Investors buying homes by the dozen

How can it be this easy to make money?

44% Yearly Return on just £13068
www.rightmove.co.uk...

Planet must be going crazy with all that lost banking money (truly) distorting the global economy, or is my sense of ignorance right to tell me: This isn't all, there is to know?

The property seems to have a missing attic window, and the photos make it seem quite empty for a supposedly fully let property. Yet even if there's only (real) bargains only half as good this property, it makes even gold look like a losers game.

These sort of bulk buys are usually done by banks that have so many foreclosed homes to sell they could never sell them individually.

Six months ago I was looking into buying 4 homes at once at an auction. It would have been a good deal for me because I could get rid of my current home (may be undergoing lawsuit against mortgage holder), make enough money off of the other properties to cover taxes and upkeep and put some nice change in my pocket.

When my friend (Broker) gave me the information on the homes I was ecstatic! They were nice homes and I was going to pay pennies on the dollar!

Come to find out....I HAD to finance the final auction price through that bank, they would not take cash, and the homes were still occupied!

I walked out before the auction began. I was not about to be part of the never-ending cycle of despair against my fellow Americans.

These auctions themselves can be a scam as well. Be careful if you decide to go this route and be prepared to boot the occupants out.

reply to post by soficrow


Not a good deal. WHy pay 1400 a month rent to these crooks stealing homes.

I believe all people have the right to homes, and only some elderly or singles might wish to rent or own apartments or alternative dwellings.

I believe that, like in Norway, all goods that are necessary: HOMES, FOOD, UTILITIES (medical dental education should be free), should be controlled and kept low cost.

That all payments (to own not rent) should be subsidized on sliding scales, and all people should have base level incomes. But that, rentals would also be sliding scale. That is, with utilites, kept below, 1/3 of the net income.

Originally posted by soficrow


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)

i think they have the money to do it and still be taken care of if the market continues to fail. they figure if the market goes back up it's a win win for them, if not they still have the money to be ok. with foreclosures going as high as they are the investors are betting on rentals being the norm for some time to come. i don't believe it will pay off for them, since the world economy's will be tanking hard the likes of which has never been seen before and civil unrest will skyrocket in our near future.

i remain wary of these get rich quick schemes....

the past 'Flip this house' boom was a supposed ticket to retirement in place of the lost values of 401Ks

i see this scheme of being a landlord eventually backfiring on all these easy-money, 500% ROI wizards
~ i still do not understand how the earlier poster could landlord 4 different houses and pay property taxes with a healthy profit left over for himself ...

in my general area... taxes will run $250 month,
insurance about ~$150 month whether you are getting rental income or not..

.then as landlord you gotta have many things fixed up within 24 hours or get fined a bunch,
and then the constant worry that the renters won't be a bunch of scam artists that refuse to pay rent & will live freely for up to 6 months or until the Sheriff finally can evict them...

bottom line, one needs deep pockets, access to extra money, a fix up resource that charges reasonable fees & rates...and the yard men etc to maintain the property that potentially unemployed renters refuse to maintain.

If you even got a $60K house for $10k...the assessment would be closer to $60k instead of the $10k you invested in it... what other investment would produce a 15-30% gain year-over-year...Gold/PMs of course

reply to post by Eurisko2012


Well said Eurisko... it is a simple equation... and sadly one which most of TPTB seem to be ignoring the facts of:

Good jobs = major purchases, i.e. homes and cars, and at some point expendable income.

Also, from what I am seeing, investors outside of the US are purchasing a great deal of the distressed properties which is obviously bad for the US and TPTB should be addressing this and helping folks in the US to qualify and purchase these homes.

If not, as predicted soon we in the US will not own our country.

reply to post by St Udio

in my general area... taxes will run $250 month, insurance ~$150 month whether you are getting rental income or not...
then as landlord you gotta have many things fixed up within 24 hours or get fined a bunch, worry that the renters won't be a bunch of scam artists that refuse to pay rent & will live freely for up to 6 months or until the Sheriff evicts them...

That is such a HUGE issue and people can't really estimate their coming losses when investing in rental properties. As a former landlord, I had dead beats taking advantage of the me and the tenant/landlord law system all the time. People with small children can appeal and get a few extra months for free if they wanted. I have a few evictions I won in court and the courts gave my tenants 20 YEARS to pay me back, which is such a joke, and ruining the benefits of rental property ownership.

When the laws protect the dead beats and punish the landlords, rental property owners are forced to sell or lose their properties to foreclosures. I needed rents to cover my costs, but dead beats don't care, and when they are late on rent, they don't pay you a partial payment, they give you nothing that month. Landlords aren't VISA/MASTERCARD, if we don't get paid, we lose our properties if we don't have the extra income to cover such losses.

Originally posted by St Udio
i remain wary of these get rich quick schemes....

the past 'Flip this house' boom was a supposed ticket to retirement in place of the lost values of 401Ks

i see this scheme of being a landlord eventually backfiring on all these easy-money, 500% ROI wizards
~ i still do not understand how the earlier poster could landlord 4 different houses and pay property taxes with a healthy profit left over for himself ...

in my general area... taxes will run $250 month,
insurance about ~$150 month whether you are getting rental income or not..

