There Is Large Number Of Such Buyers That Are Less Selective And Eager To Buy

Category: Finance, Real Estate.

The latest events on the real estate investing, regarding the major lenders like CountryWide and Thornburg Mortgage and the change in liquidity for mortgages have created new opportunities for savvy investors. It is a fact that sellers are starting to lower prices and thus, bargains are showing up.

There is a lot of talking about all the bargains to be found because of the rising number of foreclosure home and properties that excess inventory. It is believed that larger discounts are to be expected within the next 12 to 24 months. This great opportunity is on the backend when you sell the foreclosure home or property. However, here we will talk about another opportunity. As all the lenders are putting their activity on hold, it is time for you to step up and offer financing to qualified buyers. There are also buyers that have great credit scores and are getting turned down just because the underwriters are drying up. Don t make the mistake and think I m talking about those with" C" and" D" credit ratings.

Also, the remaining lenders are asking for hefty down payments of at least twenty percent. Of course, you need to factor in the credit score and do your best to adjust the rates accordingly. The new real estate investing opportunity today is to attract the buyers with great credit scores and get at least ten percent down payments, take back a note of eighty percent at seven percent or higher and then take back a second of ten percent at a higher interest rate like nine percent or higher. Thus, buyers will be much easier to find and you will be able to upload your foreclosure home and properties a little quicker. AS the sub- prime lenders are gone, if you want to fund the" C" and" D" credit buyers, you can. find an even larger pool that is seeking for financing. Don t be surprised if you find buyers with decent credit scores who were refused credit.

While you are buying the bargain as foreclosure home on the front tend you also need to develop a system in order to start funding your buyers and generate large amounts of cash. A common mistake a lot of new investors make is that they choose the wrong price range for foreclosure home to retail. This is one of the greatest opportunities in real estate investing and you will end up with selling properties faster and creating some excellent returns. If you buy homes at the wrong price range, you end up holding them a lot longer or you won t be able to sell them at all. There is large number of such buyers that are less selective and eager to buy. A retail buyer is someone who can get approval for a new loan and buy your property for full price.

In most real estate investing markets, the best deal is the blue- collar price range that has homes from 15 to 35 years of age and most fixtures and features are outdated. These so called blue- collar homes usually start selling at 50% of the market s median price. If you update these older foreclosure homes and buyers compare your homes to standard homes in the same price range, there is no competition as buyers are getting similar or the same amenities at higher prices with the new homes. Thus, if the market median price is$ 140, 000 the blue- collar homes would start at$ 70, 00If you want to sell your homes, you are recommended to stay above$ 70, 00Anything below the 50% of median price is a rental or you will need to look for owners who are willing to finance the property. If investors make this critical mistake of renovating a home in the wrong area to retail, the home will eventually be rented out, sold with owner financing, sold to a landlord or will be lost to foreclosure. This happens as the buyer cannot obtain financing or they do not have income to support the blue- collar homes.

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