$150,000 Real Estate Investment Essay

1223 words - 5 pages

 
If I were given the opportunity to grow $150,000 through purchasing foreclosed real estate at foreclosure.com, how would I grow this investment? Having watched my family purchase and sell their own real estate, I have seen firsthand the value and profit potential of buying foreclosed properties.  In the current economic environment; I have also seen the benefits of being creative when it comes to selling these properties.  My strategy would include targeting my purchase based on final retail sales range values, rehabbing the property to prepare for sale, owner financing the property to a qualified buyer while allowing for continued growth of the principal. 
I would concentrate my efforts in a 20 mile radius of my hometown of Franklin , Virginia . This would include Franklin , Southampton County , Isle of Wight, and the western portion of Suffolk , Virginia . The economy has been cruel to this area over the past few years, added with the closing of the area’s largest employer, International Paper. This mill has been in operation since the late 1800’s and has been the backbone for the entire local economy. The closing has added to the increase in foreclosed and distressed homes. The absence of the mill will enable Franklin to become a bedroom community of the Greater Tidewater and Richmond areas, I believe the area is poised for growth.
I would first target single family homes in the final retail range of $100,000 to $150,000. I have chosen this range since this would provide a greater advantage to find a qualified buyer.  I would target homes in a middle class neighborhood with minimal to minor repairs needed. The house would be structurally sound with no major damage inside or out. I would target those homes whose pricing has reached a distressed value of 60% of its assessed value, and whose comparables are of greater inequities. Some examples of such targets include:
1070 Johnson Circle , Franklin , Va. ( Isle of Wight County ). This house was built (rebuilt after fire) in 1987, contains 3 bedrooms, 2 baths, brick construction, with .5 acre of land. Only minor facial repairs were needed. This foreclosed home sold for $55,000 in 2009. It was assessed at $125,900. The comparables for houses recently sold on the same street ranged from $160,000 to $212,000.
  22327 Robertson Street , Courtland , Va. ( Southampton County ). This house was built in 1996 and contains 3 bedrooms, 2 baths, and in a very desirable neighborhood. Only minor repairs to the interior fixtures, painting the interior walls, and replacing the carpeting were needed. This foreclosed home sold for $63,000 in 2010, and was assessed at $113,800. The comparables in the neighborhood range from $129,000 to $225,000. 
  9154 Turner Rd , Drewryville , Va. ( Southampton County ). This is a manufactured home built in 1998 and contains 3 bedrooms, 2 baths, with 2 acres of land. This foreclosed home sold for $24,000 in 2011, and was assessed at $72,500. No known repairs needed....

Find Another Essay On $150,000 Real Estate Investment

Opening an Assisted Living Home Essay

1599 words - 6 pages As the population of elderly persons in this country is ever increasing, so too is the need for housing to accommodate this portion of the population. This is one reason why if I acquired $150,000 cash to be used specifically for a distressed real estate purchase, I would open up an Assisted Living Home. In the state of Arizona an Assisted Living Home is defined as: “a facility that provides resident rooms to ten or fewer residents.” Upon

Improvement of a Foreclosed House Essay

900 words - 4 pages substantially since the real estate market crashed. Owning a two bedroom townhouse would allow me to rent out the second room to a fellow college student at a reasonable rate. The above plan would allow me and the surrounding community to benefit the most from a 150,000 dollar property investment. By purchasing a foreclosed townhome and renovating, I would have a place to live while in college and receive profit from renting and the eventual sale. The community would receive a boost from taking a foreclosed home off the market, beautifying the local neighborhood and the economic benefit from the money spent during the renovation.

Real Estate in Washington DC Area

1129 words - 5 pages . This scholarship is interesting and challenging as for most markets across the country are still seeing declines in appreciation. Contrarian to the rest of the country I have seen positive and appreciating related news to only Washington DC and San Diego (at least as the largest metropolitan areas are concerned). Thus, the scholarship indicates we are able to allocate $150,000 towards a distressed property. Being that real estate

Renovating Distressed Property

912 words - 4 pages foreclosures during this economic downturn. Accordingly, distressed real estate purchases present options for homebuyers that they might not otherwise experience, had the market retained most appraised home values/pricing. A buyer with $150,000 cash has the option of purchasing a distressed property for well below the market value, which in this kind of market is much lower than 4 years ago, provided the foreclosure amount the “seller” owes

