Real Estate Investing Forum: The Kinds of Michigan Real Estate that Investor Buyers are Looking For!

Monday 14 January 2013

The Kinds of Michigan Real Estate that Investor Buyers are Looking For!

What Kind Of Properties Are Michigan Real Estate Investors Looking For?

There are several categories of real estate available for an investor. The easiest for a beginning investor to understand and participate in is the single-family home. Why?

1. Home ownership in America is approaching 70%.

2. They are the highest demand type of property.

3. They sell quicker than other kinds of property.

KEY When buying real estate, budget for extra expenses. Your purchase price will not include the cost of valuable inspections, repairs, and necessary closing costs.

4. Prospective purchasers have the widest range of financing programs available to them, making the property easier to purchase. If the property does not sell in a reasonable amount of time, it can be rented.

Ugly Properties:

Why should you buy the ugly duckling?

KEY Buying real estate is costly, so it is in your best interest to curtail your spending. When you know what your budget for a mortgage payment is, start putting the difference between your current housing budget and the expected amount into an account and do not touch it.

The best property to buy is an ugly one. Look for the property that has never been "updated" or improved or one that has been improved, in a very tacky way. Don't be deterred by the pet urine, feces, or mice droppings. Where some see damage and odor, you should see dollars and opportunity. Ugly ducklings are the properties that have the least competition, houses that can be fixed up by remodeling, not by rebuilding. Many people are scared about things like leaking roofs and broken windows. Be happy to see those things. They'll discourage most inexperienced investors from purchasing the property. In many areas, you will be competing for some deals with "do-it-yourself" homeowners.

KEY When buying real estate, you must check out the type of plumbing, so you can be prepared for repairs down the road. A lot of the plastic pipes commonly used during the early 80's, can get very brittle and fail after all those years of use.

They may outbid you simply because they figure they can buy a home for $50,000.00 that will be worth $70,000.00 when they're done fixing it up. It never occurs to them that they will spend $10,000.00 for materials and professional labor, one to two years working on it, and live in a construction zone the whole time. The oddest thing about it is that most people will sell the home when they're done, thinking they did great (although they really broke even) and start the process again.

Buy, flip and sell works best in a 90-120 day time frame, with professional contractors quickly completing decorating, repairs, and renovations.

Where do go to meet the like mind people to get trained in the investing business?

KEY Look for a number of loan options to save you money when buying real estate. A shorter loan life will save you thousands of dollars over time.

There are Real Estate Investor Association all over the US. Many of this associations are non profit. They are usually refereed to as a REIA. Investor groups are for purpose of investor education, networking, and training. They bring national and local real estate experts to their meetings. They have training on wide topics like: foreclosures, pre-foreclosures, land lording, rent to own, lease options, short sales, deed offs, credit, wholesaling, find, fix, and sell, private money, lines of credit, and accounting. These are just a few of the topics they speak on.

How do you find a Real estate investors association or groups in yourr area?

KEY If you like fishing, boating, swimming, or any other activity involving the water, you should consider buying real estate that is bordered by a lake. The right property could even come with its own boat launch and dock that you can use.

You can go on line to one one of major search engines. Type in the one of follow words with your local City name: REIA, Real Estate Investing Clubs, Real Estate Investment Association, REIAs, Real Estate Investing Classes, Real Estate Investing Groups, Landlord Club, Real Estate Mentoring Programs, Foreclosure Boot Camp, Real Estate Training Classes, Real Estate Seminars, Real Estate Schools, Real Estate Courses, Real Estate Investing Network, Real Estate Conventions, Real Estate Boot Camps, and Real Estate Forums. Using a search engine as search for topic like how to find a boot camp or class on foreclosures in the state or city you are in works great.