Is that home a steal or overpriced?

This article courtesy of bankrate.com provides you with a simple formula to determine if the home you are looking at is overpriced or not. They use the price/rent ratio, which might help you figure out if the home your scoping out is a good deal or not.

The one true thing, I've seen in all my years of Real Estate is never just take the Realtors word for it. Always do your homework and ask for multiple options, unless it’s a specific type of house in a specific neighborhood, then your pretty much stuck.


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Real Estate is all about location…

Not all areas are on the decline in the US. This article posted on Yahoo, shows that some areas are still gaining values while others plunge.

Some of the areas where real estate is keeping value is Seattle, Des Moines, Denver and a few others.

The truth is that every city has pockets where Real Estate is still in demand. Do your homework before you buy it will help you to lower your risk.

Click here for the story

Q and A on investment real estate from a smart realtor…

Well, there are so many homes on the market today that I start to get giddy. It’s a buyer's market and will be for the rest of the year and maybe even longer.

In today’s post, I interviewed one of my most trusted realtors in the Twin Cities area, Mr. Brian Amiot. He is my go-to realtor for investment real estate.

Satori: Where should I look at buying?

Brian Amiot: You should look for a neighborhood that is not over saturated with homes listed for sale and especially not over saturated with abandoned or foreclosed homes for sale. It should be within a decent proximity of where you live, regardless of whether you plan on renting or rehabbing. Other than that, it's all about trying to find a neighborhood that has relatively short listing times in general.

S: If I buy a foreclosure, what are some of the pitfalls I should be aware of?

Amiot: In buying a foreclosed home, you are buying the home "as-is" in most cases. A lot of foreclosed homes have been sitting vacant for quite some time, so there can be issues with cracking from the extreme temperatures and sometimes even pipes bursting. I always recommend getting an inspection, and to keep in mind that inspectors don't always catch everything. Plan on having more repairs than you initially see.

S: When do you see the market bouncing back?

Amiot: If I knew that answer for sure, I would be in a tropical paradise, being served on hand and foot...but I have seen signs of the market turning in the recent past. There have been more showings and offers on my listings, and I have seen more and more properties that I show clients sell before we even get a chance to see them. I don't think it's going to happen overnight, but I think we are at least starting to head the right direction.

S: If I have 100k to invest in another property what should I look at buying?

Amiot: What to invest in is very different for every investor. It depends if your goals are to buy and hold, or buy and sell first of all. Again, I believe in keeping properties close enough where you can manage them if need be. Other than that, it's all about finding the house that has some opportunity for improvement. I try and look for functional obsolescence, or something that is functionally wrong with a home. But, also something that can be fixed without too much of an expense.

S: What are some of the upsides you look at in homes?

Amiot: I am a personal fan of 3 bedroom, 1 bath homes that have an opportunity of adding another bath. I also like homes that are in nice neighborhoods and down the street from much larger, more expensive neighborhoods. Layout in general is a huge factor, but probably the two most important things that I look for are curb appeal and that "Wow" factor right when you walk in the door.

If you are looking into purchasing investment real estate in the Minneaoplis/Twin Cities, MN area, please contact The Satori Group or Brian Amiot (web-site posted under the link section). We love questions!