One mans Heartache is another mans home-run.
Currently millions of families are finding it harder to buy real estate, or are losing their existing properties at an alarming rate. But for some there is a silver lining to this cloud. In the lakes region of New Hampshire we see one such example. A development going belly up offers an opportunity for an investment strategy to stay ahead of the Market.
Everyone needs a place to live, and if you were in sales…it’s time to be in rentals. Brady Sullivan Properties of Manchester New Hampshire sees this as an opportunity. In one case a 49 unit approved condominium complex with only about ten units completed became available through a defaulted mortgage. The Company offered $800,000 for the project, and will benefit due to the costly infrastructure work being mostly completed.
Why buy a condo project when sales are down…you may ask?
This investor has done the math, at this cost a preemptive move to purchase now gives them a positive cash flow upon completion and fixed cost inventory when the market improves. Over the Years Brady has purchase 1,000’s of units at bankruptcy and foreclosure…rented them held on to some and sold others.
The Shadow inventory that has yet to hit the market is a real concern for many looking down the road (at the wave that is still building). I am confident many would be investors will see these assets as an opportunity for long term returns. I know my money market account is paying less than a 1% return, I could hardly do worse by buying real estate at the right price for rental income, depreciation and tax savings still afforded property investors. If something decent comes on the market near where my son plans to attend college, which could have a secondary advantage for me. Successful investors are planning ahead to succeed, not playing defense and just trying to not fail.