OfflineYou've probably heard it a million times recently: it's a buyer's market right now in real estate. That's actually a big understatement - it's a huge buyer's market. That's bad news for sellers, but good news for you if you're in the market for a new house (and can get financing). While there are attractive deals to be had nationwide, certain areas have a big inventory of affordable homes available now. You can see a full list of such places on HousingTracker.net, but here are some cities our experts have cited as being especially good choices for bargain-minded buyers.
Phoenix
This city has one of the strongest economies in the country right now, according to our experts.
"Good universities in the area have provided a skilled and educated workforce, which has positioned Phoenix as a competitive force in business," says Bill Humphrey, senior vice president and managing director of XONEX Relocation, which provides global relocation services for transferring employees.
"Phoenix is projected to see more growth, especially since the technology, green energy and healthcare/life sciences industries have started to put down roots in the area." Humphrey says houses that were selling for $500,000 before the recession are now in the $300,000 range.
Houston
"The Houston market has a very diversified economy and is home to numerous industries including technology, energy, aerospace and aviation, logistics and manufacturing," Humphrey says. Humphrey credits Houston's solid employment numbers - and the projected growth - to its business-friendly environment, adding that the city's crime rates have seen double-digit decreases over the past ten years.
"There is lots of inventory available, and prices are still very reasonable."
New Orleans
Needless to say, the Big Easy is in a rebuilding period right now, in the wake of some challenging times. The silver lining: "the city has major growth potential and is on the cusp of a big renaissance," says Humphrey. "The community has really come together to rebuild its infrastructure, pride and spirits, making it a nice place to live. Also, Louisiana has shown the greatest unemployment improvement and New Orleans has the lowest jobless rate of any other metro city in its class."
While Humphrey admits there is still some work to be done, he says the city is headed in the right direction and smart shoppers will buy now. "Prices are low and inventory is available."
Atlanta
"Prices have tumbled dramatically, and there are multiple 'mini-mansions' available at bargain prices," says Robert Eisenstein of HomeRun Homes, which operates the Lease2Buy.com site targeting rent-to-own buyers and sellers.
"Most of the properties are not in need of anything more than a little bit of cosmetic work." Inventory seems to be plentiful in this area. According to HousingTracker, there are currently 87,000 single family homes and condos available in Atlanta.
Orlando, Florida
The central Florida area has always been a hotspot for bargains, says Eisenstein, "but with the recent beating the market has taken, prices are lower than ever. There is a mix of very beautiful homes that don't need any work - and there are also homes that need some renovation, but the prices are reflective of this."
Haverhill, Massachusetts
Several experts mentioned the Boston suburbs in general as a good place for great deals, but Haverhill in particular seems to have a lot to offer - no matter what your price range is.
"You can buy a brand new mid-level executive style home in the mid $380,000 to $450,000 range or find a first time buyer move-in condition property at around $170,000," says Lisa Johnson, vice president at Coldwell Banker Residential Brokerage in Haverhill. "Condominiums can be found in the $50,000 to $60,000 range."
Johnson says the area has a lot of great perks, from a thriving bar/club scene to a downtown restaurant district that can rival those of big cities.
Philadelphia
"The MLS lists many properties selling for less than $50,000," says Diane Smith, a real estate agent and Lexicon Realty mortgage broker. "In the $100,000 range there are many houses selling for $10,000 to $20,000 under value as a result of foreclosures and other economic issues."
The Housing Bottom Line
If you're looking for a great deal - and want to explore exciting new areas - focusing on areas with high inventory and low prices can be your ticket to a fantastic bargain on your next home.
"Obstacles are what you see when you take your eyes off your goal"
Dean Graziosi
Live, Love, Laugh!!!!!
That website seems a bit generic. There are much better websites to pull data on housing information hands down. Are you promoting the website? I'm not real certain if you are or aren't but what I do know is that great deals are all over the country! I know from personal experience and other DG members can tell you the same. Dean's latest book even talks about this very same fact. Although your post had good substance and I'm sure you meant well, it may get some people upset or cause them to stop doing what they want to do which is invest in real estate because they may not live in those areas you just mentioned. I just thought I'd share that with you and I hope everyone on here continues to grow as an investor as we help people get out of homes they can't afford and find great buys for people as well. Happy Mother's Day MOTHERS!
Gary Rabatin
Certified Cash Flow Consultant
Founder & President of Gold Bar Funding Group L.L.C.
Private Real Estate Investor
"Building Wealth by the Numbers"
Thanks, Gary for your upbeat, positive observation.
Thanks, Luiz for your research and sharing this article with us.
Have read this Article on Yahoo! ...LOL
I posted the same article not three days ago, right here
Notice I am not promoting anything or anyone, I am just sharing what I read, even though the article mentioned certain cities, you are right Gary there are deals all over, this article simply focused on major big cities, where houses once were extremely expensive, and remember critics saying that Texas was the worst place to invest and Florida also, they are now claiming just the opposite, many people in FL gets discouraged about investing but as you can see Florida is a gold mine not only in Orlando but all over. just as an example, Fort Myers, 3/2 1200 sqf built in the 90's are going for 15k that is incredible but the deals are there, Naples FL once classified as the fastest growing city, Five acres of land that once cost 300k are are being sold for 25k, Leehigh Acres, brand new houses never lived in 3/2 with 1900 sqf are going in the lower 20's these are just in SW Florida alone, and to all the starters out there this is not meant to veer you off your goals, great deals are all over the country as Gary has mentioned, this is just an article I wanted to share with every one.
