Dec
14
Investors
Posted by Ken Gerrans under For Buyers
I can’t believe how little investor activity exists in our market right now. Cash buyers or those taking low LTV mortgages have a tremendous opportunity in these times. Consumers who would have qualified for a mortgage two years ago and now can’t are somewhat of a rental risk, but they have to live somewhere. There are so many townhomes and condos on the market and these may be an enticing buy opportunity, particularly because of their price. I believe the real opportunity lies in single family homes. I hadn’t done much rental business, but I was shocked to see what consumers were willing to pay per month and how quickly these homes get rented. The key to making money in any market is capitalizing on the opportunities that the market presents. The lending crunch, low interest rates, short sales and a large pool of “almost” mortgage qualifiers mean that the time is now for investors. Pay cash, buy below market, find a qualified renter, generate some revenue, ride out the market and either sell after the correction or just hang on to it…especially if you have a good tenant. If it were this easy, everyone would do it. I understand not everyone has the means to follow this simple advice, but for those who can…the return is certainly capable of beating many other investment alternatives.
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