Pier 5 Condo

Now is the time to invest in real estate. The recent economic climate has made some of the best opportunities for potential profits by investing in foreclosure listings than many of us have ever seen in our lifetime. There is right now an ample supply of under-priced, empty and foreclosure listings in every state in the United States and they come in every price level and every condition.

Real estate markets will go in cycles. Right now we are definitely seeing the downward cycle and many foreclosure listings but this trend will sooner or later reverse and the prices will start to rise again. It’s inevitable. If you follow the investors maxim of “buy low, sell high” then now is the time to invest in homes and foreclosure listings because prices are so low.

Right now there are a number of ways to take the opportunity of foreclosure listings and this decreasing market. You can invest in a “short-sale”, which is essentially when a homeowner sells his own property yet gets a lower price than what he owes on the mortgage. When this happens the bank ends up taking a lower amount but does not have to deal with the problems that go along with pursuing the foreclosure and holding the property. Contact your local Realtor and check your local MLS for short-sale opportunities.

Another thing you can do to find great bargains in foreclosure listings is to check out foreclosure auctions. The foreclosure auction is usually held at the local courthouse of the county of the property. Just like any auction the property is taken by the highest bidder. Usually the price you can get these foreclosure listings at is quite reasonable as there are not often many bidders. The homes are sold “as is” though so be wary that you may have to pay for some repairs before selling or renting the property.

If the bank has to take the property back into foreclosure they will want to get the property off of their books as soon as possible. Therefore they are often very motivated and will lower the price on these foreclosure listings until they are gone. Many times they do use a realtor so check your local MLS. Occasionally they will do some repairs but often they will sell the property “as is”. Do your due diligence inspections before you close.

An advantage to investing in real estate and foreclosure listings is that even if the economy continues to go down it is not possible to lose your entire investment. Unlike making a awful investment in the stock market, real estate will always hold some value. Prices on real estate will fluctuate at times but the prices will increase again. Foreclosure listings and real estate will always be a savvy investment if you invest wisely.

As a smart investor it is your responsibility to make sure that all of the applicable inspections are completed and that your funds are ready to close. If you use cash or bank financing to buy a foreclosure listing the bank will almost always require certified funds or make you give up your earnest money. Also most banks will not provide for repair costs so if the repairs are unacceptable to you back out of the transaction.

But now is an excellent time and opportunity to invest in real estate and foreclosure listings in almost any market in the United States as the prices are low and the opportunity for profit is very good.