Bottomline: Savvy investors buy properties at 60-70 cents on the dollar in any type of market. Period! I've actually tracked some the top investors in my community and its amazing some fof the deals they pull!
To an investor newbie, this may sound extremely difficult or impossible. Just talk to local investors and hear some of their stories. It happens all the time , even in hot markets.
Case in point, the hardmoney lender I talked to last week said one of his clients bought a property at 70 LTV.
Now, Arizona is a real hot market right now and it basically sucks because its makes finding deals hard! Some gurus will say that finding deals are easy! With enough marketing and networking , that may be true, but it takes time/effort to get to that level. I've noticed my incoming calls are a lot less than lazy year. I need to step up the advertising!
The REO market here is extremely hot! The realtor says that most of the deals are active contingent in 1-2 days and offers are usually asking price. Full price for REOs!! If you read Mark's blog , he is a huge fan of buying and fixing REOs http://www.markijlal.com/
He's one of the guru's that thinks REO deals are relatively easy. My market has just a few REOs and most are mobile homes? He says there's hundreds on deals in Michigan that you can go after. I don't know if his definition of a deal is a "listing of a REO" or not, but he's very successful. Can this work in Arizona? I'm going to find out.. Remember my post of magic phrases? There's magic phrases that can be used on the lenders to convince them to sell to you. Hopefully, one of them will be: "I can take this off your hands and pay you CASH in 10 days!"
The overall market is sky rocketing here. The appreciation rates are not nearly as high as in Reno or Las Vegas, but I can see the appreciation everyday! Shoot, I bought a condo last year and after fixing up , I thought it was worth 78k. There's two active contignent on the market right now for $94.5k.
At leat theres one good thing about this market. Foreclosures, are at all time highs! I'm betting that some of my best deals will be from sellers in preforeclosure.
My strategies are in place, let's see what happens!