There’s one thing about those real estate books (or any book written during a “boom”). They say whether the boom is long gone or not. So the tactics appropriate for one market era in the 80’s for example may not work if you pick up the “best selling” book twenty years later.
As one of my recent blog posts discussed, if the price is low enough and you know what you’re doing, buying foreclosures for quick resale can work year in-year out nationwide for the big players who know what they’re doing and have a system where no single deal with make or break them.
For newbies where one deal can bankrupt you, note the impact of changing markets. That’s not to say “give up” because as things are going bust it may be just the time to buy. It is saying… know the downside and realize your holding costs may be greater than anticipated.
But as the post on buying foreclosures for quick resale said when the houses are cheap enough and you have a system, no problem.
MSNBC and the Associated Press have an important article about the Las Vegas real estate market.
In Vegas, folks were seeing upscale houses increase by $200,000 in value in 18 months. So instead of buying cheap, shabby homes, they were buying the upscale ones hoping for a quick resale and windfall profits.
The result was a glut of homes in the marketplace, communities spotted with empty houses and for sale signs — and a foreclosure rate in Nevada that leads the nation as owners unable to sell became saddled with unbearable debt payments.
In Clark County, which encompasses Las Vegas, one of every 30 homes began the process toward foreclosure last year.
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