Investing in Baltimore
I really think you can't go wrong buying real estate in the City of Baltimore right now. There are so many incentives to buy low and put a few dollars into it then sell higher. Now, I don't mean for you to get greedy here but make a few thousand dollars and move on to the next house.
There is such a shortage of affordable homes for "real people" to buy. And, Baltimore isn't all that bad. It just needs some folks to take pride in their neighborhood, take pride in their home and take pride in their families to bring it back. I know that's easier said than done. It takes a strong person to rise above it and get on with your life rather than letting the cycle repeat itself.
I help investors all day long buying affordably priced homes and putting a few dollars into them and reselling them for a nice return on investment.
I had a client purchase a home for $55,000 last summer, he invested about $30,000 in it and sold it for $149,000 and now he's buying another one in the same neighborhood for $60,000 and going to put another $30,000 (or less since the house is in better shape) into it and sell it for $149,000 or whatever the market rate is when h e's ready to sell. I can sell $140 something thousand houses all day long.
In the coming months and years it's the affordable housing market that's going to be the place to make money. Do you know anyone with a house that needs some work? I have a whole list of investors who are looking for houses that need work anywhere from a full gut rehab to just a little TLC. Get in touch with me today and let's make it happen.
At the end of a perfect week
It's Saturday morning and I'm still sitting here in my pajamas. I don't have any appointments today and I think I'm going to spend the day trying to finish up a couple quilts that are almost there.
I think I practically moved mountains this week and made miracles happen. I have a couple with 3 kids I'm working with. Until Wednesday I was not aware that they had to be out of their current residence until the end of the summer. Wednesday they tell me they have to be out of their house by July 23. I almost freaked out but kept my cool. We spent yesterday looking at houses in Randallstown. They needed 4 bedrooms, 2 bathrooms and a sizeable yard and really wanted a newer home. We had been looking at houses for 3 weeks. Yesterday we looked at a gorgeous 4 bedroom in Kings Point and wrote a contract on it. Even though the house was older than they had been wanting (1968) it had been newly renovated and gorgeous and was for sale by owner. The owner agreed to give them a pre-settlement occupany and close on August 11. So, they move in next weekend but don't have to settle until the middle of August. At 10pm last night the contract was accepted and I got it back today all signed. They are ecstatic. I don't think they realize how unusual this circumstance is.
I submitted another contract last night on a cute 2 bedroom home in Hampden for another of my clients. And, ratified a contract on one of my listings too. It was a very busy week.
I almost feel at loose ends today because I don't have to go out with clients or do anything work related. My son asked me this morning if we were going to do anything today and if it was a surprise. I hadn't really planned on doing anything this weekend except maybe relaxing.
I have 2 quilts that are next to be complete. Both are quilted but need binding so I think I'll go to the quilt store and find fabric to compliment both and get the binding done.
I do need to relax some. We have 14 listings, 3 of which are under contract. And, 6 contracts ratified going to closing and 14 buyers still looking. We're very busy so where's the slow down in the market.
Weekend Madness
I spent the day Saturday driving a client around emerging neighborhoods in Baltimore. I should really do this more often as things change so much and so quickly. There is so much improvement going on in Baltimore that it's hard to keep up with it all. It's just my opinion but you really can't go wrong buying a house in Baltimore, whether it's to fix it up and resell it, fix it up and hold on to it and rent it or live in it for a while.
If you are a brave soul some of the neighborhoods will improve eventually, some will take longer than others though. But, in the long run, there is plenty of room for everyone to have their own little corner of ownership.
The unfortunate thing is that there are so many so called contractors out there that just take people's money and don't really do a good job, there's also a lot of improvement people out there that are just in it to make a quick $ and don't really do a good job either. It really is buyer beware when you are buying a home that has been renovated. I always recommend you get a home inspection by a reputable home inspector to be on the safe side.
It's been a while since I drove around Reservoir Hill and the renaissance has been going on there a while but I still have a hard time seeing the forest for the trees. There are still a lot of blited homes even though there is a lot of renovation going on. I read in The Baltimore Sun that there is still a huge problem with drugs and drug related violence in that neighborhood too. It's sad because those houses really are gorgeous. I feel the same way about Fayette Square, Harlem Square and Anchors of Hope.
Washington Village continues to be hot but I've noticed a slow down in the resales there and there are a ton of properties on the market given the size of the area and everything has been on the market a long time. I started out in Washington Village 4 years ago and the neighborhood has been good to me. The saddest thing I see there is the investors buying shells and reselling shells and driving the prices artificially high on shells and not improving them. I have 4 listings there and they have been on the market a long time even though they are gorgeous. One of my sellers is getting anxious and his listing is really one of the best deals going since you have the opportunity to bring the price down by not taking granite counter tops and hardwood floors. Right now it's priced with the option to reduce the price, I think I'll suggest he price it low with the option for upgrades. It's really nice and has back lit tray ceilings and the laundry is upstairs. The other thing he did was put in large closets which is unusual in older homes - even after they've been rehabbed.
We drove over to the Hollins Market area and that area is scary depending on which day and what time you go there. Sometimes it looks great but other days it's just downright scary with drug deals going on on the corner and people waiting for their next score.
What I often wonder is what will happen to all these people when the neighborhoods improve?
Baltimore City is filled with all kinds of great homes in neighborhoods on the edge. Lots of opportunities for people to make some money if you don't get too greedy. My Manager always says "pigs get fed, hogs get slaughtered" and he's right, if you go into it thinking you'll make a little money then you'll be pleasantly surprised with how much you make, but if you go into it thinking it's going to make you rich then the hardships you suffer along the way and the amount of your return will leave you disappointed.
I'm taking today off and spending it with my family and doing some things that I enjoy doing other than selling real estate. And, I really do love selling houses!!
Later..
June