.then as landlord you gotta have many things fixed up within 24 hours or get fined a bunch,
and then the constant worry that the renters won't be a bunch of scam artists that refuse to pay rent & will live freely for up to 6 months or until the Sheriff finally can evict them...

bottom line, one needs deep pockets, access to extra money, a fix up resource that charges reasonable fees & rates...and the yard men etc to maintain the property that potentially unemployed renters refuse to maintain.

If you even got a $60K house for $10k...the assessment would be closer to $60k instead of the $10k you invested in it... what other investment would produce a 15-30% gain year-over-year...Gold/PMs of course

edit on 2-3-2012 by St Udio because: (no reason given)

wait till the landlords to be get the bill for bedbug removal which is becoming quite widespread and averages 500-1000 dollars to treat a row home and that's just for the initial treatment.

This is not breaking news, this is what investors have done forever. You clearly do not understand economics and how bad things would get if they all stopped buying houses.

Originally posted by Maxmars
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...

The looting of the wealth of the middle class continues unabated.

The top 1% continue to increase their control of the masses.


It's getting worse out there, now they want to control where we live.

Thankfully I sold my McMansion and was able to buy a smaller house with no mortgage. But I'm in the minority, and if anything had gone wrong or I hadn't been able to sell my house I'd be stuck in a rental too.

As it sits now nobody can make me do anything, I own this house free and clear.

Originally posted by defcon5

Originally posted by Maxmars
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...

The following is my opinion as a member participating in this discussion.

You got it.
When I went to buy my house, all the good properties had down payments on them the second they went on the market. There was no way to beat them to the punch either, as it was obviously inside information that the agents themselves were disclosing to friends and associates before they went on the public listings. These folks were being told about them in advance, then going to check the property before it was listed to the public. They would then have the paperwork all done, and put down money the second it listed.

I cannot tell you the number of times that I tried to get into a house for a walk-through the morning it was listed, and by the time we got there it was already off the market. I fired my first broker because I was sick of driving out to properties only to be turned away at the door.

Oh, and don't trust buyers brokers either, you pay them to be on your side, but despite being fraud, they really only look out for their own and their friends interests.

As an ATS Staff Member, I will not moderate in threads such as this where I have participated as a member.

If these are HUD foreclosures somebody is breaking the law.

By law HUD foreclosures are only initially available to people who plan to move into the house and must stay for 3 years.

The house I bought was a HUD foreclosure and the realtor told me up front when I first called that if I was buying it as an investment she couldn't show it to me until the 30 days expired.

We were told when we closed in August that we had to occupy the house by Dec1st, which we did. A few weeks ago I got a certified letter from the HUD office in Denver that asked for proof that we were actually living in the house. The letter was on HUD paper, but the envelope was hand addressed and my first name was spelled wrong.

If they are selling HUD houses to investors before the 30 days is up you should raise a stink.

reply to post by Maxmars


2 years ago i bought a house(5ish acres,4000sft) they wanted 455k i paied 200k so yeah you can get in on deals just gotta look for them and find the right auction was alittle awkward when they moved into the house behind me but friends of mine ended up buying that house last year ,part of the problem is alot of people dont have the cash to get in on these investments and often buy homes in the wrong area(ie you can get a house for 500$ in Detroit but thats detroit) so their are good deals and investments you just gotta look for them

With every boom-bust cycle the same people(plus new additions) get richer and the same people(plus new additions) get poorer. You can't invest in stocks, funds, real estate if you have a job that barely pays your bills and have a little money left over for a rainy day. Notice I am not even talking about those living over their means and default on their personal loans.

Jobs have been outsourced to asia for at least 20 years now and automation is king. How the hell can most mildely to moderately skilled employees ever hope to make it big in america or europe? It is a losing battle because the government(s) is ALWAYS IN CAHOOTS with big business as evidenced by the WTO meetings for globalisation and lack of suficient tariffs.

Of course people lose homes when they have to pay taxes and fees, lose their jobs or are forced to accept pay-cuts, property values go down, make bad investments, spend too liberaly and thus have to borrow, etc.

And yes IT IS a conspiracy to make people rent rather than own and to make more fools flock to the big cities to be killed in the future riots that are certain to spread to plague like porportions or some big tidal wave hits from the ocean or some big bio/chemical/nuclear attack is planned.

I don't know if it is related to agenda 21 because it seems more related to the georgia guidestones and some fake apocalypse brought about by the luciferian nwo/owo. Same group that I call the illuminati........and all capitalist to the core.

reply to post by boncho


What Maxmars said.

reply to post by Maxmars

...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...

Funny how that works, isn't it?

But you're right, that IS how it works. ...Sometimes HUD sets some loser properties aside, but that's not much and not often.

really...I hope they lose life and limb...no mercy here you cheating bastard's.....die and die again

reply to post by DangerDeath

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

Actually, I think foreign nationals bought up most of the USA before 2010 (not just Chinese). ...What's left isn't much in terms of acreage. But hey, it's all about who has the cash and the motivation, right?

Click here for more information.

Being in the recovery business fanny mae has been doing whats called "pool" sails for some time.