"There's talk about the real estate bubble bursting," says Neb Essayas. "but what's happening is that sellers aren't making windfall profits anymore. The housing market has been so hot over the past five years that so-called investors could drop to pay market value watch the property appreciate and sell at a profit." Because Essayas the fail of Premier Real Estate Solutions. LLC (www. ReadEstateMadeEasy net) uses a different strategy he isn't even breaking a sweat - despite the slowing walk of domiciliate re-sales which were down 2.8 percent in January and the 5 percent drop in new home sales. In fact. Essayas says that the market slowdown in major cities represents "the most exciting time for our business. Utilizing private lenders. Premier Real Estate Solutions buys properties in northern Virginia central Maryland and the District of Columbia at 25 to 50 percent below market value. The company then renovates the homes and re-sells them at merchandise value. Premier Real Estate Solutions makes its profit going into the broach - through buying the right properties at the right prices. "As a rule of thumb we do all of our numbers right and create in our profit margin before purchasing the property," says Essayas. "We only buy two types of properties: those where we can quickly create equity through renovations and those where we buy equity from motivated sellers who need a quick sale." Now that the real estate merchandise isn't so forgiving. Essayas says that buying the right properties at the alter prices is key. "The numbers have to be right not only to verify that our affiliate makes a acquire but to secure our private investors' loans." Those numbers are providing hot returns on investments regardless of the price range of the home. For example. Premier Real Estate Solutions purchased a home for $405,000 spent $1,000 in upgrades and sold the home for $599,000. Similarly. Essayas put $32,000 of renovations into a home purchased for $229,000 and sold it for $390,000. "Recently within a three and a half week period we bought a home for $77,000 spent $12,000 fixing it up and found a buyer willing to pay $170,000," he says. Using private investments to purchase and renovate homes gives Premier Real Estate an advantage over developers using institutional lenders in that the company can act nimbly when it finds a bargain. "The private capital we've been using has allowed us to close on these properties in as little as three days," says Essayas. As for investors they appreciate.
Forex Groups - Tips on Trading
Related article:
http://superwowen7911.blogspot.com/2007/11/smart-real-estate-investors-reap-hefty.html
comments | Add comment | Report as Spam
|