CHAPTER 9 IT IS TIME TO PAY ATTENTION T TTENTION TO FORCLOSURES & AUCTIONS! UCTIONS! 30 Year Fixed Mortgage rates have jumped to 6% for the first time in 12 years. Mortgage demand falls to the lowest level in 22 years amid rising rates and slowing home sales. CNBC 6/8 Redfin reported that 19.1% o t 19.1% of sellers dropped their home price in the four weeks leading up to May 22, suggesting a market slowdown may happen into the summer. Additionally, people searching Google for houses for sale fell 13.1% y l 13.1% year over year and mortgage applications were down 16% f n 16% from the same period last year. As the market slows down and inflation soars more and more buildings will be going to auction. Good news for you is that there will be less people bidding on the properties.
IT IS TIME TO PAY ATTENTI TENTION TO THE AUCTIONS!
Here is an example. This 9 unit property was for sale for $699,000. It is going to auction on July 11th with a starting bid of $200,000. Net operating income is listed at $62,943. t $62,943. Cap rate was listed at 9% at the $699k a e $699k asking price. Cap will be off the charts if you can buy it for anything less. Keep in mind that if you are paying 6% on your mortgage and your Cap rate is 9% t s 9% then you are making 3% on the OPM (other peoples money).
115
Powered by FlippingBook