Tough Time Selling Your House-Copy What Builders Do

As the real estate market keeps plummeting the profit potential of home ownership has cooled as well. Here's a strategy called

"Copy the Builder"

It is relatively easy to make a profit when you sell your home if the market is rising sharply like it has been in most of the country till sometime in 2006. It becomes more difficult when a hot market slows down. It's very difficult to make a profit on the sale of your home when prices have fallen 25-75%.

Is there a guaranteed way to be relatively sure you'll make a profit when you sell your home? Of course not! However, I've seen progressive real estate investors use this maneuver multiple times when they don't even need to move.

Copy That Builder

In many areas of the country, there are builders who build hundreds of houses each year within a fifty mile radius of each other. They build entire communities or are one of three to five builders who build entire communities around big employment centers. This presents you with an important opportunity.

A New Community

Builders will typically sell first phases of communities for significantly less than later phases. On one hand, they need to get the cash flow moving. On the other, it is harder to sell at high prices because the community typically consists of dirt lots and construction equipment. Put the hands together and you have a great profit opportunity. Recently due to the house prices coming down so hard in Michigan, the later phases are actually selling for less.

How To Copy The Builder

A lot of times there are previously built homes or subdivisions near these new projects. There are always bank owned foreclosures available at huge discounts that are only a few years old. As a savvy investor you can use the following formula to make huge profits more quickly in Michigan foreclosures;

1. Find a great home that needs little work that's only a few years old.

2. Freshen it up with paint, carpet, and fixtures.

3. At this point you need to be into the project at 30-40% less (yes, it is possible) than retail listings in the same ares.

4. Make sure that it'll be ready with enough time so that your buyers can take advantage of the $8000 home buyer tax credit

5. List it with a great agent and make sure you offer both the selling agent (xtra commission) and buyer something special (like a plasma TV is they close by a certain time).

Think outside the box and you will make money in Michigan's foreclosure real estate market.

Make It Happen,

Dylan Tanaka
http://www.REIAofMacomb.com