Any appraisers buying these foreclosures?

[MNRural]

Not sad, stupid. Clean out companies are making big bucks off these people.

Don't ever forget all these idiots signed their name at the bottom of the mortgage papers. We now live in a society where its everybody else's fault; the mortgage banker, the real estate agents, the appraiser, the government, the credit card companies, the fed. This is real life, not a board game where they can just quit if they dont like the rules.

 

[CJ1234]

Yes. We purchased a home recently. In an area that has historically had good rentals. Vacancy rates are lower in this area, rents higher. The city is really strict too, which was a pain with the amount they made us escrow for repairs--a pain, but the area is pretty well maintained.

We plan on keeping the property 5-15 years.
It took a lot of work to get in in good condition but it will be a great long (emphasis...not trying to "get rich quick") term investment.

This will make 2 rentals we have....and even though I salivate at all the "deals" out there...I think we are maxed out on our personal risk threshold.

 

[Mike Siegfried]

I'm definitely getting in at some point, but LA still has a ways to go IMO. However, I am beginning to research good rental neighborhoods and getting a feeling for rent levels. I expect that by Easter it might be a good time to start looking for deals. We're not going anywhere but down until at least then & probably that's even too early. My son, however, is a student at Ohio State in Columbus, Ohio and I have been thinking of looking for a condo for him to live in while he's there. I need to get a feel for the market there, any Columbus appraisers here ?

Mike

 

[Riick]

... My son, however, is a student at Ohio State in Columbus, Ohio and I have been thinking of looking for a condo for him to live in while he's there. I need to get a feel for the market there....

Buying can make good sense at times; friends of mine bought wife a condo in Upstate NY for a 2-yr contract job she took up there. The Unit was larger & cheaper than an apartment.
But not to make Californian mistake, likelyhood you will profit on the sale by graduation is pretty d*mm small; especially since Ohio -in general- did not particiapte in the big run-up in 1st place.

 

[Last Jack]

So are most of you buying rentals with a buy/hold approach? Lately I've been noticing properties on the market (most of them are REO's) that are way below even today's market value. I'm thinking I may take a shot at one, put some lipstick on it and re-list it.

 

[Riick]

I'm thinking I may take a shot at one, put some lipstick on it and re-list it.

As long as it makes sense/profit as a rental, you can't get hurt playing that game.

 

[truk1]

My brothers and I formed an LLC and offered on another foreclosure in this area. One thing to keep in mind is not to get greedy and re-list in line with similar properties. Work the numbers so that you have some wiggle room; even leave some $ on the table (if you have to), so that you are not stuck sitting with the investment.
We as appraisers are foolish not to consider real estate as investments. This is the business that we know. Can we retire on a $300-350 appraisal? Its a nice balance while the biz is a bit slow...

 

[CB Perini]

how are you guys financing these flips? if so, what kind of terms?

 

[aci3910]

I have a home equity on my primary residence with a line of credit of about $185,000. This makes me a cash buyer and am able to close in two weeks which is an advantage when buying from foreclosures or short sales.

Randy

 

[beowulf]

Buying foreclosures is a bit like investing in the stock market right now. You never know if your buying at the bottom. We are entering uncharted waters with the economy and there are as many experts out there forecasting the worst is yet to come as there are those saying that we have already hit the bottom. If you buy now and the market continues to decline into 2009, you will be very old before you see your investment make a return for you. When the housing market comes back, it will not be like it was before where you could expect a nice profit on a resale. Any long-term appreciation in housing will be modest at best and probably not be the investment product that it once was, but rather what it became after the last great depression, just a roof over one's head. Best advice - stay out of both housing and stock market until there has been a solid trend established that we are in a recovery period.