Tag: Buyers

By Posted on Posted in Buyers, Investment Property 3 Comments Tagged with , , ,
Feb
20
2009

If you’re at the clothes store, and you buy a shirt off the clearance rack for 90% off, is it a good deal?   What if it doesn’t fit you or it’s just plain ugly !?   I’ve been getting a lot of calls on a really low priced bank property from would be Investors looking for an investment property.    So, is cheaper really better?   Not if cheaper doesn’t “fit”your investment goals! smhouse

I recommend thinking about what kind of property you want, then compare prospective properties to your “criteria” to see if they fit.   This will help you objectively decide which properties are good for you and which ones aren’t and will set you apart from the investors wouldn’t know a good deal if it hit them in the face.

For example, would you prefer…..
1. Single home vs Townhome vs Condo vs multifamily?
This will affect the kinds of tenants you attract.
2. Monthly cash flow from rents or long term appreciation of property value?
They’re pretty much mutually exclusive, pick which one you want.
3. Location, location location???
of course this is a critical part of your investment plan.
4. Property Manager or No?
A location close to will be easier to manage yourself if you’re not going to hire a property manager.
5. Cash purchase or financing?
Cash allows you buy homes that are in poor condition so opens more opportunities. Financing makes your offer less competitive and there are many challenges with investor financing…. Be thorough in your pre-qualifying for an investor mortgage.
6. Price range?
How much cash do you actually have or how much mortgage can you actually get?
7. What’s the minimum rate of return that you require?
Cash on Cash is the first and easiest calculation…. Cash in divided by Cash out. $x rent after expenses divided by a $x purchase would be x% return.

Well, that’s it for now…. 2009 is a great time to buy investment property in South Jersey.   Let me know when you’re ready to take the first step and together we’ll develop a basic plan to get you started.

Thanks for reading
Joe Montenigro
REMAX Home Team

By Posted on Posted in Buyers, Sellers No Comments Tagged with , , , ,
Jan
29
2009

It’s a question that I get all the time…. but what’s the REAL question? Maybe some people are just making small talk because they know I’m a broker but many, I believe, want to know if it’s OK to buy a home. Watching the news is scarey and there’s no question-mark1shortage of uncertainty in the real estate markets, so what’s the right thing to do… buy now or wait til the market hits bottom?

Well…. How will you know when the market hits bottom? Will you rely on the nightly news? When will THEY know? Home sale statistics don’t come out for a few months AFTER the fact… so you won’t know we hit the “bottom” until AFTER it’s past…. then you’ll be buying on the way UP! That’s not good either.

Here’s the short answer. Buy now for the long term. That’s it. It’s that simple so let’s not overcomplicate it. If you’re not ready to own the property for the next 3 to 8 years, don’t buy it. If you are ready, then it’s an absolutely GREAT time to buy a property. Prices are down, there are fewer competing buyers in the marketplace, interest rates are very very good, and there’s a bigger selection of homes by double.

The truth is, most people buy or sell when it’s the right time for them and their family, not based on the market conditions. It would be silly to move and rearrange your life every time the market moved one way or the other. Buying and selling a home takes a lot of time, costs a lot of money and by it’s very nature, should be a long term decision.

The Conclusion? If the time is right for your family, 2009 is the right time to buy a home in the south jersey real estate market. It’s OK… and tell ’em I said so 🙂

Thanks for Reading,
Joe Montenigro
REMAX Home Team

By Posted on Posted in Buyers No Comments Tagged with , ,
Jan
9
2009

I was talking with buyer recently who was looking for a home in my neck of the woods in South Jersey and he made some comments that he though all bank owned properties were in bad condition… the technical real estate lingo is toilet 🙂 ha ha     …but it’s just not true.    toilet1

South Jersey REO

In the South Jersey real estate market you see a wide variety of homes that are bank owned.   While I’ll agree, that most of them are dirty and even a little ugly, many of them are not that far from being pretty darned nice!    And they’re in all different price ranges and locations…. I’ve seen many REO’s in the $300k to $500k range in South Jersey.     As an experienced REALTOR, I’d say many many home buyers can and SHOULD consider buying bank owned properties so long as they have the correct expectations.    Later, I’ll write more on the advantages and disadvantages of buying a bank owned property.