OfflineCNNMoney interviewed real estate investors, primarily in Florida, and decided that there is a great deal of wealth being built in real estate during this housing crisis. Jeffrey Lehman, a Florida investor, now owns around 60 properties, and is buying them up as bargains are uncovered. He then rents them out to hold for future appreciation.
One deal example involved a home that sold for
$140,000 seven years ago:
- 1300 square feet
- 3 bedrooms
- foreclosed home
- current Zillow value estimate is $100,000
- property purchased for $38,000
- needs new $6000 roof and $1500 in kitchen cabinets
- will be rented out for $1000/month
Mr. Lehman states that he could get more for rent, but set it at a level to acquire a reliable tenant who will pay the rent on time and stay in the home longer. It seems that there is good news amongst all of the housing gloom and doom…at least for investors.
That's good news. Give them what they can afford instead of giving them something that they can't and later foreclose on. This is good news!
Funny you posted this because I Live in Florida and read the paper and they was talking about Forecloser..Orlando is back in the top 10 for Forecloser Filings..We had a 36% increase from Sept. to Oct.
Like Tom above, I too am in FL and read an article in my local paper which I believe mentioned the investor you speak about. If I recall the article correctly, the investor is buying more in the Miami and surrounding areas. While that's great news if you're down there, the rest of us in FL aren't seeing that type of situation everywhere. Unemployment is high in a number of places and people can't pay their bills. Houses for end buyers or as rental props are available but they are not always coming cheap. Houses for wholesale seem to be area specific.
I think you have to be a bit more specific than just saying "Florida investor." It should be more like "Miami, Florida Investor or xxxxx, Florida investor."
Just my 2 cents
Andy Sager
DG's AndyS
Andy Sager
DG's AndyS
CFIC & IE member
2013, 2014, 2015 & 2016 EDGE Alumni
Yes they are being created as we talk. I talked with student last week that now has 1.2 million in property that he has acquired in the last 5 months. He said he has made more money in the last 6 month than in the last 10 years of the job he had. I did say had.
So, he has only been in this program since February. The deals are out there and they are everywhere. This is the best time to find them. You want to be a mogul? Do as Mogul's do, it all about making offers and a lot of them.
Many years ago, I saw a study which concluded that some 90% of all millionaires in the United States were millionaires, thanks to their ownership of real estate.
My guess is that the majority of these millionaires are like a couple I know in Sydney. When they got married in 1972, they bought a house which cost around $100,000. At that time, it was a very expensive property and they could only afford to buy it because their parents helped with the deposit.
They lived in this house for 28 years, until 2000 when they divorced. As part of the settlement, they sold the house and split the money. The result: they were both millionaires — and they did nothing more adventurous than buy a house and live in it for most of their lives!
So we look at a more conventional approach and that is not setting on property for that long but taking property like that and buy and sell as fast as we can.
Randy Bailiff