The Two Alabama Gulf Coast Real Estate Investor Types
Local Alabama Investors Buy Foreclosed Homes – FIX-AND-FLIP or BUY-AND-HOLD: Which Are You?
With the Fed having announced its intention to hold interest rates near 0% until at least mi...d-2015, even very cautious investors are recognizing that this provides a rare opening. If ever there were a time to start a real estate portfolio, it’s hard to imagine a better one.
To understand the direct relationship between the Fed's interest rate, and what it means to your home-buying potential, we found a good quote on About.com's US Economy section:
"Banks generally keep interest rates on mortgages only a few points higher than Treasury notes. Since Treasury notes are guaranteed by the Federal government, they can afford to offer lower rates. Therefore, lower interest rates on U.S. Treasury notes mean lower rates on mortgages. This allows homeowners to afford a larger home."
For many, the first question is whether there is still an opportunity to buy foreclosed homes in towns like Fairhope, Spanish Fort, Daphne and Foley, Alabama. That answer is yes, for sure – but that is not always the only strategy that will get you to your goal.
It all depends on you.
Before we can develop your strategy, you first need to decide which type of real estate investor you wish to be:
THE FIX-AND-FLIP INVESTOR
This type of investor is handy (or has a lot of contacts who are), and is familiar with remodels and improvement projects. Usually, at least part of the goal is to create an income stream from the investments. This investor buys a property at the lowest price possible, improves it, and sells at a profit as quickly as possible. This investor may have one or more projects going at a time -- with or without loans on the properties. This is the more hands-on type of investor.
THE BUY-AND-HOLD INVESTOR
Whether you are looking to buy foreclosed homes in Fairhope, Spanish Fort, Daphne and Foley, Alabama, or to capitalize on one of the bargains now available in the traditional market, cool-headed, informed decision-making is at the core. If you are also looking for an agent to be by your side supplying up-to-the-minute market data, give Beckham Partners a call. We can talk about your goals, and come up with a buying plan that matches your investing style!