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Looking out for number one, without stepping in number two

Today I had a person contact me that was involved in an investing group that bought into a new home project with a bunch of other investors. They each bought one new home with construction loans anticipating the market continuing to rise. Their plan was that they could refinance and sell the homes for a very large profit.

The only problem was the market softened in the area that the homes were for sale. This area is about 100 miles from me, so I was unable to help her besides giving her ideas how to possibly get herself out from under her current situation.

My suggestion was for me to help her find someone that could help her purchase the home and then do owner financing on the property. This way, on a 5 year contract, she could make up to $100,000 in interest over the next 5 years. This would also get her out of the situation of having to come up with $3000 a month for mortgage payments that she doesn't have.

You see, she didn't have an exit strategy if the market started to turn before the project was done. Whenever I meet with my clients about investing, I suggest they have an exit strategy that involves a way to get out without losing their shirts.

For more information on purchasing investment property and exit strategies, please feel free to e-mail or call me anytime.

Respect Realty LLC (Expect More)

 

At Respect Realty, LLC our agents believe in 100% dedication to client satisfaction.  We specialize in property and land acquisition around the Portland Metro and Vancouver, WA area. We delight in working with first time home buyers and sellers to guide them from start to finish. Our doors are always open and we are always happy to assist you with your real estate questions.

 

Reach out today, we look forward to talking with you!

 

Todd Clark and Seraina Aguayo (Owners of Respect Realty)

Respect Realty LLC (Expect More)

(503)564-3130

info@RespectRealtyNW.com

www.RespectRealtyNW.com

 

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Comment balloon 9 commentsRespect Realty LLC • September 21 2007 12:27AM

Comments

Sounds like Iraq out there!  And you're right!  Exit strategies are important in real estate transactions - as well as many other situations we find ourselves in!  Thanks.
Posted by Patricia Kennedy, Home in the Capital (RLAH Real Estate) almost 11 years ago
You are absolutely correct, Todd, and I wish that I could impress on more people here in Florida that there really is more than one way to survive this market!  Thank yo for posting this most timely article!
Posted by Loretta Buckner, Your GREEN Real Estate Consultant For Life! (Real World Properties, Inc.| Your Real Estate Consultant for Life) almost 11 years ago

Patricia - It is amazing that most investors don't have an exit stragedy. It is the first thing I tell my investors to consider.

Loretta - If more people would consider owner financing or lease options, they may have better luck with getting their money back out of their investments that seem to be losing money on a daily basis.

Posted by Respect Realty LLC, Brokers - Oregon / SW Washington Real Estate (Respect Realty LLC) almost 11 years ago
yes, a lot of people don't think about exit strategies. They get blinded by the "profit" they are going to make and naturally it COULDN'T fail! 
Posted by Rick Grand (nowhere) almost 11 years ago
Interesting idea, buying into new construction.  
Posted by Jeff R. Geoghan, REALTOR, Marketing Manager (Coldwell Banker Residential Brokerage) almost 11 years ago

Rick - Did you say "Profit" Where??? I have my wallet out, where do I send it?

Jeff - New construction can be a great way to make a lot of money in an upturn market, but it can be risky since we never know when the market may stall or turn the other way.

Posted by Respect Realty LLC, Brokers - Oregon / SW Washington Real Estate (Respect Realty LLC) almost 11 years ago
Great post Todd. Just a little bit of creative thinking can turn many properties into a positive. The lease-purchase option route can be more lucrative than investors imagine.
Posted by Chuck Willman UtahHomes.me, Utah Homes (Utah Homes) almost 11 years ago
Chuck - Thanks for the feedback and in this case, Owner finacing turned out to be the way to go for her.
Posted by Respect Realty LLC, Brokers - Oregon / SW Washington Real Estate (Respect Realty LLC) almost 11 years ago
Todd- Your title made me laugh! Great post too!
Posted by Portland Oregon Real Estate | Alecia Barnes - Broker almost 11 years ago

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