To improve on a down real estate market, you have to build. When I build a house, I hire experienced sub-contractors to complete all of the work. Each house employs 20 – 30 people. This puts money into their pocket, which they put back into the economy.
With the low interest rates and low property value, I have to ask what keeps investors out of the market right now? The answer is Risk. In weighing the pro’s and con’s to measure the risk, when the risk vs. reward is balanced where reward is more likely, then investors invest.
I have taken 8 of my single family building lots – 4 in the City of Manassas and 4 in Triangle near Quantico Marine Corp base – I have met with engineers and architects to produce what I consider the most desirable rental/investment property, maximizing the number of bedrooms and bathrooms.
I have priced these new construction investment homes at bottom prices. In most markets, that would be enough. To further reduce your risk, I will invest in the property with you and cover your down payment up to 20%. You work out the loan, use whomever you want. At the closing table I will invest up to 20%. That covers most investor’s down payment completely.
A major benefit of real estate foreclosures is it brings an investor a large pool of applicants for rental properties. These families are not going to be able to buy for a while, in the meantime, they are going to need to rent.