As we kick off the 2012 real estate investing season only one word comes to mind…TURNAROUND! In the first week of the year RealtyTrac came out with numbers proving that foreclosures are at their lowest point in 7 years in Michigan. What does that mean for us Michigan real estate investors?
Well if you’re not on the front lines day to day as I am you may have missed that over the last 12 months the trend to buy, fix, and completely rehab to the nine’s is what’s producing the highest profits for investors. There are quite a few different reasons for this. The first I believe being a stabilization of values in good neighborhoods that people want to live in. Secondly, mortgage rates are low. And lastly in my opinion, a general positive change in the market itself due to consumer confidence, the stock market, and hopefully the end of overseas wars.
This makes investing easier…if you have the right formula.
First things first you have to buy in good areas. You have to know what comparable rehabbed properties are selling for. And most importantly you need to know how to rehab. These three principles will be the focus of all of the REIA of Macomb’s training articles and seminars from the early part of the year through summer. Is this the absolute only subject we’ll cover? Of course not. We’ll still be talking about wholesaling, rentals, and private money, but our focus will be on rehabbing.
The best investors whether real estate, stock, private equity, etc. are always on the cutting edge. That’s exactly why we’re so excited about rehabbing. The opportunity is tremendous right now to buy properties in areas that people want to live in for a very low price that will allow you to do an amazing remodel and resell for mega profits.
As the weeks and months go on we’ll dive deeper into exactly what it takes to be an all-star rehabber. I don’t want to overdo it and drown with with too much information in this article. What I want you to do is to start identifying neighborhoods that you believe people want to live in or are even obsessing over. Then find out what the beautifully rehabbed homes are selling for. This will give you a good base for the next few months and training articles.
Remember real estate is cyclical and the new cycle is pointing towards rehabbing.
Excited about 2012,