Published on : 04 May 20203 min reading time
Interested in foreclosure properties? Well, why not? Almost every website and newspaper has been buzzing about the five million homes that are open to sale all over the US. These foreclosed homes were owned by banks, but that was in 2010.
Large investment firms have snapped up chunks of property all over the US and inventory is a little low. So does that mean that the foreclosure market is exhausted? No says Jeff Adams, surprisingly the foreclosure market is still going strong and expected to bloom by the end of 2015.
We are now almost eight years away from the mortgage crisis in which nearly five million homes were lost. Financial analyst CoreLogic states that the crisis has receded and foreclosures have dropped to an acceptable 1.7% in June 2014. Sales of foreclosed properties are at their lowest since 2008 but almost every industry expert agrees on this: foreclosures will spike again by mid-to-end 2015.
Credit rating firms like TransUnion estimate that almost $50 to $79 billion in home equity loans will default again resulting in a spike in foreclosures by mid-2015 to late-2015.
Preparing For the Spike
A) As an investor, you should be prepared to exploit the foreclosure market when it comes around. You can start by arranging finance. Lending firms usually do provide loans for real estate investors. You may have to pay a higher than normal interest rate but you can recover this if you rent or resell your property.
B) Start by researching the foreclosure process. The foreclosure process has changed since 2009 and a little hard work will be required. Attend real estate investment classes, math and accounting training, and foreclosure investment training. Experts like Jeff Adams #1 Real Estate Trainer are your best choice as they are regular investors and they know how the market works.
C) Research the neighborhood you like. Try not to invest in large cities as these areas are already saturated with investors. Choose satellite towns or small communities located close to large towns. You are more likely to find affordable property in a great area.
D) Search for foreclosed properties, short sales, or properties in pre-foreclosure. All of these options are great. However, at the same time, don’t forget to take a look at new properties as well. New construction is increasing and you should use it as a comparison feature to understand what you are buying.
E) Invest in property. Once you’ve decided what you want, it’s time to do due diligence on the property, put in your bid, and pay the piper if your bid is selected.
Jeff Adams #1 Real Estate Trainer states that a second foreclosure spike is imminent and it could result in a boom for first-time investors. With large firms out of the picture, small investors and first-time buyers have the pick of the market. If you are one of these investors, just make sure you research the sale as much as possible. If you are careful, you could easily end up making a substantial profit on a very good deal.
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