How Large/hot Must My RE Market Be To Work Sub2s?
How large, and how hot does one's RE market have to be for Sub2's to work? I know everything's driven by price and bargains are ideal, but things (ie, appreciation) seem kinda slow here, I'd hate to be stuck with a contract on a house I couldn't sell at a profit, and have to tell the delinquent owners, "gee, I can't perform, maybe you should've gotten a realtor…" Not to be a pessimist, but how often does that happen to Sub2 investors anyway? I live in a rural area-maybe 20,000 people within 20 miles-will I have to relocate or commute to a bigger area (at least 120 miles one way) to find enough deals that will work? I've mostly just paid cash for my deals so far (tax forfeits mostly), and have about $30,000 cash right now to work with. Any advice most welcome! Thanks.
loon,
Glad to meet you.
Exactly where are you located?
John $Cash$ Locke
Yeah, I'd like to see what others think about this...
anyone?
Care to give some info $Cashman$ ?
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Ichabod,
I would like to see where this person invests to get an idea of what he needs to do, before I comment in generalities.
John $Cash$ Locke
okey dokey then.
What about my area, then?
NW Alabama (don't laugh )
Can you offer any insights concerning my area?
Thanks again John
Hi, thanks for your interest Ca$hman and others. I'm in north central Minnesota. Lots of lakes in the area, so many rural and/or lake properties have appeal to urban refugees. But some of the older properties in town (or in smaller towns, which are dying) aren't moving so fast, and aren't so desirable. There's definitely a flight out of town, most people want a few acres in the country, which is still affordable here. And of course it's the "lesser" properties that usually go delinquent or get foreclosed. I suppose it's not such an uncommon story, but that's why I'm anxious about them. I look for properties/owners with equity, but there just aren't that many in this small area, and just because a loan's a few years old doesn't mean there's been any appreciation in property's value like there might be in a larger city. And I know I can't really afford to "specialize" here, or I won't have enough action. I want to work and invest smart, and avoid wasting time on turkeys! Thanks!
I would move to Minneapolis! Or any area with a "little" more population...and therefore activity & opportunity.
I live in a county of approximately 1 million...and I'm still not sure if I'm in the best market. I may move back to Philadlphia. We'll see...
Quote:
On 2004-01-08 13:46, bth126 wrote:
I would move to Minneapolis! Or any area with a "little" more population...and therefore activity & opportunity.
I live in a county of approximately 1 million...and I'm still not sure if I'm in the best market. I may move back to Philadlphia. We'll see...
How much of a population do you need?
Loon, what city are you in?
How many people? How large a market?
I can safely say that I know a place population about 30,000 that one could easily do one or two Subject To deals a month with out breaking a sweat.
You guys in the 1 million market are looking for the larger market when right where you are there are many deals passing you by. Going to a larger market would only mean twice as many deals would be passing you by.
The grass is not necessarily greener on the other side. If you have the desire and can apply your creative real estate knowledge, then you will do deals, how many depends on how much effort you put forth.
John $Cash$ Locke
John,
So you think one could go full time in an area with a population of about 30k?
What about someplace with a population with smaller #s?
...like say, 10k....5k, for example?
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Ichabod, It only takes 1 motivated seller.
Michael,
Simple philosophy I should keep in mind.
Thanks for reminding me of that.
....goes to prove deals can be done anywhere.
Take care.
Btw, you do subject2 deals in the "Magic City"?
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