Real Estate Market Changes Bring New Opportunities for Investors to Make Big Money!

By: John T. Daniel
Submitted: 2007-03-28 15:45:50
Print this article | Tell a friend | For publisher | Social Bookmarking
Rating:
 
Consumers are seeing the end of the ever increase real estate values with year over year double digit gains.  This new market seems to have signaled the end of the housing boom. The foreclosure rate is now skyrocketing to the highest levels seen in a decade.  There is bad news everywhere or at least this is so for many who stretched beyond their financial means.  But not everybody will suffer. For those with cash, real estate buying opportunities are plentiful and the margins below market pricing that they can purchase the property are getting bigger and better. There are several sources investors can turn to for bargain basement deals. In almost any multiple listing service, banks are marketing foreclosure properties(real estate owned) for 3% to 5 % below market prices in most Orange County California markets. In other areas of the country such as North Carolina, banks may be discounting as much as 10% off market pricing.  In Colorado, builders are having such a hard time moving inventory that they have slashed prices and are offering incentives.  In these markets, you may be able to buy a brand new home in rent ready condition with break even on cash flow for as little as 20% down. The builder may even guarantee you rent for x number of months or find a tenant for you.  Such is the case in many Florida communities where prime golf course property can be purchased for a similar deal.  Short sales are abundant in the California marketplace, but the banks are so swamped with the onslaught of problem loans that it is often months before they get back to you. (A short sale is when the bank agrees to accept less than the outstanding loan on the property.) Tax sales can prove profitable, but there is a lot of competition at these auctions for very few properties. Most California counties hold tax sales a minimum of 2 times per year and auction the property off for the unpaid taxes due on the property.  Properties typically go to sale after 4 years of unpaid taxes.

Trustee sales may be your best bet to make serious cash. I have attended many Trustee sales and have seen incredible properties sold at margins sometimes 20% or 30% below market.  These are lucrative deals and you can earn hundreds of thousands of dollars purchasing these properties.   Buyer beware, you must do your homework prior to bidding as not all liens are wiped out in this type of auction.  Property taxes, IRS liens, special assessments, and Hoa dues may all be payable and you may still have fix up costs.  But at margins like this, if you do your homework, it will pay off.

So if you are an investor, now is the time.  The mother of all deals may just be around the corner and it was once said “fortune favors the prepared mind.”  Perhaps they should have said fortune favors the prepared wallet.  For investors with cash that like to buy heavily discounted properties, this may be the time you have been waiting for.  Ready your cash and keep your eyes wide open.

The author John Daniel is a licensed real estate broker and investor in Orange County California The author John Daniel is a licensed Real Estate Broker and investor in Orange County California. He is an experienced realtor that specializes in South Orange County residential homes and Orange County investment real estate. Find more information at foreclosure properties.

Article source: Expert Articles

Most Recent Articles in Real Estate category

  • The Silver Lining of the Foreclosure Crisis - By: Leslie Eskildsen
    They need capital to not only buy the home, but also to restore it. Foreclosure homes can range from an empty, abandoned building to a trashed house with garbage strewn all over the place, missing fixtures and a galloping case of mold or termites.
  • Why You Should Invest in Spanish Property - By: Craig Edmonds
    The reasons why people choose to invest in Spanish property are varied. Those wanting to spend their vacation in this beautiful country know all about its beautiful beaches and romantic culture. They want to experience its golden sunsets and warm nights with the sea air wafting through the curtains.
  • Additional Inspections to Get Before You Buy That Home - By: Greg Smith
    Hiring a licensed pest inspector to check the home for wood destroying organisms such as termites and mold is always a good idea. Termite infestation wreaks havoc on the wood structures in your home, while keeping their presence a well-kept secret. Often it isn't until a great deal of damage has been done that you discover that you have termites.
  • The Ins & Outs of Sale Contingencies - By: Greg Smith
    A sale contingency is a critical contract addition for a buyer who owns a house that he or she needs to sell before closing on a new one. If she doesn't add this provision to the contract, she faces the possibility of having to pay two mortgages. With a sale contingency in place, the contract for the new home becomes null and void if she is unable to sell her home.
  • Problems With Mineral Rights Leasing - By: Anna Poelo
    Problems and disputes cannot be wholly avoided in mineral rights leasing.
  • Milwood homes for those wanting to settle - By: Joe Cline
    It is your typical Austin community: landscaped lawns, tree-lined side-streets, kids playing, couples strolling, all awash in Texas sun on a summer's day, and you scout around for 'for sale' or 'for rent' signs.
  • Rosedale: An Austin Neighborhood By Any Other Name - By: Joe Cline
    Rosedale is simply enchanting. The small cottage-like homes offer a charming, homey, and exquisite appeal. The neighborhood offers a mix of the old and new Austin.
  • The 4 Parts of a Business Plan for Real Estate Agents - By: Cheri Alguire
    This model of business planning and goal setting for Real Estate Professionals breaks the process down to four parts and seventeen steps.
  • Tenant Screening - the first line of defense - By: Garret Lloyd
    Getting a tenant for an unoccupied apartment is definitely a good idea. But getting good tenants is of prime importance in order to ensure safety and peace of mind in the long run.
  • What is online reverse auction? - By: Ron Victor
    Reverse auction deals with internet auction and e-purchasing. This is also known by many names like procurement auction, sourcing event, e-sourcing, and e-auction. Generally in an auction, purchaser is allowed to place a bid on an item on the amount that he is willing to pay so that he can buy that item.