Real estate investing on the flip side.
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Real estate investors are more likely to hit a few singles and doubles than home runs. Even so, the profit potential can be significant, especially on lower-priced houses. Foreclosures can often be picked up at 20 percent or 30 percent below fair market value while houses in this lower range can net the investor $10,000 to $20,000. Most investors are satisfied with a 15 percent to 20 percent net profit, but it is not unheard of for someone to double their money under the right circumstances. |
“Once I write a contract on a house, if the title goes through cleanly, in four or five days we can have title work done and the house paid for,” Dan Reedy, who owns Missouri Real Estate Exchange said. “I have actually bought a house on a Monday and paid for it on a Friday. The average is about 10 business days.” In the current market, lower-priced houses appear to be in greater demand. “The $100,000-and-under houses are what are moving now,” Dan Reedy said. “Six months or a year ago, the average market time was probably 60 days. Right now, it’s 90 to 110 days. It has jumped up by 20 to 30 days just in the last quarter.” Olson sees the same trend. “I’m now gearing more toward the lower end because of the way the market is going,” he said. “There are so many higher-end homes out there that they have flooded the market. The lower end is where the first-time homebuyers are.”
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