Phoenix, Arizona Crowned King For Real Estate Investors
Want To Flip Your Way To Real Estate Riches?
A new report out from RealtyTrac.com, the nations leading tracker of foreclosures and distressed sales, shows the top 25 markets in 2012 to flip single family houses in. To create the list they looked at any single family homes that were purchased, then resold within a six month period. The markets with the most "flips" and biggest increase in prices during the six months made the list!
Phoenix, Arizona Ranks #1 Market For Real Estate Investors!
It's no surprise to me that Arizona would rank #1 in terms of volume of flips. The real estate investing market here is going bonkers (can you say 2006 de ja vu), and even though our average gross profit per flip is a measly $63,762 ;-) we dominated the list for both volume of activity (10,589), and % increase in home value (33%). California beat every other state out in terms of average profit per flip ($103,241 in San Jose, $85,714 in San Diego, and $80,306 in San Francisco), and Las Vegas, Miami, and Denver came in a respectable 3rd, 4th, and 5th in terms of volume of activity.
What surprised me is Seattle, Washington, and both Memphis and Nashville, Tennessee. If I was a virtual wholesaler, I would definitely take a look at Nashville or Memphis markets. Anytime you have major market fluctuations (The volume of investor activity in Nashville increased by 65% in 2012) there is always opportunity to make a killing in real estate.
So What Can You Do With This Information?
Well, if you are located in any of these markets, you should ramp up your marketing (direct mail, bandit signs, SEO, PPC, Bird Dogs) and go on the hunt for some distressed real estate. When the market is hot, you have to fish in a different pond! If every other investor is making offers on the MLS (and getting themselves into bidding wars), then you need to go directly to the distressed seller. By doing this you will have direct control of discounted properties that no one else has access to. And once you have a distressed property under contract at a significant discount from retail, you can decide if you want to wholesale it to a cash buyer (probably a rehabber), or if you want to run the remodel yourself!
If you are not located in any of these markets, you can use this information to do some virtual wholesaling or virtual rehabbing. The 2 keys to being a successful virtual real estate investor is:
1) Having in-depth market knowledge. This means that you spend the time to learn the market (avg. medium home values, avg. days on market, where the cash buyers target, where the war zones are located) and gain access to local resources (MLS).
2) Having a solid power team with "boots on the ground" in that particular market. This means that you spend the time to build trustworthy relationships with local real estate agents, general contractors, other investors and wholesaler, and an investor friendly closing agent.
Like I said earlier...if I was to do any virtual real estate investing, I would look at either Tennessee, Arizona, Florida, or Nevada. California is definitely doable, but you better have access to some serious cash if you plan on rehabbing in this market!
Well, that's all I have for now...see you next post,
P.S. If you want to learn how to flip houses you should watch this quick presentation...it could change your life!