Investors Maximize Profits by Investing in Foreclosure Market
Posted on October 19, 2009
Filed Under Foreclosures, Investing | 2 Comments
As the number of property foreclosures rise, more real estate investors are looking to profit. Now, in 2009 and soon in 2010, we reach a prime time for serious investors to make a huge profit on bank owned properties.
There are over 6 million opportunities in the US to buy a foreclosed or bank owned home.
- There are 2,116,648 pre-foreclosures
- There are 1,245,927 bank owned property auctions
- There are 1,605,916 real-estate-owned properties
Christian Chase, president of Naperville-based Chase Real Estate and home foreclosure expert, has said:
“If you’re an investor, this is the best real estate foreclosure market in 13 years. If you’re a homeowner, it’s the worst market in 13 years.”
Let’s figure out how to make the most of this perfect foreclosure investment market.
Get Ready to Profit
A typical investment in a foreclosed property can yield about a $20,000 to $30,000 profit, but it can be much higher depending on the property. With a serious home rehab team, these properties can be flipped in a matter of weeks or months, or can be rented very quickly to establish a positive cash flow.
Scenario #1 for a typical foreclosure investor:
- Purchase a property for $120,000.
- Repair the home for $12,000-$15,000
- Resell the home for upwards of $160,000.
- Collect a $30,000 profit.
- Repeat.
With a proper remodeling team, a property like this can be flipped within a couple weeks.
Scenario #2 for a typical foreclosure investor:
- Purchase a property for $170,000.
- Repair the home for $10,000-$12,000
- Rent the home for $1500 a month.
- Reappraise and refinance to cover down-payment and remodeling costs.
- Repeat.
One foreclosure investment expert says that the number of active foreclosure investors is small compared to the number of people actually interested in the market. Without a program to educate and provide additional resources it is difficult to know where to start and where to look.
Many people just sit on the sidelines and don’t follow through with their interest while the individuals that take action start to see a serious profit. This means the competition for the foreclosure market is minuscule compared to most other investment opportunities.
There Is an Easy Way to Learn How
Investors can deal with foreclosures in three ways—buy the property before foreclosure, at the auction sale, or from a bank or other lender after the auction. Typically, investors report that it is easier to buy after the auction, as pre-foreclosure purchases are harder to close.
RealEstate4Pennies.com offers a robust Foreclosures program for finding and closing bank owned properties. Learning how to find these properties is easy when you are presented with a list of properties from any area in the US, which is just what the Foreclosures program offers.
An average person with a family and a full time job would be able to handle about five rental houses at a time. Running the business full-time would allow a person to manage far more. Predictions are that 2010 is going to be a tough time for home buyers, but will be ripe for profits for foreclosure investors.
This Opportunity is Just Warming Up
Foreclosures are predicted to continue increasing this year and next before leveling out in 2010. This is mostly adjustable rate mortgages will continue resetting to higher interest rates over the next couple of years.
It almost doesn’t make sense to wait any longer if you are interested in this type of investing, or if you are looking for an industry that will offer you a prime opportunity to start and run your own business.
Written and maintained by Steve
Articles on Property Foreclosure, Bank Owned Homes, and Real Estate Investments
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This is Thomas Block and I’m looking for some real estate notes to buy up.If
you have any or know of any please let me know and I can give you a quote.
Thanks
Thomas Block
ET Enterprise
We Pay Cash For Your Mortgage
We are a full service financial firm who are in the business to purchase “Mortgage Notes and or Land Contracts,” that are currently being held by the sellers of Single Family Homes, Condo’s, Small Commercial Property’s, Raw Land, Etc. We are aggressive buyers and can offer you a quote, for your “Mortgage and or Land Contract,” after receipt of initial information, withing 24 to 48 hours and a subsequent closing within 14 days.
In addition, for those who are foreclosure investors, who buy and sell houses over and over again, we can help you sell your properties with cash flow notes. We have the expertise to create a marketable real estate note and subsequently buy the note for some of the highest profits, for you, in the industry! This is a real value for those who are in the foreclosure market.
Please email Global Investment Partners, the consummate professionals in finance. You will be glad you did!
Thank you.
Samuel King, Sr.
Global Investment Partners