| 1) |
Buying
Pre-Foreclosure Properties – These
are properties where the owners are in default on
their mortgages and the foreclosure process has begun
(See our Pre-foreclosure
lists & Data Section) |
| 2) |
Buying
Post-Foreclosure Properties - These are properties
that have been formally foreclosed on and are now
owned by either banks or other financial organizations.
These are commonly known as REO’s (Bank Real
Estate Owned Properties), FHA, VA, HUD owned properties
(See our post foreclosure
Lists & Data section) |
| 3) |
Buying
Distressed Properties – In every market
there are distressed properties that are available
below market. Be knowledgeable about your market prices
and the real costs of financing, repairs, holding
and selling costs before you go into the deal. All
of your homework should be done before you enter into
contract on a property (See
our software section) |
|
4) |
First
Phase New Development Buying – This
strategy involves buying homes in the first phase
of a new housing development. Once again this strategy
works if you are in a market with rapid real estate
appreciation. You need to do your homework on the
requirements of the developers before you pursue this
strategy. Some developers have put limitations on
the purchase to try to discourage investors by requiring
that the home be your primary residence and that you
take occupancy for a set period of time. But not all
developments have restrictions. |
| 5) |
Buying
Land and Building – If you have the
financial ability, time and knowledge you can make
solid investment returns on building a home. One of
the best scenarios is to buy enough land to build
and still subdivide and have one or two additional
parcels that can effectively be sold off. Done properly
you can buy the land build a home sell it for a significant
profit and still have a parcel or two left for further
building. Or another scenario might be that you buy
the land subdivide and sell the parcels. You would
then take the profits from the parcel land sales to
offset the building of a home on the remaining land. |
| 6) |
Buying
Land and Adding a Modern Manufactured Home
– There are financial gains to be made from
buying land and adding a manufactured home to the
property. The resale will not be as high as building
a wood framed house but it can be done faster and
with less capital investment. Once again, you need
to check local ordinances and restrictions and also
judge the area where you would do this strategy to
make sure there is a market for the finished property
after you perform the improvements. (Bruce Norris
offers a two day seminar on this subject in California
along with a financial program – See
our training section) |
| 7) |
Buy
and Hold Strategy – Buying homes or
multi-units and holding is a solid strategy. But you
need to think through all of the implications of financing,
holding costs, vacancy factors, taxes, property management,
maintenance etc. (See
our PropVest section for more details) |
| 8) |
Buy
and Flip Strategy – Buying home for
a quick flip is also a frequently used strategy. With
this model you have a little more flexibility on the
financial side since you won’t be holding the
property for a long period of time. Do your analysis
of the key factors prior to purchase ( See
our software section) |
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