OfflineAs foreclosure inventories begin to dwindle, but investor competition remains strong, where is the enterprising rental property investor or wholesaler to go for good deals? It’s true that we still have a pretty good stream of foreclosures, but they won’t last forever. In the best rental markets, there’s a lot of really stiff competition as well. It’s been a great run for investors from 2006 when the crash began. Tens of thousands of new rental property investors have entered the business.
Many of these new rental home investors were unimpressed by the tiny interest rates they were earning on their savings and retirement accounts. They responded to marketing by real estate investment gurus and took training courses in how to build a retirement with rental properties. They also worked with companies specializing in delivering rental homes, some with tenants already in place. The rosy returns and cash flow from rentals drew a great many new investors into the business.
As the years roll on and more than 10,000 baby boomers enter retirement every day, there are going to be many of these newer rental property investors in this group. They finally get their first Social Security checks and find that their plans for the future may be changing. They may decide to travel, maybe become RV nomads. Or maybe they just find that being a landlord is not what they expected. They are no longer in the landlord mode.
Depending on how well they negotiated their purchases, and if they paid cash, they may have some equity, but the selling price they would consider may still be a bargain in today’s market. Whether you’re wholesaling or want rental properties, there is some opportunity to relieve these investors of their rental burden and make some money in the process.
Using classified and Craigslist marketing strategies, you could be advertising to rental investors that you buy rental properties with ads like “Tired of being a landlord … I buy rental homes,” or similar ads. If you want to hold them as rentals, they’re already occupied with positive cash flow. If you’re wholesaling, it’s great to be able to offer a rental investor an occupied cash flow property.
Distressed Homeowners May be Distressed Landlords
Posted on: Wed, 05/07/2014 - 23:40
Distressed Homeowners May be Distressed Landlords
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I like this article because it is true; many landlords become disillusioned with their income property and decided to get out of the rental property business. Maybe they are out-of-state landlords and want property closer to home or just ready to retire from the hassle of owning real estate. But whatever the reason for selling a savvy investor can pick up a package of rental properties with tenants in place for a good deal. A partnership of mine decided to sell 35 of our properties and offered them 5-10 houses at a time for substantial discounts. We also structured a land sale for them with little money down and monthly payments that were much less than the net rent. We had paid cash for the houses purchasing them at tax lien auctions and enjoyed the rent for several years, but decided we would rather collect interest on our money than manage rental properties and sold them for less than we had in them. The ads are a good way to find a landlord looking to sell his properties. Also talk to property managers and realtors. We had asked them to look for investors for our properties.
This is a fresh perspective to consider now that the swing has taken momentum and the dynamics of markets are evolving love this and thanks for sharing
Many of these new rental home investors were unimpressed by the tiny interest rates they were earning on their savings and retirement accounts. They responded to marketing by real estate investment gurus and took training courses in how to build a retirement with rental properties. They also worked with companies specializing in delivering rental homes, some with tenants already in place. The rosy returns and cash flow from rentals drew a great many new investors into the business.
As the years roll on and more than 10,000 baby boomers enter retirement every day, there are going to be many of these newer rental property investors in this group. They finally get their first Social Security checks and find that their plans for the future may be changing. They may decide to travel, maybe become RV nomads. Or maybe they just find that being a landlord is not what they expected. They are no longer in the landlord mode.
Depending on how well they negotiated their purchases, and if they paid cash, they may have some equity, but the selling price they would consider may still be a bargain in today’s market. Whether you’re wholesaling or want rental properties, there is some opportunity to relieve these investors of their rental burden and make some money in the process.
Using classified and Craigslist marketing strategies, you could be advertising to rental investors that you buy rental properties with ads like “Tired of being a landlord … I buy rental homes,” or similar ads. If you want to hold them as rentals, they’re already occupied with positive cash flow. If you’re wholesaling, it’s great to be able to offer a rental investor an occupied cash flow property.
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Our Heart's Desire must be nurtured by our mind,to give birth to common sense, that will enable us to seek out the path less traveled, with the greatest Personal Growth. -J.R.-