Today's Distressed Market (Random Rant)
I've spent the past 6 years as an Asset Manager in the default sector liquidating REO's for the banks by rehabbing them for the retail market and the auction market (primarily Auction.com). The auction platform took away some of the business from the initial asset management firms because of the banks were able to stop pooring money into rehabbing and auctioning the properties AS-IS leaving ALL due diligence as the responsibility of the buyers. Now some banks are allowing their mortgage servicing companies to step in during the foreclosure process to preserve the property and then it goes on to the market via HUD, Freddie Mac, Fannie Mae REO's or even still the auction platform. Also, a good majority of homes you see being provided by companies like Econohomes are bought through the same platforms. So...if you're willing to be diligent you can get the properties from the same places.
I'm putting this out there for those 1st time investors who find themselves getting consumed by information from those out there who call themselves GURU's and want to charge you for their one of a kind secret to investing in real estate. I beleive that real estate is still the one avenue the average hard working person to acheive some sort of financial freedom.
With the help of a knowledgeable agent, my wife and I bought an REO SFR in SoCal in 2011 using the 1st Homebuyer FHA loan. We lived in it for 2 years to take advantage of bieng exempted from capital gains tax and sold it in May of 2014 for a 6 figure net. We used the money to payoff our debt and now with that experience under our belt looking for our next project. During this time with also had our 1st child. For a couple just starting a family and living in the Los Angeles County market this was a tremendous accomplishment and now living pretty much debt free, outside of a car payment (i don't beleive in paying off cars) makes an incredible difference in our lifestyle. We now look at the owning real estate in a completely different way. It's not what it was to past generations.
Now...our next project may not clear a 6 figure margin but the confidence I gained from the past transaction I have no reservations about being to flip my way to providing a great life for my family. It may be $25K here or $50K there...but by maintaining have no other debt that bodes for a nice life. So...happy, smart investing to all of you.