"Obstacles are what you see when you take your eyes off your goal"
Dean Graziosi
Live, Love, Laugh!!!!!
Yeah there are deals everywhere I'm new to all of this & can tell a deal just by looking hell it's basically looking @ home 4 sale & homes sold in the last 6 months & the 1's priced lower than the other 1's are deals & seem more open to negotiation I could be wrong I'm new @ all of this.
There are deals everywhere, just ask Greg Murphy, I think he lives in a town of 9,000 people and he is finding deals there. Dean's latest book promotes becoming the expert in your town.
Here's the advise of Matt Larson from the latest EDGE:
1. Get yourself an investor friendly real estate agent.
2. Have them run you a list of all properties with the following criteria:
a. contains the words "as-is"
b. has been on the market for 90 days or more
c. has had a price reduction
d. is an estate (i had trouble with this last one, so I ran a,b, & c).
3. Go make low offers!
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
as of right now I am focusing on lease option or sandwich lease, reason is usually the owner of the house is a couple of payments late or struggling to make his note payment, making them a lot more flexible to work with, believe it or not i have also done deals where the owners are completely flipped in the house, and there is no money to be made by selling the property in 5 yrs, however if the monthly payment is lower than what the rental market is on the area, it is still a good cash flow opportunity. even if you only make 100 dollars per month on a deal, it is still a good deal, at the end of the day every penny counts.
Oh by the way just so i do not confuse anyone..
.. If i do a lease option on a house where it's value is less than what is owed on the property, I do not lease to own the property, I Rent it out asking for 1st, last, and deposit. and I let the property pay itself down, and by the way if you do not want to deal with broken toilets etc from your rental properties, you should consider using a property management company. IT IS WELL WORTH IT!!! for your time that is, because they deal with all the problems for a percentage of the total monthly income.
"Obstacles are what you see when you take your eyes off your goal"
Dean Graziosi
Live, Love, Laugh!!!!!
"if you do not want to deal with broken toilets etc from your rental properties, you should consider using a property management company. IT IS WELL WORTH IT!!! for your time that is, because they deal with all the problems for a percentage of the total monthly income."
Confessions of a cheap, self property manager!
Or, what you can do is make sure the property is in TIP TOP shape when you rent it out, make sure you screen tenants well with background checks, credit checks and calling references, employees, neighbors, and then you can put a clause in your lease allowing them to do small repairs. Believe it or not, it works GREAT! And you aren't out 10% of your rents every month. This adds up; especially when your rents are in high rent areas. (I have a $1915/mo, a $1535/mo and a $1645/mo) and that would cost me $450 in fees a month in management fees if I hired out. There are only problems every once in a while, and well under $450 dollar a month (even a year) worth! Please go ahead whoever would like to use it!
My clause is:
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2. SPECIAL REPAIR AGREEMENT: Proprietor has agreed to allow special provisions for repairs.
A. If ever needed or required, Tenant(s) may opt to do small and minor repairs on Leased Premises as long as Tenant(s) is/are familiar with and have made such repairs before and are familiar with how to do them. If there is a larger or more complicated repair that requires being done, Tenant(s) agree to first call Proprietor’s for permission to fix such an item. An example might be the something that may require complete replacement. In such case, Tenant(s) agree(s) to contact Proprietor before taking on such a task.
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I then have them send me receipts for any out of packet expenses they may have incurred. Renters usually view it as a privilege! I've done it since 1997 and its worked great!!!
I would like to add that when I have a "tenant buyer" for my sandwich leases, I use what you are saying, however, the contract is a little different, because even if the tenant is really going to buy the house let's say in a 4yrs option, for the first 4 years he is paying rent, he does not yet own the house therefore some of the repairs would be unfair for me to have him (tenant buyer) cover.
So what I do instead is in any given month, the tenant buyer would cover up to $200.00 WORTH of repairs, anything above that, I have the actual owner of the house (distressed seller) cover, that makes it a win win situation for every one.
Most repairs are 50 dollars or less unless everything happens at once, when you have a renter they really do not care about the house, but a tenant buyer treats the house as if it already belongs to them, and I encourage every one of my tenant buyer to treat it as their own house.
Another thing I like to do is encourage the tenant buyer to do some updates to the house to increase its' value, so that he has a better chance of qualifying for the mortgage at the end of his lease option term, remember tenant buyers usually needs some credit work before being able to purchase, and anything helps. but before any updates can occur they will require a written permission from me to go ahead with the updates.
worst case scenario the tenant buyer chooses not to exert his option to buy the house at the end of his contract, and I have a house now worth even more than what it would be worth without any of the updates, now I can rent for an even higher monthly payment to another tenant buyer and sell at an even higher price at the end of his/her lease option
great comments guys, let us know what works for you, any ideas would be greatly appreciated
"Obstacles are what you see when you take your eyes off your goal"
Dean Graziosi
Live, Love, Laugh!!!!!
I live in CT, and how my god!!! deals like crazy, investors coming up from NY to purchase; before we knew about Deans program my husband and I bought three at the auction, mortgage free; thats where all our funds went now we are broke; we have tenants but funds are low; so now we learn a few valuable stuff from Dean, we will be attending the 3 day training course; we will now know now how to get financing, using hard money loans, transactional funding etc... I know by end of year our cash flow will increase. Because every Saturday we are out on the street working with our real estate agent, and he's his doing the grunt working finding the deals, he has 25 yrs experience and live in our town all his life, just like my house so with thsi knowledge I know god will direct us while we learn.
thanks every one for your input.
"Obstacles are what you see when you take your eyes off your goal"
Dean Graziosi
Live, Love, Laugh!!!!!