Find Me A House Priced 50% Below Market Value!

Last week I received a call from an investor, looking to purchase Brevard County Real Estate here in Melbourne Florida. Our company, at M & M Real Estate specializes in helping investors buy, sell, rent and manage investment property. My broker has been purchasing commercial and investment real estate for almost 50 years. I have been purchasing single family investment houses of my own since 1996. So, we get investors referred to us on a regular basis. Well, this referral was a bit different than most that we get…

When I met with this man, I asked what his investing goals were, the types of property he was looking for and his ideal price range. He stopped me, and told that he didn’t care where the property was, or what the price was…all he cared was that I only show him houses priced 50% or more below market value and needed little work. HMMMMMMM… properties priced 50% or more below market, with little work? I pondered his statement for a moment and must have looked puzzled. “Well”….he said…and waited. I had to think on it a moment longer. I asked if he knew where these types of properties were located. “Nope, he said, “but you do!” I asked him if he had seen properties like this. “Nope, but you have. Look, all I want to do is paint them and then resell for a profit,” he said. I had to ask, “Who told you that you could find these types of properties?” He told me that he saw it on TV!

I sat down and showed him a list of available properties in our area. He told me he didn’t want to see any of those. I said that often times we find good deals on properties. However, I reminded him to not spend all of his time looking for that one “great” deal, he may very well pass up many good deals. He didn’t want to hear what I had to say. “I don’t care,” he told me. “I know it can be done because I’ve seen it, I saw it on TV.” I told him I could find him competitively priced properties that needed some work. “No, I’m not doing a bunch of work. I don’t have to!”

Are these expectations realistic in today’s market? There is not much room for house flipping in today’s market, as our properties are not currently appreciating.

As an investor, myself, I understand the importance of buying a property at the right price. And, in figuring in the time it will take and the expense you incur in repairing a property. After all, you make your money when you buy real estate, not when you sell.

“Look, if you can’t show me properties today, that are priced 50% below market value with no work, then I can’t do business with you.”

I have pulled several lists for him and to date he has not agreed to look at anything on any of the lists.

I hope he doesn’t spend all of his time waiting for that great deal, and miss some of the good deals available today.