I know on a smaller scale people will purchase homes, then flip them. But isn't it true that the investors, that make the big money, don't even get involved in fixing them up?
2007-12-13 09:01:00 · 7 answers · asked by JoJo 1 in Business & Finance ➔ Renting & Real Estate
generally is being able to put cash up and showing they can and will buy if it is at their price.
i am sure you have heard the saying
" cash talks bulls*** walks"
which never made any sense to me but its an old saying...
2007-12-13 09:58:41 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Some investors develop commercial property or subdivisions. There is an investor in my area that purchased several former small farms and is building subdivisions.
One investor took a dilapidated building, tore it down, built a new structure, obtained long term leases from two big national franchises as tenants and now the building is for sale.
Many investors find a niche and work it, others keep their investments diverse, so if one market is falling flat, hopefully another is still going strong.
2007-12-13 19:48:49 · answer #2 · answered by godged 7 · 0⤊ 0⤋
They buy land or homes cheap, hold them (if a home, often rent them) then sell when the market is high. If they keep reinvesting in investment properties (a Starker Exchange) then they don't pay the capital gains on it. Flipping isn't such a good idea in the current market. Homes aren't selling quickly like they were a year or two ago, and some investors are stuck paying for renovations and mortgage on a house that won't move.
2007-12-13 17:10:45 · answer #3 · answered by justme 6 · 0⤊ 0⤋
Another big area where ther is a lot of money is international developments. Such as Mexico investors buy the homes before they are built getting a huge discount i.e El Descanso Rosarito Beach the homes started at 100,000 before built now that the development is in its 4th phase they homes are worth $200,000. So thats a gauranteed income with no work. Its like putting money in a piggy bank buy your self 10 of those and have $1,000,000.
2007-12-13 17:46:15 · answer #4 · answered by justme 2 · 0⤊ 0⤋
I woudn't say that the big investors don't fix up the homes....
The big investors make money in so.... many different ways... They are big investors because they have more money... To buy more property and make it bigger than the rest of us....
you can buyt a POS at a discount to the neighbors values.. And, bring up the value to match the neighboring homes....
But the big investors that don't renovate the homes, or even build homes... Buy homes cheap in foreclosures...Or, tax sales which most states require a lean for two years, or so.. Before. you can own the home.... And, the home owner who has the lein against them ... Must have not paid back your money on the lein.. If they do pay back, you can't own the home...
2007-12-13 17:23:49 · answer #5 · answered by Nathan 2 · 0⤊ 1⤋
Commercial investors buy property in the hopes it will increase in value. Say you live in a town and there's another town down the road. Kind of a bedroom community. So you buy land along the road between the two. Over the years, people build stores, restaurants, doctor's offices, etc along the road. Then Wal-mart comes along and wants to buy your property. Viola! You've made a fortune.
2007-12-13 17:20:48 · answer #6 · answered by hottotrot1_usa 7 · 0⤊ 0⤋
The Biggest returns are made in R/E development. The next biggest in acquisition & exchange of income producing property.
2007-12-13 18:06:59 · answer #7 · answered by Anonymous · 1⤊ 0⤋