There are many systems which tell you to develop a marketing niche when investing in real estate. These programs give good advice when it comes to buying the property. The one thing many of them lack is which niche to get into. One of the most lucrative investments can come from buying off the repo list. This means finding a list of repossessed homes and finding one which will lead to a profit.
Two of the best lists to check are the Veteran's Administration (VA) repossessions and the Housing and Urban Development (HUD) list. These two lists are classified by state. You can go on line and pull up any one of these lists to determine the properties for sale in your area. Once you pull up the state you can narrow the search by county and or city.
You will find the information listed for each property. There will be an address, the number of bedrooms, and the square footage. You can also see when the property was put on the market. This is a key factor in buying off the repo list. You will want to look at properties which have been on the list for six months or more. These are the ones which are the easiest to obtain.
A property that is on the VA or HUD repo list must have the taxes and insurance paid. These are things which must be kept current by the agency. This is costing them money. These agencies are not in the business of buying and selling real estate. In today's economy it may seem like it, but this is far from the truth. The agencies do not want to hold these properties any longer than necessary.
What this means to you is they are willing to look at offers. There will be an asking price listed with the property. This is not carved in stone. This is the fair market value of the home in an area that is not distressed. There are going to be properties listed with the asking price of $75,000 and higher. There are many properties listed for quite a bit less. These are the ones an investor can build a portfolio with.
There are properties in certain areas being listed at present for as little as $1,950. Yes they can be lived in. These properties are all sold as is. The good thing is there is a little known trick to getting these properties for even less. When you find a property with an asking price of under $10,000 you should send in an opening bid. This must be done through a licensed real estate agent. The agent, by law, must submit any offer. The agent may balk at the low offers you make, but they must submit them.
The idea is to start low and work your way up. On a property which is listed for under $10,000 start with an opening offer of $2,500. This will most likely be rejected. When the denial comes back, offer $3,000. Most of the time, the agency will accept it. Should it be denied again, go up another $500. Do not offer more than $5,000 for the property.
There are many homes which have been sold for as little as $500 off of these lists. These properties took less than $1,000 to get ready for market. Some of them sold for more than $35,000. This is a profit of over $30,000. This is not a bad return on an investment.
You will have to do a little leg work to determine if the market will support a sale. You may even want to sell the property on land contract with the down payment being equal to what you paid. Either way, you will make a profit. Buying off the repo list has it's advantages. Take a look and see what deals you are missing.
Mark E. Moebius
CEO of MILJONAIR Development
3451 St. Albans Road
St. Albans MO 63073
636-300-9000
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