Real estate. Once the credit markets crashed starting end of 2007 - prices started dropping until hitting the floor In 2010- 2011.
This was the best time to purchase foreclosed homes from banks , sheriff sales, tax forfeitures. As of now pricing has gone up and will continue to do so in the short term at least. Even if it doesn't the residual income provides a solid source of passive income
If you have some working capital , are handy or know someone in the construction business you can work on sourcing foreclosed homes as a first time buyer through a Fannie Mae / Freddie Mac program. You may have options to finance if your credit is solid as well.
Steps to follow
Source foreclosed homes / apartment buildings in YOUR MARKET
I can not stress this enough. I know many investors who purchased hours away where they live and did not have proper management in place. This did not end well.
Hit the streets , talk to neigbors and see what the street scene is all about. Gather intel.
What types of tenants is this community attesting. Remember turnover is the enemy.
Here is the most important part - having a reliable construction crew to bid work out. Add this to an estimated acquisition price after factoring in title fees , real estate taxes , realtor fees, city / county recording fees etc.
Compare your projected cost basis to comparables that have sold in the last 3 to 6 months. Make sure you have a sharp real estate agent and verify that these sales are of similar properties / styles. Ie comparing a 1400 square foot ranch to a 3500 square foot colonial will not work. Try to stay within 1/4 to 1/2 mile radius of subject property
I have been renting many of these units out and enjoying passive rental income through in house management. It can be a pain to set up. However, if you are interested I can detail the multi facets needed to ensure success with scalability. Depending on your focal point / risk appetite you may be more interested in flipping vs cash flowing and waiting for appreciation.
This was the best time to purchase foreclosed homes from banks , sheriff sales, tax forfeitures. As of now pricing has gone up and will continue to do so in the short term at least. Even if it doesn't the residual income provides a solid source of passive income
If you have some working capital , are handy or know someone in the construction business you can work on sourcing foreclosed homes as a first time buyer through a Fannie Mae / Freddie Mac program. You may have options to finance if your credit is solid as well.
Steps to follow
Source foreclosed homes / apartment buildings in YOUR MARKET
I can not stress this enough. I know many investors who purchased hours away where they live and did not have proper management in place. This did not end well.
Hit the streets , talk to neigbors and see what the street scene is all about. Gather intel.
What types of tenants is this community attesting. Remember turnover is the enemy.
Here is the most important part - having a reliable construction crew to bid work out. Add this to an estimated acquisition price after factoring in title fees , real estate taxes , realtor fees, city / county recording fees etc.
Compare your projected cost basis to comparables that have sold in the last 3 to 6 months. Make sure you have a sharp real estate agent and verify that these sales are of similar properties / styles. Ie comparing a 1400 square foot ranch to a 3500 square foot colonial will not work. Try to stay within 1/4 to 1/2 mile radius of subject property
I have been renting many of these units out and enjoying passive rental income through in house management. It can be a pain to set up. However, if you are interested I can detail the multi facets needed to ensure success with scalability. Depending on your focal point / risk appetite you may be more interested in flipping vs cash flowing and waiting for appreciation.