Is there money still to be made with the high prices for homes and the fact that supply is down?

Question

I ask this because looking at the MLS the number of properties on there are minimal. all these homes--even the ones in terrible areas are listed high.

Eddie Reid · Answer

there are in my opinion great oppourtunities in the marketplace today ,you may have to move outside your geographic  area,the internet has revolutized the way business is done in all industries,what is a popular way of investing in todays marketplace is virtual investing,complimemts of google and mobile ,using google maps in addition to full pictorial of the interior of the property in addition to a proforma that you can pull up on your mobile for a turkey rental is the way a lot of investors are buying out of town properties as far as 2000 miles away from the subject especialy if the investor is doing any type of owner finacing as his exit stratergy to sell  the property,this can eliminate some of the hassles of property management,when you're getting cash on cash returns of 30% in some areas of the country,by the way these properties are not in war zones ,the decision to invest outside your area is almost a no brainer ,but proceed with caution,you always want to make sure you are dealing with competent professionals,there are areas in the country like indiapolis and Baltimore that have great inventory,baltimore where I operate the properties have a high rent to value index,if you want to go south Birmingham ala is another area,but you always want to do your due diligence as it pertains to demographics,market and neighborhood analysis

Joshua Feit · Answer

Rod D. -- Josh here; I am a new investor (buy/hold in the Atlanta market), so take my advice lightly!

That said -- yes! I do believe there are deals to be had and money to be made in today's market. You will likely have to push yourself beyond MLS listings to find them though. And you may have to expand your search into new neighborhoods.

I have found some really good leads on buy/hold properties by walking neighborhoods where I want to invest. I talk to as many neighbors as I can, and I hand out business cards as well. You will be amazed at how much neighbors know and are willing to tell you, especially if you are willing to spend some capital and clean up a neighborhood eyesore.

I also know that many have had success in marketing to targeted lists via mail campaigns. I do not have experience in this area, but I know there are plenty of BP posts on the subject. Just search for 'mailing campaign' or 'yellow letters'.

I wish you all the best with your real estate ventures. Cheers!

Chai Sag · Answer

billions to be made!!

Joshua Chen · Answer

I think real estate will eventually go back up anyways because it's always had a historical trend of going up overall.

Robert Breen · Answer

MLS is still a good place if you are patient.   I list a lot of bank owned homes and am finding the banks are not being realistic with their prices thinking  the market in our area is much better than it is.  Patient investors will eventually get a deal done but they have to know the numbers and wait until the price gets to where they can make it work.   They also can't be afraid to put in good honest reasonable offers for the market.  HUD repos are another good possibility.  Just make sure when working with a Realtor they know the ins and outs of HUDs.

That said.  Supply and demand will work to your benefit when the right deal comes along as well.  If there aren't a lot of homes out there then the home you get will be that much more valuable.  Just know the numbers.  It's a very different environment than it was even a year ago.  It doesn't mean it isn't possible to make money.