Now is the opportunity to put your money in real estate. The current economic climate has produced some of the best opportunities for potential profits by investing in foreclosure listings than most of us have ever seen in our lifetime. There is right now an ample supply of under-priced, empty and foreclosure listings in every city in the United States and they come in every price level and every condition.
Real estate markets tend to go in cycles. Right now we are really seeing the downward cycle and many foreclosure listings but this trend will sooner or later reverse and the prices will start to rise again. It's inevitable. If you follow the investors maxim of "buy low, sell high" then now is the time to invest in homes and foreclosure listings because prices are so low.
Right now there are numerous ways to take advantage of foreclosure listings and this decreasing market. You can purchase a "short-sale", which is essentially when a homeowner sells his own home yet gets a lower price than what he owes on the mortgage. When this happens the bank ends up taking less but does not have to deal with the problems that go along with pursuing the foreclosure and holding the property. Call your local Realtor and check your local MLS for short-sale opportunities.
If you are not able to take advantage of a short sale the next place to find the best foreclosure listings would be to check out a foreclosure auction. The foreclosure auction is most often held at the local courthouse of the county where the property resides. The property is then sold to the highest bidder and the selling prices are often very reasonable. As an investor you may realize a good profit margin when you use this method of purchase. The only caution to be wary of is that these homes are sold "as is" without the benefit of any inspections, any and all repairs will be the responsibility of the investor.
If there are no buyers besides the bank at the foreclosure auction the bank will have to sell the property themselves. Most of them will use a realtor but as highly motivated sellers they will drop the price as necessary until the property sells. Some of these properties have had repairs done but most will need repairs. Make sure and complete the proper inspections on any foreclosure listing that you buy.
When someone invests in the stock market and the stock crashes they have the potential to lose every single dime that they invested. That is a definite advantage to investing in real estate and foreclosure listings. While we may not be able to predict when or how much the price will rise you always know that the home is worth something and you can sell it or rent it. In distressing economic times this makes investing in real estate and real estate foreclosures a great opportunity compared to many other investments.
As a savvy investor it is your responsibility to make sure that all of the appropriate inspections are completed and that your funds are available. If you use cash or bank financing to purchase a foreclosure listing the bank will almost always require certified funds or make you forfeit your earnest money. Also most banks will not pay for repair costs so if the repairs are unacceptable to you back out of the transaction.
But now is an an opportune time to invest in real estate and foreclosure listings in almost any market in the United States as the prices are low and the opportunity for profit is very high.
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