It’s been an open secret for decades that investing in foreclosure properties is a great way to make money and prepare for a secure retirement, but the conditions for buying foreclosures have never been better than they are right now. The housing market is completely in the tank at present thanks to a horrible economy that has millions out of work and unable to make their monthly mortgage payments.
While I certainly feel for all the folks who will not be able to stay in their houses, the situation has created a foreclosure investment market unlike any I have ever seen before. Property values have plummeted to the point where great houses can be purchased for pennies on the dollar, and the banks are ready and eager to cut deals in an effort to get these distressed properties off their books.
Yes, lending is tight at the moment, but loans are available for those with good credit and a decent down payment. And the best part of it all are the historic low interest rates that have payments on new loans at incredibly low levels right now.
Some people have a “moral problem” with investing in foreclosed properties, but that thought is misguided at best. After all, the buyer is not responsible for the poor fortunes of the former homeowner and neither is the bank. He/she is going to lose the home whether you end up buying it or not, so a prudent investor will take advantage of the inevitable and make some good money on the deal.
The bad news for the housing market is that home prices are currently in the basement. The good news for investors is that prices are surely destined to rise again as soon as the economy improves. The time to take advantage of investing in foreclosures is NOW while you can still “buy at the low and sell at the high”!
About the author: Neil Jankovich has been in the real estate investment business for most of his adult life. Although he still actively trades in the distressed real estate market, most of his attention right now is on educating the public about the advantages of buying foreclosed properties.