I was on a few blogsites yesterday and stumbled upon a post made by an unkown person that was asking for foreclosures in a couple of different areas around Houston and outlying suburbs. He left an email and nothing more, so I wasn't expecting much, but I figured it would be worth a shot to send him some properties. Later that afternoon my phone rang and the gentleman explained that he was the blog commenter and that he was overseas, but interested in investing in properties around the area. I do work with a few investors right now, but they live in the Houston area, so this was new and exciting for me. I own a construction company, Harper Services http://fortbendcontracting.com and have a general idea of what repairs need to be done to the properties and the cost for those repairs. I feel that this knowledge gives me the advantage over most agents. Since I do work with other investors, I am constantly running Comparitive Market Analysis' (CMA's) for various properties and can quickly generate these reports for any given property. A CMA gives you an approximation of a home's worth by taking the homes that have sold in the subdivision with the same appx. square footage and giving you an average sales price. This is the most accurate way to estimate a homes worth. Remember that the home is only worth that much if there are no major repairs that need to be done that would put you upside down on your note. Say that you are interested in property xyz located in Sugar Land, Texas. The CMA report has a property in XYZ subdivision that has between 1200-1300 sq. ft. valued at 130k, based on the sales from the past 12 months. The home you are interested in is listed at 125k. Great value right? Wrong, the foundation has major issues (15k) that need to be repaired and after repair costs, you just spent 140k for a property that is only worth 130k. It is imperative that you get a home inspection for every property you purchase. There is a science to purchasing investment properties and anyone that dives into such venture should do so with the guidance of a REALTOR® that specializes in working with investors. Contact me today for a free consultation.
Alan Harper, REALTOR®
Keller Williams Southwest
1650 HWY 6. South #350
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