With construction on new homes falling to 16.8 percent in January, this is a great time for real estate investors to actually take advantage of these tough economic times. When deciding on new or existing homes for real estate investing, there are a number of things to consider:
*Value of the property
*Cost to finish construction or repairs, if needed
*Urgency of the owner to sell
In certain situations, a home builder may not be able to finish construction on a home, or a developer may have a number of new existing homes that they cannot sell because individuals cannot get financed. When a builder is faced with multiple homes that are not selling, this is costing them money. This makes for a great opportunity for a real estate investor to get new homes significantly lower than the asking price. In order to find these potential deals, the investor must do their research and study the market. Certain areas of the country are being hit much harder than others, particularly in areas where there are many layoffs. If you can find a property and a lender facing financial trouble if they do not sell, you have a recipe for success.
Investing in Existing Homes
Now more than ever, homeowners are willing to negotiate a little more. Some just want out of their existing mortgage because they foresee trouble in their future, others are struggling to make ends meet and want to leave before the situation gets ugly. Some are retirees who want to downsize, move to a retirement community, or just cash in on their equity and move on. Regardless of the reasons, even existing homeowners who are offering lease-to-own or owner financing cannot find individuals who are able to complete the deals. Here is where the real estate investor can wow the homeowner and walk away a winner.
One thing you have to keep in mind is that these individuals are not as quick to take an offer and may even be offended if you offer them an extremely low price. Because they are not as pressed as someone in foreclosure proceedings, you have to be smart about the moves you make or you could ruin the deal. Speak with the individuals; get to know them a little bit. Find out what their plans are and if you can, see if you can get them to hint on what they're looking for. All of this information will help you with your offer. Of course, you can negotiate, but why bother. If you can offer them a fair deal right from the start, it will save you a lot of time and energy.
Whether you decide to invest in new construction or existing homes, planning is crucial. You never want to insult anyone, but you don't want to sell yourself short either. Weigh your options, and know what you can do when you go to the bargaining table. Be upfront and honest, and know when to walk away whether it be with or without a signed deal in hand.
Author Resource:-
Ever wanted to invest in real estate? We teach the average investor how to take control of their funds, move it to real estate and begin cash flow. Property is on sale and this is a once in a lifetime real estate market.More Info: www.JunkHouseRiches.com
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