Investors making it difficult to buy

[peestandingup]

You all know I've been trying to score a cheap fixer upper over in the historic district. In the last couple weeks, I've literally inquired about 4 different property listings, which I would have seriously probably put down money for if everything was decent, & every single one had been contracted already through an investor.

I know that they have a right to it as well, but I gotta tell ya, its frustrating as hell. We're just a normal family who actually wants to live there someday soon & make the place better, not try to make money selling it short term for twice what we paid or sit on the property forever (like so many properties there now).

Springfield needs more people like us who are willing to actually buy AND live over there, but they're making that extremely difficult. Which I think hurts the area in the long run & is holding up progress. Just my $0.02

Anyways, can someone recommend a method I can use to get the jump on these people? Do these contracts sometimes fall through in this area a lot of times & the property comes back on the market?? Thanks.

[Springfield Girl]

The advice I always give is to get involved with the people living in the neighborhood. We tend to get the inside scoop as we live next to the properties and we talk to each other. Have you talked to Amanda Searle or Shawn Maguire? They are Realtors who live in Springfield and specialize in the older homes of the area. I have several friends that have gotten great deals on properties recently. You have to hang in there though, because just like you, there are many looking for deals and the best ones go first. I would suggest that you call a neighborhood Realtor and tell them what you are looking for. They can inform you quickly when a new property becomes available. Don't give up, I'm a firm believer in what's meant to be. Good luck.

[Dan B]

peestanding up, I feel you. My wife and I started seriously looking in Springfield when she was pregnant with my oldest daughter, in 1999. We tried, unsuccessfully, to put a contact on a house that year. We gave up, and decided to buy in Arlington instead, since we needed something quick (baby on the way). We started looking again late 99/early 2000, and again, hit several blocks.

I worked in telecom at the time, and the industry imploded in 2001, and I subsequently worked for a while in Orlando, derailing our plans completely.

Finally, in 2003, after finding local employment, and feeling stable again, we started driving around and found and fell in love with the house we now live in.

Dont give up. Not all "investors" are bad, especially now, as most of the money being spent is not borrowed (the difference is, there is no money to be had from the banks) which means that the owners are far more likely to act.

How big a house are you looking for? How much of the work are you wanting to do? Livable, not livable, rehabed, needing partial rehab, needing full rehab. What areas of the neighborhood are you comfortable with?

There are some great deals out there, you just have to have your ducks in a row, and be ready to jump when the right on hits.

[peestandingup]

Thanks ya'll. I didnt mean to sound harsh towards investors. I wish I had money to make investments like that. It would be fun.

Yeah, thanks Spr Girl. I may give those guys a shout. I do have a couple contacts in the area I need to be talking to more I think too. It'll give me an ace in the hole. I've talked w Shawn on several occasions about it, but never really seriously I guess.

Dan, not looking for anything spectacular. The places I have been excited about in pursuing have been the smaller single story bungalow types (around 1000-1200 square feet) with a little driveway & a small yard in the back. They have needed a lot of work, but I dont think they have been needing totally remodeled . Doesnt have to be livable right away, but not too far off to at least be able to hang out in & not get rained on or die from some toxic materials, lol. These seem to be the cheapest going right now. Plus, we dont need a giant McMansion. Probably be too much space & a real money pit to try to fix up. Dont want that to happen & get in over our heads.

As far as the area, I guess anywhere from 2nd street to 8th, preferably on the right side of Main & left of Clark. Wouldnt mind above 8th, but would have to be the right place. This area seems a bit more hit or miss.

[CS Foltz]

peestandingup...........you need to go by Three Layers! Board posted on the Walnut St side (inside the bldg and on hangers)  that shows just what is available from whatever company shawn is ! Has pictures and prices and I am sure that they have plenty more...........talking to them cost's nothing and their office is right beside Three Layers! That address is corner of Walnut and 6th St.

[mtraininjax]

Do what investors do...look at the foreclosures at the clerk's office. Or easier still, drive the neighborhood, pick the homes that look like they need love and send the owner a letter, asking to buy. All of the owner records are on COJ.net, so its all public.

The investors can't get them all, cheer up, this is meant to be!

[iloveionia]

Make friends with a local real estate agent.  It will help.  Lisa Simon and Reggie Fountain are also knowledgable agents along with Shawn and Amanda. 
BUT!! Truth is if you want those cheap houses you have to be faster than the investor.  You have to be ready to buy at the snap of a finger, and take a risk.  There is not time to think or dicker.  No time for a home inspection, no time to sleep on it.  You have to act and take a chance.  You blink, and it will be gone.  I know this through experience.  Have your cash (it has to be cash!) and paperwork up to date regularly and GO!!  It is practically a full time job, so good luck. 

[CS Foltz]

Good points iloveionia! Lots of choices for sure and one must be ready!

[mtraininjax]

Truth is if you want those cheap houses you have to be faster than the investor.

If you go through a realtor 99% of the time, they are brought in on the finished side. Besides, most investors never close on a property, they have the property assigned to them, block the title, and thus control the house. So one someone has the title, they in essence control the purchase. We working with an investor/wholesaler for our rental houses. Most good investors have the cash to move in an instant and already know the value of property before you will, so look and be ready to pull the trigger without an agent. You can get a good real estate attorney to help with the closing, and if you are buying investment property, odds are there are so many things wrong with the house, you'll need to replace all the things the home inspector will tell you about anyway.

[samiam]

Find several houses that you are interested in. Go to the city of Jacksonville property appeasers office web page.Find the owner and call them and ask if it is for sale. If it is a bank tell them you would like to be the first one called when they have a price or they will tell you to make an offer.It my take a month or two but it works. It did for me.

[ChriswUfGator]

Ha. Yeah, this is a problem in Springfield. Everybody thinks a place is worth 5X what it really is. The only ways to find a deal is to search the MLS every morning, or sign up with the banks to get their foreclosure lists. I don't know if it's still the same, since there were a lot more mortgage companies back then than there are now, but most of them you could sign up for their REO lists and see if there was anything you wanted to buy directly from them. Best deal I ever got was $39k from Interbay Funding, a quadplex in the historic district.

Another quadplex down the street, in muuuuuuuuuch worse condition, had been for sale for forever and they were asking like $180k. Thing's probably still for sale. That, or torn down. Don't overpay just because you get exasperated. Be patient, things will come down the pipe.

[CS Foltz]

ChriswUFGator...........I agree! Everything that I have seen says about 2 years from now things should pick up! Until then count on property values, even in Springfield (San Marco, Riverside, Ortega, Mandarin and anything with a historical area) continuing to drop! Those are experts guesses, I think it will be closer to 3 years but that's my take on the situation!

[sheclown]

I once bought an "empty" lot for back taxes, only there was a house on it.  They had moved the house when the city built the new school on w. 12th Street, but never hooked up the water and I guess, didn't tell anyone at the property appraisers that they moved it. 

I went back in after doing a double take on that lot and said "there's a house on that lot."  The people downtown argued with me until I finally said "okay, I'll take that empty lot and everything on it." 

Turns out tons of woodwork had never even been painted.

That day...I knew what it felt like to be a treasure hunter.

That was my very very best deal.

[iloveionia]

Gloria,
Do you have any pictures of the house that didn't exist on the lot?  I'd be interested to see it.  The house is still there?

[sheclown]

yes, it is on the corner of 9th and Hubbard. 

I don't have any pictures of it.  It looks gorgeous now, I didn't do that   I sold it to a couple in North Carolina who were going to move here and then they sold it to someone else who restored it.