You are asking all the right questions ... The market correction has created some awesome opportunities. I think many of us will look back a decade from now and kick ourselves for not trying to take better advantage of the market. I would recommend being extremly careful in your selection of a realtor. You want to find someone who approaches real estate from an investment perspective first and foremost. This is a very large asset and all the common rules apply. Sometimes rookie realtors don't ask the hard questions and tend to focus on the transactional side of the equation too much. That being said I would look for an accomplished investment-focused realtor to help you. Another option would be to work through an investment oriented company. These types of firms often get pre-foreclosures, etc. that can be spectacular deals.

I want a deal but at the same time I am concerned that foreclosures can be a long stretch for a buyer like me. What if there is work to be done to the house? Can I still do a full blown inspection if I am looking at a foreclosed property?

Michael

Hi Michael,

Responding to an old post but I'm going to give you a biased opinion here...well biased and very experienced. Find yourself an agent who works with or has experience with investment properties. Look money means something and these agents if they are worth a lick should be able to find you a property at a great price with enough room to upgrade it and you'll still come out thousands if not tens of thousands ahead.

I'm an investor turned broker and can tell you first hand that the mind set is much different with investor agents. Their mind-set is immediate value and future gains. The good ones will tell you that if you are not embarrased by your offer then you are bidding too much. The market, IMO, is still overvalued in most areas so even though some consider bidding low is offensive the good investor agent will respond they are speculating and bidding value. Sticking their client in a house at 10% disount last year would leave the investor 5% over market value today.

Anyway, I've got a lot to say about buyers agents and the way the system is rigged towards commissions based on sales price but I'll save that for a blog someday.

A good investor agent can find your dream home. will have reputable contractors on hand and save you lots of cash.

Best of Luck!

I guess the follow up question will be where do you find a good investment oriented agent? My experience has been that it is tough to find a real pro when it comes to investment properties - they need to know a bit from everything (finance, negotiations, local knowledge etc.).

Addressing both of your ?'s Mike & Melinda,real estate is real estate,if your experienced,have a fulltime realtor,etc...I run into reo specialist,and most of them that got into them,shouldnt be,and hopefully these asset mgr will see this after a while?but thats a whole other subject,reo or not,you need all of the above and make sure they have some knowledge of construction as well.I called a reo agent,and they have a gang of them,but I wont show any of there properties in future,when I have to tell them,there is no mechanicals etc...(which they didnt know) I was showing an investor,which is who will end up buying,a 1st time home buyer is not likely to go in and have to come up with 7 or 7k for these,so guys need to look at some reo and you should be able to tell if they know what there doing,the 1st house you look at.If you were in Colunbus,Ohio I could show you and explain alot better.Good luck.let me know if you have any problems.

Regards;

TJ

TJ - what the market like in Columbus? Seems like a fantastic area but I would curious how are sales holding up, lots of inventory building or are there still sales occurring even in this down market?

Doug,like most cities and states,areas are down in price,be it reo's or some normal sellers:-) being all over certain area are wanted,be it school system,etc...as we have been through these slumps before,Ohio chipped away in 08 on fair amt of inventory.I am staying busy,having a mix of buyers.Columbus seems to alway correct itself.We'll have some more homes come on mkt,but there will be buyers getting good deals @ great rates.So optimistic on a better year for09.commercial has some issues,they kinda felt theres in 4th quarter,so residential has a jump on mkt.How bout your market,I'll look for your reply.Happy 09

Regards;

TJ Realtor,CNHS,ABR,e-PRO