How Investors Can Get An Edge in Today's Market
June 6, 2016
Blog, Economics, General Investing, Investment Properties, Single Family, US Real Estate
As investors, we always want to get an edge, a better start, when we are buying an investment property.
In today’s market, it is hard to do.
Yes, there are several ways to go about it. But, some are difficult to accomplish by the not professional investor.
Here at Simply Do It, we are always looking for such ways for our own investing, but primarily for our investors – the not-full-time-pros.
We practically have an R&D side to our business that sets out to test and perfect such ideas and methods, using our own funds for the benefit of our investors.
Here some of those ways:
- Off-market (and many times rented) properties
- Delayed financing CASH REO
- Future options
Off-market (and many times rented) properties
Due to our network’s buying volume, many times we receive properties that are not listed, off-MLS. In many instances, these properties are already rented.
A situation like this is favorable as there is no market competition over the property. And of course, it is always a great bonus to have a tenant inside.
In most cases, if the investment makes sense, it would not hit the main market and creates a great opportunity for our investor.
Delayed financing CASH REO
This approach means we break the financing/mortgage side of the deal into two parts:
- We buy with cash.
- We get financing on the property, right after closing.
It’s a 2-stroke mortgage instead of the typical 1-stroke we usually do when buying a property.
Unfortunately, this method is only available for those who have the cash to buy the property. But if you do, it could be a great way to get that “edge.”
More specifically, this would work best with REO (bank owned) properties. (Yes, they are still around.)
When you buy a house on the open market, a cash offer would help you to some extent. A seller may choose a $175,000 cash offer over a $180,000 offer with financing. This gives you a little edge. But, the seller will probably not take the same offer, if the non-cash offer is at $185,000.
From our experience, banks are looking to sell to cash buyers and for a deeper discount.
In some markets, Simply Do It has the entire process and system in place to full deploy this strategy should you be interested.
As we write these lines, we are already testing two other methods that will give us an edge when buying investment properties.
If you are interested in learning how to apply either method, contact us. We’ll be happy to go over it with you to explain the fine details and mechanics.
Markets and Area Recap
Simply Do It is active in multiple areas around the country, assisting investors in buying rentals and flips.
On the ground, select teams are finding, analyzing, and helping you to buy residential rentals and flips.
These teams mainly include agents, property managers, rehabbers, and lenders as well as others necessary to conduct a full transaction from start-to-finish.
Currently these are our active markets: Nashville, Houston, Dallas Ft. Worth, Oklahoma City, and Tampa.
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