Investors buying homes by the dozen

Investors buying homes by the dozen

www.msnbc.msn.com

In some places homes are selling for $500 a pop.

...While she was at it, she bid on some other houses, too. Forty nine houses, actually.

...As the greatest real-estate fire sale in the history of the United States rages on, the bulk buy is the dead hot deal of the moment. In some of the most foreclosure-ravaged parts of the country, it is almost as if the housing market has become the new big box store, ...

The idea is to arbitrage other people's misery.

(visit the link for the full news article)

So investors are buying up fore-closed houses, doing some quick repairs and then renting the dumps back to the now-homeless.

With the ranks of the rental class expected to swell, investors can buy houses at clearance sale prices, pour some money into repairs and then take advantage of the difference between their low cost of capital and the rent they receive. Often, they bank cash from day one.

Hedge funds and private equity shops like McKinley Capital Partners started to quietly become landlords by buying up inventory last year. Now Main Street investors are following suit.

"They aren't just buying one rental property," says Oak Park, Illinois realtor Kyra Pych. "This is a frenzy. They are loading up."

Sounds like capitalism wins again.

A good deal for everyone concerned.

Or maybe not. What do you think?



www.msnbc.msn.com
(visit the link for the full news article)

reply to post by soficrow


Location - location - location

I would stay away from Michigan , Ohio & Florida.

I bought a foreclosure really cheap, a too good to be true deal. It was too good to be true though.

The town valuates my house at $110k more than I paid for it, and the equivalent home sells for $60k less than valuation around here. Houses are on the market for 1-2 years in my town, no one wants them because they need fixing, and the tax rate is ridiculously not affordable.

This is classic Agenda 21 maneuvers. They are trying to reduce home ownership and get everyone renting. The end goal is to have everyone in condensed cities and not in suburbia. Property taxes in the suburbs are around 5X higher than in the gross cities, why? Why is it so expensive to live in the woods with no public services and cheap to live in concrete jungles?

reply to post by JibbyJedi


Its partially because they have no businesses they can tax. Big cities bring more revenue in through the businesses they tax therefore the taxes are a cheaper. In the woods without the businesses they break the back of the homeowner instead.

Sounds like Tax Foreclosure Auctions.. Homes sell for whatever is left on property taxes..

If so that means anyone can participate.. Even you...

Originally posted by MrStyx
reply to post by JibbyJedi

 

Its partially because they have no businesses they can tax. Big cities bring more revenue in through the businesses they tax therefore the taxes are a cheaper. In the woods without the businesses they break the back of the homeowner instead.

The rates, plus the struggling economy, have forced old and new businesses to shut down though. A new business doesn't stand a chance in the surrounding towns here in NH, average new business lasts 2 months. Tax rates just keep going up though. We have schools and the streets are plowed, that's all our taxes get here, and they are threw the roof. Soon I'll have to sell to pay the taxes I owe that I can't afford.

Originally posted by JibbyJedi

Originally posted by MrStyx
reply to post by JibbyJedi

 

Its partially because they have no businesses they can tax. Big cities bring more revenue in through the businesses they tax therefore the taxes are a cheaper. In the woods without the businesses they break the back of the homeowner instead.

The rates, plus the struggling economy, have forced old and new businesses to shut down though. A new business doesn't stand a chance in the surrounding towns here in NH, average new business lasts 2 months. Tax rates just keep going up though. We have schools and the streets are plowed, that's all our taxes get here, and they are threw the roof. Soon I'll have to sell to pay the taxes I owe that I can't afford.

Struggling economy = People who don't make anything can't buy anything

If we find a way to lower the unemployment rate to 4% then people with jobs

will be able to buy things. They may even qualify for a 30 Year mortgage.

reply to post by soficrow


This actually sounds very similar to banking schemes that bankrupted countries and ended up owning all the key infrastructure in the end.

I think this happened in Brazil if I remember correctly.

This is why i am moving into a motor home so i can take my inheritance and buy a couple homes to rent then use the rent money to travel the country.

Plus living in a motor home when i want to move hitch my ranger pick up and just put the key in and drive away.
pull into a RV park once a week to dump the holding tank and fill the water tank i can live very cheap.

Originally posted by DaMod
Sounds like Tax Foreclosure Auctions.. Homes sell for whatever is left on property taxes..

If so that means anyone can participate.. Even you...

This, I have heard many times... yet for some reason... it's always real estate "investors" who get the 'prime' properties - en masse - ... they must have a magical spell to ensure no one buying for the mundane purpose of actually 'living' in a home they could own gets it instead...

Originally posted by boncho
reply to post by soficrow

 

This actually sounds very similar to banking schemes that bankrupted countries and ended up owning all the key infrastructure in the end.

I think this happened in Brazil if I remember correctly.

I think you may be thinking of the United States of America..... It's called "The Build Act" and it was submitted for consideration by our representatives in March 2011. It is rumored to have overwhelming bi-partisan support.....

reply to post by rebellender

howz the bathroom coming along on your Fine purchase

LMAO... it's not coming along. I may have to shave the trees down myself for the wood needed. As long as a buyer doesn't look under the floors I might get away with the dry rot.

The whole town is rotting. Old NH village established in the 1800s, and it looks like it too. Cheap homes though, cleaner air than the cities, quiet, low crime but lots of bored drug addicts.

They intend to bring Chinese here and reoutsource former American, now Chinese, industry to America

Now, if they could only lobby for the distruction of renters rights...

No warning, immediate evictions for no reason,
Renter pays for all repairs, maintenance
Renters pay property taxes, yearly in addition to rent,
Renters pay property insurance,

Then they could turn some real profit!

I buy properties nationwide and have been for a long time now. I don’t really buy at the auctions because I can get the good properties cheap from the owner or bank before the auction. Plus I can avoid people driving up the price and overpaying for the property. I even buy properties in Michigan, Ohio, and Florida. Haven’t had any problems in any of these locations but I also don’t buy in “war zone” areas either. Once the properties are rehabbed they are sold, not rented out. I prefer to hold apartments or other commercial properties for rentals, not single family homes. The cost to own and manage 1000’s of homes nationwide isn’t as profitable or efficient as owning apartment complexes. If you’re planning on buying properties to rehab and sell or to rent out make sure to educate yourself on your market.

reply to post by JibbyJedi


Amazing how that works in NH, isnt it?

A town with fewer than 1,000 people, no police department only a resident trooper, no fire station, no sewer, no school.

Yet one of the highest property tax rates in the country.

What the hell are we paying for?

Somebody or some group is making big bank on this racket.

And if you complain, oh, you're just rich miser who wants illiterate children and crackheads running rampant through the streets. Livin' large on $20K. I cant even speak up at town meeting because my mouth is full of giant gem studded gold teeth I'm so damn rich and miserly.

reply to post by thisguyrighthere


We have less than 2000 here, a volunteer fire dept, 7 cops total, we pay our own water & sewerage, have 1 school, 2 churches, and a small library that rents DVDs for free to residents.

Live Free (if you pay your taxes) Or Die (in jail if you don't), that's the real state motto.

I did a search for NH tax rates and was in shock at what I was seeing. There is absolutely no reason for such high tax rates to live in the woods. The tax rates contribute to the lowering prices for homes here... good homes but taxes are always going up, then prices go down and people need to bail.