So, Friday we discussed if it was time to participate in the SWFL real estate market, - I believe you know my opinion on that! Well, what do I see as a good option?
Short Sales are very time consuming, unless you have a system set up to crank them out, or work with someone who does. The main difficulty with doing short sales is the length of time it takes the bank to make a decision. As an investor, you will also have to line up your buyer, so when the bank does decide, then you are in a position to close the deal. Sometimes this can be a bit tricky as you may have the buyer, who then gets impatient with the long process and finds another property to purchase. Unfortunately, this happens often.
Buying at the Foreclosure Auction (on the "courthouse steps") is a great way, but does require that you do all of your due diligence upfront. Once you are the winning bidder, you must pay for the property you've purchased -that same day. This can be difficult for most new investors, even some "old timers find it difficult". At the Auction, you are bidding against the bank as well as anyone else looking to purchase the property. I'd encourage you to go to the courthouse and watch the process to get familiar with how the whole thing works. It's actually quite fun, and very educational.
My favorite right now? REOs. Real Estate Owned by the Bank. They're trying to dump some of this stuff fast. There are great deals to be had. But like all real estate, you need to do your due diligence. Make sure you know the area you want to purchase in, what the current values of the properties are and what your exit strategy will be. Pick your niche and stick with it. This will make it easier for you when you buy and having the same product will simplify the selling process.
The SWFL real estate market is absolutely heating up. Did you realize that June 2009 was the highest real estate sales for SW FL ever? I talking ever - including the "boom"! It is time to get on board, or you'll watch it pass you by. There is only a small window of time to join those investors making thousands and thousands of dollars, soon that window will close. Don't let the greatest opportunity for real estate investors leave you behind wondering what happened.
I look forward to seeing you at the top.