Low value repossessed property in America
In today’s uncertain market it’s hard to know where to find real value for money.
One type of investment that can offer good returns are foreclosed (repossessed) houses in the USA. The Foreign Property Shop has a specialist division devoted just to this product, www.property4peanuts.com
(P4P) selling to investors in the UK and elsewhere.
But why buy this type of property? Firstly and most importantly, it’s a bargain! The price at which P4P offer the houses is way below even the depressed bank valuation in America. The Banks there have received billions from the US government allowing them to write off mortgages on such properties.
Secondly, the houses offer steady rents. This is unusual as normally when property is very cheap it tends to be impossible to rent for anything like a decent amount. Not so P4P’s properties in Detroit, Atlanta and Florida. They offer rents that return over 10 percent per annum NET – that is, after all expenses are deducted, including full management.
Apart from high rental return, the real goal with these properties is to cash in after holding for a few years. The key to a very profitable exit strategy is to buy in good areas, for a low price. This has been getting more difficult in America as the supply of foreclosures is drying up with more sales are going to “short sales”. However, P4P are able to secure low priced property in better areas.
Property renovation is an area in which difficulty and cost are often underestimated by investors. Just about all foreclosed properties have suffered during Bank ownership and need work doing on them to bring to “Code” (standard required by City before a tenant can be placed). Dealing with builders even in your home town is difficult enough. Imagine trying to get fair price and good work managing a project thousands of miles away! P4P have crews working full time for them and can get work done for a fraction of prices than an individual can themselves.
The purchase process is simple and the whole process doesn’t tend to take longer than six weeks. A reservation fee of $2,800 secures the property. A contract is sent setting out P4P’s obligation to refurbish and place a tenant. The balance is then paid. Property is owned freehold and is free from any debt.
There is no need to visit America to purchase and syndicate ownership isn’t a problem. For those who wish to see the properties and area, subsidised viewing trips are available for £395. This includes flights, hotel, transport and even cultural excursions. The aim isn’t just to think of bricks and mortar but give a flavour of the communities in which you are investing.
The Foreign Property Shop is taking clients to America most weekends this summer. Trips are Friday to Sunday. Just call Dan Pennington on 0780 9647987, Emma on 01795 844004 or 07880 732293 or email: email@example.com
to book a place or get more information on the latest bargains.