Melvin Feller owns and is the founder/CEO of Melvin Feller Business group. He operates in Dallas Texas. A former sailor and proud supporter of our vets, Melvin now concentrates on business and his love of seeing people become successful in all areas of life. He is an avid Christian and knows all things are possible in Christ! He has been a domestic violence survivor in his marriage and divorce to Tina and more importantly a cancer survivor.
Melvin Feller MA Looks at How to Buy Right to Sell the Right Real Estate Investments
Get link
Facebook
X
Pinterest
Email
Other Apps
Melvin Feller MA Looks at How to Buy Right to Sell the Right Real Estate Investments
Melvin Feller is known as “The Entrepreneur’s Mentor” because Melvin walks his talk.
Melvin Feller has been there and done that and more importantly, Melvin
Feller knows how to transfer the skill set for success. This is main
reason that he has been the sought after coach to hundreds of small
business owners, entrepreneurs, Realtors, Real estate investors and
service professional internationally. Melvin
Feller’s main talent is to show you how the step by step process to
build and enjoy a successful 6-figure plus business while having a
balanced life. Melvin Feller maintains an office in Texas.Melvin Feller is currently pursuing another graduate degree as an MBA. Right Real Estate Investments by Melvin Feller MA
A
common mistake I see in new investors and by many veteran real estate
investors is choosing the wrong price range home to retail. When you buy
homes in the wrong price range, you will end up holding those houses a
lot longer and in some cases, you will not be able to sell the home to a
retail buyer. A retail buyer is defined as someone that can get
approval for a new loan and buy your home for full price. Need to find
your market’s sweet spot?
The
sweet spot has a large number of buyers that are less selective and
eager to buy. In most markets, it is the blue-collar price range.
Especially if you are rehabbing houses. The blue-collar price range has
homes from 15 to 35 years of age and most fixtures and features are
outdated. The bathrooms are avocado green, banana yellow, pink, and
orange! Dark cabinets are common in the kitchen. Paneling and vinyl
flooring is the norm. I think you get the picture. When you update these
older homes and a buyer compares your renovated homes to a standard
home in the same price range, there is no competition. Your home will
sell first! The buyer is getting similar or the same amenities as the
higher priced new homes.
Blue-collar
homes usually begin at 50% of the market’s median price. For example,
if your market median price were $140,000 the blue-collar homes would
start at $70,000. If you want to sell your homes, I would encourage you
to stay above $70,000 (Repaired FMV). You can obtain your median price
by calling your local Board of Realtors and inquire. They will be glad
to give it to you! Right Real Estate Investments by Melvin Feller MA
Anything
below the $70,000 (50% of median price) is a rental or you will have to
owner finance the property. The reason is these buyers below $70,000
(or below your blue-collar market) cannot obtain financing or they do
not have income to support the blue-collar homes. I can take you to a
street in my market where three homes have been rehabbed and they have
been on the market for over 18 months. The investors made the critical
mistake of rehabbing a home in the wrong area to retail.
These homes
will eventually be rented out, sold with owner financing, sold to a
property owner or they will be lost to foreclosure. Do not make this
mistake! Make sure your homes to retail are at median price after
renovation or above!
Remember this formula is used to find the bottom of the retail market.
Average Cities
Price Range
Buyers
$40,000 — $150,000
Buyers
in this range have bad credit, poor jobs, or unemployed. Renting,
Rent-to-Own and owner financing are the best exit strategies in this
range. Only a few are credit conscious & homeownership is not a
priority. Very few lenders will even consider these buyers.
$150,000 — $250,000
Best
Pool of Retail Buyers. These are your blue-collar workers, which
include technicians, mechanics, truck drivers, health-care workers, etc.
Being the largest pool of buyers, your focus should be on this group.
By providing clean, bright, updated homes in good areas, you will have
no problems finding buyers!
$250,000 — $550,000
Normally
these buyers are moving up from another home. These buyers know what
they want and usually want more space, prestige/recognition, safety, or
new features in a home. You should not ignore this group. You will just
have to understand they tend to be precise and the homes must be in
perfect shape including the yards. You cannot skimp on cheaper items in
this price range.
$550,000 — $1 million+
With
the higher priced homes, the pool of buyers is greatly reduced and they
become more particular. Try to stay within neighborhoods or
subdivisions where these homes are consistent & comparable are easy
to establish. Homes in this price range that are in average areas are
difficult to sale. Any decline in real estate values affects this range
of properties the most. Beware that FMV is more subjective in this range
as well.
