I have a real estate license. And, I love buying properties to fix and flip, or to keep and rent. I enjoy picking up a really old looking property that needs some rehabilitation, and turning it into a jewel.
I went to a luncheon put on by the Cromford report (the guys who do lots of market statistics for the Phoenix area) at the beginning of the year, and they said that this spring (2012) would be a massive buying frenzy. They were right! Since about April, I have written about 100 offers or bid on auction properties at prices that make sense with my models — and I have purchased nothing. Zip. (I did manage to buy a nonperforming note for a Pinal county property which will probably turn out well, but that is not exactly my everyday thing)
I work for a group of investors, and they gave me about 40 properties to list during the frenzy. I carefully figured what they should sell for, based on the last 3 months comparable sales … then added 5,000 to 10,000 to the price. We sold almost all of them at list price or higher, for cash.
These properties were in the lower end, less than $100,000; but at the same time I was selling them, I was busy looking for investments to buy, as well, in the 100k-300k range. And found nothing.
Properties selling at auction (the foreclosure auction on the courthouse steps) are still selling at retail pricing — but the frenzy has started to slow. I have a property listed under 100k that has had two price reductions, and still has not sold. And the auction prices are finally starting to fall. Whether this means that the investors are gone or just smarter, I’m not sure. I’m hoping it has slowed a little.
In the meantime, I am looking at investment properties in other markets.
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