many parts of the country. The downcycle now started in CA, Wash DC, NYC, Vegas and other hot areas of the past are all soft and getting softer.
From 1990 to 1996, the average home in San Diego lost 20% of its' value! The cycle we are now enterng looks like it could well exceed that on the downside!
With all the 100% financing, interest only loans, EZ qualifing etc...even a slight decline will cause many to be unable to sell for the amount due on their loans!
For some great 'insider' articles on the San Diego real estate market, which I believe will apply to any of the hot real estate markets of the past five years.....visit:
Times and markets are changing!
In California with average homes selling well over $500,000, a 20% decline is $100,000! In any market 'timing is everything'! So, could you afford a loss of 25% of your investment all because of poor timing???
This last up cycle was 10 years in many parts of the country. The downcycle now started in CA, Wash DC, NYC, Vegas and other hot areas of the past are all soft and getting softer.
From 1990 to 1996, the average home in San Diego lost 20% of its' value! The cycle we are now enterng looks like it could well exceed that on the downside!
With all the 100% financing, interest only loans, EZ qualifing etc...even a slight decline will cause many to be unable to sell for the amount due on their loans!
For some great 'insider' articles on the San Diego real estate market, which I believe will apply to any of the hot real estate markets of the past five years.....visit:
http://www.brokerforyou.com/brokerforyou
http://www.downtown-san-diego-real-estate.com/san-diego-real-estate-article-index.htm
http://www.brokerforyou.com
http://www.san-diego-for-sale-by-owner.com
http://www.la-jolla-ca-del-mar-san-diego-real-estate-encinitas-california.us
http://www.brokerforyou.com/blogger/index.html
http://san-diego-coastal-real-estate.blogspot.com
http://sandiegofsbo.blogspot.com
http://downtown-san-diego-real-estate-views.blogspot.com
http://san-diego-coastal-real-estate.blogspot.com
http://sandiegofsbo.blogspot.com
http://downtown-san-diego-real-estate-views.blogspot.com
http://www.poway-real-estate.info
http://www.del-mar-real-estate.info
http://www.la-jolla-real-estate.info
http://www.los-angeles-real-estate-brokers.com
http://www.san-jose-real-estate-brokers.com
http://www.orange-county-real-estate-brokers.com
http://www.san-francisco-real-estate-brokers.com
http://www.sacramento-real-estate-broker.com
2006-07-16 18:41:19 · answer #7 · answered by Anonymous · 1⤊ 0⤋