Investing for Retirement – Real Estate

Real estate prices are falling, stock prices are falling, so where can I put my money?  While few people have money to play with these days, it doesn’t take a lot now to have some nice savings later. 

 Yes, market prices are dropping.  While this isn’t a great market for people trying to sell, it is great if you have money to spend and it doesn’t cost as much as you might think. 

Real Estate Auctions.  If you have some money set aside for a down payment, consider checking out auctions.  You can get some excellent deals as long as you have money for the initial payment and can come up with a mortgage or the remaining balance within 30 days of the close of the auction. 

http://www.williamsauction.com/                                                                                                                    This website has auctions on a monthly basis with some properties starting at $1,000.  While the lower end auctions often need rehab work, if you are not interested in rehabbing, there are plenty of other properties in very good condition.  Check back every month for the new properties because while there might not be something you are interested in one month, the next month there might be several.

When attending auctions in person or online, you need to first check out the property you are interested in.  Look for any repairs that will be needed to modify the property for your needs.  If you are going to rent out the property, does it have appliances, are new carpets needed, what repairs are necessary to make it hospitable.  You need to take all these costs into consideration when determining how much you are willing to bid on the property.  Once you know all these expenses, determine what you are willing to bid and stand firm.  In these auction settings it is easy to get caught up in the excitement and desire to win, however, you can’t let that cloud your judgment.  Once you have determined what you would like to pay, you should also determine the absolute most you would be willing to pay and still be profitable.

Real estate auctions can be a great way to find a vacation home at a great price or to start developing a few properties to rent out for some extra income.