It’s Time To Buy
It looks like most of the neighborhood is aware that it’s not the time to sell. However, many aren’t seeing the opportunity to buy (even if the market may level off for many months). I sent out an invitation to everyone in Oakhurst a few days ago to consider buying investment property. I heard from a few, but was expecting a lot more.
My proposal includes making a low ball offer on properties on the Highway 4 corridor (Antioch, Pittsburg, Brentwood, Oakley). There are so many properties on the market now, that deals are readily available. What I do is search the MLS for active properties that have been on the market a long time, or have experienced multiple price drops. Then, I ensure that they are desireable homes, in good neighborhoods, that will rent easily and for a solid number. Then I dig with the listing agent to find out how “motivated” the seller is. The more motivated, the more excited I get about making an offer. I then make an offer for considerably less than the current list price. The bottom line looks like this:
- List Price $500K
- Purchase Price $400K
- Downpayment $40K
- Rental Income $2K
- Monthly Cashflow $153
Ok, not a ton of cashflow, but cashflow. Do this and watch your monthly income increase every year for the rest of your life and don’t forget that your property will double in value in the next decade. Not bad for the price of a car. If you’re interested, get in touch with me and I’ll show you how it works in further detail.