During the interest only boom, banks stupidly gave out money like cotton candy at the fair. Caught up in this give away were tens of thousands of unfortunate souls who otherwise would have never seen the inside of a home in a regular market, who's properties are now owned by banks who are desperate to get rid of them any way they can.
There are a few big investors making amazing cash flow numbers from these properties, but by and large there are only a few small investors who have the know how to get it done. This is a shame really, because it's fairly simple to do and the biggest bargain in investing right now.
Infomercial Reality Check
Ever watch one of the real estate guru's talk about wealth through real estate investment? Most of those guys got rich off these types of homes. I know what the infomercials say but in reality if you were to check their actual investment history you would find that in a year just like we're having right now they invested their money in bank owned, extremely distressed properties. They put in a few dollars to make them livable and sold them for huge discounts so almost anyone could buy them.
There's a Catch...the best properties are probably not in your neighborhood and probably not even in your state so when you invest your hard earned money into their program, you find out pretty quick it may not work where you are.
There's a Solution...With just a little help you can buy these properties at less than 20 cents on the dollar...get someone to buy the home...fix it up themselves...for a positive cash flow...and never leave the inside of your home. It's happening all the time right now, but won't last forever. It's one of those moments in history where all the conditions are right for average investors to make a significant profit without significant expense.
It Gets Better...for a little extra...there are those who provide services and will do it all for you. Think about what I just said; you make a small investment...add a little extra...and someone else does all the work while you get most of the benefit...hands off...no rehab...no negotiating...no selling...no brainer.
Let's Do Yesterday's Math
In an average market, you go out and invest in a home to do a simple fix and flip. Let's say for convenience you invest $60,000 for a home worth $100,000. This is a bargain to be sure. You then put in $10,000 to fix it up enough to attract a buyer and sell it then for $80,000 to move it quickly. Your profit is $10,000. Or you do a lease option and begin receiving $1,000 a month thus receiving $12,000 over a year's time. Does this sound familiar? This is the normal pattern of investing for one or two homes at a time.
Modern Math In Today's Market
You start out testing my method investing in one home for less than $30,000 which is valued at $40,000 (This is the low end before rehab). You spend $500 to have a sign put in the yard (No rehab remember) still less than $30,000. You begin fielding calls from buyers. You accept one and begin receiving $400 - $500 per month as cash flow on a note worth $59,000 - $69,000 after rehab. Did you catch what just happened?
Now let's say you took the same $60,000 and instead of one home you now own 6 of them. The cash flow would then be $1,500 - $2,100 per month. Let's say you wanted to sell the note...there are plenty of investors who will take that note off your hands for 50 cents on the dollar after the home has been occupied so the value would be $15,000 to $20,000...each. To recap...$60,000 in...$90,000 to $120,000 out...50% to 100% ROI in less than a year.
So...which model meets your investment needs...old school...or new school
Click here for new school www.cherrypickreos.com