I started this business with a buy and hold philosophy which means I had tenants and I would purchase on the fringe area of town. When I was trying to figure this business out, I had to develop an idea of where I wanted to buy.
There are areas of Springfield, Ohio that I dont want to buy in. Its the property thats rougher and run down. I try to avoid places where you can hear gunfire in the evenings and things like that. I came up with the strategy of not buying in the rough parts, but I would buy right at the edge of that area. This way, the area was still quiet and nice but I could get house at a seized property auction. Just about any city has a similar set up.
So I starting buying bank repossessed homes in the fringe areas and avoided the war zones. I had safe places that were less expensive. They offered great opportunity for me. I whipped them into rental shape and generated a positive cash flow through the renters. I found ways to approach the rehab that were more economical. For an example when Kevin and I rehab bank repo houses today and put carpet in, it costs me $4000 for carpet, $3000 to $4000 to carpet the place.
With these rentals I found somebody who was doing business with a hotel. They would sell me a roll of carpet for $20.00 and then I found somebody to lay it. So I started to look for opportunities like that and that saves a lot of money.
Now that I am in the selling mode, putting in $4000 of carpet helps because when somebody comes in to the place I get the wow effect. The wow effect is important in sales, but rental is a different story. With a rental, if somebody comes walking in the $4,000 carpet might be a little bright for them. Id try to stay with like a neutral brown or something. Darker colors were also good because the renters didnt mess them up.
This 20 dollar roll of dark carpet could be put in easily and if they tore it up in a year or so, I could put another one in with relative ease. I just pulled it out, put another one in.
To review, what I did was purchase bank repossessed homes that were safe at a low price and I fixed it up very inexpensively. This saved me a lot of time and was good for the bottom line.
Many people sell their boats in the current times of recession to tide over their financial crisis. They decide whether to see their home, car or boat during belt tightening. Banks may auction boats which may have been collected by it as collateral in return for a loan. When the loan remains unpaid banks put up these boats for auction. The boat can also be put for auction by a bank in what is called boat auctions because it may have been abandoned.
You can get a list of boat auctions from banks and financiers who may hold auctions which can be your best bet. The bank will wish to get rid of the boat as early as possible to regain the amount lost and to avoid maintenance cost on the boat. So such boats can be purchased at a great discount and you can get a discount of even as much as 50%. Less frequently, you can also buy boats in police auctions. You can check the listings of boats online and know what is available. You have to think of transport cost if you live somewhere else as it is going to be a large purchase.
You must also check the boat properly before purchase to identify possible damages and oil spills and stains etc. You have to be extra alert because the boats are mostly sold in as is” condition in a boat auction. You must also check the condition of the engine because it can become very expensive to fix it once it gets repaired. You can check the places where repo boats are available if you wish to buy a boat but are not confident about arranging for initial finance! Many investors buy boats at 40%-70% discounts in auctions and resell them to people who have the affordability.
You can get fabulous discounts on bank repo boats and benefit from such deals. These boats were initially well maintained by people who cared for these boats. Wear and tear on such boats is also minimal because the use of boats is seasonal in most places. The repair work on such boats can also be minimal and may just require a coat o painting if any. Owners also maintain such boats very well for safety and insurance reasons.
Those who repossess boats such as finance companies and banks wish to dispose the same quickly because these are basically non-performing assets on their books. They are sure that they cannot get a very high price for the boats in these times of poor economic condition. Hence they wish to dispose the boats as quickly as possible.
You must take up research before buying a repo boat for personal use or from the viewpoint of investment. You can also find several auction sites that enlist boats for sale throughout USA and Canada.