As the sub prime mortgage debacle unwinds with talk of soaring mortgage rates and government bail outs, the reality is that the real estate cycle is kicking in.
It looks like the next few months will produce a “buyer’s market” as homes go into foreclosure and banks desperate to unload unprofitable properties will make some real “deals”.
Impulse investors will go with their “gut” to find what they think is a good deal, might purchase too early, and fail to get the investment returns they might.
Professionals will take a more dispassionate approach to investing in real estate foreclosures.
They will review dozens if not hundreds of properties to identify a possible handful of oppotunities.
This will help minimize their risk in foreclosure investing. In the process it will help maximize their returns on the upside.
The lower the initial “buy in”, the longer the investor can wait for an upswing in the market to sell at a profit.
Newbie real estate investors assume all times are equal to begin investing in real estate.
This significant downturn in real estate will probably see deals that might not have been available for years… if would be investors wait for the true bottom of the market by analyzing many properties over the next few months.
No comments yet.