Investing in Outer Banks Foreclosures – What is Happening?

Outer Banks Sunrise

The word is out – the Outer Banks is the place to buy foreclosures.  I just had an investor travel the entire coast of our state and found the best buys are right here on the Outer Banks.  We are finding properties with gross rental incomes of 10% or higher in relation to the sales price.  There is a property in Avon – beautiful 7 bedroom home built in 2002 with an elevator, pool, hot tub and neighborhood amenities that was grossing over $72,000 seasonal rental income and it was listed for $529,000.  This property is now under contract and I am waiting to see the final sold price.  These properties are going under contract quickly when priced this aggressively.

I am also seeing a multitude of offers submitted on some of these properties.  There were over twenty offers submitted on one foreclosure and the listing agent closed the listing to new offers.  About half of these offers were cash deals.  The property is under contract and should be closing this week.  I will be anxious to see the final sale price which will be above the list price.  So what does this mean?  That when the next great deal comes on the market – there will be over twenty clients waiting to submit an offer.

I had another client coming in to view foreclosures last weekend and both properties went under contract during the week.  We still found another great deal that just had a price reduction.  Which brings up another important point – all foreclosures are not priced aggressively.  There is one that has had four price reductions and three different listing companies.  So you will need to really look at the history of the property and market conditions in that area to determine the pricing.