Louisville Real Estate News

You want the best deal on an REO home in Louisville?  Act like Jack.

Be Nimble

Real Estate investing is not like dating.  You do not want to get emotionally attached.  This is a financial transaction only.  If the numbers do not make sense, walk away and find a different home.   

Be Quick

Louisville foreclosures sell quickly.  Multiple offers are common within days if not hours.  Some investors even submit bids sight unseen in hopes of getting lucky.  (In general, this is not a good strategy).  To get the best deal, you have to be prepared.

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Pre-approval is critical.  Banks won't accept offers without pre-approval letters and you don't have time to get pre-approved after you find the house.  Do it now.

Knowledge is power.  The more you know, the better your chances of getting the best deal.  Learn home prices in your area.  Spend a few hours at a hardware store studying material prices.  Call contractors and get estimates based on $/sq ft.  Most importantly, find a Louisville real estate agent who has bought - sold and/or rented investment properties.  By knowing the expected sale or rental price as well as the estimated cost of repairs, etc, you can make an offer quickly and confidently.

Don't Get Burned

You are not just trying to jump over a candlestick.  Buying investment homes can be challenging and more than a little intimidating.  You are putting a large amount of money at risk on the hope of earning a good return.  A good real estate agent will help protect your interests.

Don't Wait Until the Flame Dies

Now is a terrific time to buy an investment home.  Foreclosures, short sales, and tightening lending standards have converted would-be homeowners to renters for some time.  Increased demand will raise rental rates. At the same-time low interest rates and tax credits are driving some people to buy homes.  Most buyers (especially first time home buyers) want new or updated homes.  You can offer that with an investment property.

If you wait until the ‘market recovers,' you will miss the best deals.  The risk will decrease, but so will the potential reward.  Don't let fear paralyze you.  When you are ready to seize this opportunity, call me (502-921-3989) and I'll help you get started.

See Also: Why you Should Buy a Louisville Investment Home

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Erik Hitzelberger is a licensed REALTOR with RE/MAX Alliance in Louisville. If you need a Louisville Real Estate agent please email me or call 502.921.3989.

I specialize in the following areas of the Metro Louisville Area: Jeffersontown (J-Town), Middletown, Okolona, Fern Creek, Shepherdsville, Mt Washington, Hillview, Brooks and Pewee Valley.  Click the following links to learn more about Louisville and Bullitt County Real Estate or to Search for Louisville Homes 

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While the local housing market has not suffered to the extent of other areas, Louisville investors still have a tremendous opportunity to take advantage of the current situation.  By purchasing investment homes now, a saavy individual can set himself or herself up with solid returns for years to come.  Four factors are particularly favorable for investors right now.  These include 1) an increased supply of homes, 2) an increased demand for rental homes, 3) low interest rates and 4) oncoming inflation.  

"Be fearful when others are greedy and be greedy only when others are fearful." ---Warren Buffett

Despite low interest rates, abundant selection and $8000 first-time home buyer tax credit, many buyers are afraid to take action.  Their paralysis has caused a small glut of homes in virtually every price range and area of Louisville.  In Jefferson and Bullitt County, there are 4640 and 586 homes for sale respectively.  March sales were 471 and 61.  A balanced real estate market has 6 months of inventory, we have 9+.  The excess represents opportunity.

The economy is creating renters.  The last couple of years has seen a drastic increase in the number of Louisville households that have filed bankruptcy, sold their homes as a short sale or lost their properties in foreclosure.  Under current lending standards, most of these people will be renters for the next five years.  Additionally, a significant amount of people have credit scores which either no longer permit them to buy a home or have priced them out of the market.  As callous as it may sound, their loss is your gain.  Higher demand for rental properties means higher occupancy and rental rates.

Investment property interest rates are currently below the rates that many have their principal residences financed.  Lower rates mean lower mortgage payments.  Lower mortgage payments mean more cash flow.  If you thought you had to pass that on, reread the previous paragraph. 

Sooner or later, inflation is going to read its ugly head.  The US Treasury hard-wired the printing presses in the on-position about 9 months ago and hasn't really checked on them since.  When the time comes to deal with this demon, rest assured interest rates will rise.  Besides feeling like a genius for buying when rates were low, you will have the added benefit of a larger rental pool as potential buyers are priced out of the market.

With these four factors working for you, the time is definitely right to buy an investment home.  I monitor investment grade homes on a regular basis.  Call me (502) 921-3989 and I'll help you get started.  

Click the link to search the MLS for Louisville Homes

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Erik Hitzelberger is a licensed real estate agent with RE/MAX Alliancein Louisville. If you need a Louisville Real Estate agent please email me or call 502.921.3989.

I specialize in the following areas of the Metro Louisville Area: Jeffersontown (J-Town), Okolona, Fern Creek, Shepherdsville, Mt Washington, Hillview, Brooks and Pewee Valley.  Click the following links to learn more about Louisville and Bullitt County Real Estate or to Search for Louisville Homes.