How to Make Money Renting and Flipping Homes

912 words - 4 pages in the real estate realm that the kitchen and bathrooms are the greatest selling points in a home and will yield the highest return on an investment. It is important to keep in mind resale because my ultimate goal is to rent the property until the economy evinces that the property will provide me with a high resale value. Therefore, I will install new countertops, floors, appliances, and apply fresh paint to every room. These updated surfaces

Real Estate

2347 words - 9 pages have already seen changes that complement these changes. Most real estate companies have become management companies. Much like an investment portfolio, they not only list and sell property, but also manage and invest in a number of properties. In addition, they are taking advantage of mergers and agreements. As if this were not enough change in a single decade, many real estate companies are changing the way they do business internally

Professional Practice - The estate agents office

2449 words - 10 pages estate and infrastructure amount annually to approximately 50 per cent of all gross investments.The replacement value of all real estate above and below the ground including infrastructure is about four times national income and five times the national debt. Most of our national capital is therefore tied up in real estate. Maintaining the value of the existing stock and managing the expansion of investment optimally are two important tasks. Compared

Affordable Housing in Detroit Michigan

932 words - 4 pages In today’s volatile real estate market what was once a solid investment, real estate, no longer is the financial safe haven that it once was. Many of the distressed properties have been completely exploited. These properties have been completely stripped of fixtures, plumbing, wiring, and are merely shells. One area that has an excess of such properties available is Detroit Michigan, which will be the focus of this hypothetical exercise and

The Collapse of the Domino --- Chinese Real Estate

1450 words - 6 pages financial crisis, the focus should be on the how big is the China’s real estate bubble, and when will it burst. As for how big is the China's real estate bubble, we can see from either the price earnings ratio, or from different indicators of housing rental prices. The proportion of real estate investment and housing vacancy rate point of view, it is already no more additional area. Since China’s real estate bubble has blown huge, this big real

Real Estate Industry In The Rental Market

2192 words - 9 pages into buying a house, or to rent and use the money that is not used to purchase to buy stocks or some other asset. People will purchase when it is relatively less costly then renting.” (Microeconomics 397) From speaking with a real estate investor who owns rental properties it appears that owning certain rental real estate is sometimes an immediate profit base or a long term investment base. Thomas Seeley explains, “Some properties that I own

Distressed Real Estate Project

1180 words - 5 pages help, and self-esteem building activities. Students will reap the benefits of volunteering and may be more inclined to remain in the Buffalo area after graduation. Not only will this be a wonderful resource for parents and children alike, but it will also strengthen students’ ties to the Buffalo community. Any real estate project must be able to generate an appropriate financial return on investment, but a property which can also contribute

Similar Essays

Real Estate Investment Essay

883 words - 4 pages a higher price to generate income such as rental income or generate the profit. Real estate investment seems to be a good investment in recent year. However, real estate becomes a risky investment if these factors are not well understood and managed by the investor. The factors that affect the real estate market should be identified to prevent the bad result in real estate investment. 2.1.1 Determinants of Real Estate Investment i. Economic

Real Estate Investment Essay

841 words - 3 pages In order to get the best return on investment for a distressed real estate purchase one must consider many factors. These details include but are not limited to, the current and future state of the housing market for a given area, the cost of construction and related services, the median rental, lease or sale prices, the property taxes, the title cost and insurance, as well as any legal implications of the purchase and subsequent sale, lease or

Chapter 1 – Important Facts On Real Estate Investment?

1202 words - 5 pages WHY INVEST IN REAL ESTATE? This question is asked quite often by those who are looking for a way to invest their money. The answer is simple: The investment in real estate has always been the most powerful way to gain wealth. Nearly all of the worlds millionaires became just that by investing in property, in one way or another. The reason real estate investing is such a huge wealth builder is due to leverage

Commercial Real Estate Essay

1047 words - 4 pages Commercial real estate is any property other than a single family home or a residential lot in a neighborhood. The commercial real estate market is handled very similarly industrial and residential real estate markets. The commercial real estate market goes through ups and downs just like any other investment market however investments into commercial real estate can be a very wise decision. Commercial real estate is similar to industrial and