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Why Are Investors Buying In Montgomery Village?

By
Industry Observer with Retired

Why Are Investors Buying In Montgomery Village?  

Investor Alert  

Investors like Montgomery Village because the area provides a constant supply of moderately homes that are suitable for rental properties. Readily available public transportation and shopping make this an ideal area for many renters. Most of the time, investors like to purchase in the price range below $150,000. Much of the time, they are competing with first time home buyers.  

This is what is available today: There are 28 active listings priced at $150,000 and below.  

If you exclude the short sales and lender owned foreclosures, there are 10 available properties. Investors try to identify the highly motivated sellers. There are always some sellers that must sell due to divorce, job transfer and other situations. Another condition that favors investors is the current difficulty that home buyers are finding with FHA financing on condos. The lack of FHA condo financing is depressing prices and cash investors are taking advantage of the opportunities. Investors are also attracted to properties that have deferred maintenance or renovation needs that scare away first time home buyers.  

Click the following URL to see the listings:
http://mrislistings.mris.com/Matrix/Public/Portal.aspx?k=1135923XDLVP&p=DE-102718854-854  

For those that are playing the short sale market, there are 12 active listings. Short sale transactions must be approved by the secured mortgage lenders and most do not reach settlement because of the lack of approvals. Some investors are submitting contracts on multiple properties hoping that a couple will be approved. Contracts should be carefully worded to disclose this strategy to the sellers. First time buyers are avoiding short sales because it is unlikely that contracts will be ratified by the April 30 tax credit deadline.  

Click the following URL to see the listings:
http://mrislistings.mris.com/Matrix/Public/Portal.aspx?k=1135923XDLVP&p=DE-102718873-998  

The hot sector is the inventory of lender owned foreclosures. There are 6 active REO listings. Cash investors that have no contract conditions have a definite advantage with the asset managers.  

Click the following URL to see the listings:
http://mrislistings.mris.com/Matrix/Public/Portal.aspx?k=1135923XDLVP&p=DE-102718898-281  

Cash investors should have a letter in hand from their bank stating that funds are available for the cash purchase of real estate. Investors that plan to use mortgage financing need to have a pre-approval letter for investor financing from their mortgage lender. Those without written documentation are not taken seriously.  

Please contact us with your specific requirements.

Posted by

Roy Kelley, Retired, Former Associate Broker, RE/MAX Realty Group

Gaithersburg, Maryland  

1~Judi Barrett
Integrity Real Estate Services 116 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

Roy, That's quite a few homes within that price range.  What is the typical time frame for homes in that price range to be on the market in your area?

Feb 25, 2010 05:01 AM
Roy Kelley
Retired - Gaithersburg, MD

Judi: Montgomery Village homes that are well priced attract multiple contracts. The short sales are an artificial inventory since most of them will not go to settlement. Prices on condos are depressed by the new FHA guidelines and condos have been targeted by cash paying investors.

Feb 25, 2010 05:21 AM