*Note: This range of homes is great to work preforeclosures and then use the silent auction.
Higher End Markets –
Price Range
Buyers
$150,000 — $350,000
Buyers
in this range have bad credit, poor jobs, or unemployed. Renting,
Rent-to-Own and owner financing are the best exit strategies in this
range. Only a few are credit conscious & homeownership is not a
priority. Very few lenders will even consider these buyers.
$350,000 — $650,000
Best
Pool of Retail Buyers. These are your blue-collar workers, which
include technicians, mechanics, truck drivers, health-care workers, etc.
Being the largest pool of buyers, your focus should be on this group.
By providing clean, bright, updated homes in good areas, you will have
no problems finding buyers!
$6450,000 — $800,000
Normally
these buyers are moving up from another home. In the hotter markets,
you can also have a large pool of buyers in this market just as the
blue-collar segment. These buyers know what they want and usually want
more space, prestige/recognition, safety, or new features in a home. You
should not ignore this group. You will just have to understand they
tend to be precise and the homes must be in perfect shape including the
yards. You cannot skimp on cheaper items in this price range.
$800,000 — $3 million+
With
the higher priced homes, the pool of buyers is reduced but not as much
as the smaller markets! Try to stay within neighborhoods or subdivisions
where these homes are consistent & comparable are easy to
establish. Homes in this price range that are in average areas are
difficult to sale. A decline in real estate values affects this range of
properties the most. Right Real Estate Investments by Melvin Feller MAAction Items:
Contact the Board of Realtors and get the median price home for your market.
Take 50% of that median price and determine your blue-collar market.
Then make better buying decisions for your market.
Melvin Feller MA Business Consultant, Business Owner, Entrepreneur, Melvin Feller Ministries and MBA Graduate Student CandidateMelvin Feller MA is in Texas and in Oklahoma.
Melvin Feller founded Melvin Feller Business Group and Melvin Feller
Ministries in the 1970s to help individuals and organizations achieve
their specific Victory. Victory as defined by the individual or
organization are achieving strategic objectives, exceeding goals,
getting results or desired outcomes and a positive outreach with grace
and as a ministries. He has extensive experience assisting businesses
achieve top and bottom line results. He has broad practical experience
creating WINNERS in many organizations and industries. He has hands-on
experience in executive leadership, operations, logistics, sales,
program management, organizational development, training, and customer
service. He has coached teams to achieve results in strategic planning,
business development, organizational design, sales, and customer
response and business process improvement. He has prepared and presented
many workshops nationally and internationally.
Get link
Facebook
X
Pinterest
Email
Other Apps
Comments
Popular posts from this blog
Melvin Feller MA Business Consultant, Business Owner, Melvin Feller ministries and MBA Graduate Student Candidate
What Does Melvin Feller Business Consultants Group Business Ministries in Texas and Oklahoma Do? Melvin Feller Business Consultants Group Business Ministries in Texas and Oklahoma. Our mission is to call and equip a generation of Christian entrepreneurs to do business as ministry. We provide workshops and resources that help companies discover how to do business God’s way. When the heart of a business is service rather than self it can be transformed into a fruitful ministry. Small Business Consulting You have the idea . You have the talent . You have the drive . All that remains is the flawless execution of a well-crafted business plan. The success of all companies, large and small alike, is most limited by the knowledge and expertise of that company’s team. Trust the small business professionals at Melvin Feller Business Consultants Group Business Ministries to fill in those crucial missing pieces — you excel at what you do, we excel at building gre...
Melvin Feller Discusses a Six-Month Plan to Transition to Entrepreneur Melvin Feller Business Group in Burkburnett Ministries and Dallas Texas and Lawton Oklahoma. Our mission is to call and equip a generation of Christian entrepreneurs to do business as ministry. We provide workshops and resources that help companies discover how to do business God’s way and provide a positive outreach. When the heart of a business is service rather than self it can be transformed into a fruitful business ministry earning a profit and being of service to the community and their customers. Melvin Feller is currently pursuing another graduate degree in business organizations. Six-Month Plan to Transition to Entrepreneur by Melvin Feller Aspiring entrepreneurs often wonder how long it takes to get a small business started. The answer is, “it depends.” Some new enterprises can be up and running in a matter of weeks; others may require several months or more of diligent plan...
Comments
Post a Comment