It’s a Great Market for Investors

November 30, 2009 at 1:19 pm Leave a comment

Investors are making good in today’s market. Buyers who are frustrated about being outbid on lender-owned properties, don’t have reserves to do repairs or cannot wait for a short sale approval end up turning to investor-owned “fix-and-flip” properties.

These investor properties are remodeled and often look like new. It is an easy and simple transaction for the buyer, with quick response and a guaranteed close of escrow date. First-time home buyers who are looking to benefit from the $8,000 tax credit or repeat buyers who can benefit from up to $6,500 in tax credit find fix-and-flip properties appealing because they provide a scheduled, certain close of escrow date.

I recently helped a client investor purchase a 3 bedroom, 2 Bath home in Chandler for under $50,000. The client fixed the home up, listed it for $118,000, and received multiple offers on the property. The home is now under contract for $121,000, just three months after my client initially purchased the property. That’s a better-than-100-percent return on investment, minus remodeling costs, commissions and taxes. That’s a handsome profit.

In another transaction, I represented a buyer in purchasing an investor-owned custom home in Southwest Mesa. The seller purchased the home in a trustee sale for $102,000 and sold it to my buyer for $155,000 in less than three months’ turnaround time. There were four offers on the property and my client was the successful purchaser.

Making money on fix-and-flips is simple and easy if you find a house that’s easy to sell at a great price. Consult with a knowledgeable and competent Realtor who can simplify the process for you. Otherwise, you may end up losing money instead of growing money.

As always, I am available to answer all your questions about short sales, investment properties and fix-and-flips. Please call me today at 480-650-0075 for information on these or any other real estate questions you have.

Entry filed under: Arizona Real Estate, Chandler Real Estate, Foreclosures & Short Sales, Phoenix Real Estate, Real Estate Deals. Tags: , , .

What is the Future of Short Sales in the Greater Phoenix Real Estate Market? SHORT SALE – A WARNING ABOUT HIGH-COST THIRD PARTY NEGOTIATION FEES

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