Everyone knows the current state of real estate. However, few people know the REAL state of real estate. Ghost towns exist where the next great subdivisions were built. No one wants to buy, and this is your opportunity.
Real Estate prices have dropped
No doubt, this is true enough. It seems that everyone is afraid of buying into real estate. Mortgages are also harder to get as the banks flounder in today’s economy. These are actually NOT negative circumstances, they’re POSITIVE OPPORTUNITIES!
Because so many people are scared to buy real estate, or fewer are able to, that means that there are nearly no buyers out there. This puts the seller in a bad position. They can only do two things in their situation:
- Keep lowering their prices until someone buys. Their sales will probably be at a loss to them.
- They can constantly increase the bonuses and incentives for buyers. Again, this puts them in a progressively worse disadvantage financially.
Neither option is one that sellers want to use. Like everyone else, they want to get as much out of their sales as they can. The problem is they HAVE to SELL. This leaves them struggling, hoping, and pleading for SOMEONE to buy their property. This is a perfect opportunity for buyers to jump in.
What are the smart investors doing right now?
The smart investors at this moment are buying real estate like there’s no tomorrow. Since there are so few buyers, there is almost no competition at all. They may well be the only bidders on certain properties. Prices are LOW and benefits are HUGE. A bid of nearly any kind is a godsend to sellers. This is the very definition of a buyers market.
Last month, I saw a seller offering a duplex for the respectable turkey citizenship by investment price of $530,000. This property had been on the market for four months without any bidders. I submitted my offer to this seller and bought the duplex for only $430,000-a full $100,000 was slashed off the price in a few days of negotiating. That’s the kind of market I’m talking about.
Not to be outdone, my fiancé just recently found a property that she’s interested in buying. It’s a commercial property with two tenants and it has a lot of additional land available for another tenant. The collective rent each month is already at $20,000. If you add another tenant, we’re talking about a serious increase in rent. Right now, the property is sitting at about $2,800,000. With that price tag, the property is already a good deal with a positive cashflow. The interesting thing is that this property has been sitting on the market for over a year WITHOUT A SINGLE BID.
Now, here’s the real kicker. You’re probably not going to believe this-hold on to your seat-she’s thinking about offering $800,000. That’s right; she’s going to offer a price a full $2 million off the asking price. Of course, after sitting on this property for a year, what do you think the seller is going to do?