Many people are either losing their homes to foreclosure or walking away because it doesn't make sense for them to keep making expensive mortgage payments, when the house is worth less then the remaining mortgage. Currently 50% of home sales across the US are foreclosed homes. Although the real estate crisis is worrisome for homeowners, it is providing opportunities for families and investors.
Most real estate investors see this current crisis as an opportunity as it's the perfect time to buy cheap and hold until the market returns to normal. "There are always opportunities", explains Donald Trump. "When I first started out in Manhattan, everyone was saying what a terrible market it was". It's a good thing he didn't listen to anyone else's advice or he won't be where he is today.
Many real estate experts including Donald Trump agree that now is a great time to invest in real estate and understand that pre-forecloses offer one of the best, if not the best, real estate opportunities.
The main reason is unlike foreclosures, a pre-foreclosure is made privately between the owner and buyer and therefore avoids the bank auction foreclosure process. This provides many advantages to the buyer including more time to inspect the inside of the house and a better chance to establish a mortgage with a bank.
When looking to purchase a pre-foreclosure you also need to pay closer attention to the macro aspects (I'll cover micro aspects in a later article) of the property in order to limit your risk as much as possible. Some of these property macro aspects are:
- Do you notice an extremely unbalanced number of foreclosures available in the area? It's preferred that your pre-foreclosure deal is the only one in the neighborhood.
- Ask around to find out whether the rent rates in the neighborhood are going up or down. Buying in a neighborhood where demand for rental units is on the increase is important.
- How strong is the economy at the town and county levels? Is the current employment rate growing or stagnating?
- Check with local authorities to become informed about any infrastructure projects that may be planned within the next two or three years. Things such as new buildings and highways being built or corporations moving into town can be a positive indication of future growth.
- Consider the age of the majority of the population within the community. If the majority of the local population is seniors that own homes, that could translate into an excess of future housing as they move into elderly care facilities.
If you do your homework and find the majority of these answers to portray a positive community, then you should consider buying in that area. Buying pre-foreclosed homes at the right time in the right place can prove to be a very profitable venture. - 15224
Most real estate investors see this current crisis as an opportunity as it's the perfect time to buy cheap and hold until the market returns to normal. "There are always opportunities", explains Donald Trump. "When I first started out in Manhattan, everyone was saying what a terrible market it was". It's a good thing he didn't listen to anyone else's advice or he won't be where he is today.
Many real estate experts including Donald Trump agree that now is a great time to invest in real estate and understand that pre-forecloses offer one of the best, if not the best, real estate opportunities.
The main reason is unlike foreclosures, a pre-foreclosure is made privately between the owner and buyer and therefore avoids the bank auction foreclosure process. This provides many advantages to the buyer including more time to inspect the inside of the house and a better chance to establish a mortgage with a bank.
When looking to purchase a pre-foreclosure you also need to pay closer attention to the macro aspects (I'll cover micro aspects in a later article) of the property in order to limit your risk as much as possible. Some of these property macro aspects are:
- Do you notice an extremely unbalanced number of foreclosures available in the area? It's preferred that your pre-foreclosure deal is the only one in the neighborhood.
- Ask around to find out whether the rent rates in the neighborhood are going up or down. Buying in a neighborhood where demand for rental units is on the increase is important.
- How strong is the economy at the town and county levels? Is the current employment rate growing or stagnating?
- Check with local authorities to become informed about any infrastructure projects that may be planned within the next two or three years. Things such as new buildings and highways being built or corporations moving into town can be a positive indication of future growth.
- Consider the age of the majority of the population within the community. If the majority of the local population is seniors that own homes, that could translate into an excess of future housing as they move into elderly care facilities.
If you do your homework and find the majority of these answers to portray a positive community, then you should consider buying in that area. Buying pre-foreclosed homes at the right time in the right place can prove to be a very profitable venture. - 15224
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To locate the top pre-foreclosure sites the Internet has to offer go to government auctions review or go direct to foreclosures
