That's right, I do and you should to! If you are an Investor like me you realize that right now is the time to be buying Real Estate. I don't care what the media says. Keep quacking about how the sky is falling, it is helping me with less competition. Let me tell you about my latest deal. As an Investor who happens to have a RE License, I work a lot with wholesale companies here in the Phoenix area. A Wholesaler is someone who aquires properties at huge discounts, sometimes 50% of value, through various means like auctions, Short Sales, Probate, etc. They then add a little to the price as their profit and send it out to their investors to fight over. Like everything else there are good wholesale companies and there are bad ones. One morning a couple months ago I get an email from one of the better ones with the details about an Auction property in Goodyear, AZ. I know the area well as I have had clients of mine buy in the neighborhood. It appears this is a good deal from the information provided but just to be sure I need a closer look. I go for a drive and check it out and I'm pleasantly surprised, this house is nice! Built in '03, 2237 sq.ft., 3/2 w/den, one level, 3 car garage with extra storage along one side of the garage, corian countertops, dish, alarm system, water softener, reverse osmosis, immacultely landscaped, screened in patio and the real clencher for me, a pool with waterfall feature! Needless to say I was on the phone immediately when I saw that pool asking the wholesaler what I have to do to secure the property. He says the first person with $2500 in his hand gets the house. I lost about 6 months worth of tire tread leaving that place! To the numbers: this house was bought for 335K two years ago. I bought it for 179K! I have two verifiable comps of the exact same floorplan within the last 5 months-one sold for 255K w/out a pool and the other sold for 300K w/pool. I'm going to list it at 260K and see what happens. If it sells great, and if not I have a great asset that I can either move into or rent out until this storm is over. About two or three more of these this year and I'll be sitting pretty. That's my goal anyways. I want to set myself up for life with my investing this year alone. If you aren't investing in '08 you, in my opinion, are missing the biggest and best opportunity you are going to see in your lifetime.
I had enough information to make an informed decision that this was a great deal but one day when I was painting the interior a guy stopped in and said he was the original owner (he sold it to the guy who lost it for 335K). I asked him what he paid for the house when he bought it new in '03. He said just for the house alone he paid 226K. The pool, patio and everything else cost him another 39K. So basically, I picked this house up for way less than what he paid for it back before the big run up in prices. Crazy I thought to myself for a moment, but then again the very reason why I love this market!
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